Crypto Tax Cut In Singapore Helps Crypto Business

A partner at one of the big 4 auditing firms has recently concluded that Singapore’s plan to exempt some digital currencies from the Goods and Services Tax (GST) may benefit cryptocurrency-related businesses.

Gwenda Ho, a partner in PwC Hong Kong’s corporate tax practice believes that Singapore government’s proposal to drop the 7% GST for cryptocurrencies when using them to pay for goods and services would have a positive impact on the space.

This tax policy initiative will set Singapore will set it a par with those of other jurisdictions such as Hong Kong, Australia, Japan, Switzerland and the European Union.

The amendment on the taxation scheme was considered by Singapore’s Inland Revenue Authority in July and if accepted will take effect on January 1, 2020.

According to its existing draft, tokens as payments for goods and services will not give rise to a supply of tokens and the exchange of digital payment tokens for fiat currency or other digital payment tokens will be exempt from GST.