Singapore to be a International Gold Hub?
October 2, 2012 Taxation in Singapore
SINGAPORE – Singapore is looking to become a new international trading center for precious metals, as the government tries to use tax changes to attract international traders to the city.
As of October 1st 2012 new legislation came into effect in Singapore which effectively exempts the trade of investment-grade gold, silver and platinum from the country’s 7 percent Goods and Services Tax (GST), in line with the government’s aim to help facilitate the development of Singapore as an international trading and storage hub for the valuable materials.
The exemptions will only apply to metals sold with a 99 percent, 99.5 percent, or a 99.9 percent purity, and will not affect the sale and purchase of most consumer level jewellery or coins.
In order to ensure that the traded metals meet the required investment-grade standard, the exemption will only be granted to metals produced by refiners accredited in the “Good Delivery” list of the London Bullion Market Association and the “Good Delivery” list of the London Platinum and Palladium Market.
In a statement released in April 2012 during the public consultations on the proposal, the Ministry of Finance explained the government’s intentions for the exemption, saying that investment-grade precious metals are “…essentially a financial asset that is actively traded in international exchanges, just like other financial instruments such as stocks and bonds that do not attract GST”.
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