Crypto transactions may be exempted from GST in Singapore, crypto community reacts

  • The IRAS said that the e-Tax is still a draft and the Ministry of Finance will hold a public consultation.
  • The reaction from the crypto community was overwhelmingly positive as expected.

 Singapore government's taxation agency has proposed to end GST (goods and services tax) taxation on crypto transactions that function or aim to work as a medium of exchange. An e-Tax draft guide was published by The Inland Revenue Authority of Singapore (IRAS) regarding the treatment on what it refers to as "Digital Payment Tokens," proposing an end to GST liabilities for any entity dealing with such digital assets.
If this draft guide successfully passes the legislation, then the following changes will be in action to "better reflect the characteristics of digital payment tokens.

  • "The use of digital payment tokens as payment for goods or services will not give rise to a supply of those tokens;
  • The exchange of digital payment tokens for fiat currency or other digital payment tokens will be exempt from GST."

The IRAS said that the e-Tax is still a draft and the Ministry of Finance will hold a public consultation (from now until July 26) regarding the "legislative amendments for digital payment tokens." According to them, these digital payment tokens are "Bitcoin, Ethereum, Litecoin, Dash, Monero, Ripple, and Zcash." However, they specified that stablecoins might not be qualified to be exempted from GST imposition.
In the current situation and framework, the supply of digital payment tokens is still seen as taxable services. The IRAS added: 

"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."

Reactions from Crypto Community

Binance CEO CZ:

"#Singapore leading the way in Asia. Big financial hub of tomorrow."

Su Zhu from Uncommon Core:

"Wow, Singapore's tax authority IRAS proposes to exempt all usage of cryptocurrency as medium of exchange (MoE) from goods and services tax (GST)!"

The Crypto Lark:

"This is awesome! Well done Singapore!"

Michael B:

"Hail to Singapore."

David Moskowitz:

"More good news coming out of Singapore, IRAS planning to remove GST (sales tax/VAT) from the payment token side (bitcoin, ether, etc) of transactions. (it was potentially double taxed before)."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Opportunity in Bitcoin for bargain hunters

First, the strong bullish move yesterday by Bitcoin, which gained more than $1,000 in 60 minutes. The movement has placed the BTC/USD pair above all major moving averages and opens the door to further rises in the absence of relevant resistance.

More Bitcoin News

Ripple’s XRP recovery from April lows marks the beginning to breakout

Ripple has dived massively from the recent highs. The breakout above both the 50 Simple Moving Average (SMA) 1-D and the 100 SMA 1-D propelled XRP past critical hurdles. For the first in 2019, the price exchanged hands above $0.5. 

More Ripple News

Litecoin market overview: LTC/USD oversold and ready to bounce

Litecoin is showing signs of exhaustion from the downtrend experienced from the beginning of July. Recovery to June highs around $146 has been impossible with the path of least resistance having an affinity to the south.

More Litecoin News

Ethereum price analysis: ETH/USD hovers above $220; upside capped at $230

Ethereum momentum hit a snag at $230 following the impressive recovery witnessed yesterday from the support at $205. ETH/USD has spent most of this week’s trading sessions battling to shake off the selling pressure. 

More Ethereum News

Bitcoin Weekly Forecast: BTC bulls get ready for a major assault

The cryptocurrency market has been pretty volatile this week. Bitcoin stayed in the green zone despite wild price gyrations, while major altcoins are nursing double-digit losses on a week-on-week basis.

Read the weekly forecast