Yesterday it was announced that Britain will be scrapping it’s 20% VAT (value added tax/sales tax) on Bitcoin transactions for fiat. (source: http://www.hmrc.gov.uk/briefs/vat/brief0914.htm)
I believe that Britain now has the clearest and most rational tax treatment for Bitcoin in the world.
In Singapore, we still have the original guidance from IRAS stating that Bitcoins sold locally could be a GST event. This puts businesses selling locally at a competitive disadvantage to those in other countries. IRAS considers Bitcoin a service, and with that is taxed according to barter rules.
Hopefully, the IRAS (Singapore tax agency) will reconsider their stance in light of the changes HMRC has made.
If you are in Singapore, we as a community need to help IRAS understand the need to change their current stance on Bitcoin. Please give them a call, or send an email asking them to keep the Bitcoin market in Singapore competitive with other countries: http://www.iras.gov.sg/irashome/page.aspx?id=84
Together, we can make this happen!