The Singaporean government’s taxation firm is recommending to remove goods as well as services tax (GST) from cryptocurrency deals that work or are intended to operate as a cash.
The Inland Revenue Authority of Singapore (IRAS) published last Friday an e-Tax draft overview for therapy on what it calls the “Digital Payment Tokens,” seeking to spare any entity managing such electronic possessions from GST responsibilities.
If the draft overview passes into regulation, beginning with Jan. 1, 2020, the complying with adjustments 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.