From Lendo’s perspective, Singapore continues at pace to make itself one of the most crypto-friendly jurisdictions globally.
Just a few days ago, the Singapore government’s taxation agency, the Inland Revenue Authority of Singapore (IRAS), released an e-tax draft guide that would remove goods and services tax (GST) from cryptocurrency transactions, according to Fintech News Singapore.
Under the current rules, the cryptocurrency used for payments is treated as a taxable supply of services, meaning that the sale, issue or transfer of such tokens for consideration by a GST-registered business is subject to GST. If the draft passes into legislation, it will start on 1st January 2020, and the use of cryptocurrency purely as a method of payment for goods or services would be exempt from GST.
Zann Kwan, co-founder and CEO of Bitcoin Exchange Pte Ltd. in Singapore and a board member of the Singapore Cryptocurrency and Blockchain Industry Association (ACCESS) said the move would make Singapore a pioneer in crypto regulation and accentuate the city-state’s position as a blockchain hub. She also posted this on social media: “Singapore is now taking the lead in cryptocurrency taxation for aligned development of the cryptocurrency, blockchain and digital payment ecosystem.”
David Lee, a professor at the Singapore University of Social Sciences and an entrepreneur, told the media he believed it would strengthen the case of initial coin offerings (ICOs) once again. He posted on Facebook, “I strongly suggest ACCESS and international crypto organizations to focus all energy on self regulation of ICOs. This is the killer app of blockchain.”
Kwan added, the proposed changes would not only avoid the issue of double taxation when accepting virtual currency as a form of payment, but would also “be one of the friendliest tax regulations in the world for non-securitized token offerings, among the various financial hubs.”