Singapore is a global maritime hub; thus, shipping company incorporation and registration in Singapore is common. The tax incentives which may be claimed by Singapore's shipping companies also serve to attract many owners of such companies.
Singapore is a superior maritime nation. The tax incentives, technical support, social organization, and ease of ship registry attract new merchants to its ports each year. Paul Hype Page offers assistance to shipping companies who wish to take advantage of the tax benefits of incorporating under the Singapore flag. If your company is in the maritime industry, read further to better understand Singaporean tax incentives, shipping grants, green initiatives, and registration fees.
At Paul Hype Page, we can provide a summary of the tax implications and available incentives for ship owner wishing to operate in Singapore.
Our services ranging are as follows:
Discuss with ship owner of their business plan and apply the appropriate type of license from MPA
Introduce the type of tax incentive that are suitable
Incorporate Singapore entity and apply for the suitable work pass for relocation
Perform yearly compliance engagement required by IRAS, MAS and ACRA
What are the Tax Incentives in Singapore?
Under the Maritime Sector Incentive and the Approved International Shipping Enterprise Scheme, Singapore registered companies are granted a profit tax exemption for 10 years. To qualify, a shipping company must be a significant owner and operator of ships, must have a minimum annual business spending, and must be Singapore resident. A vessel must hold a permanent certificate of registry, however, dredgers, floating production storage, loading vessels, oil rigs, submersibles, seismic vessels, and other offshore mobile units may qualify. The MSI and AIS incentives are guaranteed until 2037.
What is the Ship Registration’s fee structure?
Ship registration in Singapore is easy, and can be accomplished in hours. The fee structure is equally simple; owners pay $2.50 per ton to register their vessels. The minimum fee is $1,250, and the maximum fee is $50K. A discounted scheme is offered to companies that own: 2 ships over 40,000 tons, 3 ships over 30,000 tons, 4 ships over 20,000 tons, or 5 ships of any tonnage. Qualifying companies pay $0.50 per ton, not exceeding $20K. The annual tonnage fee is $0.20 per ton, with a minimum fee of $100, and maximum fee of $10K.
What are the other Funds and Initiatives offered in Singapore?
In addition to tax and registration savings, Singapore offers grants to companies that invest in professional development and research. Singapore has created a Maritime Cluster Fund of $45 million to support new business, and $50 million to develop manpower expertise. The Maritime Innovation and Technology Fund grants money to companies that research and develop new commercial products. Airfare, salary, and living expenses may also be subsidized through manpower development grants. Training programs may be subsidized up to %60, not exceeding $50K per employee.
Aside from the attractive grants and tax incentives, Singapore is known for its efficiency, cleanliness, and safety. These values extend beyond the shoreline, through Maritime Port Authority’s Green Initiatives. Ships exceeding IMO’s Energy Efficient Design Index can expect a 50% reduction in initial registration fees and an annual rebate of 20% off tonnage tax. Companies investing in energy efficient technologies may apply for grants, up $2 million per project. In addition, vessels with abatement and scrubber technology, or those utilizing green fuels during their port stay, are granted a 15% concession in port dues.
For Shipping / Maritime Companies FAQs
How busy is the Singapore port?Tiwi2020-10-27T09:06:57+08:00
Yes. Singaporegovernment offers Maritime Cluster Fund, Maritime Innovation and Technology Fund, Maritime Port Authority’s Green Initiativesas well as manpower development grants to the shipping company.
Who is qualified for 10 years profit tax exemption under the Maritime Sector Incentive and the Approved International Shipping Enterprise Scheme?Tiwi2020-10-27T09:05:16+08:00