Goods and Services Tax (General) (Amendment No. 2) Regulations 2010

No. S 566

Goods and Services Tax Act

(Chapter 117A)

Goods and Services Tax (General) (Amendment No. 2) Regulations 2010

In exercise of the powers conferred by sections 19(14), 20(3)(c), 27A and 86(1) of the Goods and Services Tax Act, the Minister for Finance hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Goods and Services Tax (General) (Amendment No. 2) Regulations 2010 and shall come into operation on 1st October 2010.

Amendment of regulation 2

2. Regulation 2 of the Goods and Services Tax (General) Regulations (Rg 1) (referred to in these Regulations as the principal Regulations) is amended —

(a)

by inserting, immediately before the definition of “prescribed accounting period”, the following definition:

“ “customs territory” has the same meaning as in section 3(1) of the Customs Act (Cap. 70);”; and

(b)

by renumbering the regulation as paragraph (1) of that regulation, and by inserting immediately thereafter the following paragraph:

“(2) In the application of the Customs Act (Cap. 70), by virtue of section 26 of the Act, to any goods which are not subject to either customs duty or excise duty, such goods shall be construed as being under “customs control” within the meaning of section 3(2) of the Customs Act —

(a)	as if they are dutiable goods; and
(b)	as if the reference to a licensed warehouse in section 3(2) of the Customs Act includes a warehouse or other premises licensed under section 37(3)(c) of the Act.”.

Amendment of regulation 25

3. Regulation 25(1) of the principal Regulations is amended by deleting the definition of “medical and accident insurance premium” and substituting the following definition:

“ “medical and accident insurance premium” means any payment or contribution towards any of the following insurance contracts:

(a)	a contract for the provision of insurance for indemnifying the taxable person against the cost of medical treatment to any person;
(b)	a contract for the provision of insurance against the cost of medical treatment in which the insured is any person employed by the taxable person;
(c)	a contract for the provision of insurance against any personal accident in which the insured is any person employed by the taxable person,

but does not include any insurance contract against any liability which the taxable person may incur to any person employed by him —

(i)

under the provisions of the Work Injury Compensation Act (Cap. 354) where —

(A)	such insurance is obligatory under that Act; or
(B)	the payment of compensation is obligatory under that Act; or

(ii)

under any collective agreement within the meaning of the Industrial Relations Act (Cap. 136);”.

Amendment of regulation 33

4. Regulation 33 of the principal Regulations is amended by deleting the full-stop at the end of paragraph (j) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs:

“(k)	the issue or transfer of ownership of Islamic debt securities under an Islamic debt securities arrangement;
(l)	the provision of financing under an Islamic debt securities arrangement for which the provider of the financing derives an effective return.”.

New regulation 45D

5. The principal Regulations are amended by inserting, immediately after regulation 45C, the following regulation:

“Import Goods and Services Tax Deferment Scheme

45D.—(1) A taxable person who is eligible under paragraph (2) may make an application to the Comptroller —

(a)

for goods outside Singapore which —

(i)	enter Singapore under customs control; and
(ii)	are removed from customs control into the customs territory by the taxable person in the course or furtherance of any business carried on by him,

to be so removed notwithstanding that the tax chargeable on the importation has yet to be paid; and

(b)

for the taxable person to account for and pay to the Comptroller the tax chargeable on the importation of the goods in the return of the taxable person relating to the prescribed accounting period in which the removal of the goods took place.

(2) A taxable person is eligible to make an application under paragraph (1) if he satisfies the Comptroller that —

(a)	his accounting and internal control systems are able to meet such accounting and auditing standards as the Comptroller may require;
(b)	he has faithfully observed and complied with all duties and obligations relating to his liability to pay customs and excise duties, income tax, property tax and goods and services tax;
(c)	he has been allowed or directed by the Comptroller to furnish returns in respect of periods of one month within the meaning of regulation 52(1)(i); and
(d)	he is able to comply with such other conditions as the Comptroller may impose for the protection of revenue.

(3) Every application made under paragraph (1) —

(a)	shall be made in such form and manner as the Comptroller may determine; and
(b)	shall not include any false, misleading or inaccurate declaration or information.

(4) The Comptroller may, on an application made under paragraph (1), approve the application on such conditions or with such requirements as he may in his discretion impose.

(5) The taxable person shall comply with all conditions and requirements imposed by the Comptroller under paragraph (4).

(6) The Comptroller may require the taxable person to furnish security in such form and amount and to make arrangements for the payment of tax as he may determine.

(7) An approval granted under paragraph (4) shall have effect for such period as the Comptroller may determine.

(8) The Comptroller may, at any time, by notice in writing, vary or revoke any approval granted under this regulation if he is satisfied that the taxable person —

(a)	has provided any false, misleading or inaccurate declaration or information in his application under paragraph (1);
(b)	has at any time ceased to satisfy any of the requirements for eligibility under paragraph (2); or
(c)	has failed to comply with any condition or requirement imposed by the Comptroller under paragraph (4).

(9) In a prescribed accounting period, a taxable person to whom approval has been granted under this regulation shall —

(a)	account for tax on his importation of goods removed in the prescribed accounting period; and
(b)	pay the tax, except that, where the amount of the tax exceeds such amount of credit or excess owing to the taxable person by the Comptroller under section 19(5) of the Act, the taxable person shall pay to the Comptroller the difference between the 2 amounts.

(10) A taxable person to whom approval has been granted under this regulation shall not use the approval, and shall take all steps to ensure that no other person uses the approval (whether on behalf of the taxable person or otherwise), except for the purposes for which the approval was granted.

(11) A taxable person to whom approval has been granted under this regulation shall immediately notify the Comptroller of any change relating to particulars or information furnished in respect of his application made under paragraph (1).

(12) Where a taxable person to whom approval has been granted under this regulation —

(a)	ceases to satisfy any of the requirements for eligibility under paragraph (2); or
(b)	fails to account for the tax chargeable on the importation of the goods in accordance with paragraph (9),

the taxable person shall immediately, and without demand, pay to the Comptroller the tax chargeable that is not accounted for.”.

Amendment of regulation 108

6. Regulation 108 of the principal Regulations is amended by inserting, immediately after the words “45C(5)( b) and (10),”, the words “45D(3)( b), (5), (10) and (11),”.

[G.N. Nos. S 674/2008; S 32/2009; S 118/2009; S 626/2009; S 64/2010]

Made this 29th day of September 2010.

PETER ONG

Permanent Secretary,
Ministry of Finance,
Singapore.

[MFR 60.1.0013 Vol. 36; AG/LLRD/SL/117A/2010/3 Vol. 1]

(To be presented to Parliament under section 86(2) of the Goods and Services Tax Act).

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