Tax on NFTs

Yes, transactions involving NFTs are taxable for income tax purposes. This has been explicitly clarified in parliament that NFTs are subject to income tax in Singapore.

"The prevailing income tax rules will apply to transactions of non-fungible tokens, or NFTs, said Finance Minister Lawrence Wong in Parliament on Friday (Mar 11)."

Source: Business Times, 11 March 2022

IRAS' stance on the sale and purchase of non-fungible tokens is as follows:

According to IRAS (e-Tax Guide)
last revised 19 November 2019

The GST treatment for digital tokens/virtual currencies/cryptocurrencies that do not qualify as digital payment tokens remain unchanged³. That is, supplies of such tokens will continue to be regarded as taxable supplies of services, unless they fall under the prescribed list of exempt financial services under Part I of the Fourth Schedule to the GST Act.

³For example, the transfer of non-fungible tokens such as those that represent ownership rights to specific property (e.g. intellectual property, digital artwork) will remain a taxable supply of services as such tokens are not fully interchangeable for use as consideration.

Do refer to the e-Tax Guide above for more specific guidance on the taxation of NFTs.