No. 19 of 2016 - ENHANCEMENT OF THE MARITIME SECTOR INCENTIVE – SHIPPING ENTERPRISE (SINGAPORE REGISTRY OF SHIPS) (MSI-SRS)
MARITIME AND PORT AUTHORITY OF SINGAPORE
SHIPPING CIRCULAR
NO. 19 OF 2016
MPA Shipping Division
460 Alexandra Road
21st Storey PSA Building
Singapore 119963
Fax: 63756231
http://www.mpa.gov.sg
30 June 2016
Applicable to: This circular should be brought to the attention of all
Singapore-flagged ship owners that are assessed under Section 13A of the
Singapore Income Tax Act.
ENHANCEMENT OF THE MARITIME SECTOR INCENTIVE – SHIPPING
ENTERPRISE (SINGAPORE REGISTRY OF SHIPS) (MSI-SRS)
To further develop Singapore as an International Maritime Centre, the
Minister for Finance announced in his 2016 Budget Statement that
enhancements to the Maritime Sector Incentive (MSI) will be introduced and
that further details will be released by the Maritime and Port Authority of
Singapore.
2 This circular sets out the details of the enhancements for Singapore-
flagged ships under the MSI-SRS.
Expansion in Scope of Qualifying Income under MSI-SRS
3 With effect from 25 March 2016, the scope of qualifying income under
MSI-SRS has been expanded to include:
a. Income derived from the operation of Singapore-flagged ships
used for offshore renewable energy activity or offshore mineral
activity in international waters
Income derived from the operation of Singapore-flagged ships used for
offshore renewable energy activity or offshore mineral activity would
qualify for tax exemption with effect from 25 March 2016.
A ship is used for offshore renewable energy activity or offshore
mineral activity if it is used for the exploration or exploitation of offshore
renewable energy or offshore minerals, or to support any activity that is
ancillary to such exploration or exploitation.
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For the purpose of tax exemption:
• “offshore renewable energy” would mean:
o ocean thermal power;
o offshore geothermal power;
o offshore solar power;
o offshore wind power;
o osmotic power;
o tidal power; or
o wave power
• “offshore minerals” would mean minerals from the seabed or
minerals dissolved in sea water.
Some examples of ships used to support any activity that is “ancillary to
the exploration or exploitation of offshore renewable energy or offshore
minerals” would include the following:
• Cable laying ship for installation of cables in an offshore installation
project to harvest offshore renewable energy;
• Crew boat for transportation of personnel and/or supplies to and
from an offshore mining location; and
• IMR (Inspection, Maintenance and Repair) vessel for maintenance
/ repair of an offshore installation project to harvest offshore
renewable energy.
b. Income derived from the performance of mobilisation,
demobilisation and holding services on ships used or to be used
for offshore renewable energy activity or offshore mineral activity
The following income would qualify for tax exemption under the MSI-
SRS with effect from 25 March 2016:
• Income derived from the performance of mobilisation,
demobilisation and holding services on any ship used or to be
used for offshore renewable energy activity or offshore mineral
activity by the MSI-SRS company using a Singapore-flagged
ship ; and
• Income derived from the performance of mobilisation,
demobilisation and holding services on a Singapore-flagged ship
owned or operated by the MSI-SRS company, and used or to be
used for offshore renewable energy activity or offshore mineral
activity.
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The exemption includes income derived from the above services
performed within the port limits of Singapore, insofar as the ship is
used or is to be used for offshore renewable energy or offshore mineral
activity outside the port limits of Singapore.
4 Any queries relating to this circular should be directed to the
International Maritime Centre (IMC) Division via email: imc_mpa@mpa.gov.sg
or Tel: +65 6375 1927/1766. Further matters relating to the registration of
ships should be directed to the Singapore Registry of Ships dedicated contact
via email: marine@mpa.gov.sg or Tel: (65) 6375 1932.
TAN SUAN JOW
DIRECTOR OF MARINE
MARITIME AND PORT AUTHORITY OF SINGAPORE
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