Singapore Introduces Tax Plan To Lure Foreign Shipowners

The Singapore Government recently announced a tax exemption plan for foreign shipping companies in a move to encourage owners to relocate to the country. The announcement came on the heels of a similar action by Canada.

Singapore's plans were announced by its finance minister Richard Hu, who said that the income of approved resident shipping companies from the operations of their non-Singapore flag vessels would be exempt from tax under an Approved International Shipping Enterprise Scheme scheduled to take effect from the 1992 year of assessment.

The move by Singapore is expected to draw at least 100 ships in its first year and generate as much as $72 million per year.

In an effort to transform Vancouver into a major maritime center, Canada had announced changes to its tax laws to allow foreign owners to set up headquarters in the country without being taxed on their world holdings. The Canadian tax changes came into effect at the end of February.

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Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.