Singapore updates cryptocurrency tax guidelines, amateur miners exempt from tax

On April 17, the Inland Revenue Authority of Singapore (IRAS) released the latest digital token tax guidelines. The guidelines cover payment tokens, utility tokens, security tokens, and tokens issued through ICOs. Tokens held by miners, ICO issuers, companies, and individuals are not taxed unless they are liquidated.
Under the new tax guidelines, transactions using payment tokens will be considered “barter trade” and when businesses receive payment tokens, they will be subject to normal tax obligations based on the value of the goods sold.
The guidance also clarifies that the tax liability of rewards received by token project founders through conducting an ICO will be determined based on whether they are paid as compensation for services provided. Founders’ rewards will be treated as a capital asset unless they are paid as compensation for services provided, in which case they will be treated as income.
Security tokens will be taxed based on the “nature of the income from the security token,” such as whether it is in the form of interest or dividends, and whether the security token is a capital or income asset to the owner.
In addition, the guide also provides detailed instructions for the taxation of cryptocurrency miners. The guide points out that the taxation of miners depends on whether the miners conduct mining activities for profit. If miners treat cryptocurrency mining as a hobby, or use the mined tokens as long-term investments, the disposal gains/losses paid for the tokens are not taxable/deductible. If a mining company in Singapore profits from mining activities for a long time, it is likely to be regarded as "engaged in the mining profession." Based on this, the Singapore Inland Revenue Authority will tax the profits it obtains, but will not tax the sale of mined tokens. (Golden Finance)