The existence of bitcoin does not only occur in Indonesia but also in Singapore. In Singapore bitcoin is widely used by local people as a means of payment in buying and selling transactions or from exchanging for other cash. However, bitcoin ownership is not prohibited by the government, as well as transaction activities using bitcoin and how to obtain bitcoin by mining is allowed by the Singapore government to do.
The Singapore government has previously emphasized that virtual money is not a legal means of payment because it is not in accordance with the security regulated in the Securities and Futures Act in force in the country, but seeing the increasingly advanced economic conditions affected by this virtual payment instrument, in May 2014 The Monetary Authority of Singapore (MAS) issued a regulation to regulate bitcoin in Singapore to avoid criminal acts that are feared to occur due to the use of virtual money, such as money laundering or terrorist activities.
Bitcoin exchanges in Singapore so far have not required an operating license, however, so far the authorities have only warned users of the risks involved in making these bitcoin transactions and have stated that virtual payment instruments will be considered as service providers subject to GST or Goods and Services Tax.
The regulation on the imposition of taxes on bitcoin in Singapore has been in effect since early 2014 on the government’s official website www.iras.gov.sg stating that “Businesses that choose to accept virtual currencies such as Bitcoins for their remuneration or revenue are subject to normal income tax rules .
They will be taxed on the income derived from or received in Singapore. Tax deductions will be allowed, where permissible, under our tax laws.” From the above statement it can be seen that all forms of buying and selling that accept virtual money such as bitcoin as a means of payment will be subject to tax on income earned or earned in Singapore which is regulated in the Singapore Tax law. All physical goods supplied via the Internet and made in Singapore are subject to GST. or a transaction tax of 7% on the profit of the item. So, if we buy bitcoins for $ 100 it will be taxed at 7% and have to pay $ 107 after tax.
