Declare goods purchased abroad for GST payment: Singapore Customs

SINGAPORE: It's the year-end school holidays and Singaporeans travelling overseas are reminded to keep the invoices or receipts of their overseas purchases, so as to facilitate the computation of tax payable.

The Singapore Customs says travellers who return to Singapore carrying goods with values exceeding their Goods and Services Tax (GST) relief and duty-free allowance are required to declare the goods at the Customs Red Channel for the payment of tax.

Travellers can pay their tax or duty at the Singapore Customs Tax Payment Office or at the self-service Tax Payment Kiosk at the checkpoints.

All goods brought into Singapore such as new articles, souvenirs, gifts or food items meant for the traveller's own use or consumption are subject to 7 per cent GST.

Travellers who spend more than 48 hours overseas will get GST relief for goods valued up to S$600.

Those who are away from Singapore for less than 48 hours will get GST relief for goods valued up to S$150.

GST will be levied on the amount exceeding the value of the goods eligible for GST relief.

The GST relief is not applicable for liquor, tobacco products, petroleum and goods imported for commercial purposes.

And there is no duty-free concession on cigarettes and other tobacco products.

All cigarettes, including those with the 'SDPC' (Singapore Duty Paid Cigarette) mark, and tobacco products are subject to duty and GST when brought in by travellers into Singapore.

Singapore Customs says arriving travellers and returning Singaporeans should familiarise themselves with Singapore's customs regulations available at their website.

It adds that it is the responsibility of travellers to make an accurate and complete declaration of the dutiable and taxable items in their possession.

Failure to make a declaration is an offence under the Customs Act and the GST Act.

Offenders may be prosecuted in court and fined up to S$10,000 and jailed for up to three years.

The composition sum for out-of-court settlement for a first-time offender is S$200 per packet for cigarettes, and 10 times the amount of duty or GST for other items.

Higher GST relief for S'poreans returning from overseas

SINGAPORE: From April 1, Singaporeans returning from overseas and tourists can enjoy more Goods and Services Tax (GST) relief. Those who spend more than 48 hours abroad will be able to enjoy GST relief of up to S$600 - double the current amount of S$300.

The Singapore Customs said the amount has been revised upwards to keep pace with rising expenditures, and brings the relief amounts closer to international norms.

Those who are away from Singapore for less than 48 hours can get GST relief for goods valued up to S$150.

Customs will also do away with the age criterion for GST relief claims. Currently, the GST relief depends on the traveller's age, in addition to the time he spends outside Singapore.

Those below 18 years old currently claim a lower amount for GST relief.

The new GST relief will apply to all travellers, including children, with the exception of pass/permit holders and crew members.

All goods brought into Singapore for local use or consumption are subject to GST of seven per cent.

To minimise inconvenience to travellers bringing a small amount of goods into Singapore for personal use, they are granted GST relief based on the value of goods they bring in. Such goods include new articles, souvenirs, gifts or food items.

The GST relief does not apply to liquor, tobacco products, petroleum and goods imported for commercial purposes.

Gold trading in Singapore set to get boost

SINGAPORE: Gold trading is set to find new glitter in Singapore.

The government's move to exempt the 7 per cent goods and services tax (GST) on gold trading is expected to boost competitiveness globally.

However, market players said more can be done to turn Singapore into a gold trading hub.

For investors, the exemption of GST on investment grade gold will level the playing field for the precious metal.

From October, gold will stand at par with other financial instruments like stocks and bonds which are also exempt from GST.

Gold is also being held as an alternative to cash.

And experts said the government's latest move may boost gold trading among retail investors.

Nicholas Trevethan, senior commodities strategist, ANZ, said: "GST on money, or on what is essentially money, removing that is a sensible and practical idea. I think it's a good way to encourage in particular, retail investment demand amongst Singaporeans. You want that solid base within the country in order to help it develop as a trading hub and as an international trading centre."

Analysts estimate the value of gold traded in Singapore to be worth about US$282 billion over the last year.

Gold traders said the GST exemption will lower the barriers to entry for investors and will further boost interest in the precious metal.

World Gold Council managing director Albert Chang said: "The tax exemption on bullion is an indispensable initial step to boosting the dynamics of the gold trading market."

And the council expects a greater volume of physical gold transactions to take place from October 2012 when the new tax exemption will be in place.

However, market players said more needs to be done before Singapore can take on other gold trading hubs such as Hong Kong and Dubai.

Lee Song Teck, CEO, The Gold Guarantee, said: "First of all, an equivalent of the London Bullion Market Association needs to be set up, to encourage the market and government. What this body can do is to help gold-related industries such as refineries... if more are around, it would help boost the gold industry in Singapore."

Since the budget announcement last Friday, spot gold price has increased 1.6 per cent to US$1,755 on Wednesday.

And local traders said that they have seen about 5 to 10 per cent increase in sales.