Revisions made to GST Guide on Approved Contract Manufacturer and Trader (ACMT) Scheme (7th Edition)

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.