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Renowned as the major technology and financial center in the world with large Venture Capital funds (Jungle Ventures, TNF Ventures, EDBI,…) and tech unicorns such as Patsnap, Razer, Sea (the parent company of Shopee, Garena, AirPay,..), Grab,……. It is not too difficult to understand when Singapore emerges as an ideal country for the decentralized financial sector. On March 11, the finance minister confirmed that income tax would be imposed on the NFT.
The most money-friendly country
At the end of 2021 – the year of the strong rise of cryptocurrencies when Bitcoin (BTC) and Ether (ETH) increased by 100% and 300%, respectively, global cryptocurrency review company Coincub gave Singapore the No. 1 spot on the ranking of the most favorable and easiest countries for cryptocurrencies based on factors such as: economy, positive legislative environment and high cryptocurrency adoption rate.
The period when the cryptocurrency market began to crash and plunge in January 2022, MAS – Singapore's monetary authority issued and implemented consumer protection laws that apply to investors who are facing constant reminders of digital assets, through billboards or cryptocurrency ATMs, and ban all advertisements related to cryptocurrencies and ATMs in public spaces.
Mas further stated that, although they "strongly encourage" and accept the use of innovative cryptocurrencies and the development of blockchain technology, cryptocurrency trading is "high risk and not suitable for the public" as well as describing cryptocurrencies to many people in a way that minimizes the risks of trading is not recommended, especially when up to 43% of Singaporeans own cryptocurrencies (as of February 2022)
Paradise of income tax
In response to Congress, Mr. Lawrence Wong, Singapore's Finance Minister, has stated and clarified that the NFT income tax of each case will be handled and decided based on the nature and use of NFT in each of those cases. According to Business Insider, the law applies to individuals whose income arises from NFT transactions or transactions in the NFT, the news also allays the concerns and concerns of some, adding: "Currently, no such framework has existed before, Therefore, the amount of capital gains generated from NFT will not be taxed." Currently, two other crypto powers such as the US and Australia have also issued tax laws specifically for this market. In particular, the United States has imposed taxes on both income as well as capital gains from NFT purchases or investments.
However, in terms of Singapore's previously enacted and basic income tax policies, experts have a general opinion that income tax regulations in Singapore are ranked among the lowest in Asia when the largest percentage of income payable is only 22% for high-income individuals while this figure is in the Philippines. up to 35%. This great tax incentive creates a huge attraction for wealthy individuals.
