South Korea's National Tax Service: Cryptocurrency earned from overseas employment must be declared and paid for income tax

PANews reported on July 9 that according to Digital Asset, the National Tax Service (NTS) of South Korea has made it clear that virtual assets obtained from overseas companies as labor income must be reported in the comprehensive income tax return. In March of this year, the National Tax Service received an inquiry about whether residents who signed separate incentive contracts with foreign companies and obtained cryptocurrencies from them need to report them as overseas income.

On July 9, the agency confirmed that taxpayers will be required to file a comprehensive income tax return if taxes are not withheld through the tax association. The National Tax Agency based this position on Article 127 (withholding obligation) and Article 70 (final declaration of worldwide income tax base) of the Income Tax Act.