What is IPM or Investment Precious Metals?
"IPM" stands for "Investment Precious Metals" and is the term used by the Singapore Customs to denote what constitutes tax free bullion. Since 1 October 2012, certain investment grade gold, silver and platinum can be imported or sold GST (tax) free in Singapore. Singapore tax authorities define non taxable bullion as "Investment Precious Metals" or "IPM" whereas taxable bullion is referred to as “non-IPM".
There are no capital gains taxes in Singapore so this page focuses purely on the Goods and Services Tax (GST) - similar to VAT in Europe - which applies upon import or purchase of bullion. The completed GST exemption rules have been published as an IRAS e-Tax Guide titled GST: Guide on Exemption of Investment Precious Metals (IPM).
The tax exemptions are meant to encourage the trading and storage of physical investment grade bullion but are limited to a clearly defined subset of the bullion market. Numismatic coins, jewellery, gold / silver gift items or any bullion not defined as "IPM" are not tax exempted and will still be subject to GST (currently 9%).
In broad terms, the bill states four basic qualifying criteria which must be fulfilled:
1. Purity of silver, gold, and platinum should be 99.9%, 99.5% and 99% respectively
2. Is capable of being traded on the international bullion market (see detailed criteria below)
3. Bears a mark or characteristic that is internationally accepted as guaranteeing its quality
4. Trades at a price based on the spot price of the metal it contains.
In addition the following detailed criteria apply:
1. Only a subset of investment coins are tax exempt: See SINGAPORE TAX FREE BULLION COINS
2. Only bars refined by current or past LBMA / LPPM accredited refiners are tax free: See SINGAPORE TAX FREE BULLION BARS
3. Furthermore IE Singapore (a Singapore government entity) can qualify additional bullion refiners to be tax exempt
As a Singapore Bullion Market Association (SBMA) member Silver Bullion Pte Ltd, along with the Singapore Mint and UOB, were selected in the second quarter of 2012 by the Ministry of Finance to provide feedback on the type of investment grade coins that will be tax exempt. We are proud to note that with our subscribers' help and submitted feedback (see July 2012 newsletter) the Ministry of Finance has re-instated the Silver & Platinum American Eagle coins as tax exempt. The American Gold Eagle coins remain taxable due to the minimum purity requirement.