Tax Agency in Singapore are proposing to end good and services tax on cryptocurrencies
|- Inland Revenue Authority of Singapore (IRAS) published a report to change guidelines on GST for cryptocurrencies.
- Should the draft guide on GST changes pass, it would start from Jan 1, 2020.
The government of Singapore’s taxation agency is exploring the removal of goods and services tax (GST) from relating cryptocurrency transactions that function or are aimed to function as a medium of exchange.
The Inland Revenue Authority of Singapore (IRAS) recently published a report, with some guidelines on an e-Tax focusing on what it calls the “Digital Payment Tokens,” seeking to exempt any entity dealing with such digital assets from GST liabilities.
Should the draft guide pass into legislation via the government, starting from Jan. 1, 2020, the changes as detailed below will take effect to “better reflect the characteristics of digital payment tokens:”
(i) The use of digital payment tokens as payment for goods or services will not give rise to a supply of those tokens
(ii) The exchange of digital payment tokens for fiat currency or other digital payment tokens will be exempt from GST.
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