Singapore Budget 2011 - Good and Services Tax
GST measures for biomedical industry
GST relief will br granted upfront on all clinical trial materials imported into Singapore, irrespective of whether the clinical trial materials are for local testing, re-export or for disposal in Singapore.The ACMT scheme will be extended to qualifying biomedical contract manufacturers. In addition, further enhancements will be made to the Approved Contract Manufacturer and Trader (ACMT) scheme and can be enjoyed by all industries approved under ACMT as follows:- disregard services rendered by local contact manufacturer on failed or excess production under the ACMT scheme; and
- allow local contract manufacturers to recover GST on local purchases of goods made by overseas client for use in the contract manufacturing process.
These changes will take effect from 1 October 2011. The IRAS and the Singapore Customs will publish circulars to explain the changes and operational details by 1 September 2011.GST measures for marine industry
A new GST scheme will be introduced to allow "approved marine customers" to buy or rent goods without having to pay GST, as long as they are for use or installation on a commerical ship that is wholly for international travel. This means that the supplier may zero-rate the supply of such goods to an "approved marine customer" without having to maintain the requisite documentary proof.Zero-rating of repair and maintenance services will also be extended to include the following scenarios:- repair or maintenance services performed on ship parts or components which are delivered to:
- shipyards in Singapore; or
- approved marine customers; and
- in addition, where the supplier provides a reconditioned ship part or component in exchange for the faulty part (e.g., one-for-one exchange) to his customer, such arrangements will be treated as a single supply of repair services.
The following changes will also be introduced to ease GST compliance for ships which are in Singapore only for a temporary period of time and intend to leave Singapore as soon as possible:- remove documentary requirements (for GST relief) for a qualifying ship engaged in pleasure, recreation, sports or other similar events; and
- grant import GST relief (and waive documentary requirement) on goods shipped and remained on board a qualifying ship.
These changes will take effect from 1 October 2011. The IRAS and the Singapore Customs will publish circulars to explain the changes and operational details by 1 September 2011. Zero-rating scheme for specialised storage and other value-added services
A new scheme will be introduced to allow zero-rating for specified services supplied to overseas persons, if they are performed on certain goods kept in approved specialised warehouses in Singapore.To qualify as approved specialised warehouse, amongst other conditions, the specialised warehouse must have mostly overseas customers (at least 90%) and the majority of goods (at least 90%) removed from the warehouse are exported. Operators of Zero-GST warehouses that store prescribed goods can also apply for this new scheme.This new scheme will take effect from 1 October 2011. The IRAS will publish a circular to explain details of the scheme by 1 September 2011.
Singapore Budget 2011 - Stamp Duty
Stamp duty relief for the transfer of assets upon conversion of an existing Company to a Limited Liability Partnership (“LLP”)
A Company converting to a Limited Liability Partnership (LLP) on or after 19 Feb 2011 will enjoy stamp duty relief for the transfer of assets. This is an extension of the current stamp duty relief given to an existing Firm (ordinary partnership). To be in line with the new relief given to Company, a fouth condition will be imposed for the relief conversion of an existing Firm (ordinary partnership) to an LLP. Extension of stamp duty remission in excess of $50 to aborted leases
The amount of stamp duty to be paid, upon granting of remission, on leases aborted on and after 19 Feb 2011 will be $50. This is an extension of the current stamp duty remission in excess of $50 for aborted Sale and Purchase (S&P) agreements.Removal of most fixed and nominal stamp duties
The following stamp duties will be removed on documents executed on or after 19 Feb 2011:- Fixed and nominal stamp duties on prescribed documents
- $10 duty payable where remission is given under Stamp Duties (Transfer of HDB Flat Within Family) (Remission) Rules 2007
Fixed duty of $10 on Declaration of Trust, where there is no change in beneficial ownership, remains.
Extension of Stamp Duties Remission for Project Finance
The remission of stamp duty payable on the instrument relating to the transfer of qualifying infrastructure projects/assets to qualifying entities listed or to be listed on the SGX will be extended from 1 Jan 2012 to 31 Mar 2017 (both dates inclusive).
Singapore Budget 2011 - Other Changes
Removal of TV licence fee
RAS bills and collects TV Licence Fees for owner-occupied residential properties on behalf of Media Development Authority (MDA).All TV licence fees will be permanently removed from 1 Jan 2011.For households who have paid the TV licence fees for 2011, MDA will make the refunds to the households directly.
