Public Consultation - Goods and Services Tax 2009 - Summary Table

SUMMARY TABLE ON TAX CHANGES 2009 – BUDGET CHANGES Note: You may download the summary table, as well as other relevant documents here.
 
No. Tax Change Description and Reason for Change Amendment to GST Act Details of Amendment
1 Zero-rating treatment for all aircrafts including those used wholly for international travel (also known as “qualifying aircraft”) as well as the sale and lease of aircraft parts forming part of a qualifying aircraft To support the growth of the aerospace industry in Singapore, the GST Act will be amended to a) zero-rate aircrafts used wholly for international travel, as well as b) the sale and lease of parts of a qualifying aircraft. This is in-line with the existing GST zero-rating concessions granted for international transportation of goods and passengers. This change was announced in Budget 2009 and has taken effect from 1 April 2009. The change is currently being effected by way of remission. The remission will lapse after the proposed legislative amendment takes effect. Section 21(3) and 21(4) [Clause 2] Clause 2 - (a) amends section 21(3) by inserting a new paragraph (x) to allow for the zero-rating of the supply (including the letting or hire) of qualifying aircraft parts that are certified as airworthy, and further amends section 21(4)(a) to insert a definition of “qualifying aircraft parts” for the purposes of the new section 21(3)(x); and (b) further amends section 21(4)(a) by enlarging the definition to “aircraft” to include aircraft that are used for recreation or pleasure for international transportation.
2 GST suspension for goods temporarily removed from Zero-GST or Licensed warehouses for auctions and exhibitions Currently, GST is payable when goods are removed from a Zero-GST or Licensed warehouse into Singapore. To encourage the growth of the auction and exhibition industry as well as specialised storage facilities, the GST Act will be amended to suspend GST and duty on goods that are temporarily removed from a Zero-GST or Licensed warehouse for auctions or exhibitions. This is provided that the goods, whether sold or not during the auctions or exhibitions, are returned to the Zero-GST or licensed warehouses subsequently. This change was announced in Budget 2009 and has taken effect from 1 April 2009. The change is currently being effected by way of remission. The remission will lapse after the proposed legislative amendment takes effect. Section 37 [Clause 5] Clause 5 amends section 37 to provide for the temporary removal of goods, without payment of tax, from a warehouse outside the free trade zone for the purpose of an auction, an exhibition, or other similar event.
SUMMARY TABLE ON TAX CHANGES 2009 – NON-BUDGET CHANGES

Note: You may download the summary table, as well as other relevant documents here.

No. Tax Change Description and Reason for Change Amendment to GST Act Details of Amendment
3 Provision for registering trusts in the name of the trust Trusts are currently registered in the name of its trustees, i.e. a trustee will issue tax invoices in its capacity as trustee of the trust. IRAS has received feedback that this can inadvertently cause confusion as a trustee can act on behalf of many trusts at any one time. The GST Act will thus be amended to allow IRAS to register trusts in its own name, while continuing to make the trustee liable for the GST matters of the trust (e.g. GST reporting requirements, tax payment liabilities, etc) since trusts are not legal entities. Section 32 [Clause 3] Clause 3 amends section 32 to provide for the registration in the name of a trust of any trustee carrying on the business of a trust, where the trust is created by express written declaration.
4 GST treatment for prescribed vouchers Currently, the sale of physical vouchers is disregarded for GST purposes, up to its face value, at the point of sale. Instead, GST is accounted only when the vouchers are redeemed for goods or services. Vouchers have evolved over time to include electronic vouchers e.g. bar-coded or magnetic strip vouchers. To keep up with these new forms of vouchers, the GST Act will be amended so that this current practice of accounting for GST at the point where these vouchers are redeemed for goods or services will be extended to electronic vouchers. The GST Act will also be amended to empower the Minister to make regulations to provide for the tax treatment of vouchers. For more information on the tax treatment for vouchers, please refer to the draft Goods and Services Tax (General) (Amendments) Regulations 2009 and the draft e-tax guide "GST Treatment of vouchers - Sales and Redemption" which will be uploaded on IRAS' website by 5 Jun 09. Section 35A [Clauses 4 and 7] Clause 4 inserts a new section 35A to empower the Minister to make regulations to provide for the tax treatment of vouchers granted for consideration. For this purpose, “voucher” is defined as being — (a) any physical or electronic thing, the redemption of which entitles the holder to receive goods or services up to a value stated on or recorded in it in monetary or non-monetary terms; or (b) any prepaid phone card, the redemption of which entitles the holder to receive telephone or like services up to the value stated on or recorded in it in monetary or non-monetary terms . Clause 7 deletes paragraph 7 of the Third Schedule as it is no longer necessary in consequence of the amendment made by clause 4.
5 Provision to require precise grounds of objection to be stated in an application for a review or revision of a decision made by the Comptroller of GST Any person may apply for a review and revision of certain decisions made by the Comptroller of GST within a prescribed time frame. To help the Comptroller decide whether to revise its decision, the GST Act will be amended to require the appellant to state precisely his grounds of objection in his application. Similar requirements can be found in Income Tax Act and Property Tax Act. Section 49(2) [Clause 6] Clause 6 amends section 49(2) to require that an application for review and revision to state precisely the grounds on which a decision made by the Comptroller under section 49(1) is being objected to.
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Last Updated on March 03, 2017
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