South Korea’s Ministry of Economy and Finance has decided to classify perpetual contracts linked to U.S. stocks as overseas equity derivatives, bringing them into the capital gains tax regime. Starting next year, gains earned by South Korean investors from trading these products through offshore crypto exchanges will be taxed at 11% after a basic annual deduction of 2.5 million won. The ministry said the rate is half the 22% tax applied to overseas spot equities. These perpetual products, traded on offshore venues including Binance, track U.S. stocks such as Nvidia, Apple, and Tesla. Because South Korea’s Financial Services Commission has not permitted perpetual contracts, local investors can only access them through overseas exchanges. Data cited in the report showed that trading volume for such products across 19 global exchanges reached about $1 trillion from January to August this year. The South Korean government also plans to obtain relevant trading records from investors’ activity on overseas exchanges and use them as the basis for taxation.
South Korea’s Ministry of Economy and Finance has decided to classify perpetual contracts tied to U.S. stocks as overseas equity derivatives, bringing them under capital gains taxation, according to Odaily.
Starting next year, profits earned by South Korean investors through offshore crypto exchanges from these products will be taxed at 11%. Tax will apply after a basic annual deduction of 2.5 million won. The report said the 11% rate is half the 22% tax imposed on overseas spot equities.
U.S. stock perpetuals are traded on offshore crypto exchanges including Binance and track shares such as Nvidia, Apple, and Tesla. Since South Korea’s Financial Services Commission has not allowed perpetual contracts, South Korean investors can only access the products through overseas exchanges.
Data showed that from January to August this year, trading volume in these products across 19 global exchanges reached about $1 trillion. The South Korean government plans to obtain relevant trading records tied to investors’ activity on overseas exchanges and tax them on that basis.
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