Singapore Says "Yes" to Bitcoins, Offers Taxing Guidelines

Singapore is one of the few nations that have accepted the cryptocurrency

By on January 9th, 2014 14:50 GMT

Governments across the world are taking a stance regarding Bitcoin, the digital currency that has been making headlines everywhere. This time, it’s Singapore’s turn to make a decision.

So, the country has officially recognized Bitcoin trading and laid out a series of taxation rules to govern transactions made in the virtual currency, CoinRepublic reports.

Singapore’s tax authorities say that companies that buy and sell Bitcoins will be taxed according to the gains they get from the sales. But, if Bitcoins are a part of a company’s investment portfolio for long-term investment purposes, the gains won’t be subject to taxation.

Exchanging Bitcoins or selling them for cash is a taxable service, but purchasing items or services with the cryptocurrency will not be taxed. There’s also the case of those who facilitate Bitcoin trading, where the currency is moved to a customer’s wallet, who will only be charged on the commission fees.

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