27.

Currently, Section 15 of the Stamp Duties Act provides stamp duty relief for corporate restructuring and merger. As Section 15 is a relieving section, qualifying conditions have been set for the concession. In recent years, we have seen an increase in the number of companies involved in restructuring or merger to re-align their businesses, so as to improve on cost-efficiency and better deliver products or services to customers. With these developments in mind, I have therefore decided to expand the scope of stamp duty exemption to a wider spectrum of corporate restructurings and mergers. In addition to the existing exemptions, relief will be granted to the transfer of assets between associated companies, the restructuring and merger of listed companies, and companies which intend to list or further list their shares after the exercise.

28.

Presently, if the transfer involves less than 90 per cent of the company's shares, or if the consideration is made in cash, the exercise would not qualify for the relief. I have decided to lift these two conditions for the transfer of assets between associated companies, defined as one owning 75 per cent or more of another company, or a third company owning at least 75 per cent of both companies.

29.

Currently, publicly-listed companies and companies which intend to list their shares after the restructuring or merger are not able to meet the condition of a 2-year moratorium on changes in beneficial ownership of the shares. I have decided to lift the 2-year moratorium on the consideration shares held by public shareholders, and also allow companies to float a portion of their issued share capital up to the minimum listing threshold required by the SGX for its mainboard listing. This threshold is currently 25 per cent.

30.

These changes will take effect shortly when details are announced by IRAS.