If you’re a crypto investor you might be looking for ways to cash out in tax friendly way. In this article we’ll discuss Singapore crypto tax to check how it can benefit you.
Need help cashing out your cryptos?
Contact me!
Overview of Singapore’s Crypto Tax Policy
- Only tax residents are liable to taxes on cryptocurrencies in Singapore. As a non-resident, you generally wouldn’t fall within the scope of the tax legislation.
- Capital gains on cryptocurrencies remain free from taxation.
- If you trade actively, the authorities can consider this a profession or business. Therefore, such income is taxable.
- You’ll also pay tax on income from staking and mining.
- The principles that apply to individuals are also valid for companies.
Who is Subject to Crypto Tax in Singapore?
In order to be subject to crypto tax in Singapore, you need to qualify as tax resident of Singapore.
You qualify as tax resident if you spend 183 days or more in Singapore.
However, foreign employees will also qualify as a tax resident if they spend at least 183 days in Singapore in total during two consecutive tax years.
Furthermore, foreigners also become tax residency if they get a work pass with a validity of at least one year.
Therefore, if you meet any of those tax residency requirements, you have to check if your crypto gains will be subject to tax in Singapore.
How are Cryptocurrency Gains Taxed in Singapore?
Singapore is widely recognized as one of the most crypto-friendly countries.
Singapore Crypto Tax for Passive Investors
The main reason for this is that individual investors don’t pay any capital gains tax on their investments in cryptocurrencies.
Because of this, we included Singapore in our list of crypto tax free countries.
Traders
However, if you trade very frequently, this can be seen as a profession or a business. You do pay progressive income tax rates on professional income as an individual.
Therefore, if you do trade actively you need to be a bit more careful and you might need a more detailed analysis.
Staking & Mining
Another option to make money in the crypto space is to do staking or by mining.
Income from these activities are also seen as taxable, just like active trading.
Singapore Crypto Tax for Companies
The same distinction applies to companies: no tax applies to capital gains.
However, if you trade actively or do staking or mining, your business will have to pay corporate tax at a rate of 17% on the profits.
Regulatory and Compliance Considerations
Now you know who is subject to Singapore crypto tax and in which cases income from cryptocurrencies is actually subject to income tax.
Let’s now have a look at some regulatory considerations and your compliance obligations.
GST on Crypto Transactions
If you use cryptocurrencies to pay for goods are services, no Goods and Service Tax (GST) will apply to the payment as such. The reason is that you use the cryptocurrency as a currency.
This is the case since January 2020 when the regulation came into force.
Nevertheless, if you buy goods and services, GST will apply to the goods or service as such.
Similarly, if you exchange your cryptocurrencies for another cryptocurrency or cash, the service provider will normally charge you a service fee. On this service fee, the standard GST rate of 8% will apply while the exchange as such is free of GST.
Valuation and Record-Keeping Requirements
As discussed, you might not have to pay any taxes on your capital gains on cryptocurrencies.
Nevertheless, you still need to keep proper records of your transactions.
You’ll need to keep track the following information:
- Date and time of the transaction
- Type of cryptocurrency (e.g. Bitcoin)
- Amount of cryptocurrencies involved
- Value of the transaction in Singapore Dollar
- Purpose of the transaction (e.g. exchange, staking, pay for services)
- Counterparty details
This doesn’t only include transactions whereby you exchange cryptocurrencies for cash. You also need to report transactions whereby you exchange one cryptocurrency for another one.
Moreover, you need to keep supporting documents regarding the transactions. Hereby some examples:
- Cryptocurrency exchange overviews
- Bank statements in case of conversion to fiat currencies
- Receipts or invoice in case of payment for goods of services
You need to keep this information for at least five years.
Reporting and CARF Obligations
If you think about hiding any income to escape taxes, you better think twice.
The Crypto-Asset Reporting Framework (CARF) was developed by the OECD to create more transparency. Consequently, states will share information with each other about cryptocurrencies held on exchanges in their country.
Singapore was one of the first countries to become a member of the CARF. It intends to fully implement it by 2027 or 2028.
As part of CARF, Singapore will report transactions involving cryptocurrencies made on an Singaporean exchange. Furthermore, it will receive the same information from foreign countries about you in case you qualify as a tax resident of Singapore.
Tax Filing and Compliance
If you receive taxable income linked to cryptocurrencies, you need to declare this income. This isn’t different from any other type of income.
You’ll have to include the crypto income in your tax return. The return is due by mid April of the year after the year you generated the income (e.g. mid April 2026 for income in 2025). You can file your tax return via IRAS or the e-Tax Portal.
Work With Me And Keep Your Gains
Do you need assistance with cashing out your crypto investments? Or, do you need help with your tax setup as a whole? Reach out to me!
FAQ
Let’s now have a closer look at some frequently asked questions about Singapore crypto tax.
Are Crypto Capital Gains Taxable in Singapore?
Crypto capital gains are not taxable in Singapore.
The reason for this is that Singapore doesn’t have a capital gains tax for individuals. Hence, any capital gains remain untaxed.
Is Staking Income Taxable?
Yes, income from staking is taxable in Singapore. However, Singapore provides in a tax free threshold of SGD 300 for income from staking.
If you are a tax resident of Singapore and your income from staking exceeds the tax free threshold, you’ll have to pay the progressive personal income tax rates on it.
If you do staking through your company in Singapore, the income qualifies as business income.
Accordingly, you will pay 17% in corporate tax on the income from staking.
What Records Do I Need to Keep?
You need to keep detailed records regarding your transactions involving cryptocurrencies. Amongst others, you’ll need to track the dates, amounts and value in Singapore Dollar of all transactions.
Yet, if you make your transactions through an online exchange, they might have tools in place to help you with gathering all of the necessary information. In that way, you could limit the amount of time you need to dedicate to this yourself.
You can find more information about the records you need to keep and some examples above.
Does GST Apply to Crypto Trades?
Since January 2020 GST does not apply to crypto trades anymore.
Therefore, exchanging or trading cryptocurrencies as such does no longer fall in the scope of the Goods and Service Tax.
However, any service fees charged by platform to facilitate your trading are subject to GST. These are services just like any other service in daily life and therefore subject to GST.
When Does CARF Apply to Me?
If you’re a tax resident of Singapore or any other participating country, CARF will apply to you.
The OECD designed the Crypto-Asset Reporting Framework to create more transparency regarding crypto holdings. In this way, they want to avoid that cryptocurrencies are used for illegal purposes.
Singapore and many other jurisdictions around the world committed themselves to implement the principles of CARF in their local legislation in the years to come.
Singapore will report any crypto transactions made on exchanges and platforms registered in Singapore. In exchange, Singapore will receive the same information about transactions on foreign exchanges and platforms made by Singaporean tax residents.
In this way, the countries involved want to ensure tax compliance.