| The Operational Headquarters (OHQ)
scheme was introduced in 1986 to promote the services
sector as one of the twin engines of growth. Under the
OHQ scheme, companies awarded OHQ status will enjoy
a 10 per cent concessionary tax rate on their qualifying
income. At present, most companies awarded OHQ status
have been based in Singapore to service the Asia Pacific
region. To encourage companies to locate and perform
their headquarters functions in Singapore to service
network companies worldwide,I have decided to enhance
the existing OHQ incentive by granting tax exemption
to OHQs which perform at least one substantive global
function in Singapore. The incentive will be granted
for a maximum period of ten years, and will take effect
from Year of Assessment 2000. Companies may apply to
EDB for this incentive after Budget Day. |
