Discussion | Beverage Container Return Scheme BCRS

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limpe84

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If a person recycle 1,000 container daily and made $100 a day and he/she recycle everyday, that is $36,500 in a year.

Do he/she need to declare into his income tax?
I assume the people paying the extra money for the drink cans would already have been taxed on their income. This seems like double taxation to me.
 

euro2012

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If a person recycle 1,000 container daily and made $100 a day and he/she recycle everyday, that is $36,500 in a year.

Do he/she need to declare into his income tax?
email pm orbit.. food for thought during their recess time

good topic to disuss as their 10 year series didnt cover this
 

hachi

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bought a drink, realized is 10c more ex, thought it was coz I bought the cold version.

later then realised is the 10c return.

when to machine, return, only accept DBS Paylah or SimplyGo ez-link card.

whip out my ez-link and scan, TMD, not accepted, coz mine is old type ez-link, cheesepie, got scammed 10c by pap.gov.sg
Same... Before I can show my qr code since this is the first time I am using... Timeout and take my 10 cents. Nowadays If I can, I don't even want to drink. Just grab my water bottle.
 

minlon

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The 5-cent plastics bag charge is collected by the supermarkets/retailer is a huge sum. And the BCRS 10 cents container charge is collected by government.

As per mothership : Scale. Every 10 million containers is S$1 million in deposits. NEA said the scheme had handled over one million successful transactions covering about 5.5 million containers within its first few months, and volumes keep growing.

Any transparency from NEA:

1) Publish how much deposit is collected, refunded and left unredeemed.

2) Publish how many producers are registered, how many were audited, and how many false declarations were found.

3) Explain what happens to deposits charged on products that turn out to be unregistered or fake-labelled.
 

clearwhitesky

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I ask Gemini AI

[Me]
Is BCRS taxable?

[Gemini AI]
No, the Beverage Container Return Scheme (BCRS) deposit is not taxable.
According to guidelines from the Inland Revenue Authority of Singapore (IRAS), the S$0.10 refundable deposit is entirely exempt from Goods and Services Tax (GST). [1]
The tax breakdown depends on whether you are looking at it from a consumer or business perspective:

For Consumers
  • GST Treatment: You do not pay GST on the S$0.10 deposit. However, the beverage itself remains subject to the prevailing GST rate. For example, if a drink costs S$2.00, GST is calculated only on the S$2.00, and the S$0.10 deposit is added to the bill tax-free. [1, 2]
  • Refund: When you return the empty container at a designated return point, you receive the full S$0.10 refund digitally without any tax deductions. [1, 2]

For Businesses
  • Income Tax: The deposits you collect or redeem do not count as commercial revenue or business income, making them non-taxable. [1]
  • Tax Deductions: Conversely, any BCRS deposits your business pays out do not count as deductible business expenses since the funds are expected to be recovered. [1, 2]
  • System Updates: If your business is GST-registered, you must configure your Point-of-Sale (POS) and invoicing systems to separate the non-taxable deposit from the taxable beverage price. [1, 2]
(Note: If you are a producer, any operational transition grants or sticker reimbursements you receive from the scheme operator are considered revenue-in-nature and are taxable.) [1]
Are you asking from a business compliance perspective, or are you a consumer trying to understand a recent receipt? Let me know so I can give you more specific details.

AI responses may include mistakes. For financial advice, consult a professional. Learn more

[Me]
what if I go around the street and collect bottle and can and recycle them for profit? will I need to declare for my annual tax return?

[Gemini AI]
Yes, you may need to declare this income, but it strictly depends on how much you earn and your overall income situation. [1]
If you go around collecting and recycling bottles and cans as a "side hustle" or regular activity to make a profit, the Inland Revenue Authority of Singapore (IRAS) classifies this as Self-Employed / Gig Income(gains from a trade or vocation) rather than a simple refund. This is because you didn't pay the initial deposit yourself; you are collecting them to generate revenue.
 
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