Download GST on Investment-Grade Precious Metals Lifted

10/19/12
Singapore Customs Newsletter
GST on Investment-Grade Precious
Metals Lifted
inSIGHT
From 1 October 2012, investment-grade gold, silver and platinum will no longer be subject
to 7 per cent Goods and Services Tax (GST), as announced in this year's Budget by the
Minister for Finance.
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GST on Investment-Grade
Precious Metals Lifted
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The move is a key measure to boost investment-grade precious metals (IPM) refining and trading in Singapore.
Working and Playing
as a Family
Singapore Customs, working with other government agencies like International Enterprise Singapore, Inland
Revenue Authority of Singapore and Ministry of Finance, facilitates the implementation of this scheme.
Training Calendar
To bring IPM into the country, traders need to make a customs declaration through TradeNet before importation.
Event Highlights
The rationale behind the move is to put the GST treatment on par with other actively-traded financial assets such as
stocks and bonds. The GST exemption aligns Singapore's treatment of IPM with the practices of Australia, UK
and Switzerland.
Internationally, the market for IPM has been expanding. In 2011, the global demand for gold, worth about US$205.5
billion, grew by 0.4 per cent. The growth was largely driven by investment demand from Asia. Singapore aims to grow
its share of the global gold trading market from 2 per cent to 10-15 per cent in the next five to ten years.
To qualify for the exemption, IPM must be of a minimum purity and satisfy certain requirements to be categorised as
investment-grade. For example, IPM must be tradeable on the international bullion market and bear an internationallyaccepted identification that guarantees its quality.
Concurrently, 1 October 2012 saw the introduction of the Approved Refiner and Consolidator Scheme (ARCS) to ease
cash flow for IPM refiners and local consolidators, with regards to GST payment on the import and purchase of raw
materials and input tax relief. The scheme is administered by the Inland Revenue Authority of Singapore (IRAS).
For more details on the import of IPM, refer to Circular No.12/2012.
For more details on the Approved Refiner and Consolidator Scheme (ARCS), please refer to the IRAS website
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