Digital Tokens in Singapore
25 August 2020
The Inland Revenue Authority of Singapore had released an E-Tax Guide on “Income Tax Treatment of Digital Tokens” on 17 April 2020 which seeks to provide guidance and clarity on Singapore’s tax treatments for Digital Tokens.
Over the years, we have seen the escalating rise of the Fintech industry as digital tokens and cryptocurrencies are increasingly being accepted into global economies. Particularly, Singapore has always taken a cautious approach and finally, with the issuance of this E-Tax Guide, Singapore has taken the first few steps to continue being one of the leading jurisdictions to integrate digital tokens into its economy. It is a timely move as we progress together with the international tax community to address the global shift towards a digitalised economy. A summary of the Singapore tax treatment on Digital Tokens is discussed further in this tax alert.
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