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13 Dec 2018 / Singapore

Enhancement of Maritime Sector Incentive–Shipping Enterprise (Singapore Registry of Ships)

To keep pace with industry developments, provide greater tax certainty and to ease the administrative burden for the shipping sector, the following enhancements will be made to the Maritime Sector Incentive–Shipping Enterprise (Singapore Registry Of Ships) (MSI-SRS):
a. the scope of withholding tax exemption for charter payments for ships and container lease payments will be expanded to cover finance lease payments. The expanded scope will only be available to MSI companies;
b. the scope of income tax exemption under the MSI-SRS will be expanded to cover finance lease income from leasing of ships;
and
c. MSI-SRS companies may make an irrevocable option to adopt a simplified tax treatment for MSI-SRS income. Upon election, the MSI-SRS company shall, on a bundled basis, (i) rely on the FRS 116 accounting classification of sublease income and does not need to reclassify the qualifying sublease based on the underlying asset for tax purposes for ships and containers; and (ii) does not need to classify lease expenses and capital allowance claims in respect of qualifying assets for tax purposes as these claims will be disregarded.

(For information about operations in Singapore contact GAC Singapore at [email protected])

Source: Extract from Maritime and Port Authority of Singapore Shipping Circular No.16 of 2018 dated 12 December 2018

If quoting any content from Hot Port News, please cite GAC Hot Port News as the source.

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