Crypto Tax Singapore: What You Need to Know

When dealing with crypto tax Singapore, the set of rules that govern how digital‑asset gains and income are treated by Singapore’s tax authority. Also known as SG crypto taxation, it covers capital gains, trading profits, staking rewards and airdrop proceeds based on your residency status and the nature of the activity. The primary regulator, IRAS, Inland Revenue Authority of Singapore, enforces filing requirements and decides which events trigger tax, while capital gains tax, a tax on profit from selling assets, is generally absent in Singapore but may apply when crypto is treated as a trading asset. Crypto tax Singapore therefore hinges on three key attributes: (1) tax residency, (2) classification of crypto activity (investment vs. trade), and (3) the type of income generated, such as DeFi yields or airdrops. Understanding these attributes helps you decide whether you owe tax, how to report, and what records to keep.

Key Related Concepts and Their Impact

Tax residency is the cornerstone of the Singapore crypto tax framework. If you are a Singapore tax resident, worldwide crypto income is potentially taxable, whereas non‑residents are only taxed on Singapore‑sourced crypto gains. tax residency, determined by the number of days you stay in Singapore and your permanent home, dictates the scope of IRAS reporting obligations. Next, the classification of each crypto activity matters. Trading on an exchange with the intention to profit is seen as a business activity, meaning profits are taxable as income. Holding crypto purely as a long‑term investment usually falls under capital gains, which are not taxed unless the activity resembles a trade. DeFi participation—yield farming, staking, liquidity provision—creates a stream of earned income. IRAS treats these rewards as taxable when they are realized or convertible to fiat, so you must record the fair market value at the time of receipt. Airdrops and token swaps are similar: if you receive tokens without any work, they are generally considered non‑taxable; however, if the airdrop is tied to a service or promotional effort, the fair market value becomes taxable income.

Putting all this together, the practical steps for staying compliant are straightforward. First, determine your residency status and keep a travel log if you split time between countries. Second, maintain a detailed ledger that logs every crypto transaction—date, amount, fiat value, purpose, and associated fees. Third, categorize each entry as trade, investment, or DeFi income, then apply the appropriate tax treatment. Fourth, file your annual IRAS Form B (or Form B1 for non‑residents) and attach a Schedule C for crypto income, ensuring you disclose both realized gains and earned DeFi rewards. Finally, stay updated on IRAS guidance, as the authority periodically releases clarifications on emerging crypto activities like NFTs and metaverse earnings. Below you’ll find a curated collection of posts that dive deeper into each of these areas—whether you’re looking for step‑by‑step filing guides, residency calculators, or analysis of recent IRAS updates.