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)
- It is gold of at least 99.5% purity
- 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.
|American Eagle Gold coins||91.67% gold, 3% silver & 5.33% copper||Liable for GST|
|American Gold Buffalo coins||99.99% of gold||Exempted from GST|
|Singapore Lion Gold coins||999.9 fine gold||Exempted from GST|
|Pamp Suisse gold bullion bars||99.99% of gold||Exempted from GST|
|Credit Suisse gold bar||99.99% of gold||Exempted from GST|
|Australian Gold Nugget||99.99% of gold||Exempted from GST|
|South African Kruggerand||91.67% gold, 8.33% copper||Liable 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.