| 2.32 In the maritime and logistics
industries, our business infrastructure and connectivity
are key strengths. We must attract more international
ship-owning and ship-operating companies to set
up operations in Singapore. This must be supported
by a comprehensive range of services which covers
the entire maritime and logistics value chain,
including financing. To support growth in these
areas, I am introducing four changes in this Budget.
Details can be found in Annex B.
2.33 First, to encourage the development of ship
financing activities in Singapore, I will introduce
a Maritime Finance Incentive to grant tax exemption
for qualifying income of ship investment vehicles
and a 10% concessionary tax rate for qualifying
income of ship investment managers.
2.34 Second, to entrench shipping companies in
Singapore, I will enhance the Approved International
Shipping incentive by allowing companies to renew
their incentives for a third period of 10 years,
lengthening the maximum period of incentive from
20 years to 30 years.
2.35 Third, to lower the compliance cost for
traders enjoying the 10% concessionary tax rate
under the Global Trader Programme, I will remove
the need for companies to show that the derivative
trades are incidental to the physical trades before
such income can be treated as qualifying income.
2.36 And finally, I will allow automatic GST
suspension for goods removed from Zero-GST warehouses
by all those who qualify under the Major Exporter
Scheme and Approved Third Party Logistics Company
Scheme. This will give them greater flexibility
to conduct their business via logistics and warehousing
companies.
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