Press Releases

As part of our effort to carry out public consultation on all tax legislation, the Ministry of Finance is inviting members of the public to give their comments on the proposed amendments to the Goods and Services Tax Act (GSTA), Property Tax Act (PTA) and other tax legislative amendments relating to Limited Liability Partnership (LLP).

2. This consultation exercise, which lasts from 15 July 2004 to 11 August 2004, seeks feedback on areas of the draft legislation that require greater clarity or where compliance can be facilitated. The Ministry welcomes all interested parties to be a part of this process.

3. The draft Goods and Services Tax (Amendment) Bill 2004 cover changes to existing tax policies and administration which resulted from on-going review of the GST tax system. An example of such changes is the introduction of a new scheme whereby GST is waived on some products in selected industry which predominantly engages in supplying products without local consumption.

4. As part of the on-going review, the draft Property Tax (Amendment) Bill 2004 seeks to update the Property Tax Act with respect to technological advancements. An example of such changes is the amendment to facilitate online transactions by providing electronic transactions and notices with the same legal force as paper documents. Similar amendments are also being made to the Goods and Services Tax Act.

5. Arising from the proposed introduction of the LLP as a new business form, amendments will be made to the Income Tax Act and the Stamp Duties Act to prescribe the taxation treatment of the LLP. The amendments to the Income Tax Act include clarifications to the set-off order for capital allowances, and introduce provisions for restriction of loss relief to prevent tax avoidance. The Stamp Duties (Amendment) Bill specifies exemptions for conversions of general partnerships into LLPs and introduces stamp duty on acquisition of interests in LLP where the LLP owns immovable property, stocks or shares.

6. The consultation paper, draft Bills and accompanying documents will be available at MOF's website at http://www.mof.gov.sg, from 15 July 2004. Respondents may send their comments to MOF in the prescribed template, via email, fax or post. Members of the public can also access the documents through the Feedback Unit common consultation portal for all ongoing government consultations at http://www.feedback.gov.sg.

7. The draft Bills will be tabled for its First Reading in Parliament in September 2004. To facilitate the timely enactment of the legislative amendments, the Ministry would only consider comments submitted before the deadline of 11 August 2004.

MINISTRY OF FINANCE