GST Exemption for Investment Precious Metals (IPM)

In Singapore, Investment Precious Metals (IPM) are exempt from the Government’s Goods and Services Tax (GST) staring on 1 October 2012. However, only Precious Metals in the form of a bar, ingot, wafer and coin that meets certain criteria can qualify as IPM. Bullion, jewellery, numismatic coins, scrap Precious Metals, Gold or Silver in collectible or gift forms are not qualified as IPM and hence not tax exempted and will still be subjected to the 7% GST.

 

So what is IPM and what is the criteria to qualify as an IPM bar, ingot and wafer? Below is a short summary of the criteria:

1. Gold has to be of at least 99.5% purity, Silver at least 99.9% purity or Platinum at least 99% purity.
2. It has to be capable of being traded on the international bullion market.
   A precious metal bar, ingot or wafer refined by a refiner with the following accreditation/ endorsement is regarded as meeting this criterion:
   1. (i)  For gold and silver, a refiner in the current or former ‘Good Delivery’ list of the London Bullion Market Association (LBMA)5;
   2. (ii)  For platinum, a refiner in the current or former ‘Good Delivery’ list of the London Platinum & Palladium Market (LPPM)6; or
3. It bears a mark or characteristic that is internationally accepted as guaranteeing its quality. For example, the hallmark of a LBMA accredited refiner.
4. It is not a decorative bar, ingot or wafer or a collector’s bar, ingot or wafer.

For the criteria of IPM coin, it is exempt based on criteria similar to those for IPM bar, ingot and wafer. Also, it is or was a legal tender in its country of origin. Here are some example of well-known IPM qualified Gold, Silver and Platinum coins.

 

List of qualifying Gold coins

 

List of qualifying Silver coins

 

List of qualifying Platinum coins

 

For full, complete guide on Exemption of Investment Precious Metals, please click here.

 

Fact of the day:

South Africa Krugerrand Gold coins and American Eagle Gold Coins are not GST exempted in Singapore as it does not meet the requirement of Gold purity of at least 99.5%. South Africa Krugerrand Gold coins and American Eagle gold coins are minted in 22k Gold which is 91.6% Gold but their gross weight weighs heavier than 1oz hence it still consists of 1oz of fine Gold for the 1oz denomination.

 

As a professional, reputable bullion dealer in Singapore, GoldSilver Central mainly deals in qualifying Gold, Silver and Platinum coins from LBMA accredited mint and refinery.

 Evonne