Singapore is a global hub for trade and finance, and its favorable tax policies make it an attractive destination for importing investment precious metals (IPMs). Whether you are a business or an individual investor, understanding the import procedures and regulations is crucial for a smooth and compliant process.
Why Import Investment Precious Metals into Singapore?
One of the key advantages of importing IPMs into Singapore is the exemption from Goods and Services Tax (GST). This exemption applies to IPMs that meet specific criteria, making it cost-effective for investors to bring in precious metals such as gold, silver, and platinum.
Qualifying Criteria for GST Exemption
Before importing IPMs, it is essential to familiarize yourself with the qualifying criteria. The criteria include specific standards for the purity and form of the metals. For instance, gold must have a purity of at least 99.5%, silver at least 99.9%, and platinum at least 99%. Additionally, the metals must be in the form of bars, wafers, ingots, or coins that are recognized by the authorities.
Import Permit Requirements
To import IPMs into Singapore, you must obtain the necessary import permits. The process varies depending on the mode of importation, whether by air, sea, land, or post. For IPMs imported by air or sea freight, you need to declare the goods and obtain a customs permit. If you are hand-carrying the metals, you must declare them at the checkpoint and present the necessary documentation.
Approved Refiner and Consolidator Scheme (ARCS)
Singapore has an Approved Refiner and Consolidator Scheme (ARCS) that allows refiners and consolidators to import IPMs without paying GST upfront. This scheme is designed to facilitate the importation process and support the precious metals industry in Singapore. To benefit from this scheme, you must be an approved refiner or consolidator and comply with the relevant regulations.
An Approved Refiner processes or converts goods into IPM, or extracts IPM from goods, or mints coins that are IPM. An Approved Consolidator consolidates or aggregates materials for supply or delivery to specified refiners to be refined into IPM and is approved by IRAS under the ARCS.
Benefits for Approved Refiners and Consolidators:
- GST suspension on imports
- Supply goods to other ARCS persons without collecting GST
- Claim more input tax
Steps to Import IPMs
- Conduct a Self-Assessment: Ensure that the IPMs meet the qualifying criteria for GST exemption.
- Obtain an Import Permit: Apply for the necessary import permits based on the mode of importation.
- Declare the Goods: Declare the IPMs at the checkpoint or through the customs declaration system.
- Comply with Regulations: Follow all relevant regulations, including those under the ARCS if applicable.
Conclusion
Importing investment precious metals into Singapore can be a lucrative opportunity for investors, thanks to the GST exemption and supportive regulatory environment. By understanding the import procedures and complying with the regulations, you can ensure a smooth and efficient process. To find out more on setting up your Singapore company today, reach out to us today.