In the case of crypto currency settlement, settlement consumption tax exemption

The other day, in the case of cryptographic currency settlement in Singapore, "consumption tax exempt".

A draft of the tax system was issued.

It is guessed that the aim is to secure users in anticipation of an increase in the number of cryptographic currency holders in the future.

It is expected that the movement of each country will change depending on whether this draft is passed or not.

The Singapore Internal Revenue Service (IRAS) recently released a new draft on the cryptocurrency tax system.

In this draft, it is described that exemption of the consumption tax on the corresponding currency is made by dividing cryptographic assets with "functionality of payment" into new classification called "digital payment token".

It is expected that Singapore's cryptocurrency industry can grow further.

"Digital payment token"

As an example of the cryptocurrency that corresponds to

・ Bitcoin (Bitcoin / BTC)

・ Etherium (Ethereum / ETH)

・ Light coin (Litecoin / LTC)

・ XRP (XRP / XRP)

・ Dash (Dash / DASH)

・ Monero (Monero / XMR)

・ Gee cash (Zcash / ZEC)

Are listed.

Singapore earns up to 20% in income tax on profits earned from cryptocurrency transactions, but under the old rules, 7% of goods, plus income tax plus consumption tax, when paying in the virtual currency purchased A service tax (Goods and Services Tax / GST) was imposed.

The draft published this time states that commodity service tax (consumption tax) is exempted if payment is made in the cryptocurrency corresponding to the digital payment token.

Please note that this digital payment token

・ Stable coin

·token

・ Loyalty point

・ The game currency issued in the private chain

Digital assets such as are not included.

Singapore is also known for its very low income tax, up to 20%, so high-income earners in Japan who are subject to a 55% income tax migrate to Singapore for corporate registration.

With the tax system for cryptocurrency changed and a more attractive environment for cryptocurrency users to be created, it is expected that more virtual currency users will migrate to Singapore in the future.

Experts who are familiar with cryptocurrency are taxed on cryptocurrency The tax system is the cause that impedes the spread of cryptocurrency

Insists.

This is because the tax is complicated when using cryptocurrency as a payment instrument.

If you purchase a product or service using cryptographic currency in Japan, the difference between the price when you purchased that cryptographic currency and the price of the cryptographic currency when you purchased the product is the income amount.

Although the tax system of cryptocurrency varies from country to country, the contents have been discussed in various countries, and recently, Mr. Takeshi Fujimaki, a member of Japan, addressed the Chairman of the House of Representatives and the Speaker of the House of Councilors.

・ Change the trading gain of cryptocurrency to 20% separate taxation

・ Enabling the carry forward deduction of loss of trading of cryptographic currency

· Exempting tax trade in cryptocurrency

・ Exempt tax-free settlement of cryptocurrency in stores etc.

It has been clarified that the petition for cryptocurrency tax system revision has been submitted asking for etc.

As the National Tax Agency says that there is no plan to change the tax system on cryptocurrency this May, it is thought that there will be no change in Japan for the time being.

■■■■

Our information links.

HP

https://amanpuri.io/tokensale/

Telegram

https://t.me/amanpurichat

Twitter

https://twitter.com/amanpuri_ex

Facebook

https://www.facebook.com/amanpuriexchange/