Page 10 - RSM Budget 2022 Highlights

CORPORATIONS AND BUSINESSES

Tax Incentives for Project and Comments
Infrastructure Finance  In 2017, the OECD estimated that for
infrastructure to be consistent with a 2°C
Current
scenario, investment needs to amount to USD
The package of tax incentive schemes for Project 6.9 trillion per year in the next 15 years. As such,
and Infrastructure Finance includes: there is a big financing gap that needs to be filled
a) Exemption of qualifying income from qualifying and Singapore has an opportunity to retain such
project debt securities (“QPDS”); funds and enhance its position to be a leading
project and infrastructure financing hub with
b) Exemption of qualifying foreign-sourced the extension.
income from qualifying offshore infrastructure
projects/assets received by approved entities  Notwithstanding the above extension, the fund
listed on the Singapore Exchange (“SGX”); and manager and approved infrastructure trustee-

c) Concessionary tax rate of 10% on qualifying manager will be assessed to tax on its income at
income derived by an approved Infrastructure the normal corporate tax rate of 17% instead of
Trustee-Manager/Fund Management the concessionary tax rate of 10% after 31
Company from managing qualifying SGX-listed December 2022. However, approved fund
Business Trusts/Infrastructure funds in relation managers under the Financial Sector Incentive
to qualifying infrastructure projects/assets – Fund Management tax incentive will continue
(“ITMFM scheme”). to enjoy concessionary tax rate of 10% on the
qualifying income.

The schemes are scheduled to lapse after 31
December 2022.

Proposed changes
 To continue supporting the development of
Singapore as an infrastructure financing hub, the
existing tax incentive schemes for Project and
Infrastructure Finance under (a) and (b) will be
extended till 31 December 2025.

 As part of our regular review of tax incentives
including their relevance, the ITMFM scheme in
(c) will be allowed to lapse after 31 December
2022. Existing ITMFM scheme recipients will
continue to enjoy the tax benefits for the
remaining tenure of their existing awards.

 MAS will provide any consequential details by 31
May 2022.

Effective date
 The existing tax incentive schemes for Project
and Infrastructure Finance under (a) and (b) will
be extended till 31 December 2025.

 The ITMFM scheme will be allowed to lapse after
31 December 2022.

8 | RSM