Abstract

In this study, taxation problems that arise when NFTs are classified as virtual assets in accordance with the current 「Act on Reporting and Utilization of Specific Financial Transaction Information」 and are taxed as other assets under the 「Income Tax Act」 are raised and solutions are presented. wanted to present. Since NFT has various functions depending on the purpose of issuance and transaction type, it is difficult to define it as a single asset and tax it because it cannot be specified as a single asset. Therefore, if NFTs are included in virtual assets under the current 「Income Tax Act」 and taxed, they may not reflect economic realities at all, causing problems in taxation equity in transactions with similar realities. In other words, NFTs are classified by type according to the purpose of issuance and transaction type, and it is judged that discriminatory taxation is absolutely necessary to match the economic substance of NFTs. In this study, NFTs are classified into ownership－type NFTs, securities－type NFTs, and other NFTs according to the purpose of issuance and transaction type, and a reasonable taxation plan suitable for the economic substance of NFTs is presented by discriminating taxation on each as follows. First, since owned NFTs are a means of proving the originality, ownership, and transaction history of the underlying assets, it is mandatory to report single token transactions and trade them. Second, since securities－type NFTs are investment contract securities issued for the purpose of investing in underlying assets or raising business funds, the relevant income is listed in the 「Income Tax Act」 so that it can be taxed as the newly established and scheduled financial investment income tax. need to be specified. Third, other NFTs are NFTs that do not fall under the above owned NFTs and securities NFTs, and are taxed as virtual assets of other income under the current 「Income Tax Act」.

Keywords

• NFT
• Individual Income Tax
• Acquisition Tax
• Virtual Assets

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