Guide to Crypto Taxes in Singapore for 2023
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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 both 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 around Singapore crypto tax and more.
Do you pay cryptocurrency taxes in Singapore?
Crypto taxes in Singapore are famously advantageous for both individuals and businesses, with no capital gains taxes for individuals. Singapore taxes crypto depending on the nature of your activity.
If you trade crypto in the course of business (that is, you trade professionally), 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 simply purchase crypto and hold for the long-term as an investment, your gains will not be subjected to capital gains taxes as Singapore does not impose these.
What are the crypto tax rates in Singapore?
At 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 the crypto in exchange for goods and services. We cover the Singapore income tax rates for residents and non-residents further in this article.
How is crypto taxed in Singapore?
As noted, 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 the 8% goods and services tax to fees when you purchase, sell, or convert crypto, for example on a centralized exchange.
Crypto profit made 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 which 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. That noted, if you actively trade in the short term, it is possible your trades will 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 the profits they make. Fortunately, the Singapore crypto tax regulations are quite straightforward. Generally, an individual who mines Bitcoin will be 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 as a business need to declare the amount as “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 in yearly income will likely be subject to income tax on their gains. As with other forms of income tax in Singapore, individuals are responsible for declaring any cryptocurrency-related taxes on their own.
The Inland Revenue Authority of Singapore (IRAS) provides guidance for crypto tax Singapore and how to calculate income related to cryptocurrency trading activities.
The Singapore crypto tax process is relatively straightforward, through which a person’s total income is taxed at the marginal tax rate based on the amount earned from staking or lending as part of total 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 who has earned 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. Singapore tax returns must be submitted by the 15th of April or April 18th if filed electronically.
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 IRAS has a helpful portal for tax forms.
Crypto as payment for goods and services
Paying for goods and services with crypto in Singapore can be advantageous, as transactions for goods and services with crypto (e.g. payments) are nontaxable and avoid the standard 8% goods and services tax.
So, if you’re in Singapore and looking to make a big purchase, you might look for a vendor who accepts crypto payments or negotiate for the same. Singapore sees these as “barter transactions” and so the usual 8% sales tax does not apply.
Utility tokens
Singapore crypto tax regulation states that when someone acquires a crypto utility token to exchange for future goods or services, the amount it takes to purchase the relevant utility token is treated as prepayment.
When the utility token is exchanged for the goods or services in question, Singapore will allow a deduction on the amount incurred at the time of sale (subject to the usual tax deduction rules).
Crypto losses
Individual Singapore taxpayers may deduct losses from crypto if the individual buys and sells crypto in the course of business or trade. If your crypto activity in Singapore is subject to income tax, this means you can deduct losses for the purposes of taxes. If you mine crypto professionally, for example, losses from crypto are likely deductible.
However, if your crypto profits would not be subject to income taxes, your losses are also not tax deductible.
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.
Accounting methods for crypto tax in Singapore
There is no capital gains tax in Singapore, and the country does not give clear guidelines on how and whether to categorize 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 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.
The commonly used accounting methods in Singapore are FIFO, LIFO and Weighted Average. Learn more in our helpful article about how to calculate your crypto taxes.
Frequently asked questions
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 perfectly legal to trade crypto in Singapore.
Which country has no tax on cryptocurrency?
Singapore has a highly favorable tax arrangement for crypto holders, as Singapore crypto tax rules benefit from the country’s lack of capital gains taxes. See our complete list of crypto tax free countries and territories for more information.
Is cryptocurrency taxable in Singapore for individuals?
For individuals not engaged in regular trading or business activity with crypto, Singapore has no capital gains tax and so in that sense qualifies as a crypto tax free country.
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