Currently, funds based in Singapore only make exempt financial supplies or receive dividend income are not eligible to register for GST, as they do not make any taxable supplies. Therefore, such funds would incur irrecoverable input GST, which will form part of the business cost of operating in Singapore and thus have a disincentive to operate in Singapore and use the services of GST-registered service providers.
In order to maintain Singapore’s status as global financial centre and to ensure its continuing competitiveness, the Minister has proposed that with immediate effect, qualifying fund managed by a prescribed fund manager will be able to claim a substantial portion of the input GST incurred on prescribed expenses from 22 January 2009 to 31 March 2014.
The MAS will provide details by April 2009.
Currently, zero-rating GST is allowed for sale and lease of qualifying aircraft (i.e aircraft not used for recreational or pleasure purposes) and sale of aircraft components exported as well as Maintenance, Repair and Overhaul (MRO) works that are performed directly on qualifying aircraft.
The Minister has proposed to expand the definition of qualifying aircraft by including all aircraft which are wholly used or intended to be wholly used for international transportation of goods and passengers. This also includes private aircraft, provided that it is wholly used or intended to be wholly used for travel outside Singapore.
Zero-rating is extended to cover the sale, maintenance or repair services of aircraft components or system as long as they form part of a qualifying aircraft.
A new scheme will also be introduced to facilitate the import of aircraft components or systems for qualifying aircraft without GST.
The proposed changes are effective from 1 April 2009.
The IRAS is expected to release details of the proposed changes by March 2009.
Currently, GST and Duty are payable when goods are removed from a Zero-GST or Licensed warehouse.
The Minister has proposed that with effect from 1 April 2009, GST and Duty will be suspended on goods (including wine) temporarily removed from a Zero-GST or Licensed warehouse for auctions or exhibitions, even if the goods are sold during the auction or exhibition, provided the goods are returned to the warehouse subsequently.
Singapore Customs is expected to release details of the proposed changes by March 2009.
Presently, GST and Duty are payable for wine used at wine exhibitions and conference events.
The Minister has proposed that Duty would be exempted and GST relief would be granted on up to 3 bottles of wine per label per day for each exhibitor and the main conference organiser at approved wine exhibitions and conference events. The proposed change is effective from 1 April 2009.
Singapore Customs is expected to release details of the proposed changes by March 2009.
