Making money from cryptocurrency? The taxman may call on you

Miners, forgers, hobbyists, traders – different rules apply. Just don’t assume crypto investment is somehow immune to taxation.

There is nothing "magical" about cryptocurrency that takes it out of the tax system.PHOTO: ST FILE

The range of potential investment opportunities in Singapore involving cryptocurrency continues to grow over time as these asset classes gradually gain mainstream acceptance. While there are risks involved in such investments and investors should certainly do their homework before blindly jumping on the bandwagon, for those lucky enough to have their investments pay off, the question arises as to whether a portion of those gains has to be shared with the tax authorities.

Thus far in Singapore, the Inland Revenue Authority of Singapore (Iras) has issued two e-Tax Guides on cryptocurrency, with one focusing on income tax and the other on goods and services tax. They provide an excellent introduction to the basic tax issues which cryptocurrency investors should be aware of.

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