Singapore’s proposal is to end cryptocurrencies’ GST taxation

Singapore’s proposal is to end cryptocurrencies’ GST taxation

The taxation agency of Singapore’s government is suggesting to remove goods and services tax from cryptocurrency actions that are serving as a medium of exchange.

On July 5 The IRAS published an e-Tax draft guide for regulating the Digital payment tokens sector. If this draft starts to officially work from January 1 2020, some things are going to be reflected on digital payment tokens. The fundamental one is that the application of the tokens on goods and services payments won’t be connected with the supply growth and the second is that the exchange of this kind of tokens are not going to be assessed by GST.

But the guide is still on its initial steps of construction and the Ministry of Finances is going to hold a public discussion until July 26 on the “authoritative bills for digital payment tokens”.

For being acknowledged as a digital payment token, the asset must:

  • Be expressed as a unit
  • Not be secured by an issuer to any other currency and not be designated in any currency
  • Be able to store, transfer and trade electronically
  • Be or aim to be a means of exchange admitted by the public
  • Be fungible

For instance, famous Bitcoin, Ethereum, Monero, Dash, Litecoin and so on are estimated to be digital payment tokens. IRAS told that the attempt to end GST liabilities on cryptocurrencies reflects worldwide expansion and growth in the space that has influenced numerous regulations to have analysed their stance.