The document discusses tax incentives available in Singapore across various industries, including manufacturing, maritime, trading, investment, financial services, research and development, and productivity. Tax incentives include exemptions from taxation, reductions in tax rates, and enhanced tax deductions. For example, the Pioneer Enterprise scheme provides a full tax exemption for 5 to 15 years for manufacturing companies that invest significantly in Singapore or introduce new technology.

1. SINGAPORE TAX INCENTIVES

2. Copyright © 2014 Rikvin Pte LtdLast updated on 3 March 2014
OVERVIEW OF SINGAPORE TAX INCENTIVES
What tax incentives are available in Singapore?
The Singapore Government provides tax incentives for business
activities that enhance the country’s economic or technological
development. Tax incentives are available to a wide range of
industries, including manufacturing, shipping, trading, investment
and financial services sectors.
How are tax incentives offered to companies?
Tax incentives are either in the form of an exemption from taxation or
a reduction in the tax rates.
The Singapore Government provides
tax incentives for business activities
that enhance the country’s economic or
technological development.

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MANUFACTURING & SERVICES INDUSTRY
What are the tax incentives offered to the manufacturing and services industry?
MANUFACTURING AND SERVICES
Scheme Description Tax Incentive
Pioneer Enterprise Enterprises which incur significant capital expenditure
in Singapore or introduce leading edge technology and
manufacturing skills to Singapore may be approved as
pioneer enterprises. Tax exemption depends on a few key
factors include nature of product, technology involved and
amount invested in Singapore.
Full tax exemption for
periods 5 to 15 years.
Development &
Expansion Incentive
Enterprises engaging in projects which bring significant
economic benefit to Singapore in terms of overall business
spending and nature of activities in Singapore
Concessionary tax rate of
5% for up to 10 years.
Pioneer Service
Company
A company engaged in qualifying services, including
engineering or technical services, computer or information
based services, industrial or production based services and
other services as may be prescriber, may be approved as a
pioneer service company.
Full tax exemption for
periods 5 to 15 years.
Regional HQ
Program
Company should provide corporate support and
headquarters-related services and business expertise on
regional basis; must meet stipulated requirements.
Concessionary tax rate of
15% for up to 5 years.
International HQ
Program
Company should provide corporate support and
headquarters-related services and business expertise on
global basis; must exceed stipulated requirements.
Concessionary tax rate
as low as 0% for up to 5
years.

4. Copyright © 2014 Rikvin Pte LtdLast updated on 3 March 2014
MARITIME INDUSTRY
What are the tax incentives offered to the maritime industry?
MARITIME INDUSTRY
Scheme Description Tax Incentive
International
Shipping Operations
Singapore Flagged Ships
The exemption applies to the income derived from the carriage in
international waters of passengers, mail, livestock or goods by seagoing
Singapore vessels and includes the income derived from the charter of such
vessels.
Foreign Flagged Ships
The income which qualifies for exemption is from the carriage of passengers,
mails, livestock or goods shipped in Singapore but excludes such carriage
arising solely from transhipment from Singapore.
Tax exemption is
granted on certain
income derived.
Approved
International
Shipping Enterprise
(MSI-AIS)
The AIS incentive was introduced to increase the competiveness of shipping
companies operating from Singapore. Targeting established international
ship operators with established worldwide networks, the scheme seeks to
encourage international ship owners and ship operators to establish their
commercial shipping operations in Singapore.
Tax exemption is
granted on certain
income derived.
Maritime (Ship or
Container) Leasing
(MSI-ML (Ship) or
MSI-ML (Container)
Approved Shipping Investment Enterprise
Income from chartering or leasing of sea-going ship (foreign & Singapore)
outside Singapore port limits, exchange and risk management activities
which are carried out in connection with and incidental to the above
operations.
Approved Shipping Investment Manager
Managing a portfolio of an approved shipping enterprise. Expiry of incentive
is till 31 May 2016.
Approved Container Investment Enterprise (ACIE)
Leasing of containers to onshore/offshore leassess. Expiry of incentive is till
31 May 2016.
Approved Container Investment Manager (ACIM)
Strategic control and management of ACIEs can qualift. Expiry of incentive is
till 31 May 2016.
Tax exemption is
granted on certain
income derived.
Concessionary tax
rate of up to 10%
Shipping-related
Support Services
(MSI-SSS)
Approved Shipping and Logistics Scheme (ASL)
ASL scheme is targeted at companies with an established track record in the
provision of freight and logistics services. Qualified income from approved
ship agencies, ship management companies, freight forwarders and logistics
operators may be subject to tax exemption.
Ship Broking and Forward Freight Agreement Trading Incentive
Companies carrying on ship broking activities and / or forward freight
agreement trading that are approved may be subject to tax exemption.
Qualifying Corporate Services
Approved entities which have a strong record and are able to show their
commitment to expanding their ancillary shipping activities in Singapore
would be able to enjoy a concessionary tax rate arising from providing
qualifying corporate service to qualifying approved related parties who are
carrying on business of shipping - related activities.
Concessionary tax
rate of up to 10%,
applications must be
made before 31 May
2016.

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TRADING & INVESTMENT SECTORS
What are the tax incentives offered to the trading sector?
TRADING
Scheme Description Tax Incentive
Global Trader
Program
Companies that are carrying on the business of international
trading of commodities, future, derivative instruments with
good track record may benefit from the incentive.
Concessionary
tax rate of up to
10%
Approved Cyber
Trader
A company that is well established and uses the internet to
conduct its international trading and marketing activities, hosts
its website and contents in Singapore and bases a minimum
number of personnel in Singapore.
Concessionary
tax rate of up to
10%
What are the tax incentives offered to the investment sector?
INVESTMENT
Scheme Description Tax Incentive
Enterprise
Investment
Incentive
Start-up companies engaged in innovative and high-growth
activities with substantial R&D content in relation to a specific
product, process or service. Overseas start-ups may also be
approved on a case-by-case basis.
Deductions of
losses incurred
on disposal
of shares or
liquidation
Overseas
Enterprise
Incentive
This incentive is designed to encourage companies to invest in
approved overseas investments and projects.
Tax exemption
on qualifying
instruments

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FINANCIAL SERVICES INDUSTRY
What are the tax incentives offered to the financial services industry?
The Financial Sector Incentive (FSI) scheme aims to promote and encourage the development of
Singapore’s financial services sector. The FSI Scheme awards concessionary tax rates of 5, 10 and
12% on income derived from qualifying financial activities conducted in Singapore.
Initial award periods may vary from 5 to 10 years based on headcount and scope of activities
undertaken.
The application period for the FSI Scheme – apart from the FSI-Islamic Finance (FSI-IF) scheme –
will be extended to 31 December 2018.
With effect from 1 January 2014, several FSI sub-schemes have merged. For example, the range
of incentivised activities and financial instruments will be broadened for the FSI-ST, FSI-CM and
FSI-CFS awards. The categories are as follows:
Scheme New treatment Concessionary
tax rate (%)
FSI-Standard Tier
(FSI-ST)
The FSI-Islamic Finance (FSI-IF) award has expired
on 31 March 2013. The existing qualifying Islamic
Finance activities will be incentivised under the FSI-ST
award.
12
FSI-Headquarter Services
(FSI-HQ)
Withholding tax exemption will be granted
automatically to FSI-HQ award recipients on interest
payments made during the period of their FSI-HQ
award for qualifying loans. Effective 25 Feb 2013.
10
FSI-Fund Management
(FSI-FM)
New applicants will have to satisfy an additional Asset
under Management (AUM) requirement of at least
S$250m.
10
FSI-Capital Market
(FSI-CM)
A merger of the FSI Bond Market (FSI-BM) and FSI-
Equity Market (FSI-EM). Effective 1 Jan 2014.
5
FSI-Credit facilities
Syndication (FSI-CFS)
TBC 5
FSI-Derivative Market
(FSI-DM)
All five separate FSI-DM sub-schemes will merge into
this scheme.
5

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FINANCIAL SERVICES INDUSTRY
FINANCIAL SERVICES INDUSTRY
Scheme Description Tax Incentive
Real Estate
Investment Trust
(REITs)
A REIT is established as a unit trust and is regulated by the MAS. The
REIT is managed by an asset manager and administered by a trustee.
A number of tax concessions, subject to the meeting of conditions,
may be granted to listed REITs and they include:
• Tax transparency treatment at the trustee level were the trustee
is not assessed to tax on the REIT’s taxable income that is
distributed to the unitholders in the same financial year that the
income is earned.
• Tax exemption of individuals regardless of their nationality or
residence status are granted tax exemption.
• Transfer of Singapore properties into listed REITs would be
granted remission of stamp duties
• Foreign-sourced income may be exempted from tax in Singapore
• Withholding tax rate of non-resident non-individual investors is
at the reduced rate of 10%
Tax exemption
on qualifying
instruments
Designated Unit
Trust (DUT)
Under the DUT, specified income derived from designated
investments are exempt from Singapore income tax at the trust level.
DUTs are taxed only on interest income.
Tax exemption
on qualifying
instruments
CPF Approved Unit
Trust (CPF Unit
Trust)
Under the CPF Unit Trust scheme, specified income derived from
designated investments are exempt from Singapore income tax at the
trust level. CPF Unit Trusts are taxed only on interest income
Tax exemption
on qualifying
instruments
Approved Unit
Trusts (AUTs)
AUTs are subject to Singapore income tax in respect of their
investment income and on one-tenth of the gains realised from the
sale of their investments.
Tax exemption
on qualifying
instruments
Foreign Trusts Subject to conditions, specified income earned by a foreign trust or
an eligible holding company from designated investments would be
exempt from Singapore income tax.
Tax exemption
on qualifying
instruments
Philanthropic
Purpose Trusts
Any fund or asset in any foreign account of a philanthropic purpose
trust constituted and administered by a trustee company in
Singapore; and income derived from any fund or assets of an eligible
holding company established for the purposes of that philanthropic
purpose trust which are held for the foreign account of that trust may
be exempted from tax.
May be subject to
full tax exemption

8. Copyright © 2014 Rikvin Pte LtdLast updated on 3 March 2014
FINANCIAL SERVICES INDUSTRY
FINANCIAL SERVICES INDUSTRY (continued)
Scheme Description Tax Incentive
Prescribed Locally
Administered
Trusts (LATs)
Specified Singapore-sourced investment income and foreign-sourced
income derived by LATs may be exempted from tax. To qualify as
a LAT, settlors must be individuals and the beneficiaries must be
individuals, charitable institutions, trusts or bodies of persons
established for charitable purposes only.
Tax exemption
on qualifying
investment income
Non-Resident Fund
Incentive
Income derived by a qualifying fund managed or advised by any fund
manager in Singapore in respect of designated investments would
be exempted. This is applicable to funds constituted as trusts and
companies outside Singapore provided that the funds are not wholly
owned by investors in Singapore. The funds or its trustees should also
not have a permanent establishment in Singapore and should not
carry on a business in Singapore.
Tax exemption
on qualifying
investment income
Resident Fund
Incentive
Specified income derived by an approved company incorporated and
resident in Singapore from designated investments arising from funds
managed in Singapore by a fund manage in Singapore can benefit
from tax incentives as long as the company is not wholly owned by
investors in Singapore. Approval for this incentive has to be obtained
by 31 March 2014.
Tax exemption
on qualifying
investment income
Enhanced Tier
Fund Incentive
This incentive is available for funds with a minimum fund size of
SGD 50 million at the point of application. Under this scheme, tax
incentives under the Qualifying Fund and Resident Fund Exemption
Schemes would be enhanced as follows:
• no restriction on the residence status of the fund vehicles and
investors
• extended to funds constituted as limited partnerships
• lifting of the investment limit imposed on resident non-individual
investors
Enhanced tax
exemption
on qualifying
investment income
Finance and
Treasury Centre
Approved companies which provide finance and treasury services
to related and associated companies outside Singapore enjoy
concessionary tax rates from provision of qualifying services.
Approval for this incentive has to be obtained by 31 March 2016.
Concessionary tax
rate of up to 10%
on provision of
qualifying services

9. Copyright © 2014 Rikvin Pte LtdLast updated on 3 March 2014
FINANCIAL SERVICES INDUSTRY
FINANCIAL SERVICES INDUSTRY (continued)
Scheme Description Tax Incentive
Approved Trustee
Company
Income derived from specified trust and custodian services to
non-residents in respect of non-Singapore dollar investments,
specified person such as foreign companies and foreign mutual
fund corporations.
Concessionary
tax rate of up to
10%
Offshore Leasing Income of a leasing company derived from Singapore in
offshore leasing of machinery or plant may be subject to
tax exemption. Offshore leasing defined for the purpose of
Singapore taxation as the leasing of machinery or plant where:
• the leased asset is used outside Singapore
• Leased payments are denominated in currencies other than
the Singapore Dollar and are not deductible against any
income derived from Singapore.
Concessionary
tax rate of up to
10%
Insurance An approved insurance company engaging in the business
of insuring and reinsuring offshore risks will taxed at
concessionary rates on:
• Income arising from the business of insuring and reinsuring
offshore risks
• Dividends and interest derived from outside Singapore,
gains or profits from the sale of offshore investments and
interest from Asian Currency Unit (ACU)
Concessionary
tax rate of up to
10%
Islamic Bonds Payouts earned by companies and bodies of persons in Singapore
from Islamic debt securities substantially arranged by financial
institutions will be taxed at concessionary rates.
Payouts of income derived by resident and non-resident individuals
from Islamic debt securities are exempt from tax.
Concessionary
tax rate of up to
10%

10. Copyright © 2014 Rikvin Pte LtdLast updated on 3 March 2014
RESEARCH AND DEVELOPMENT (R&D) INDUSTRY
RESEARCH AND DEVELOPMENT (R&D) INDUSTRY
Scheme Description Tax Incentive
Enhanced R&D
Deductions
The enhanced deductions for R&D are not limited to businesses
whose core activity is research but also for any businesses that
demonstrate projects meeting the R&D definitions as follows:
• conduct of a study in a systematic, investigative and
experimental manner.
• Involves novelty or technical risks in the field of science or
technology.
• Object of study includes production or improvement of
materials, devices, products, produce or processes.
Companies with projects meeting the R&D definition are
allowed enhanced deductions as follows:
• 400% tax deduction for the first $400,000 of qualifying
expenditure incurred on R&D done in Singapore, or
overseas R&D which is related to an existing trade or
business.
• 150% tax deduction for the balance qualifying expenditure
incurred on R&D done in Singapore.
• 100% tax deduction for the balance of all other R&D
expenditure, including expenditure incurred on overseas
R&D which is related to an existing business.
400% tax
deduction on
first $400,000
for R&D done in
Singapore
___
150% tax
deductions
on balance
qualifying
expenditure for
R&D done in
Singapore
___
100% tax
deductions on
balance for R&D
expenditure
What are the tax incentives offered to the R&D Industry?

11. Copyright © 2014 Rikvin Pte LtdLast updated on 3 March 2014
PRODUCTIVITY & INNOVATION CREDIT (PIC) SCHEME
PRODUCTIVITY AND INNOVATION CREDIT (PIC) SCHEME
Scheme Description Tax Incentive
Productivity and
Innovation Credit
The PIC Scheme provides enhanced deduction or allowance for qualifying
expenditure incurred on each of the six activities:
1. Research and Development (R&D)
• Please refer to the above.
2. Investments in Approved Design
• 400% tax deduction for the first $400,000 of qualifying expenditure
incurred on eligible design activities done in Singapore on year of
assessment.
• 100% tax deduction for the balance of expenditure.
• Tax incentive is must be applied through and is administered by the
DesignSingapore Council.
3. Acquisition of Intellectual Property
• 400% allowance for the first $400,000 of qualifying expenditure.
• 100% allowance for the balance expenditure.
4. Registration of Intellectual Property
• 400% allowance for the first $400,000 of qualifying expenditure
incurred on the registration of patents, trademarks, designs and plant
varieties.
• 100% allowance for the balance expenditure.
5. Investments in Automation Equipment
• 400% allowance or tax deduction for the first $400,000 of expenditure
incurred on qualifying investments in automation.
• 100% allowance or tax deduction for the balance of expenditure.
• Qualifying investments in automation is based on the list of automation
equipment as prescribed in the “PIC Automation Equipment List”
published by the IRAS.
6. Training
• 400% deduction for the first $400,000 of qualifying training expenditure
incurred on all external training courses, and in-house training courses
approved by the Workforce Development Agency (WDA) and the
Institute of Technical Education (ITE).
• 100% tax deduction for the balance of expenditure.
For each qualifying activity, the following combined expenditure cap would
apply:
• $800,000 for years of assessment 2011 and 2012
• $1,200,000 for years of assessment 2013 to 2015
For more information, please proceed to:
http://www.rikvin.com/taxation/productivity-innovation-credit/
400% tax deduction
on first $400,000
on qualifying
expenditure
___
100% tax deductions
on balance qualifying
expenditure

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Singapore 049712
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Website : www.rikvin.com
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The information contained herein is intended for general
information purposes only and shall not be regarded as
professional advice. Readers are therefore advised that
before acting on any matter arising from these notes, they
should discuss their particular situation with the Firm. No
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