Singapore Consults On GST Changes

by Mary Swire, Tax-News.com, Hong Kong

11 July 2011

Singapore’s Ministry of Finance has announced that it will be conducting a public consultation, until July 28, on draft legislation to give effect to changes to the country’s goods and services tax (GST) regime affecting the marine sector, arising out of the 2011 Budget and the government’s on-going review of the tax code.

The changes arising out of the 2011 Budget, within the draft GST (Amendment) Bill 2011, seek to promote the marine, biomedical and logistics sectors, and lower their GST compliance costs.

The bill will introduce a new scheme to allow ‘approved marine customers’ to buy or rent zero-rated goods for use or installation on a commercial ship that is wholly for international travel; expand the scope of zero-rating of repair and maintenance services performed on parts and components of a qualifying ship; and introduce changes to ease GST compliance for ships which are in Singapore only for a temporary period of time.

The legislation will also extend the Approved Contract Manufacturer and Trader Scheme to qualifying biomedical contract manufacturers; grant import GST relief for all clinical trial materials imported into Singapore; and introduce new zero-rating relief for specified supplies made to overseas persons if they are related to specified goods kept in ‘approved specialised warehouses’ in Singapore.

Amongst the other changes, that seek to clarify existing GST legislation and improve GST administration, the scope for local agents in Singapore to recover GST on goods imported on behalf of overseas persons will be expanded; and the GST accounting rules for specified transactions will be clarified.

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