Withholding tax ("WHT") exemption on interest and related payments made in respect of loans obtained to finance the purchase or construction of ships

To further promote the growth of the maritime sector, automatic WHT exemption will, subject to conditions, be extended to qualifying payments made on or after 1 June 2011 in respect of qualifying financing arrangements entered into on or before 31 May 2021 to finance the purchase or construction of Singapore-flagged and foreign-flagged vessels.

 

Benefits

Qualifying entities which obtain qualifying financing arrangements are no longer required to apply for such exemption on a case-by-case basis during the period from 1 June 2011 to 31 May 2021¹.  

 

Who is eligible?

The exemption is available to:
• MSI-Shipping Enterprise (Singapore Registry of Ships) (MSI-SRS);
• MSI-Approved International Shipping Enterprise (MSI-AIS) companies; and
• MSI-Maritime Leasing (Ship) [MSI-ML(Ship)] entities.

 

How to qualify

Entities are required to submit a self-declaration form (the “Form”) for each financing arrangement obtained to inform the relevant authorities that the qualifying conditions have been met.  The Form has to be submitted to the Maritime and Port Authority of Singapore by the 15th of the month following the first relevant payment due date to the non-resident.  A copy of the Form (which sets out the qualifying conditions for the automatic WHT exemption) can be downloaded from the link below.

 

For more information on the automatic WHT exemption, please email imc_mpa@mpa.gov.sg

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