Singapore legislation

Clause 4

of Goods and Services Tax (Amendment) Bill

Clause 4

New sections 21B and 21C

The principal Act is amended by inserting, immediately after section 21A, the following sections:“Zero-rating of supplies relating to goods to approved taxable person in shipping or marine industry21B.—

(1)

The Minister may by regulations, in relation to a supply relating to goods for a prescribed purpose made by any taxable person to a taxable person in the shipping or marine industry who is approved by the Comptroller, permit the supply to be zero-rated.(2) Where a supply by a taxable person is zero-rated under subsection (1), then, whether or not tax would be chargeable on the supply apart from this section —

(a)

no tax shall be charged on the supply; but(b)it shall in all other respects be treated as a taxable supply,and accordingly the rate at which tax is treated as charged on the supply shall be nil.(3) Regulations made under subsection (1) may —

(a)

require the taxable person approved by the Comptroller and to whom a supply referred to in subsection (1) has been made to account for the tax on the supply that would, but for regulations made under subsection (1), be chargeable on the supply, in such circumstances, and in such form and manner and within such time, as may be prescribed; and

(b)

where any requirement of the regulations is not complied with or in such other circumstances as may be prescribed, require an amount equivalent to the tax that would, but for subsection (1), be chargeable on the supply to be accounted for.(4) The Comptroller may, for the protection of revenue, impose conditions or restrictions in relation to any supply referred to in subsection (1).(5) The Comptroller may publish the names and such other particulars of the taxable persons approved by the Comptroller under subsection (1) in such form or manner as he thinks fit.Zero-rating of grant or assignment of lease, tenancy or licence to occupy land21C.—

(1)

The grant or assignment by any taxable person of a lease, tenancy or licence to occupy land where the lease, tenancy or licence —

(a)

is granted or assigned under a contract with a person who belongs in a country outside Singapore; and

(b)

directly benefits a person who belongs in a country other than Singapore,shall be zero-rated if —

(i)

the taxable person has made an application to and the Comptroller has approved the application for a warehouse or other premises to be an approved warehouse;

(ii)

the whole of the land which is the subject of the lease, tenancy or licence is part of the approved warehouse; and

(iii)

the land which is the subject of the lease, tenancy or licence is used by the taxable person in his business of storing prescribed goods other than the goods of the taxable person.(2) Where a supply by a taxable person is zero-rated under subsection (1), then, whether or not tax would be chargeable on the supply apart from this section —

(a)

Read in full context — Goods and Services Tax (Amendment) Bill →