Press Releases

1. The Ministry of Finance (MOF) has accepted 10 suggestions to amend the draft GST (Amendment) Bill 2004. A total of 20 comments were received in the consultation exercise held in Jul/Aug 2004.

2. Most of the comments relate to the provision which clarifies that zero-rating is allowed only where the services are made contractually to and beneficially for a person outside Singapore.

3. The comments which have been accepted largely sought clarification on the interpretation of the amendments to the zero-rating provisions. Therefore, IRAS will issue an e-Tax guide shortly to clarify the interpretation. Where appropriate, changes have been made to the Bill to take in the accepted suggestions.

4. The comments which have not been accepted include those which suggested changes that are inconsistent with drafting convention or terms used in other tax legislation. Others went beyond the purpose of the exercise. They covered changes in tax policy and administration.

5. The consultation exercise ran from 15 July to 11 Aug 2004 for feedback on how the drafting could be improved for greater clarity and easier compliance. This is the first time that draft GST legislation has been published for consultation.

6. MOF thanks all respondents in this consultation exercise. MOF's responses to the major comments received are summarised on MOF's website.

MINISTRY OF FINANCE