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Withholding Tax Exemption

Qualifying shipping enterprises will enjoy Withholding Tax (WHT) exemption on interest and related payments made in respect of arrangements obtained to finance the purchase or construction of vessels, or the purchase of containers and intermodal equipment.

The 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 December 2026 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 December 2026.

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 MPA via the One Maritime Portal* by the 15th of the month following the first relevant payment due date to the non-resident.

 

* accessible with effective from 22 January 2024

 

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

The WHT exemption will, subject to conditions, be extended to qualifying payments made on or after 17 February 2012 in respect of qualifying financing arrangements entered into on or before 31 December 2026 to finance the purchase of qualifying containers and intermodal equipment.

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 17 February 2012 to 31 December 2026.

Who is eligible

The exemption is available to entities awarded the following status under the MSI-Maritime Leasing (Container) award:

  • MSI-ACIE;
  • MSI-ACIE (Sister); and
  • MSI-ACIE (Local ASPV).

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 MPA via the One Maritime Portal* by the 15th of the month following the first relevant payment due date to the non-resident.

 

* accessible with effective from 22 January 2024

 

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