u.s. expat tax guide – singapore

How are capital gains and investment taxes handled by US expats in Singapore?

While Singapore does not tax capital gains, the IRS still requires you to report and pay tax on your profits.

How Capital Gains Tax works for US expats

If you owned the asset for one year or less, your profit is taxed as regular income (anywhere from 10% to 37%, depending on your total income).
If you held the asset for more than a year, your profit is taxed at a lower rate (either 0%, 15%, or 20%, depending on your income).

Because Singapore does not tax capital gains, you cannot use the Foreign Tax Credit (FTC) to lower your US tax bill.

What is the Net Investment Income Tax (NIIT)?

If you are a high-income earner, you may also have to pay an extra 3.8% tax on your investment income (including profits from stocks, crypto, and dividends). NIIT applies if your Modified Adjusted Gross Income (MAGI) is above:

US$200,000 (Single filers)
US$250,000 (Married filing jointly)
US$125,000 (Married filing separately)

Unfortunately, NIIT cannot be reduced using the Foreign Tax Credit or the Foreign Earned Income Exclusion. This is why many expats unexpectedly receive tax bills from the IRS.

How do US expats report crypto gains to the IRS?

If you own, trade, or earn cryptocurrency, you must report it to the IRS. The IRS treats crypto as property, meaning it is taxed similarly to stocks and other investments.

You need to report any income or transactions involving cryptocurrency on your US tax return (Form 1040). This includes:

Getting paid in crypto – If you receive cryptocurrency as payment for work, it is taxable income and must be reported.
Selling or trading crypto – When you sell crypto for cash or trade it for another cryptocurrency, you may have a capital gain or loss.
Mining or staking rewards – Crypto earned from mining or staking is considered taxable income when received.
Receiving crypto as a gift – If you receive a large gift of cryptocurrency, you may need to file a gift tax return (Form 709).

What forms do you need?

Form 8949 – Report capital gains and losses from selling or trading crypto.
Schedule D (Form 1040) – Summarizes your total capital gains and losses.
Form 1099-MISC – If you earned crypto from freelance work or other sources, this may be issued by an exchange or employer.

What if you lost money in crypto?
If your cryptocurrency became worthless (for example, the company shut down), you may be able to claim a capital loss on your tax return.

If you abandoned your cryptocurrency (for example, you lost access to your wallet permanently), you might be able to write off the loss.

FIFO vs. HIFO Accounting Methods

When reporting crypto sales, you can use different methods to calculate your gains or losses:

FIFO (First In, First Out) – The IRS assumes you sell the oldest crypto first.
HIFO (Highest In, First Out) – You sell the most expensive crypto first, which may help lower your taxable gains.

Is cryptocurrency taxed in Singapore?

Singapore has different rules for crypto than the US.

Here’s what you need to know as a US expat.

No Capital Gains Tax on Crypto

Singaore does not tax individuals on profits from buying and selling cryptocurrency.
If you trade crypto as an investment, you do not owe taxes on your gains.

Income Tax on Crypto Transactions

Some crypto-related activities are taxable:

If you run a crypto business (like day trading), your profits are subject to income tax.
If you get paid in crypto for goods or services, you must pay taxes on the value at the time of receipt.
Crypto mining and staking may be taxed as earned income, depending on the frequency and purpose.

Goods and Services Tax (GST) on Crypto

Since 2020, Singapore no longer applies GST (sales tax) to cryptocurrency transactions.
Crypto is treated as a digital payment token under the Payment Services Act 2019.

How to Report Crypto Taxes in Singapore

If your crypto activities are taxable, you may need to:

Declare your income in your annual tax return to the Inland Revenue Authority of Singapore (IRAS).
Keep records of transactions, including exchange rates, purchase prices, and sales prices.

Are Capital Gains from stocks and shares taxed in Singapore?

For Americans investing in stocks or shares, Singapore typically does not impose capital gains tax. However:

No Capital Gains Tax Locally
- Under Singapore’s territorial tax system, capital gains aren’t usually taxed unless it’s deemed you’re trading shares like a business. That’s not common for everyday investors.
US Capital Gains
- The US, however, wants you to pay capital gains tax on any stock profits—no matter where you live.
- If you hold shares for more than one year, you might get a lower long-term capital gains rate. You report these gains on Form 8949 and Schedule D alongside your other income on Form 1040.
Offsetting Double Taxation
- Because Singapore typically doesn’t tax share profits, you won’t have a Foreign Tax Credit to reduce your US tax for these gains. You simply owe the US tax if you profit.

Are there more tax implications for US expats?

Do US Expats Pay Taxes on Crypto Gains?

- To reiterate, yes. The US requires citizens and Green Card holders to report all crypto transactions on their tax returns, no matter where they live.
- The Foreign Earned Income Exclusion (FEIE) does NOT apply to crypto gains because crypto is treated as property, not earned income.

Crypto and Estate Tax

- If you own crypto in a US-based exchange, it may be considered a US situs asset and subject to US estate tax if you pass away.
- US estate tax applies to non-resident assets worth over US$60,000, including US-based crypto holdings.

What About Crypto in Foreign Accounts?

- If you hold crypto in foreign exchanges or wallets outside the US, you may need to report it under FBAR (Foreign Bank Account Report) or Form 8938 (FATCA) if the value exceeds certain limits.

Planning to invest in stocks, shares, or crypto? Consult with a tax pro today and find the most efficient tax strategy.

Book a free consultation

Send us a message

Can moving to Singapore Lower my taxes?

Relocating to Singapore can lower or eliminate local taxes on your investments, but you remain responsible for US taxes on global profits.

Income Tax Rates vs. US Worldwide Tax
Singapore has progressive rates, which can be lower than in the US if you work here. Although that might help your local taxes, you still have to file a US return on your worldwide income.

Capital Gains
Singapore typically does not tax capital gains on things like stocks, shares, or cryptocurrency—unless you’re a professional trader. The US, however, continues to tax your capital gains wherever you live.

Double Taxation
There’s no broad double tax treaty for investment gains between the US and Singapore. Using the Foreign Tax Credit (FTC) only helps if you paid foreign tax on those gains—which you often don’t in Singapore.

Regulatory and Tax Framework
Singapore offers simpler local taxes and potential residency routes (for example, Global Investor Program). But as an American, you still owe US taxes on your gains unless you can claim exclusions or credits on earned income (like the Foreign Earned Income Exclusion).

How do US tax laws affect expats’ investment gains?

Capital Gain Income for US Expats
If you sell stocks, shares, or crypto at a profit, the IRS views that as capital gain. You list it on Schedule D and Form 8949 when filing your Form 1040. Because Singapore usually doesn’t tax those gains, you won’t have a foreign tax credit to offset US taxes.
Foreign Earned Income Exclusion (FEIE)
This benefit is mainly for wages or self-employed earnings (i.e., earned income). It doesn’t apply to passive gains like selling stocks or crypto.
US Estate Tax and US Situs Assets
If you own certain assets, like US real estate or stocks, they might be subject to US estate tax if you pass away above certain exemption limits. Living in Singapore doesn’t change that.
IRS Form 1099-MISC and Other Reporting
If you receive certain payouts (for example, royalties) from US sources, you may get Form 1099-MISC and must declare it on your US return. Also, large foreign accounts may require FBAR or Form 8938.
Non-Resident Tax Return?
Americans file a resident Form 1040 each year, no matter where they live. There isn’t a “non-resident return” for citizens. You always declare your global investment gains to the IRS.

Even though Singapore doesn’t tax most capital gains, the US still taxes your worldwide profits.

Be sure to keep track of purchase prices, sales dates, and any relevant documents so you can accurately report gains or losses on your American return.

If your situation is complex—like frequent trading or cryptocurrency—you may want professional guidance to ensure you follow all expat tax rules.

Ankurita Lala, an IRS Enrolled Agent with 6 years of expat tax experience, specializes in helping individuals and entrepreneurs navigate the complexities of foreign business ownership. *Schedule a consultation with Ankurita today.

Book your private consultation with Ankurita

*30-minutes US$247.