Source:
https://scmp.com/business/banking-finance/article/3020406/singapores-move-waive-sales-tax-digital-payment-tokensBanking & Finance
Singapore’s move to waive sales tax on digital payment tokens will spur innovation, boost cryptocurrency exchanges, says PwC
- Government’s proposal to exempt digital tokens from sales tax will benefit cryptocurrency exchanges, asset managers and entrepreneurs, says PwC
- The move will narrow the gap between Singapore and Hong Kong in being a tax-friendly jurisdiction for the digital economy
The waiver would level the playing field in terms of taxation between digital payment tokens like bitcoin (pictured) and conventional money, industry players have said. Photo: Bloomberg
The Singapore government’s proposal to exempt digital payment tokens from a sales tax when they are used to pay for goods and services is likely to benefit cryptocurrency exchanges, asset managers and blockchain entrepreneurs, according to accounting giant PwC.
The waiver of the 7 per cent goods and services tax (GST) would also bring the city state closer to Hong Kong in terms of being a tax-friendly jurisdiction for cryptocurrencies, said Gwenda Ho, a partner in PwC Hong Kong’s corporate tax practice.