Singapore introduces taxes on NFT trading
In a jolt for the crypto community across the globe, Singapore’s finance minister announced on Friday that the country would introduce taxes on NFT trading.
Finance Minister Lawrence Wong announced to the Singaporean parliament that NFT transactions would be taxed under current tax standards. The minister clarified that the tax regulations will apply to people who generate income through trading NFTs, but not to those who derive capital gains from NFTs.
It should be mentioned that Singapore, in particular, has no capital gains tax framework and is considered by many to be a tax haven when it comes to capital gains from stocks, crypto assets, etc. .
Wong went on to add that the Inland Revenue Authority of Singapore would consider various factors to determine whether an individual wins NFT transactions, including asset characteristics, holding time, purchase intent, volume of transactions and reason for sale.
Interestingly, as the Web3 wave is revolutionizing finance and people are finding various ways to earn money through crypto-assets, regulators are gradually expanding their authority to tax cryptocurrencies.
Indian Finance Minister Nirmala Sitharamn announced during the last budget session that all virtual digital assets would be taxed at a flat rate of 30%. In the United States and Australia, taxes on cryptocurrency and NFT transactions are already in place.
On the other hand, there is another group of nations that ease the taxation of profits derived from crypto assets. South Korea’s newly elected president has promised to significantly increase the tax threshold for crypto assets. Thailand has also recently relaxed its crypto taxation policy.
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