Do I need to pay GST on Gold?

GST on gold exempt if at least 99.5% purity

With the world doing mad gold rush now as spot gold prices is close to 2011 lows. Many people are looking at this as an opportunity to buy physical gold to hoard and stash.

An added boon is you do not need to pay any Goods & Service Tax for gold in Singapore. However this only applies if the gold meets all the following criteria: (you can read the exact document from IRAS here)

 

  1. It is gold of at least 99.5% purity
  2. It is capable of being traded on the international bullion market.

 

Some gold are more equal than others

This means there are certain types of gold items which do not qualify for GST exemption.

Below is a short list of examples which are tax exempt and tax liable. 

DescriptionProduct ContentsGST?
American Eagle Gold coins91.67% gold, 3% silver & 5.33% copperLiable for GST
American Gold Buffalo coins99.99% of goldExempted from GST
Singapore Lion Gold coins999.9 fine goldExempted from GST
Pamp Suisse gold bullion bars99.99% of goldExempted from GST
Credit Suisse gold bar99.99% of goldExempted from GST
Australian Gold Nugget99.99% of goldExempted from GST
South African Kruggerand91.67% gold, 8.33% copperLiable for GST

 

This means that with prices low, it could really be a good time if you always wanted to hoard of gold bars for yourself. Just make sure you have a really good safe.

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Jerome Lee

Last time, many things that I wanted were just dreams, now I see them as possibilities. I'm looking forward to own pent-house suite in Manhattan overlooking Central Park because forex trading with Tflow® makes it possible. Find me on Google+

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