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# NFT Tax Treatment by Country

### NFT Tax treatment for supported countries in Netrunner.

| Country | Classification | NFT Disposals | Royalties (Received) | Royalties (Paid) | Notes |
| ---- |
| United States (IRS) | Collectibles | 28% long-term capital gains rate, NFT disposal is a taxable disposal like any other DEX swap for short-term trades | Taxable income when received | Deductible expense | Airdrops also taxed as ordinary income |
| United Kingdom (HMRC) | Property (Cryptoassets) | Treated as capital disposals | Taxable income | Deductible expense | Applies to NFT trading and royalties |
| Canada (CRA) | Commodities | Capital gains or losses on disposals | Taxable income | Deductible expense | CRA treats NFTs like other crypto commodities |
| Germany | Property | Capital gains taxable unless held >1 year | Taxable income | Deductible expense | 1-year exemption may apply |
| Spain | Property | Capital gains taxable | Taxable income | Deductible expense |  |
| Italy | Property | Capital gains taxable | Taxable income | Deductible expense |  |
| Ireland | Property | Capital gains taxable | Taxable income | Deductible expense |  |
| India | Virtual Digital Assets (VDA) | 30% flat tax; no offsetting | Taxable income at 30% | Deductible expense | Harshest NFT regime |
| Japan | Property | Capital gains or income depending on use | Taxable income | Deductible expense | Airdrops taxable as income |
| South Africa | Property | Capital gains taxable | Taxable income | Deductible expense |  |
| Australia (ATO) | Property | Capital gains taxable | Taxable income | Deductible expense | Applies to NFT sales and royalties |
| New Zealand | Property | Income tax applies if acquired for resale | Taxable income | Deductible expense | Depends on intent of purchase |
| Nigeria | Chargeable Assets | Capital gains or losses on disposals | Taxable income | Deductible expense | The tax you pay depends on your role and your total annual income |


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