Singapore Budget Sops for Maritime
With a focus on improving maritime business sectors through a series of incentives to raise productivity, innovation, and internationalization the government of Singapore extended a number of its maritime incentives in its 2015 budget.
"I will extend the Maritime Sector Incentive (MSI) which promotes the growth of Singapore as an International Maritime Centre," said Tharman Shanmugaratnam Deputy Prime Minister and Finance Minister in his 2015 budget speech on Monday.
Shanmugaratnam stated that the plans were drawn out to extend the current maritime sector incentive (MSI) to accelerate the Singapore maritime sectors' growth. For instances, tax exemptions will be given to companies that qualified for the MSI. In the meantime, existing companies that already qualify for the MSI can look forward to renew tax exemption for another five years subject to conditions and commitments.
Among the enhancements announced Monday where the extension of the automatic withholding tax (WHT) exemption regime to cover finance leases, hire-purchase arrangements and loans used to finance equity injection into wholly-owned special purpose vehicles (SPV) or intercompany loans to wholly-owned SPVs for the construction of vessels, containers and intermodal equipment.
Definitions for qualifying companies for tax exemptions under the MSI schemes covering Singapore-flagged, foreign-flagged and support services will also be updated. Existing companies that qualify for the MSI – Shipping Related Services Award can renew their award for another five years subject to qualifying conditions and commitments.
The enhancements took effect on Tuesday 24 February and Shanmugaratnam said further details will be released by Singapore’s Maritime & Port Authority (MPA) in May.
