Forum
Last updated: 

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?

User comments

  • user image

    No Name

    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.

    2019.08.01 18:0

Please leave your knowledge and opinion!

Related Forums

Which University Majors in Singapore has the highest return on Investments?

How do I buy and sell my bonds?

At what age can you get a landline in Singapore?

What is the best unlimited mobile data plan in Singapore?

What will happen if a foreigner borrows money from unlicensed money lenders?

How much can foreigners borrow under the amendments to the Moneylenders Act?

Related Reviews

Protection of up to 90 days for online purchases

The delivered on the promise of purchase Protection of up to 90 days when ensured reimbursement on an eligible online purchases I made with my Amex Express Gold Card. Irrespective where you buy online or shopping at the local supermarket, their Purchase Protection offers repair, replacement or reimbursement on eligible purchases made with the Card, that has been damaged or stolen within 90 days of purchase.

American Express Gold Card / American Express International

Earnings of 1.3 KrisFlyer miles for every S$1 spent locally

This card offers a few thrills if you are one for accumulating miles as you can earn 1.3 KrisFlyer miles for every S$1 equivalent in foreign currency spent overseas on eligible purchases up to S$3,800 each month. On such purchases above S$3,800 each month, you can earn 2 KrisFlyer miles. Furthermore the card allows earnings of 1.3 KrisFlyer miles for every S$1 spent locally in Singapore dollars on eligible purchases up to S$3,800 each month. On such purchases above S$3,800 each month, earnings are 1.4 KrisFlyer miles. Highly recommended for those who seek to accumulate miles.

American Express Singapore Airlines PPS Club Credit Card / American Express International

Too bad it is not an unlimited cashback card

Unfortunately, the HSBC advance card is not an unlimited cashback card as they have a cap on the cashback per month, even for advance banking clients. Furthermore, if you are not an advance banking client, you would not get subsequent card fee waiver if you do not get to spend at least $12,000 in a year.

HSBC Advance Credit Card / HSBC Bank Singapore

Zero Travel Related Online Merchants

The Citi SMRT card is a pretty decent card for spending but they unfortunately exclude travel related online merchants. This to me is the downside of the card and may be a reason to get another card for travel websites.

Citi Prestige Card / Citibank Singapore

Earn up to 1% rebate on your purchase

If you target to spend on major event tickets and high price items with the plan to split by instalment then this card is for you. However I notice that if you have an existing OCBC saving account, it makes bill payments much more seamless. And aside from being able to split payment into monthly instalments interest free, you can earn up to 1% rebate on your purchase. Only few cards in the market that allow auto convert spending into interest free instalment and still be entitled to 0.5% or 1% cash rebate.

OCBC Cashflo Credit Card / Oversea-Chinese Banking Corporation

Consumers earn 2.4 miles per S$1 spend overseas and 1.2 miles on general local spend

OCBC Voyage Card is perfect for well-off consumers with a shifting travel schedule, who want to earn high miles locally and overseas. Consumers earn 2.4 miles per S$1 spend overseas and 1.2 miles on general local spend, which aligns with similar cards. Consumers are most likely to benefit from OCBC voyage card if they spend most of their budget locally, with at least 25% of local spend on dining.

OCBC VOYAGE Card / Oversea-Chinese Banking Corporation