- Starting next year, Singaporeans will no longer be obliged to pay any GST on their cryptocurrency transactions/holdings.
- With that being said, tokens issued on private blockchain networks, stablecoins or other such offerings have not been classified as crypto assets by the IRAS.
In what is being considered to be an extremely welcome move by many from within the global crypto community, the Inland Revenue Authority of Singapore (IRAS) recently issued an all new draft aimed at detailing the ‘conduct of goods and services tax (GST) towards cryptocurrency transactions’.
Additionally, it should also be pointed out that since the start of the year, more and more Singaporeans have been making use of various cryptocurrencies to facilitate their day to day monetary tx’s and payments. In this regard, the aforementioned draft guidelines have established clear transaction rules for a number of digital currencies such as Bitcoin, Ethereum, Litecoin, Dash, Monero, and Ripple (XRP).
As per the draft, crypto owners can now spend their digital assets just like cash (within Singapore) and will no longer have to pay any GST on their crypto holdings — w.e.f January 1, 2020.
A spokesperson for the IRAS recently revealed that the nation’s recent GST stance was taken so as to thrust Singapore into the heart of the global crypto market. Additionally, an insider claims that since the process of taxing crypto assets is quite difficult and cumbersome, the government thought it would be better to get rid of GST entirely.
On the subject of crypto taxation, the draft reads as follows:
“If you are receiving digital payment tokens in return for your supply of goods or services and you are GST-registered, you would have to account for output tax on your supply of goods or services.”