25 September 2016

24 Mar 2014

Singapore does its duty

By

A recent guidance note from legal firm, Hill Dickinson has highlighted the advantages Singapore boasts for the importation of foreign vessels, when compared with other South East Asian jurisdictions.

With just a few weeks until the Singapore Yacht Show begins, Hill Dickinson’s Alex Teji has outlined a fiscal regime that looks favourably upon yachting activity, in stark contrast to neighbouring countries.

According to Teji’s note, ‘generally speaking, GST (VAT) of seven per cent is levied on the importation of goods into Singapore and which the importer is liable to pay. However, an exemption applies to the import of a private or recreational vessel where it is used for solely private pleasure purposes, enters Singaporean waters under its own engine or sail, and there is an intention to leave Singaporean waters in due course. There are no formalities for triggering this exemption, which is not dissimilar to ‘Temporary Admission’ within the EU, save that there is no apparent time limit specified for the vessel’s stay in Singapore.’

The same is not true of China however, where, according to Teji, import duties can rise to up to 10.5 per cent on top of a VAT rate of 17 per cent and a luxury tax of 10 per cent. This figure could be set to rise further still, so Teji suggests that importations are made in Hong Kong, which operates as a free port and attracts no duties.

Importation levies are similarly prohibitive in Indonesia, which requires a five per cent tax in addition to VAT at 10 per cent and a 30 per cent luxury tax.

Thailand is the country that has adopted the most progressive policies, behind Singapore. Similarly to its city-state neighbour, a privately-registered superyacht can operate free of additional duties in Thai waters. But this is currently limited to a six-month period and could also require the provision of a guarantee to customs authorities.



For Teji, “Whilst a number of the newly industrialised countries [such as Singapore] are starting to recognise the benefits of operating a VAT and duty free temporary importation scheme for pleasure yachts, others are yet to distinguish between pleasure yachts and commercial vessels.” His advice is for the newly emergent superyacht fraternities of these countries to exercise pragmatism before proceeding.

However, Singapore’s favourable view of private superyacht activity certainly bolsters its position as one of the region’s yachting hubs.

The Singapore Yacht Show will be staged at the ONEo15 Marina Club from 10-13 April. SuperyachtNews.com will be co-hosting a dedicated Breaking News Centre with video updates from the event. 

Profile links

Hill Dickinson LLP

ONE°15 Marina Club

Comments

Add a comment

1800 character limit

Having problems? Let us know editor@superyachtnews.com

Other Business News

The Superyacht Owner's VIP Lounge Returns to Virage

After an extraordinary turn of events the Superyacht Owner’s VIP lounge returns to its traditional home. Make sure your name is on the guest list More

Inspiration or just PR?

As concepts arrive on our desk in the run up to Monaco, we look at the line between inspiration and PR More

Eight superyacht losses in 2016

Thus far 2016 has seen eight serious incidents that have resulted in the loss of superyachts, nearly five more than the average numbers of yacht fires between 2010 and 2015.  More

When one yacht crew receives €60,000 of prizes...

We delivered €60,000 of prizes to the crew of motoryacht Secret, the winner of The Crew Report's Superyacht Golden Ticket survey. More

business News Archive

Most Recent Comments

  1. SY Kaori comes to the aid of a yacht in distress More
  2. Bureaucracy hits superyachts cruising Italy More
  3. Back to basics More
  4. Cannes increases security as Balearics increase business More
  5. Brokers - Sailors or salesmen...? More
SuperyachtNews app available now. Click here to download.
The Superyacht Intelligence Annual Report is out now. Subscribe today and access your digital copy instantly. Subscribe now.

E-Newsletter

Get regular updates from SuperyachtNews with our weekly Email Newsletter.

Submit

SuperyachtIndex.com

Latest Premium Listings

Cummins Inc.

Cummins Inc.

Nlightened Software Ltd

Nlightened Software Ltd

Cogs 4 Cancer

Cogs 4 Cancer

Zytexx International Ltd

Zytexx International Ltd

Melita Marine Group

Melita Marine Group

Raytheon Anschuetz

Raytheon Anschuetz

Kahlenberg Industries, Inc.

Kahlenberg Industries, Inc.

Directory. Add your logo here with a premium listing.
 
 
 
 
 
 
 
 
 
 

Featured Listings

Engine Room, HVAC & Refrigeration

ASEA POWER SYSTEMS
ASEA POWER SYSTEMS is the Marine Industry Leader for Shore Power Conversion equipment ranging in power from 8kVA - 1000kVa.
www.aseapower.com

Tenders & Toys

Superyacht Tenders & Toys
Superyacht Tenders & Toys have a high level of expertise in providing new build and custom tenders, chase boats, RIBs & all popular yacht toys. With an unrivalled global service network, maintaining a personal & bespoke service, wherever you are in the world, Superyacht Tenders & Toys can help.
www.superyachttendersandtoys.com

Electrics, Environmental Solutions, Propellers & Propulsion, Software, Training

ABB Marine and Ports
ABB is a leading supplier of electrical power and propulsion systems for ships. We provide innovative, safe and environmentally-friendly solutions and qualified services worldwide. Our Azipod® propulsion has proven its efficiency and reliability on yacht vessels with its ultimate silent and ecological solution.
www.abb.com/marine

Paint & Protection

Wrede
WREDE Consulting is an independent paint consultant and paint surveyor company who has worked for most of the 200 largest yachts worldwide in coating, paintwork and equipment areas. WREDE Consulting engages in quality management and objective quality assessment for the coating of mega- and superyachts. www.wrede-consulting.com
www.wrede-consulting.com

Shore Power Convertors

ATLAS MARINE SYSTEMS
Atlas Marine Systems, the world leader in the design of marine electrical power systems, offers a full range of engineering services necessary to define the onboard electrical distribution system or simply the application of the Atlas power conversion products.
www.AtlasMarineSystems.com

Water Treatment & Watermakers

Jets Vacuum AS
Jets Vacuum has for over 30 years been the leading innovator in vacuum sanitation technology. With over 11,000 Jets systems in operation on all types of ships, Jets are known for high quality, flexible cost efficient solutions backed up by first class world wide service
www.jetsgroup.com

Satellite Communication

Marlink AS
Marlink offers seasonal, flexible contracts to match regional sailing requirements. Through our dedicated account managers & customer services, we develop personal relationships with customers & drive innovations to develop digital solutions & smart applications that take you beyond just connectivity.
www.marlink.com

Navigation, Satellite Communication, Security

Raytheon Anschuetz
Integrated Navigation Systems based on state-of-the-art technology and decades of experience in the superyacht industry. Ultimate knowledge and flexibility in system integration. Dedicated customer care throughout the whole project and beyond.
yacht.raytheon-anschuetz.com

Add your company listing here

Add a featured listing here and your advert will appear on every page of SuperyachtNews.com, SuperyachtIndex.com, TheSuperyachtReport.com and TheCrewReport.com.

Add my company listing