R107 – NFT Tax Treatment by Country
Country | Classification | NFT Disposals | Royalties (Received) | Royalties (Paid) | Notes |
|---|---|---|---|---|---|
United States (IRS) | Collectibles | May face 28% long-term capital gains rate | 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 |
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Updated on: 28/01/2026
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