3 December 2011
In his 2011 Budget Statement, the Minister for Finance announced further enhancements to the ACMT scheme to ease GST compliance for all industries approved under the ACMT scheme.
At a glance, the enhancements are as follows:
- The supply of value-added services to overseas clients relating to failed or excess productions to be disregarded, and
- Input tax to be claimable on goods locally purchased by overseas clients and delivered to an ACMT CM for value-added services.
From 1 October 2011, the ACMT scheme will also be extended to certain business segments in the biomedical industry. This is in addition to the semi- conductor and printing industries, which are the current approved industries under the ACMT scheme.
In this revised edition, changes were made to paragraph 3 whereby the benefits under the GST enhanced Approved Contract Manufacturer and Trader (ACMT) scheme, as well as GST input tax entitlements on any separate supply of raw materials made by ACMT local contract manufacturers (CM) are outlined. These changes will take effect from 1 October 2011 by way of remission, until the GST legislation is amended.
This e-Tax guide also explains how the ACMT scheme works, the qualifying conditions for the scheme and responsibilities of approved ACMT persons.
For the full e-Tax Guide, please click here.
Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.