Income derived from NFT transactions in Singapore will be subject to tax, reported The Business Times.
Tax treatment “will be determined based on the nature and use of the NFT,” said Singapore’s finance minister, Lawrence Wong, in parliament today. He added that the tax would apply to people who derive income from NFT transactions, including those who trade NFTs.
Singapore officials earlier warned its citizens regarding NFTs and the metaverse as the government tries to understand the nascent scene. Recently, the country’s so-called “Crypto King” came under fire for promoting play-to-earn games whose native tokens eventually tanked.
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.
See also: Meet Singapore’s pioneering NFT creators
Editing by Collin Furtado and Jaclyn Tiu
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