Doesn't affect us but just some new info about changes going on in the region. In the Singapore Budget Speech earlier today it was announced that to promote Singapore as a Precious Metals Trading Hub the 7% Goods and Services Tax on precious metals will be removed. See excerpt from the Budget 2012 speech: C.62. We will facilitate the development of gold trading, which can draw on Singapore's strengths as an international financial centre and trading hub, to meet strong demand for investment-grade gold in Asia. C.63. Investmentgrade gold and other precious metals are essentially financial assets that are actively traded and are just like other financial instruments that do not attract GST. I will therefore exempt them from GST. This change brings our tax treatment of investment-grade gold and precious metals in line with the practices of many developed economies, like Australia, UK and Switzerland. Source: silverbullion.com.sg
The UK and Switzerland both have VAT on silver. Src: https://www.goldbroker.com/precious-metals-taxes-uk-usa-ireland-switzerland-europe.html
Probably come into effect late in the year... Might have a look at the coin fair on the 1st when passing through. Been stacking for a while now but have never been to coin show before. Hopefully the removal of GST results in much higher appetite for physical, that mouth slowly getting bigger as the years pass.
Does this mean that the people that can change the laws are entering the market? I can just imagine a collective head turn in Canberra toward the north-west at hearing this news. :lol:
Update>>> On February 17th, the Singapore Government has announced its intention to make Singapore a precious metals trading hub and will remove the 7% GST (goods and services taxes) on physical precious metals. Singapore does not charge capital gains tax so in essence physical precious metals in Singapore are completely tax free. This GST exemption is scheduled to go into effect on 1 October 2012 and full implementation details of the law will be made known on 1 September. The law is not final until then, however the current definition of investment grade precious metals, as obtained from IRAS website, states that: Investment-grade gold (in the form of a bar, ingot, coin or wafer) must be in purity of 99.5% and above, with the following characteristics that differentiates it from gold in other forms such as jewellery: (i) Capable of being traded on the international bullion market; (ii) Bears a mark/ characteristic accepted as guaranteeing its quality; and (iii) Trade at a price based on the spot price of the metal it contains. Investment-grade silver and platinum must be in purity of 99.9% and above and 99% and above respectively, with the same characteristics as investment-grade gold. Source- silverbullion.com.sg
