South Korea Clarifies Tax Reporting for Overseas Crypto Income

According to PANews, the South Korean National Tax Service (NTS) has clarified that virtual assets received as labor income from foreign companies must be reported in the comprehensive income tax return. This announcement follows an inquiry received by the NTS in March regarding whether residents who sign separate incentive contracts with foreign companies and receive cryptocurrency must declare it as foreign income. On July 9, the NTS confirmed that if taxes are not withheld and paid through a tax association, taxpayers are required to submit a comprehensive income tax return. This position is based on Article 127 (withholding tax responsibility) and Article 70 (final declaration of global income tax base) of the Income Tax Act.