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What is the tax treatment of cryptocurrency in Singapore?
I currently live in Japan, however the cryptocurrency tax in Japan is just too high, at roughly 50%... Therefore I'd want to move to a place that is friendly to crypto currency. I compared several places and found that Singapore is quite good, with a pleasant living environment. Can somebody tell me about Singapore's crypto currency tax system?
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Hi, M&M. When talking about the tax system of cryptocurrency in Singapore, I think we'd better know the general types of digital tokens first. Digital tokens are classified as payment tokens, utility tokens, and security tokens based on their function. When you mentioned "cryptocurrency," I assume you were referring to payment tokens such as Bitcoin or Ether. A payment token is both a "digital right used in exchange for goods or services" and a payment method. Although it can be used to make payments, it is not a government-issued tender. Because it represents rights and obligations and is intangible, payment tokens are treated as intangible property for corporate tax purposes. Payment token transactions are categorized as "exchange of goods," and the value of the goods and services in the transaction is determined at the time of the transaction. If the payment token is received in exchange for goods or services, it is valued and taxed in accordance with the value of the goods or services provided. Payment tokens, on the other hand, paid in exchange for goods or services are deductible at their face value at the time of the transaction, according to general deduction rules. It should be noted that this response only refers to regulations in effect at the time of writing. Because of the high volatility of cryptocurrencies, you should always keep up with the latest changes of Singapore government.
Thanks, Zoe!!
