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Author Topic: Bitcoin Sales tax coming to Singapore.  (Read 2329 times)
meAbdullah
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March 14, 2014, 10:16:34 AM
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Hello,

The Monetary Authority of Singapore(MAS), the central bank of Singapore, has just announced it would be regulating bitcoin activity treating it as a virtual commodity rather than as a virtual currency. Singapore currently has a 7% GST tax which is a consumption tax. As bitcoin is not a usual commodity, a strict implementation of GST cannot be applied. It is not expected that there will be bitcoin mining in Singapore. As there is no way to tell if a sales is local consumption (for which GST is specifically aimed at) or for export, I think the only reasonable way is a flat transaction tax, a sort of luxury tax or a 'warning' tax so that in the event when speculators got burnt when Bitcoin collapsed (When ?), the people won't complain and appeal to the government to direct the Bitcoin 'institutions' to indemnify them for losses - just as some over 65 people claimed they were stupid and ignorant when they incurred losses buying into Lehman brother's products. So the tax may be the same 7% as a start. 

For industry players, there should be no implementation difficulties. Bitcoin exchanges could just absorb the 7% in their spread. But of course, business would run from regions with higher tax to region with lower sales tax. I doubt there need be any bitcoin havens with no tax. If there is the first country to tax bitcoin transactions, no sane government need ever ban bitcoin. Bitcoin in itself is no evil as simple regulations would ensure that money laundering would be easily controlled as with normal banking transactions. In fact bitcoin will evolved to be a good source of tax revenue if it trades at 650,000 USD/BTC - so why ban it!


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March 14, 2014, 10:40:55 AM
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Ummm...no it is not.

They said they will make sure the exchanges and ATMs comply with their money laundering laws.

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March 14, 2014, 05:26:28 PM
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i don't think its true anyways where did you find that news from please post in the source and move this thread in the news section.Also i think the answer for this will be no one has to worry about any payable taxes except the exchanges atleast in my country   Wink
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March 14, 2014, 05:42:00 PM
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I heard of the sales tax for Singapore about a month ago, I have a client in Singapore who was waiting for the btc ATM to arrive to make her first purchase.  However, it seems she just purchased her first .25 btc a few days ago, I will ask her how she made the btc purchase.

I can tell you this, this is exactly where a Cryptocurrency Lobby, Council, or Foundation would come into action, to address the politicians, lawmakers, and regulators to EDUCATE them on what BTC is.   

It's one thing to place a tax on the creation of NEW CC, ie: mining, but a totally different story to tax it any further.  
  

meAbdullah
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March 14, 2014, 06:36:39 PM
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i don't think its true anyways where did you find that news from please post in the source and move this thread in the news section.Also i think the answer for this will be no one has to worry about any payable taxes except the exchanges atleast in my country   Wink

http://www.zdnet.com/sg/singapore-backtracks-unveils-new-bitcoin-regulations-7000027292/

I am not saying the Singapore government announced a sales tax on bitcoin transactions. It would be known only when the regulations are officially announced. I am Singaporean, but I am not sure if GST applies to bitcoins as the news never mention anything.

Although all governments officially proclaim bitcoin is not a currency or money, everyone with a little economic sense knows that bitcoin satisfies all the characteristic of 'real' money, not 'virtual'. It would create a rather embarrassing situation if any government classifies bitcoin as currency. Then people would bring out their heirloom of 200 years from their great-great grandmothers and ask if these cowrie shells too, now, again could be money.
 
I cannot move threads at my will. I did not post to dampen the enthusiasm of bitcoinists if sales tax is a would-be death knell to bitcoin. Everyone would better be prepared for government controls of bitcoin; it would be naive to assume that bitcoin would be allowed to just develop and evolve 'freely' on its own - very unlikely.   

The characteristic of bitcoin is that it has all the prerequisite to be a global money - transfer of values across national borders that are traceable only through the ISP; but it is still far far easier then having the need for people to open a bank account; so it even has the unique feature as a global money of the common people - this is a powerful feature. People who has interest in international finance are not dumb and they would see what the bitcoin community could see. No one could predict how this bitcoin thing would evolved.
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March 14, 2014, 07:50:46 PM
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i don't think its true anyways where did you find that news from please post in the source and move this thread in the news section.Also i think the answer for this will be no one has to worry about any payable taxes except the exchanges atleast in my country   Wink

http://www.zdnet.com/sg/singapore-backtracks-unveils-new-bitcoin-regulations-7000027292/

I am not saying the Singapore government announced a sales tax on bitcoin transactions. It would be known only when the regulations are officially announced. I am Singaporean, but I am not sure if GST applies to bitcoins as the news never mention anything.

Although all governments officially proclaim bitcoin is not a currency or money, everyone with a little economic sense knows that bitcoin satisfies all the characteristic of 'real' money, not 'virtual'. It would create a rather embarrassing situation if any government classifies bitcoin as currency. Then people would bring out their heirloom of 200 years from their great-great grandmothers and ask if these cowrie shells too, now, again could be money.
  
I cannot move threads at my will. I did not post to dampen the enthusiasm of bitcoinists if sales tax is a would-be death knell to bitcoin. Everyone would better be prepared for government controls of bitcoin; it would be naive to assume that bitcoin would be allowed to just develop and evolve 'freely' on its own - very unlikely.  

The characteristic of bitcoin is that it has all the prerequisite to be a global money - transfer of values across national borders that are traceable only through the ISP; but it is still far far easier then having the need for people to open a bank account; so it even has the unique feature as a global money of the common people - this is a powerful feature. People who has interest in international finance are not dumb and they would see what the bitcoin community could see. No one could predict how this bitcoin thing would evolved.


have you had the opportunity to use the btc ATM as of yet?  

what is the price of a btc compared to other exchanges ?





"MAS (Monetary Authority of Singapore) to Regulate Virtual Currency Intermediaries for Money Laundering and Terrorist Financing Risks

Singapore, 13 March 2014 … The Monetary Authority of Singapore (MAS) said today that it will regulate virtual currency intermediaries in Singapore to address potential money laundering and terrorist financing (ML/TF) risks.      
  
2   Virtual currency transactions, given their anonymous nature, are particularly vulnerable to ML/TF risks. To address this, MAS will introduce regulations to require virtual currency intermediaries1 that buy, sell or facilitate the exchange of virtual currencies for real currencies to verify the identities of their customers and report suspicious transactions to the Suspicious Transaction Reporting Office.2 The requirements will be similar to those imposed on money changers and remittance businesses who undertake cash transactions.

3   Singapore, like most jurisdictions, does not regulate virtual currencies per se, as these are not considered as securities or legal tender.  MAS’ regulation of virtual currency intermediaries pertains specifically to the money laundering and terrorist financing risks they pose.  It does not extend to the safety and soundness of virtual currency intermediaries nor the proper functioning of virtual currency transactions. Investors in virtual currencies will not have the safeguards that investors in securities enjoy under the Securities and Futures Act and the Financial Advisers Act.

4   Therefore, since June 2013, MAS has been cautioning consumers and businesses of the significant risks associated with virtual currency transactions:

The values of virtual currencies can fluctuate greatly within a short period of time. Consumers and businesses may suffer significant monetary losses as a result of the volatile prices.  
Virtual currencies may not be issued by any identifiable organisation. Consumers and businesses may not be able to obtain a refund of their monies should virtual currency schemes or intermediaries cease to operate.  
5   Deputy Managing Director of MAS, Mr Ong Chong Tee, said, “MAS is taking a targeted regulatory approach to virtual currencies to specifically address money laundering and terrorist financing risks. Consumers and businesses should take note of the broader risks that dealing in virtual currencies entails and should exercise the necessary caution.”

6   MAS’ move will make Singapore one of the first countries in the world to regulate virtual currency intermediaries for ML/TF risks.  MAS will continue to monitor closely the development and implications of virtual currencies as well as evolving regulatory approaches taken towards virtual currencies by major jurisdictions.  If necessary, MAS will consider additional measures to address the risks posed by virtual currencies and their intermediaries.

***

1 These include operators of Bitcoin exchanges and Bitcoin vending machines.

2 STRO is Singapore's Financial Intelligence Unit. It is the central agency in Singapore for receiving, analysing and disseminating reports of suspicious transactions.  STRO is a unit in the Commercial Affairs Department."

meAbdullah
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March 14, 2014, 08:06:18 PM
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I wanted to buy a fraction of a bitcoin just to fill my multibit wallets, but all the people around me are using just apple smartphones. The btc atm requires the android application bitcoin-wallet to scan a QR code, pay some SGD dollar bills and the bitcoins would go to our smartphones wallet.  I'll get some later, not in a hurry.
Meuh6879
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March 14, 2014, 08:22:20 PM
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this tax is only for "industrial mining farm" ... that it generate more than 10 btc per day.
it's OK ... a single person with "normal" job can't generate this.

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March 14, 2014, 08:26:54 PM
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I don think it should be taxed
IrishFutbol
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March 14, 2014, 08:30:23 PM
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I don think it should be taxed

Why shouldn't it be?  They operate just like gold/diamond mining companies, which are taxed.
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March 14, 2014, 08:57:21 PM
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Nothing should be taxed by a a mafia we call government

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March 14, 2014, 09:08:34 PM
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These types of variable consumption taxes are for the dinosaurs.  Bitcoins are digital assets which can be bought anywhere in the world.  If people in Sinagpore are being imposed with a ridiculous 7% tax simply for buying BTC, they'll just buy from companies outside of Singapore.  There is no way for the government to enforce this tax globally.  All they're doing is stifling innovation in their own country.

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March 14, 2014, 10:45:41 PM
 #13

Hello,

The Monetary Authority of Singapore(MAS), the central bank of Singapore, has just announced it would be regulating bitcoin activity treating it as a virtual commodity rather than as a virtual currency. Singapore currently has a 7% GST tax which is a consumption tax. As bitcoin is not a usual commodity, a strict implementation of GST cannot be applied. It is not expected that there will be bitcoin mining in Singapore. As there is no way to tell if a sales is local consumption (for which GST is specifically aimed at) or for export, I think the only reasonable way is a flat transaction tax, a sort of luxury tax or a 'warning' tax so that in the event when speculators got burnt when Bitcoin collapsed (When ?), the people won't complain and appeal to the government to direct the Bitcoin 'institutions' to indemnify them for losses - just as some over 65 people claimed they were stupid and ignorant when they incurred losses buying into Lehman brother's products. So the tax may be the same 7% as a start.  

For industry players, there should be no implementation difficulties. Bitcoin exchanges could just absorb the 7% in their spread. But of course, business would run from regions with higher tax to region with lower sales tax. I doubt there need be any bitcoin havens with no tax. If there is the first country to tax bitcoin transactions, no sane government need ever ban bitcoin. Bitcoin in itself is no evil as simple regulations would ensure that money laundering would be easily controlled as with normal banking transactions. In fact bitcoin will evolved to be a good source of tax revenue if it trades at 650,000 USD/BTC - so why ban it!




Making Bitcoin taxable under a GST or VAT will never work for the very simple reason that Bitcoin will then become the perfect instrument to legally evade such a tax. This is the reason why the UK finally came to its senses over Bitcoin and VAT and Singapore will be forced to do the same. GST/VAT taxes only work because certain items are exempt. Among the exempt items wages, and money are a must. When considering money, anything that is used as money in the economy also needs to be exempt.

Concerned that blockchain bloat will lead to centralization? Storing less than 4 GB of data once required the budget of a superpower and a warehouse full of punched cards. https://upload.wikimedia.org/wikipedia/commons/8/87/IBM_card_storage.NARA.jpg https://en.wikipedia.org/wiki/Punched_card
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March 14, 2014, 11:27:18 PM
 #14

Hello,

The Monetary Authority of Singapore(MAS), the central bank of Singapore, has just announced it would be regulating bitcoin activity treating it as a virtual commodity rather than as a virtual currency. Singapore currently has a 7% GST tax which is a consumption tax. As bitcoin is not a usual commodity, a strict implementation of GST cannot be applied. It is not expected that there will be bitcoin mining in Singapore. As there is no way to tell if a sales is local consumption (for which GST is specifically aimed at) or for export, I think the only reasonable way is a flat transaction tax, a sort of luxury tax or a 'warning' tax so that in the event when speculators got burnt when Bitcoin collapsed (When ?), the people won't complain and appeal to the government to direct the Bitcoin 'institutions' to indemnify them for losses - just as some over 65 people claimed they were stupid and ignorant when they incurred losses buying into Lehman brother's products. So the tax may be the same 7% as a start.  

For industry players, there should be no implementation difficulties. Bitcoin exchanges could just absorb the 7% in their spread. But of course, business would run from regions with higher tax to region with lower sales tax. I doubt there need be any bitcoin havens with no tax. If there is the first country to tax bitcoin transactions, no sane government need ever ban bitcoin. Bitcoin in itself is no evil as simple regulations would ensure that money laundering would be easily controlled as with normal banking transactions. In fact bitcoin will evolved to be a good source of tax revenue if it trades at 650,000 USD/BTC - so why ban it!




Making Bitcoin taxable under a GST or VAT will never work for the very simple reason that Bitcoin will then become the perfect instrument to legally evade such a tax. This is the reason why the UK finally came to its senses over Bitcoin and VAT and Singapore will be forced to do the same. GST/VAT taxes only work because certain items are exempt. Among the exempt items wages,and money are a must.  When considering money, anything that is used as money in the economy also needs to be exempt.


hahahahaha in the US, in some states, in some cities, there is not only a wage tax, there are upwards of 5 wage taxes, for example in NYC, you have the Social Security tax, the Federal Government Tax, the State Government Tax, The City Government tax, and the disability tax.  Most cities in the US don't tax wages, and only a few states in the US don't tax wages, but NYC residents get taxed, taxed, taxed and taxed again -- oh, sales tax is 8.25% (state sales tax + city sales tax) ...  with that said the USD is stonger in NYC than anyplace in the world, not because of the tax, but in spite of it


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