8 July 2011
The Ministry of Finance will be conducting a public consultation on the draft GST (Amendment) Bill 2011.
The draft GST (Amendment) Bill 2011 incorporates the following tax changes announced in the 2011 Budget Statement which seek to promote the marine, biomedical and logistics sectors and lower their GST compliance costs:
• 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;
• expanded scope of zero-rating of repair and maintenance services performed on parts and components of a qualifying ship;
• GST compliance made easier for ships which are in Singapore only for a temporary period of time;
• Approved Contract Manufacturer and Trader Scheme extended to qualifying biomedical contract manufacturers. Approved contract manufacturers (including those in the biomedical sector) will also be allowed to disregard GST on services rendered on failed or excess production, and to recover GST on local purchases of goods used in the contract manufacturing process;
• all clinical trial materials imported into Singapore to be granted import GST relief;
• 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;
The draft GST (Amendment) Bill 2011 also includes other changes arising from the ongoing review of the GST regime to clarify the existing legislation and to improve administration, i.e.:
• expand the scope for local agents in Singapore to recover GST on goods imported on behalf of overseas persons; and
• clarify the GST accounting rules for specified transactions.
The consultation period runs from 8 to 28 July 2011.
For full details, please refer to the MOF website.