March 14, 2012
By Sharan Kaur Phillora
In the latest report by The Business Times, Singapore Finance Minister Lawrence Wong addressed in the parliament that the prevailing income tax rules will apply to the income generated from non-fungible token (NFT) transactions or trading in it. Due to the absence of a capital tax regime in Singapore, individuals deriving capital gains from the NFT transactions will not be taxable, Wong clarified.
Here’s everything we know:
- The news comes amid the recent tax changes that many analysts believe will help in reducing inequality, strengthening the social compact, aiding longer-term spending.
- Earlier in January this year, Singapore officials had cautioned the citizens in terms of decisions related to digital investment vehicles, especially in the nascent sectors of NFTs and ngaporemetaverse.
- Platforms trading cryptocurrency, the currency used for NFT purchases, were also banned by the Monetary Authority of Singapore from advertising their services in all forms.
- However, Wong said that there may be individuals who derive capital gains from NFT transactions. Those profits won’t be deducted because Singapore does not tax capital gains.
- The lack of a capital gains tax makes the city-state an attractive haven for many high-net-worth individuals, despite its 2022 budget proposing to raise taxes for high earners. Singapore’s monetary watchdog (MAS) also has stringent regulations to safeguard cryptocurrency investors.
- Despite being often touted as the next crypto hub in Asia, Singapore had urged global regulators to exercise greater control over digital investments.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.