Sunday, November 28

Financial authorities “NFT taxation possible”… Tax authorities “not ready”

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With the taxation of virtual assets starting next year, the government has taken a stance that some non-fungible tokens and NFTs may also be taxed. If it is used as a payment or investment method, it can be regulated by the current law.

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With the taxation of virtual assets starting next year, the government has taken a stance that some non-fungible tokens and NFTs may also be taxed.

If it is used as a payment or investment method, it can be regulated by the current law.

Non-fungible tokens, NFTs, are tokens that can be viewed or downloaded from the Internet, but are recognized as a single digital authenticity using a kind of blockchain technology.

According to international standards, financial authorities have postponed specific interpretations, although “NFTs can be regarded as virtual assets when used for investment or settlement purposes.”

However, recently, the Vice Chairman of the Financial Services Commission appeared at the National Assembly and said, “Some NFTs are classified as virtual assets and can be subject to taxation under the current law.”

However, it did not specifically mention which cases are payment and investment methods.

In response, the Ministry of Strategy and Finance said, “It is up to the financial authorities to classify which of the NFTs are virtual assets, and there is no fact that taxation is being prepared.”

The reason why NFTs are engaged in a war of nerves between ministries over whether to incorporate virtual assets is because of concerns about market turmoil.

Recently, game and entertainment companies have announced that NFT technology will be applied, and the stock price has skyrocketed.

[위정현/한국게임학회장 (중앙대 교수) : 게임 밖으로 나가서 현금으로 환전하는 건 현재 법으로 금지돼 있습니다. (그런데) 일부 기업들이 의도적으로 주가를 띄우기 위한 하나의 도구로 쓰는 경우도 많이 보고 있습니다.]

Even now, political circles are arguing that the taxation of virtual currency should be deferred, so further discussion seems necessary before determining the scope of NFT regulation.

(Video coverage: Kim Gyun-jong, video editing: Kim Jun-hee)

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Reference-news.sbs.co.kr

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