MOF Invites The Public To Give Comments On Changes To The Stamp Duties Act And The Goods And Services Tax (GST) Act

The Ministry of Finance will be conducting public consultations on the draft Stamp Duties (Amendment) Bill 2008 and the GST (Amendment) Bill 2008 to seek public feedback. This exercise will last from 28 August 2008 to 19 September 2008.

Proposed Amendments

2. The draft Stamp Duties (Amendment) Bill 2008 and GST (Amendment) Bill 2008 incorporate the following tax changes:

a) Budget 2007 tax changes - These are tax changes adopted in the 2007 Budget following feedback from the public and businesses and debate of the Budget Statement in Parliament. We are seeking public feedback on the drafting of the proposed legislative amendments for these changes as follows:

Stamp Duties

• Stamp duty relief for intra-group transfer of assets will be extended to include unlimited companies, Statutory Boards and Limited Liability Partnerships whose partners are companies, registered business trusts, Statutory Boards and other qualifying LLPs;

GST

• Zero-rating treatment will be extended to the sale, lease and servicing of containers used in the international transport of goods.

b) Other tax changes - These are refinements to existing tax policies and administration resulting from on-going reviews of the tax system. We welcome comments on both the changes proposed and the drafting of the proposed legislative amendments.

Stamp Duties

• Mandatory adjudication for transfer of shares and property by way of gift will be removed;

• The power of the Commissioner to appoint agent to recover arrears will be amended to include the appointment of a ?public officer? of Government as agent to pay over any monies that Government holds for the taxpayer who owes any duty or penalty under the Stamp Duties Act;

GST

• Zero-rating treatment will be extended to the supplies of customised machinery which is used in the manufacture of goods for export;

• The power of the Comptroller of GST to appoint agent to recover arrears will be amended to include:
  
  (i) the recovery of GST arrears from any person who is liable to pay tax or penalty under the GST Act; and
  
  (ii) the appointment of a "public officer" of Government as agent to pay over any monies that Government holds for the taxpayer who owes any tax or penalty under the GST Act;

• The definition of "unit trust" in the GST Act will be amended to include business trusts. The change will provide clarity to financial institutions that the units issued by unit trusts (including units issued by business trusts) are exempt supplies under the GST Act.

Consultation Details

3. The public can access the consultation documents together with the explanations for the different amendments for both the draft Stamp Duties (Amendment) Bill 2008 and draft GST (Amendment) Bill 2008 on the REACH consultation portal www.reach.gov.sg as well as the Ministry of Finance's website. Respondents may send their comments to the Ministry of Finance directly via the website, email, fax or post.

MINISTRY OF FINANCE