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.
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