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🎓 The NFT tax enters Singapore… and these are the details

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Singaporean Finance Minister Lawrence Wong announced on March 11 that NFT owners in Singapore will begin paying taxes on their investments, with income tax treatment determined based on the nature of the use cases. of NFTs.

The announcement comes on the heels of recent fiscal measures that many analysts say will help reduce inequality, encourage social regulation and support long-term spending.

The Finance Minister also clarified that income tax rules will apply to income generated from transactions or NFT transactions, and persons who earn money from transactions or NFT transactions will be subject to tax, however, capital gains from NFT transactions will not be subject to deduction because the capital tax system is not present in the country.

Unlike Singapore, where the US imposes income tax and capital gains tax on trading cryptocurrencies and NFTs, the Singapore Tax Authority will rely on multiple factors to determine if a person is trading with cryptocurrencies. NFT or making profit from NFT transactions.

Factors to consider include the type of asset, its intended use, the length of time it is held, the frequency and volume of similar transactions, the financial framework for holding the asset for the long term, and the reasons for selling it.

Mr. Wong said in an interview with CNBC in February that Singapore is considering implementing a variety of wealth taxes, including a tax on capital gains and dividends and a net wealth tax applicable to individuals.

According to the minister, more equitable and progressive taxation would help unite Singaporean society as the country faces a new, more turbulent post-pandemic future.

Although Singapore does not treat cryptocurrencies as legal tender, the country allows the use of cryptocurrencies in regulated transactions, and since China banned cryptocurrency trading and mining, Singapore has become a place where most exchanges and cryptocurrency projects are carried out in China.

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