Sunday, May 25, 2014

Singapore Customs GST Exemption for Investment Precious Metals

Since 1st October 2012, the Singapore government has removed the Government Service Tax (GST)  for investment precious metals (IPM). The GST of 7% used to be associated with all consumption goods and services, but since precious metals are seen as an investment, they have been waived from being taxed!

The customs webpage has a short write up about it here. However, for the full details, you have to go to find the official pdf circular on their website. Well, luckily I have found it and here's the link!

Summary:



IPMs are only for 3 metals - Gold, Silver and Platinum
Gold purity must be at least 99.5%
Silver purity must be at least 99.9%
Platinum purity must be at least 99%


Bars and Coins will only be tax exempt if they subsequently comply with the annex lists.

I've checked and looked out for the popular bars being sold in Singapore. Heraeus, Solar, PAMP, Metalor, Nadir and Johnson Matthay are all compliant. The full list of compliant companies can be found on the LMBA website here.

For Coins, it's more clear cut with less wiggle room. It's just whatever is on the other annex page, shown below.


Anyway, as long as your precious metals investments are compliant with the regulations above, they should be GST-free, meaning that you do not need to pay 7% extra for these goods.

The main reason why I'm extracting this information is so that I can start out with the pure basics of precious metals investing in Singapore. I need to know what counts as an IPM, and then I can compare IPM to IPM products, without the distortion of GST involved!

No comments:

Post a Comment

Observe the house rules.