| Satellites play an important role
in today's telecommunications and broadcast industries.
With most of the world still unwired by conventional
land lines, there exists a huge potential market for
wireless transmission of voice, video and other multimedia
content which can be exploited.
To encourage companies in Singapore
to launch their own satellites, I have decided to extend
the investment allowance incentive to satellite operators
on approved capital expenditure which satisfy certain
criteria. The extension of the investment allowance
incentive will take immediate effect.
Having our own satellites will enhance
Singapore's competitiveness as a communications and
media hub by extending our communications infrastructure
beyond just submarine cables, land lines and TV broadcasting
stations. It will also allow service providers in Singapore
to offer competitive packages to attract content creators,
developers and distributors.
Currently, payments to non-resident
persons for the use of satellites are subject to withholding
tax at a rate of 15 per cent. To give a further boost
to the broadcasting and telecommunications industry,
I have also decided to exempt from tax payments for
the leasing of capacity on satellites operated by non-resident
persons. The exemption will take immediate effect for
an initial period of 5 years. |
