Tax Changes For Companies

Tax Exemption for Floating Production Storage Offloading Vessel and Floating Storage Offloading Vessel

Singapore has come a long way in developing as a maritime centre. According to United Nations Conference on Trade and Development (UNCTAD), we have moved from the 19th position in 1991 to become the 13th most important maritime nation. Today, a critical mass of established international shipping companies exist in Singapore, providing a wide spectrum of shipping services.

To support Singapore's drive towards higher value-added activities in the shipping sector, I have decided to extend the existing Approved International Shipping Enterprise Scheme to cover income derived from the operation of Floating Production Storage Offloading vessel and Floating Storage Offloading vessel (or FPSO/FSO) in Singapore. These are primarily crude oil tanker vessels which have been specially converted for deployment in the offshore field for production and storage of crude oil. The operation of FPSOs and FSOs therefore requires the application of both advanced maritime and technology-driven expertise. The development of the FPSO/FSO industry in Singapore will not only serve to broaden the scope of shipping activities in Singapore, it will also complement Singapore's role as the world's third largest oil refinery and trading centre.

To qualify for the incentive, the company must have substantial operations and possess a team of professional expertise in Singapore. The incentive will be granted for a period of ten years and will take effect from Year of Assessment 2000. TDB will administer this incentive.