Page 14 - Budget-2018-Highlights-en-flip

TAX INCENTIVES

Qualifying Debt Securities Incentive MAS will release further details of the change by
Scheme May 2018.

Current Effective date

The Qualifying Debt Securities (“QDS”) scheme  The QDS scheme will continue till 31 December
offers the following tax concessions on qualifying 2023.
income from QDS:
 The QDS+ scheme will be allowed to lapse after
 10% concessionary tax rate for qualifying 31 December 2018.
companies and bodies of persons in Singapore;
and Comments

 Tax exemption for qualifying non-residents and  The debt capital market is an integral part of the
qualifying individuals. financial services sector in Singapore. Corporate
debt issuances dominate debt securities
To qualify as QDS, debt securities must be offerings in Singapore. The key tax concession
substantially arranged by financial institutions in and exemption relating to debt issuances are
Singapore. those provided for under the QDS scheme.

The QDS+ scheme grants tax exemption for all  Extending the QDS scheme for another five
investors on qualifying income derived from QDS years would certainly support and further
that are: develop the debt market in Singapore.

 Debt securities (excluding Singapore
Government Securities) with an original
maturity of at least 10 years; and

 Islamic debt securities or sukuk7.

The QDS and QDS+ schemes are scheduled to lapse
after 31 December 2018.

Proposed changes

To continue supporting the development of
Singapore’s debt market, the QDS scheme will be
extended till 31 December 2023.

As part of the Government’s regular review of tax
incentives, the QDS+ scheme will be allowed to lapse
after 31 December 2018.

Debt securities with a tenure beyond 10 years, and
Islamic debt securities that are issued:

 After 31 December 2018 can enjoy tax
concessions under the QDS scheme if the
conditions of the QDS scheme are satisfied.

 On or before 31 December 2018 can continue to
enjoy the tax concessions under the QDS+
scheme if the conditions of the QDS+ scheme
are satisfied.

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