The Asian Republic of Singapore is a major world financial center where the economy continues to grow at a rapid rate. The Goods and Services Tax, or GST is a mechanism by which the government of Singapore taxes imports and supplies of goods and services. Precious metals have long been subject to this 7% tax, but loosening of regulations will exempt investment-grade silver, platinum and gold from the tax, effective October 2012. Currently, paper financial instruments, like stocks and bonds enjoy the same exemption.
Silver and gold coins, wafers and ingots must meet stringent quality and quantity standards in order to qualify for exemption.
Repeal of the GST for precious metals is expected to boost Singapore’s reputation as one of the most welcoming locales for business transactions. Other measures are also being introduced to ease cash flow and relax compliance requirements for local qualifying precious metals refiners and consolidators. A favorable taxation structure and low levels of corruption already place Singapore at the top of the worldwide investment list.