Guide to Crypto Taxes in Singapore for 2024
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Singapore crypto tax regulations are generally favorable both for individuals and businesses, as the country has no capital gains tax.
For individual Singapore taxpayers, crypto is typically exempt from income tax unless you are considered a professional trader or receive the crypto as payment for goods and services.
Singapore has a well-defined tax policy for cryptocurrency and is known as a crypto tax haven for individuals and businesses. There are good reasons why many exchanges, including Phemex and Crypto.com, are based there. In this article, we’ll look at common questions about Singapore crypto tax and more.
Do you pay crypto taxes in Singapore?
Crypto taxes in Singapore are famously advantageous for both individuals and businesses. There are no capital gains taxes for individuals. Singapore taxes crypto depending on the nature of your activity.
If you trade crypto during business, Singapore will look at your trades like any other income from business activity and subject your gains to income tax, meaning you’ll need to report these on your annual tax return.
However, if you purchase crypto and hold it for the long term as an investment, your gains will not be subjected to capital gains taxes as Singapore does not impose these.
Is Singapore a crypto-friendly country?
Yes, thanks to its progressive and clear regulatory framework, Singapore is widely regarded as a crypto-friendly country. The nation's approach to digital currencies, including the absence of capital gains tax for individual investors, makes it an appealing destination for cryptocurrency enthusiasts and investors.
Additionally, Singapore's regulatory body, the Monetary Authority of Singapore (MAS), has set forth guidelines to foster a safe and conducive environment for the crypto industry's growth, including regulations for stablecoins. This supportive stance has positioned Singapore as a leading hub for crypto startups and innovation.
Can I relocate to Singapore and receive tax benefits?
Relocating to Singapore can offer significant tax benefits, especially for entrepreneurs and investors attracted by the country's favorable tax regime. Foreign nationals have various residency options, such as the Singapore Employment Pass and the EntrePass, which cater to skilled employees and entrepreneurs, respectively.
While American citizens are typically taxed on their global income, the tax treaty between the USA and Singapore helps prevent double taxation, providing further incentives for relocation. It's important to consult a crypto tax professional to understand the full scope of tax advantages and obligations when considering a move to Singapore.
What are the crypto tax rates in Singapore?
At the time of writing, there are no capital gains taxes in Singapore, which means investors can dispose of their crypto completely tax-free. Typically, in Singapore, cryptocurrency is not subject to income tax.
That noted, you may need to pay income tax on crypto earnings if you earn it as a business or receive them in exchange for goods and services.
Income tax brackets in Singapore
Singapore income tax brackets vary between residents and non-residents.
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
|---|---|---|
| First $20,000 Next $10,000 | 0 | 2 | 0 | 200 |
| First $30,000 Next $10,000 | - 3.50 | 200 | 350 |
| First $40,000 Next $40,000 | - 7 | 550 | 2,800 |
| First $80,000 Next $40,000 | - 11.5 | 3,350 | 4,600 |
| First $120,000 Next $40,000 | - 15 | 7,950 | 6,000 |
| First $160,000 Next $40,000 | - 18 | 13,950 | 7,200 |
| First $200,000 Next $40,000 | - 19 | 21,150 | 7,600 |
| First $240,000 Next $40,000 | - 19.5 | 28,750 | 7,800 |
| First $280,000 Next $40,000 | - 20 | 36,550 | 8,000 |
| First $320,000 In excess of $320,000 | - 22 | 44,550 |
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
|---|---|---|
| First $20,000 Next $10,000 | 0 | 2 | 0 | 200 |
| First $30,000 Next $10,000 | - 3.50 | 200 | 350 |
| First $40,000 Next $40,000 | - 7 | 550 | 2,800 |
| First $80,000 Next $40,000 | - 11.5 | 3,350 | 4,600 |
| First $120,000 Next $40,000 | - 15 | 7,950 | 6,000 |
| First $160,000 Next $40,000 | - 18 | 13,950 | 7,200 |
| First $200,000 Next $40,000 | - 19 | 21,150 | 7,600 |
| First $240,000 Next $40,000 | - 19.5 | 28,750 | 7,800 |
| First $280,000 Next $40,000 | - 20 | 36,550 | 8,000 |
| First $320,000 Next $180,000 | - 22 | 44,550 | 39,600 |
| First $500,000 Next $500,000 | - 23 | 84,150 | 115,000 |
| First $1,000,000 In excess of $1,000,000 | - 24 | 199,150 |
| Type of Income | Withholding Tax Rate (2017-2023) | Withholding Tax Rate (2024 Onwards) |
|---|---|---|
| 1. Remuneration including director's fees received by non-resident directors | 22% See Tax Obligations for Non-Resident Directors | 24% |
| 2. Income received by non-resident professionals (e.g. consultants, trainers and coaches) for services performed in Singapore | 15% of gross income or 22% of net income See Taxable Income of Non-Resident Professionals | 15% of gross income or 24% of net income |
| 3. Income received by non-resident public entertainers for services performed in Singapore | 10% concessionary rate up to 31 Mar 2022; 15% concessionary rate from 1 Apr 2022 See Tax for Non-Resident Public Entertainers | 15% concessionary rate |
| 4. SRS withdrawals received by non-Singapore SRS account holders | 22% See Withholding Tax on SRS | 24% |
| 5. Interest, commission, fee or other payment in connection with any loan or indebtedness | 15% reduced final withholding tax rate (subject to conditions) or 22% if reduced withholding tax rate is not applicable | 15% reduced final withholding tax rate (subject to conditions) or 24% if reduced withholding tax rate is not applicable |
| 6. Royalty or other lump sum payments for the use of movable properties | 10% reduced final withholding tax rate (subject to conditions) or 22% if reduced withholding tax rate is not applicable | 10% reduced final withholding tax rate (subject to conditions) or 24% if reduced withholding tax rate is not applicable |
See the IRAS website for more details.
How is crypto taxed in Singapore?
There is no capital gains tax in Singapore. Also, transactions involving the buying or selling of goods and services using crypto (e.g. payments) are nontaxable and avoid the standard 8% goods and services tax.
Singapore does apply an 8% goods and services tax to fees when you purchase, sell, or convert crypto, for example on a centralized exchange.
Crypto profit from professional trading and other business activity is subject to taxation in Singapore and is treated as regular income for tax purposes.
Short-term trades
Singapore does not have a capital gains tax for crypto, which means traders are free to trade short- or long-term with no impact on their taxes. That noted, if you actively engage in short-term trading, Singapore may consider your crypto activity to be like that of a regular business, in this case, your gains will be subjected to income tax and you will need to report these on your annual tax return.
Long-term crypto trades
Because Singapore does not have a capital gains tax, Singapore crypto tax regulation neither privileges nor punishes short- or long-term trades. If you actively trade in the short term, your trades may be considered “business activity,” and gains could be subjected to income tax. If you trade frequently and short term while in Singapore, you may benefit from holding longer term and making fewer trades.
Bitcoin mining
In Singapore, miners must pay taxes on their profits. Fortunately, the Singapore crypto tax regulations are quite straightforward. Generally, an individual who mines Bitcoin is considered a hobbyist, so gains are not subject to taxation, and mining expenses are not deductible.
However, if the Bitcoin miner shows habitual and systematic effort to profit from mining activities, this may be considered a business activity and gains taxes as income accordingly. Those who generate such income from mining must declare the amount “business income” on their annual tax declarations. Companies that mine crypto and are registered with the Accounting and Corporate Regulatory Authority are also subject to corporate income tax rates.
Crypto staking and lending
Individuals who stake and lend crypto and earn SGD 300 or more yearly income will likely be subject to income tax on their gains. As with other income tax forms in Singapore, individuals must independently declare cryptocurrency-related taxes.
The Inland Revenue Authority of Singapore (IRAS) guides crypto tax in Singapore and how to calculate income related to cryptocurrency trading activities.
The Singapore crypto tax process is relatively straightforward. A person’s total income is taxed at the marginal tax rate based on the amount earned from staking or lending as part of that income.
How do you report crypto tax in Singapore?
Reporting crypto taxes in Singapore is easy and straightforward, thanks to the taxation framework set up by the Inland Revenue Authority of Singapore (IRAS). Any resident or non-resident earning income in virtual currencies must submit a tax return at the end of each financial year.
Crypto transactions should be reported within two categories: 1. Those which were exchanged for money, goods, and services. 2. Those classified as investment capital gains.
If you have made a profit on any sale of cryptocurrency, this must also be declared to IRAS during your tax filing process.
Crypto tax filing forms in Singapore at a glance
Crypto holders who live in Singapore should be aware of the tax filing forms relating to their digital assets. In general, they need to fill out a string of personal and financial details including sources of income and the type of digital assets involved.
It is important that investors declare all crypto-related income on their tax returns, as failure to do so could result in severe consequences by the local tax authority. Furthermore, some transactions may require additional forms depending on the value and quantity traded.
The primary tax filing forms for individual taxpayers in Singapore are:
Form B1: This form is indeed used by Singaporean residents to file their personal income tax returns. It covers various income types, deductions, and reliefs.
Form M: This form is used by non-residents of Singapore to declare their income earned in Singapore, including employment income and other sources of income.
The specific form to be used can depend on the individual's tax residency status and income. For the most accurate and up-to-date information, please refer to the Inland Revenue Authority of Singapore (IRAS) website or consult with a crypto tax professional.
Accounting methods for crypto tax in Singapore
Singapore has no capital gains tax, and the country does not give clear guidelines on categorizing business activity as taxable trading income or tax-free capital gains.
Singapore can consider your gains taxable regular income if the Inland Revenue Authority of Singapore (IRAS) sees your activity as a profit-generating trade. Factors in this assessment include the holding period, frequency of trades, the purpose of transactions, and the reason for sales. Frequent trading activity and short holds will likely be considered taxable trading income.
Singapore's commonly used crypto accounting methods are FIFO, LIFO, and Weighted Average. Learn more in our helpful article about how to calculate your crypto taxes.
What is a digital payment token in Singapore?
Digital payment tokens (DPTs) in Singapore refer to cryptocurrencies and other digital assets used for payment or exchange purposes, as outlined in the Payment Services Act 2019. The regulatory framework, enforced by the Monetary Authority of Singapore (MAS), mandates that DPT service providers, including exchanges and wallet services, obtain a license to ensure secure and transparent operations.
The guidelines issued by MAS in January 2022 further emphasize the importance of responsible promotion of DPT services. They restrict advertisements to prevent misleading the public about the risks associated with trading in digital payment tokens. These regulations aim to balance innovation in the financial sector with consumer protection.
When is the deadline for crypto taxes in Singapore?
The deadline for filing taxes on cryptocurrency transactions in Singapore aligns with the general tax schedule that runs from January 1 to December 31. Taxpayers must report their taxable income, including any gains from cryptocurrency trading, by April 15 for paper filing and April 18 for e-filing.
The Inland Revenue Authority of Singapore (IRAS) provides guidelines for calculating taxable income from digital payment tokens, ensuring compliance with tax regulations. Staying informed about tax deadlines and rules is crucial for individuals and businesses involved in cryptocurrency activities in Singapore.
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Singapore crypto tax FAQs
Here are answers to some frequently asked questions about crypto tax Singapore regulation and crypto taxes in Singapore.
Is crypto trading legal in Singapore?
Yes, it is legal to trade crypto in Singapore.
Which country has no tax on cryptocurrency?
Singapore has a highly favorable tax arrangement for crypto holders, as its crypto tax rules benefit from the country’s lack of capital gains taxes. For more information, see our complete list of crypto tax free countries and territories.
Is cryptocurrency taxable in Singapore for individuals?
Singapore has no capital gains tax for individuals not engaged in regular trading or business activity with crypto, making it a crypto tax free country. However, Singapore applies an 8% goods and services tax to fees when you purchase, sell, or convert crypto, for instance, on a centralized exchange.
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