National Tax Service: "Overseas labor income and virtual assets are also subject to comprehensive income tax reporting"

The National Tax Service determined that virtual assets (cryptocurrencies) received as overseas labor income are also subject to the obligation of reporting the standard for comprehensive income tax.

According to detailed materials from the National Tax Law Information System's inquiry response on the 9th, when asked whether a resident must file a comprehensive income tax report on labor income received from an overseas local corporation, the NTS replied, "If a resident with labor income under Article 127, Paragraph 1, Item 4 of the Income Tax Act did not have tax withheld at source by a tax withholding association for that income, there is an obligation to file a comprehensive income tax return in accordance with Article 70 of the Income Tax Act."

According to Supreme Court precedents, labor income includes all economic benefits in return for providing labor, regardless of the form of payment or name, as well as salaries that constitute the terms and conditions of employment and are closely related to work.

Based on these cases, a resident who receives virtual assets as labor income overseas is obligated to file a comprehensive income tax return; failure to do so may result in the application of a 7-year statute of limitations for additional assessment.