The Singapore Taxation Office exempts the draft of the digital payment token commodity service tax from involving stable currency

Singapore Taxation Office Exemption from Digital Payment Substance Goods and Services Tax Draft does not involve stable currency

According to AMBCrypto on July 7, the Singapore Revenue Agency (IRAS) recently issued a draft guide detailing the GST for cryptocurrency transactions. As mentioned in the draft, Bitcoin, Ethereum, Litecoin, Dash, Monero, XRP and Zash are all digital payment tokens. According to the draft, under the new guidance, cryptocurrency users can use their digital currency like cash, because cryptocurrency no longer needs to pay GST, and it is scheduled to take effect from January 1, 2020. However, digital payment tokens do not include game credits, loyalty points, or tokens issued in the private chain. Stabilizing coins and digital assets linked to other currencies are also not considered. Through the draft, IRAS made it clear that the above changes in the GST do not represent IRAS's recognition of cryptocurrency investments.

Note: On July 5th, IRAS published the latest draft, dealing with the processing of goods and services tax for virtual currency or cryptocurrency transactions intended to be used as a medium of exchange. From January 1, 2020, in order to better reflect the characteristics of digital payment tokens, the implementation has been changed: 1. Payment of goods or services using digital payment tokens will not trigger the taxable supply of tokens; The use of currency or other digital payment tokens for the exchange of digital payment tokens will be exempt from the Goods and Services Tax. IRAS is seeking feedback on handling commercial consumption tax on digital payment tokens.

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