South Korea’s Ministry of Economy and Finance has decided to classify perpetual contracts tied to US equities as overseas stock derivatives and bring them under capital gains taxation, according to an exclusive report by Maeil Business Newspaper. Starting next year, gains from trading these products through overseas crypto exchanges will be taxed at 11% after an annual basic deduction of 2.5 million won. The reported rate is half the 22% tax applied to overseas spot stocks. The report said these products, traded on offshore crypto platforms such as Binance, track US stocks including Nvidia, Apple, and Tesla. Because South Korea’s Financial Services Commission has not allowed perpetual contracts, local investors can only access them through overseas exchanges. Industry 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 is also said to be planning to obtain investors’ transaction records from overseas exchanges and levy taxes based on those records. The report cited a South Korean government official, but said the finance ministry has not officially confirmed the matter.
South Korea’s Ministry of Economy and Finance has decided to classify perpetual contracts linked to US stocks as overseas stock derivatives, bringing them into the capital gains tax regime, according to an exclusive report from Maeil Business Newspaper.
Beginning next year, profits from investing in these products through overseas crypto exchanges will be taxed at 11% after applying an annual basic deduction of 2.5 million won. The report said that rate is half of the 22% tax imposed on overseas spot stocks.
Maeil Business Newspaper described US stock perpetual contracts as derivatives traded on overseas crypto exchanges such as Binance that track shares including Nvidia, Apple, and Tesla. Because South Korea’s Financial Services Commission has not permitted perpetual contracts, South Korean investors can only access them through offshore exchanges.
According to industry figures cited in the report, trading volume for these products across 19 global exchanges totaled about $1 trillion from January to August this year. The South Korean government is planning to secure relevant trading records of investors on overseas exchanges and tax them on that basis.
The report cited a South Korean government official. The matter has not been officially confirmed by the Ministry of Economy and Finance.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
