19 August 2021
In recognition of global developments and growth in the use of cryptocurrencies, Singapore has provided for Goods and Services Tax (GST) exemptions for digital payment tokens that satisfy certain criteria.
Before this exemption was introduced, Singapore taxed digital payment tokens at two tax points – once on the purchase of the cryptocurrency and again when it was used as payment for goods and services. The new changes are welcomed and should be consulted when buying and selling digital payment tokens; using digital payment tokens for payment: making loans of digital payment tokens; charging a fee or commission to facilitate the transfer, purchase or sale of digital payment tokens; or issuing digital payment tokens such as through ICOs.
For further information, please contact:
Eugene Lim, Co-Founder and Principal, TaxiseAsia
eugene.lim@taxiseasia.com