20 July 2011

In Budget 2008, it was announced that the administrative concession that all gains from the sale of vessels will not be subject to income tax as long as the vessels are registered with the Singapore Registry of Ships or owned by Approved International Shipping Enterprise companies, will be extended for a period of 5 years from YA 2010 to YA 2014.

The IRAS has now announced that with effect from 1 June 2011, to facilitate administration of the above mentioned tax concession, eligible companies that wish to enjoy the concession must make an irrevocable election for the concession. The prescribed forms for the election are:

• Election form for companies to opt-in to section 92(2A) Class Remission to remit the taxes on gains from disposals of vessels or vessel-owning special purpose companies (‘SPC”); and
• Declaration form for section 92(2A) Class Remission to remit the taxes on gains from disposals of vessels or vessel-owning special purpose companies (‘SPC”).

For more details, please refer to the FAQs on MPA’s website at www.mpa.gov.sg and the election forms under the Related Items portion of this webpage.

Source: The above was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit http://www.iras.gov.sg/ for more information.