Singapore is widely regarded as a crypto-friendly jurisdiction. Why? Because there’s no capital gains tax. That means long-term investors and traders can often cash out without paying tax.
But don’t get too comfortable — crypto is still taxable if it’s considered income. Here’s how the rules work in 2025 👇
🔎 How Singapore Classifies Crypto
- Crypto is treated as property/intangible asset.
- The key question is whether your crypto activity generates capital gains (non-taxable) or income (taxable).
💰 Capital Gains Tax
- Singapore does not impose capital gains tax.
- If you buy Bitcoin, hold, and sell later at a profit → no tax 🎉.
- Same applies for long-term investments in ETH, altcoins, or NFTs (unless considered business).
🧾 When Crypto Is Taxable as Income
Crypto becomes taxable when it’s linked to income-generating activities, such as:
- Trading as a business → frequent, organised, profit-driven trading = taxable income.
- Staking rewards → generally taxable when received.
- Mining → taxable as income if carried on at a commercial scale.
- DeFi yield/lending → taxable when rewards are received.
- Crypto payments → if you accept crypto for goods/services, it’s income based on SGD fair market value.
Example:
- You earn 2 ETH in staking rewards (worth SGD $6,000).
- That SGD $6,000 is taxable income at your personal rate.
- Later, if you sell ETH at SGD $10,000 → the $4,000 gain is not taxed (capital gain).
🎨 NFTs & DAOs
- NFTs – Buying and selling NFTs casually = no tax (capital gain). Creating and selling NFTs as a business = taxable income.
- DAOs – Participation income (e.g., governance rewards, payouts) could be taxable.
📉 Losses
- Because there’s no capital gains tax, capital losses are irrelevant.
- Business-related crypto losses may be deductible against business income.
🕵️ IRAS Enforcement in 2025
- The Inland Revenue Authority of Singapore (IRAS) requires full disclosure of crypto income.
- Singapore is part of OECD information-sharing agreements (CARF/CRS).
- Non-compliance risks:
- Penalties up to 200% of tax underpaid
- Criminal prosecution for tax evasion
🛠️ Compliance Checklist
- Determine if you’re an investor (capital gains, no tax) or a trader/business (income tax).
- Keep records of staking, mining, and DeFi rewards in SGD.
- Declare any crypto received as payment for goods/services.
- File income annually with IRAS if applicable.
✅ Key Takeaways (Singapore)
- No capital gains tax = 💎 investor paradise.
- Income tax applies to business trading, staking, mining, and DeFi rewards.
- Casual investing and long-term holding = tax-free.
- IRAS expects accurate reporting of income-related crypto.