Singapore Finance Minister Lawrence Wong said that the state’s current income tax rules will apply to income generated from NFT transactions.
Lawrence Wong noted that this rule will not apply to all transactions with non-fungible tokens. According to him, the income tax regime will be determined depending on the type and use of tokens.
So, the deductions will affect traders whose income depends on transactions with NFTs and the sellers of digital art themselves. However, capital gains from the sale of digital assets will not be taxed, as is the case in the US, where both income tax and capital gains tax are levied.
In February of this year, the Monetary Authority of Singapore (MAS) announced that it does not yet plan to develop rules to regulate non-fungible tokens. MAS explained this decision by the fact that the industry is relatively young and any manipulations can disrupt the market.
In addition, at the beginning of the year, the Singapore government announced that it was looking into the risks associated with cryptocurrencies and blockchain and urged the public to treat them with caution.
Source: Bits
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