Goods and Services Tax (General) (Amendment No. 4) Regulations 2007

No. S 689

Goods and Services Tax Act

(Chapter 117A)

Goods and Services Tax (General) (Amendment No. 4) Regulations 2007

In exercise of the powers conferred by sections 20 (3), (4) and (5) and 86(1) of the Goods and Services Tax Act, the Minister for Finance hereby makes the following Regulations:

Citation and commencement

1.—(1) These Regulations may be cited as the Goods and Services Tax (General) (Amendment No. 4) Regulations 2007 and shall, with the exception of regulation 3( b), come into operation on 1st April 2008.

(2) Regulation 3(b) shall be deemed to have come into operation on 1st December 2007.

Application

2. Regulations 4 to 7 shall apply to supplies made by a taxable person during any prescribed accounting period, or any longer period applicable to him under regulation 25 of the Goods and Services Tax (General) Regulations (Rg 1) (referred to in these Regulations as the principal Regulations), beginning on or after 1st April 2008.

Amendment of regulation 25

3. Regulation 25 (1) of the principal Regulations is amended —

(a)

by inserting, immediately before the definition of “club subscription fee”, the following definition:

“ “business trust” has the same meaning as in section 2 of Business Trusts Act (Cap. 31A);”;

(b)

by deleting the words “licensed under the Secondhand Dealers Act (Cap. 288)” in paragraph (f) of the definition of “motor car”;

(c)

by inserting, immediately after the definition of “motor car”, the following definition:

“ “real estate investment trust” has the same meaning as in section 43(10) of the Income Tax Act (Cap. 134);”; and

(d)

by deleting the full-stop at the end of the definition of “tax year” and substituting a semi-colon, and by inserting immediately thereafter the following definition:

“ “unit” has the same meaning as in paragraph 3 of the Fourth Schedule to the Act.”.

Amendment of regulation 28

4. Regulation 28 of the principal Regulations is amended by deleting “$20,000” in paragraph (a) and substituting “$40,000”.

Amendment of regulation 33

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

“(f)

the assignment of a trade receivable;

(g)

the issue of a unit under any unit trust;

(h)

the hedging of —

(i)	any interest rate risk or currency risk that arises or is likely to arise from the making of any supply specified in paragraph (a), (b), (c), (d) or (g);
(ii)	any interest rate risk or currency risk that arises or is likely to arise from any loan obtained by a taxable person in the making of any supply specified in section 20(2) of the Act; or
(iii)	any commodity price risk that arises or is likely to arise from the making of any supply specified in section 20(2) of the Act;

(i)

the receipt of interest on a bond by a bondholder, arising from the provision of credit by the bondholder to the issuer of the bond (whether or not the bond was originally issued to the bondholder).”.

Amendment of regulation 34

6. Regulation 34 of the principal Regulations is amended —

(a)

by deleting paragraph (c) and substituting the following paragraph:

“(c)	a company or society required to be registered under the Insurance Act (Cap. 142) for the carrying on of a life insurance business, a general or life reinsurance business, or the business of a reinsurance broker;”;

(b)

by deleting paragraphs (d), (e) and (f);

(c)

by deleting the words “, a money broker” in paragraph (h); and

(d)

by deleting paragraph (l) and substituting the following paragraph:

“(l)	a unit trust (not being a real estate investment trust, or business trust, that predominantly makes any or all of the supplies specified in section 20(2) of the Act).”.

Deletion and substitution of regulation 35

7. Regulation 35 of the principal Regulations is deleted and the following regulation substituted therefor:

“Non-applicability where other exempt supplies are made

35. Regulation 33 shall not apply where the total value of all exempt supplies (excluding supplies of the descriptions specified in that regulation) made by the taxable person during any prescribed accounting period, or any longer period applicable to him, exceeds 5% of the total value of all taxable and exempt supplies made by the taxable person during that period.”.

Savings

8. Regulations 28, 33, 34 and 35 of the principal Regulations in force immediately before 1st April 2008 shall apply to supplies made by a taxable person during any prescribed accounting period, or any longer period applicable to him under regulation 25 of the principal Regulations, beginning on a date before 1st April 2008, as if these Regulations have not been made.

[G.N. Nos. S 261/2002; S427/2002; S 648/2002; S 182/2003; S 316/2003; S 627/2003; S 237/2004; S 728/2004; S 729/2004; S646/2005; S 394/2006; S 673/2006; S 327/2007; S 423/2007; S 540/2007]

Made this 14th day of December 2007.

TEO MING KIAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF R060.001.0013 V31; AG/LEG/SL/117A/2002/2 Vol. 4]

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

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