Singapore Crypto Tax: A Comprehensive Guide (2024)

Navigating the world of cryptocurrency taxes can be a daunting task — especially if you’re thinking about relocating to another country. In this guide, we dive deep into Singapore's stance on crypto taxation, so you can better understand your tax obligations as a crypto investor in the Lion City.

Is Singapore a crypto-friendly country? 

Yes. Singapore is renowned for its progressive approach to digital currencies. The country has no capital gains tax for individual investors and has established a crypto-friendly regulatory environment — including being one of the first countries to have regulations for stablecoins. 

As a result, Singapore is a hub for cryptocurrency startups and investors! 

Can the IRAS track cryptocurrency?

Licensed cryptocurrency exchanges in Singapore are required to meet Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. As a result, it’s likely that major exchanges operating in Singapore report tax evasion and other illegal activities to government authorities. 

Do you pay crypto tax in Singapore? 

Singapore has no capital gains or income tax on cryptocurrency for individual investors. 

However, you may pay the 8% goods and services tax when you buy, sell, and trade cryptocurrency that are not officially designated ‘digital payment tokens’ (more on this later in the article). 

If you're trading cryptocurrency as a business, your profits will be subject to income tax.

What are the tax rates in Singapore? 

Currently, there is no capital gains tax in Singapore. That means that unlike most countries, you won’t pay taxes for selling and trading away your cryptocurrency as an individual investor! 

You may be required to pay income tax if you trade cryptocurrency as a business or earn crypto in exchange for goods and services. Taxes for residents range between 0-22%. 

Non-residents’ income is taxed at a flat rate of 15% on employment income and 22% for other types of income. 

What is a digital payment token in Singapore? 

Bitcoins, Ether, Litecoin, Dash, Monero, Ripple and Zcash are considered ‘digital payment tokens’. When you trade one digital payment token for another or trade a digital payment token for fiat currency, you are exempt from GST. 

Will my trading activity rise to the level of a business? 

Remember, your trading income may be taxed as business income — even if you do not have a business entity set up! 

Some factors that may determine whether or not your trading income is subject to income tax include the length of time you hold your cryptocurrency and the frequency of your trading activity. 

If you’re not sure how your trading income in Singapore will be taxed, you should reach out to your tax professional. 

Can I relocate to Singapore and receive tax benefits? 

Because of Singapore’s tax benefits, many entrepreneurs and investors do choose to relocate. Singapore does offer options for foreign citizens to become residents such as the Singapore Employment Pass — for workers with a job offer in Singapore who earn more than $5,000 a month — and the EntrePass — for entrepreneurs who wish to start a business in Singapore. 

Generally, American citizens are taxed on their worldwide income — even if they live and work abroad during the entirety of the tax year. However, the USA and Singapore signed a tax treaty in 2004 to prevent residents of countries from the burden of double taxation. 

When is the deadline for crypto taxes in Singapore? 

In Singapore, the tax year runs from January 1 - December 31. 

The deadline for paper filing your taxes is April 15. The deadline for e-filing is April 18. 

How is buying goods and services with crypto taxed in Singapore?

Singapore has exempted digital payment tokens from goods and services tax (GST) to encourage their adoption. As a result, buying goods and services with certain cryptocurrencies can help you avoid the 8% GST — which can be a substantial amount of money with a large purchase! 

How are crypto losses taxed in Singapore? 

Just as capital gains are not taxed for individual investors in Singapore, capital losses do not carry tax benefits for individuals. 

If you’re running a cryptocurrency business, your crypto losses can be used as a deduction against income. 

How is crypto mining taxed? 

If you’re an individual mining cryptocurrency as a hobby, your earnings will likely be tax-exempt. 

However, if you’re mining cryptocurrency as a business, your earnings will likely be subject to income tax. It’s likely that if you’re mining in a systematic and habitual manner for the purpose of generating profits, your mining activity will be categorized as a business. 

How is cryptocurrency staking taxed? 

If you lend and stake crypto and earn more than SGD 300, you’ll likely be required to pay income tax on your profits. Your staking income should be reported alongside your overall income on your tax return. 

How do you report crypto tax in Singapore? 

If you’re a resident or non-resident of Singapore who’s earned income from digital assets, you are required to report it on your tax return. This is true even if your transactions are not subject to capital gains tax. 

You should report all of your crypto transactions and sort them into two categories. 

1. Cryptocurrency used for money, goods, and services 
2. Cryptocurrency investment gains 

What tax forms do I need to fill out in Singapore? 

Once you’ve collected the relevant information you need on your crypto transactions, you can fill out your tax forms. You can file your tax returns electronically from March 1 to April 18. 

You can find the relevant IRAS tax forms here. 

In conclusion 

Singapore is one of the world’s most crypto-friendly countries. The country’s tax policies make it an attractive destination for investors and businesses across the globe.