The Inland Revenue Authority of Singapore (IRAS) has developed a draft guide to the country's cryptocurrency tax.
Cancel tax on cryptocurrency
The IRAS Guide, which is currently under development, is intended to abolish the Goods and Services Tax (GST) on cryptocurrency payments.
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The bill states: "Under 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 is subject to GST consideration. When tokens are used as payment for the purchase of goods or services, barter trade arises, resulting in two separate deliveries — a taxable supply of tokens and a supply of goods or services."
The bill will come into force on January 1, 2020 and will remove the GST from digital payment tokens. A few key points in the project say the following: "Using digital payment tokens as payment for goods or services will no longer result in the delivery of these tokens. That is, if you use digital payment tokens to pay for the purchase of goods or services, you do not need to consider GST for use."
The project also provides examples of digital assets: Bitcoin, Ethereum, Litecoin, Dash, Monero, Ripple and Zcash.
IRAS has developed a project on the cryptocurrency tax in the country. Recall that on June 24, the Australian Tax Administration's crypto-regulation issued rules for crypto-investors obligating to pay taxes in an amount exceeding the amount of the investment itself.
Editor: Jerg Wos