Singapore is Going to Cancel GST on Cryptocurrency Operations
Singapore's Tax Agency proposes to cancel the tax on goods and services (GST), which operations are carried out through cryptocurrencies. The Singapore Internal Revenue Authority (IRAS) published a new draft law on e-taxes on July 5. The main goal of this initiative is to release all organizations dealing with digital coins of double taxation. If everything goes according to plan, then from January 1, 2020, the following changes will take place:
  • using digital tokens as payment for goods or services will not result in taxation of these tokens;
  • the exchange of digital payment tokens for national currency or other digital payment tokens will be exempt from GST.
The Singapore Internal Revenue Service stated that at this stage this manual is only in draft form and that the Ministry of Finance is planning to hold public consultations on this issue until July 26. Note that this is not a unique case, for example, in October 2017, the Australian government adopted a similar law, which contributed to the popularization of the digital economy in the government. We want to remind: