Gold exempted from GST is ideal to be held under holding companies domiciled in Singapore. Since they are exempted from GST, this makes them cheaper to acquire and hence a step closer to a return on investment.
In particular, the ideal gold to be held under holding companies would;
- Be at least 99.5% purity, in bar, ingot, wafer or coin shape
- Is capable of being traded on the international bullion market. That means a precious metal bar, ingot or wafer refined by a refiner who is in the current or former ‘Good Delivery’ list of the London Bullion Market Association (LBMA)
- Bear a mark or characteristic that is internationally accepted as guaranteeing its quality. An example of such a mark is the hallmark of a refiner in the ‘Good Delivery’ list of the LBMA stamped on the bar, ingot or wafer.
- Not be a decorative bar, ingot or wafer or a collector’s bar, ingot or wafer, such as jewelry, scrap precious metals for refining, bars with hager or hole (for wearing as a pendant), odd-shaped bars (e.g boat shape, heart shape), gold not refined by refiners on the “Good Delivery” list of LBMA
