This edition of the KWM Taxation of Crypto Assets Guide, “Taxing Tokens” focuses on “Non-Fungible Tokens” (NFTs) as one type of emerging crypto asset and its tax treatment under Australia’s regime.
What is an NFT?
An NFT can create unique digital assets or can be digitally linked (via a QR or other ID code) to a tangible asset. NFTs are created (minted) using a smart contract protocol on a blockchain and stored in a blockchain based wallet with a unique address. NFTs are not interchangeable and rather are completely uniquely identified and valued (even where part of a collection), where the holder has control of the relevant asset.
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