A number of countries, including China have decided not to treat Bitcoin as a legal currency, although now Singapore has recognized Bitcoin as a currency and has set out some tax rules for the digital currency.
Coin Republic, a Singapore based Bitcoin has received guidance from the Singapore Tax Authorities (IRAS), on how to deal with Bitcoin, for things like capital gains tax sales tax, and earnings based on Bit coin transactions.
“The guidance which IRAS laid out is rational and well thought out. As a business owner I can clearly account for my earnings on Bitcoin trades for my clients and my own positions and pay the proper taxes”, says David Moskowitz from Coin Republic.
You can find out more information about how the Singapore tax authorities will treat taxation on Bitcoin transactions at the link below.
Bitcoin has become increasingly more popular, and its value has risen considerably over the last 12 months, although it did see a drop when China announced they were banning the digital currency. We suspect this latest announcement from Singapore will help boost the value of Bitcoin once again.