The U.S. is increasingly running the risk of being left behind other nations unless its authorities soon address issues surrounding Bitcoin. One of the main problems facing the cryptocurrency is tax treatment. In this regard, Singapore is now taking the lead.
Singapore to Exempt Bitcoin from Goods and Services Tax
Several countries, such as Japan and Switzerland, are already taking action to boost the growth of their crypto industry.
Most recently, the Inland Revenue Authority of Singapore (IRAS), acknowledging the importance and growth of crypto assets, proposed legislation to exempt cryptocurrencies from the Goods and Services Tax (GST), also known as value-added tax (VAT). The IRAS e-Tax Guide (Draft), dated July 5, 2019, highlights,
“Global development and growth in the use of cryptocurrencies have caused tax jurisdictions to review their GST position on cryptocurrencies transactions. Similarly, IRAS has reviewed its GST position to keep up to date with these developments.”
The new tax treatment would take effect on…