SINGAPORE, Feb 17 (Reuters) - Singapore will exempt investment-grade gold and other precious metals from a seven percent goods and services tax to spur the development of gold trading, Finance Minister Tharman Shanmugaratnam said on Friday.
The change brings Singapore’s tax treatment of investment-grade gold and other precious metals in line with the practices of other developed countries such as Australia and Switzerland, he said.
“We will facilitate the development of gold trading, which can draw on Singapore’s strengths as a financial and trading hub, to meet strong demand for investment-grade gold in Asia,” Tharman said in a budget speech.
“It should add greater incentive for asset managers, especially those in the alternative investments space, to seriously consider Singapore as a location for their operations,” Tan Tay Lek, a tax partner at PwC Services LLP (Singapore), said in a statement. (Reporting by Charmian Kok; Editing by Anshuman Daga)