The Singaporean government’s taxation agency proposing to remove goods and services tax (GST) from cryptocurrency transactions, what does the average bitcoin user stand to gain?
I missed the last bitcoin rush and profiting so I am determined not to miss any more opportunities to make money with bitcoins. Recently the Inland Revenue Authority of Singapore (IRAS) published e-Tax draft guide for treatment on what it calls the Digital Payment Tokens, which seeks to exempt any entity dealing with such digital assets from GST liabilities. Does it mean all transactions are tax free across board?
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Essentially, if the draft guide passes into legislation, starting from Jan. 1, 2020, it is expected that the some changes will take effect to enhance the dynamics of digital payment tokens. To start with, the use of digital payment tokens as payment for goods or services will not give rise to a supply of those tokens as opposed to now when a barter trade results in two separate supplies, a taxable supply of the tokens and a supply of the goods or services. Being that supply of digital payment tokens is currently seen as a taxable supply of services. In any case, the exchange of digital payment tokens for fiat currency or other digital payment tokens will be exempt from GST. So within this fine lines may lie the opportunity to make money trading and transacting with digital payment tokens like Bitcoin, Ethereum, Litecoin, Dash, Monero, Ripple and Zcash. But I encourage you to do more research please.