Cha & Kwon Law Offices conducted a legal review on the obligation of overseas corporations for withholding tax on virtual asset income. The client requested a review of matters that should be paid attention to in practice, such as laws and regulations that overseas corporations generating virtual asset income in Korea must comply with in bearing tax obligations.

According to the Tax Tribunal's decision, as virtual assets are intangible assets that can be stored and traded electronically, and thus have property value, profits earned from trading virtual assets shall be regarded as domestic income of overseas corporations.

However, our firm reviewed the above withholding obligations and confirmed the principle that the obligation shall be borne by the person who pays the income according to the Corporate Tax Act in Korea.

Cha & Kwon Law Offices keeps sharp attention to rapidly changing regulatory developments and continues to respond promptly to pending issues. Consult with Cha & Kwon Law Offices for legal advisory services with professional experience in the field of virtual asset business and taxation.