Cryptocurrencies Account for Over 70% of Reported Overseas Assets
In the latest report by South Korea's National Tax Service (NTS), it has been revealed that cryptocurrencies, mainly Bitcoin (BTC), accounted for the largest share of the country's reported overseas assets. According to the official announcement by the NTS on Sept. 20, a total of 1,432 individuals and corporations reported overseas accounts in cryptocurrency this year.
The reported amount in crypto totaled 130.8 trillion Korean won (KRW), or $98 million, making up a whopping 70% of the total amount in all reported overseas assets.
Total Reported Overseas Assets
The official data showed that a total of 5,419 entities reported their overseas financial accounts, holding a combined total of 186.4 trillion KRW ($140 million) in assets, including cryptocurrencies, stocks, deposits, and savings.
While cryptocurrencies took the lead in terms of the amount of reported assets, deposits and savings accounts topped the list based on the number of reports. A total of 2,952 individuals and companies reported holding 22.9 trillion KRW ($17 million) in deposits and savings accounts. Additionally, 1,590 entities reported holding stocks worth 23.4 trillion KRW ($17.6 million).
Crackdown on Failure to Report Overseas Financial Accounts
The NTS has stated that it plans to heavily scrutinize individuals and corporations who fail to report their overseas financial accounts. The tax regulator has been gathering cross-border information exchange data, foreign exchange data, and related agency notification data. Those who violate the reporting rules will face fines. The NTS emphasized that tax authorities worldwide are preparing to exchange information in order to combat the risk of potential tax base erosion through virtual assets.
South Korea's Stance on Crypto Tax
South Korea, known for being a crypto-friendly country, has been closely focused on cryptocurrency tax regulations in recent years. The country has confiscated millions of dollars in crypto from tax evaders. In August 2023, the South Korean city of Cheongju announced its plans to start confiscating cryptocurrency from local tax delinquents.
Earlier this year, the South Korean government postponed the implementation of the 20% tax on crypto gains. Initially set to be enforced from early 2023, the tax has been delayed until 2025.
