Overstock Now Accepts Bitcoin, while Singapore Treats Bitcoin as a Commodity

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Overstock Now Accepts Bitcoin, while Singapore Treats Bitcoin as a Commodity
Overstock Now Accepts Bitcoin, while Singapore Treats Bitcoin as a Commodity

Overstock Now Accepts Bitcoin, while Singapore Treats Bitcoin as a Commodity

Overstock Now Accepts Bitcoin, while Singapore Treats Bitcoin as a Commodity
ForexMinute earlier reported that Overstock.com, which sells everything from jewelry to couches, announced that it would start accepting Bitcoin by the middle of 2014; however, it looks like the organization has started accepting them in January itself. The organization has got an enthusiastic collection so far.

The CEO of the company Patrick Byrne, 51, said that the low-priced site was looking forward to cutting down on transaction fees for purchases given that its net margin is just 2%. The company started its business with a boom and in the first 90 minutes of Bitcoin sales, the site had received about 150 orders.

Overstock admits that its rough estimate is that 1% of its sales in 2014, or approximately $13 million, will come in the form of Bitcoin. Launched more than a decade ago, Overstock sells surplus and returned merchandise, accepted Bitcoin after following the digital currency for quite a lot of time.

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Singapore Government Treats Bitcoin as a Commodity

When the governments world around are looking for ways to tax Bitcoin, Singapore seems to be at the forefront. According to reliable sources, the Inland Revenue Authority of Singapore (IRAS) thinks it has found a workable way to bring Bitcoins in from the cold. The organization aims to treat Bitcoins like a product—no different than an iPhone or an MP3 or a shrink-wrapped piece of software.

It looks the line that IRAS has adopted is the one that has been adopted by China, which too considers Bitcoin a commodity. The statement is that it treats Bitcoin as MP3 or a shrink-wrapped piece of software which incurs taxes when it is sold for cash or used to pay for goods or services. Thus, it looks like it will be a tax on commodities and not actual money.

Proceeds from Bitcoin Transactions Are Not Taxable Says the IRAS
Moreover, when IRAS says that Bitcoins do not fit the definition of ‘money’ or ‘currency’, it looks it sees supplying them as a good/service for taxation purposes rather than a currency exchange. Nevertheless, the tax treatment is slightly different for companies or individuals that buy Bitcoins as part of a long-term investment.

The government authority IRAS says that the people who buy Bitcoin for long-term investment and then sell them at a higher price at a later date, they won’t pay taxes in the proceeds as according to it, it is treated as a capital gain.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com