On the off-chance that you’ve stashed a bundle of Bitcoin and hope its value will increase, here’s some welcome (and perhaps nasty) news. Singapore’s tax authority has issued a guidance on taxation for the virtual currency.
The official stance, laid out by the Inland Revenue Authority of Singapore (IRAS), states that companies “which are in the business of buying and selling bitcoins will be taxed based on the gains from their sales of the bitcoins”. Likewise, that dastardly 7% Goods and Services Tax (GST) is also applicable for Bitcoin transactions, should the trading of the virtual currency be done between a GST-registered and real-world goods are received.
That Bitcoin stash you've been hoarding? It's taxable, once you start using it.
How it affects you
Essentially, if you’re using Bitcoin as you would with any currencies to purchase, for example, a cup of coffee, you’ll have to pay a 7% GST on it.
The only exception, however, will involve purchases done in the virtual realm. This includes in-game item purchases, or even in-app purchases (though this is still a grey area). Another tax exemption for Bitcoin, is when the company is not based in Singapore. As such, goods purchased are not subjected to the 7% GST. A pro-tip, if you will, for aspiring Bitcoin traders to take note of.
In short, this is as official as it gets for Bitcoin to be recognised in Singapore. Wow. Much taxes. Very expensive. Dogecoin better.