The Singaporean government’s taxation agency is proposing to exempt its goods and services tax (GST) on cryptocurrency transactions that function or are aimed to function as a medium of exchange.
The Inland Revenue Authority of Singapore (IRAS) published last Friday an e-Tax draft guide for treatment on what it calls the “Digital Payment Tokens,” seeking to exempt the GST liabilities for any entity dealing with such digital assets.
If the draft guide can pass the legislation, then starting from Jan. 1, 2020, the following changes 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.
The IRAS stated the e-Tax is still in its draft form and the Ministry of Finance will be holding a public consultation from now until July 26 on the “legislative amendments for digital payment tokens.” Read More at CoinDesk...