• Mon, 26 Aug 2019, 10:07 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Crypto payments get tax exemptions in Singapore

Crypto Coin.Max Pixel/Max Pixel

Sun, 07 Jul 2019, 04:13 am UTC

The Inland Revenue Authority of Singapore (IRAS) recently published a new guide with regards to the Goods and Services Tax (GST) on the matter of crypto payments. Referring to crypto coins as “digital payment tokens,” the IRAS is basically saying that it wants to change the categorization of the new currencies. By doing so, it would then become exempt from GST, which could go a long way towards growing the port nation’s crypto industry even more.

The details with regards to what this new tax exemption could mean are provided in the new draft guide that the IRAS has made available. In it, the tax authority laid out exactly what it plans to do with regards to crypto payments starting on Jan. 1, 2020.

“Under the current rules, the supply of digital payment tokens is treated as a taxable supply of services. Therefore, the sale, issue or transfer of such tokens for consideration by a GST-registered business is subject to GST. When the tokens are used as payment for the purchase of goods or services, a barter trade resulting in two separate supplies arises — a taxable supply of the tokens and a supply of the goods or services,” the draft reads.

In an attempt to better classify crypto payments as they are meant to be, the IRAS decided to change its classification. A lot of this is due to how the use of crypto coins for payment does not exactly lead to more crypto coins popping up out of nowhere.

“The use of digital payment tokens as payment for goods or services will not give rise to a supply of those tokens,” the amended guide reads. “The exchange of digital payment tokens for fiat currency or other digital payment tokens will be exempt from GST.”

This is a timely development, as well, because Singapore’s crypto scene is absolutely booming. In fact, one of the largest Ethereum wallets is already planning to move to the port nation, South China Mornin Post reports.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,375.00 (+2.28%)
  • Ethereum (ETH) $190.60 (-0.10%)
  • XRP (XRP) $0.270900 (-0.68%)
  • Bitcoin Cash (BCH) $311.66 (+0.92%)
  • Litecoin (LTC) $74.10 (+0.39%)
  • Bitcoin (BTC) $10,375.00 (+2.28%)
Aug 26, 2019 (Monday)
09:37
FDA mulls using blockchain to modernize medical feedback and recall process
09:33
Manchester City announces blockchain partnership with Superbloke
08:49
US lawmaker’s concerns on Facebook's crypto remain unresolved even after meeting with Swiss regulators
08:13
Brave Browser expands token tipping service to Vimeo, Reddit users
08:05
Craig Wright again tries to prove authorship of Bitcoin white paper
04:09
Crypto startup Circle eyes $100M fundraise for its crowdfunding arm SeedInvest
04:05
BitPay, Blockchain.com team up to offer a new way of bitcoin spending
04:04
Binance offers lifetime VIP membership to hack victims, blames KYC vendor for image leaks
Aug 23, 2019 (Friday)
11:35
Stablecoin project Terra receives funding from HashKey Capital
10:49
Three of the founding members of Libra Association consider backing out: Report
08:55
Overstock's Patrick Byrne steps down as CEO
08:52
Pundi X brings XPOS crypto payments to Venezuela's Traki retail stores
07:22
Blockchain startup Blockstack scores strategic investment from Japan's Recruit Holdings
07:19
BitGo announces support for multi-signature EOS wallet and custody services
06:39
US Treasury blacklists crypto addresses of suspected Chinese fentanyl traffickers
06:14
Chainalysis launches ‘Chainalysis KYT Alerts’ to detect suspicious cryptocurrency activity in real-time
05:13
Cryptocurrencies used to buy fentanyl, other illicit drugs: White House
05:04
Blockchain energy startup Power Ledger extends energy trading trial in Fremantle
03:53
Blockchain accelerator initiatives launched at the University of California campuses
Aug 22, 2019 (Thursday)
13:05
Crypto exchange Coincheck mulls launching IEO Platform
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft