Tax Treatment of Revenue of Sale of Non-fungible Tokens

Mr Yip Hon Weng (Yio Chu Kang) asked the Minister for Finance whether the transaction sales revenue of non-fungible tokens are subject to income tax.

Mr Speaker, the prevailing income tax rules will apply to income derived from transactions of non-fungible tokens or NFTs. The income tax treatment for NFTs will be determined based on the nature and use of the NFT.

Generally, a person deriving income from NFT transactions or from trading in NFTs will be subject to income tax on such income. However, a person may also derive capital gains from NFT transactions. As Singapore does not have a capital gains tax regime, such gains will not be taxable.