On Friday, the Singapore Tax Agency published a document called “GST: Digital Payment Tokens” (digital payment tokens), which proposes to exempt cryptocurrency transactions from the federal goods and services tax (GST), “which function or are intended as a medium of exchange”.
“The use of digital payment tokens as payment for goods or services will not increase the supply of tokens. That is, if you use digital payment tokens to pay for goods or services, you do not need to take into account the GST tax, ”explained the tax authority.
Before the official discussions of this project, the city-state finance ministry plans to hold public consultations before July 26. If the bill is adopted, it will come into force on January 1, 2020.
“A digital payment token is a digital token with the following characteristics: it is expressed as a unit of measure, interchangeable, not expressed in any currency, and is not bound by its issuer to any currency.
Also, it is a means of exchange adopted by the public, without any significant restrictions in the form of recommendations for its use, the draft says.
Bitcoin, Ethereum, Litecoin, Dash, Monero, Ripple and Zcash are examples of digital payment tokens. ”
The agency clarified that they would not consider the token linked to the fiat currency as a digital payment token.
“A digital payment token should not have a value based on the value of something else. Therefore, any digital token expressed in any fiat currency or having a value tied to any fiat currency will not be considered a digital payment token, ”says one of the clauses of the document.