Tax Changes For Companies

Tax Exemption Scheme for Syndicated Facilities

Tax Exemption Scheme for Syndicated Facilities The Tax Exemption Scheme for Syndicated Facilities was introduced in 1983 to encourage financial institutions to base their syndication activities in Singapore. The scheme has operated successfully and there has been a steady increase in syndication activities in Singapore since its introduction. Last year, I announced that the scheme would be extended for a further five years until 2003.

Currently, MAS approves each syndicated facility on a case-by-case basis. To give arrangers upfront certainty on whether a facility qualifies for tax exemption, I am introducing an automated procedure. Under the automated procedure, facilities which meet certain defined criteria will automatically be granted tax exemption, without the need to obtain case-by-case approval from MAS. The automated procedure will take effect from 27 February 1999. MAS will publish the details of the procedure in a circular.