• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/24/2014

Singapore - Tax deferral benefits available to certain trusts 

June 24: The Monetary Authority of Singapore issued guidance concerning the tax changes affecting the “designated unit trust scheme” and that introduces new sunset clauses for the tax exemption provisions applicable for trusts.

A circular issued in May 2014 concerns the tax deferral benefits available to qualifying retail and non-retail unit trusts under the “designated unit trust scheme” whereby certain specified income is subject to tax in the hands of investors only upon distribution.

Effective 21 February 2014, this tax benefit is available only for retail unit trusts—however, existing non-retail unit trust may be eligible to continue to enjoy the tax deferral benefits if “grandfathered”—and effective 1 September 2014, the “designated unit trust scheme” will be administered on a self-assessment basis.

Read a June 2014 report [PDF 249 KB] prepared by the KPMG member firm in Singapore: Changes to the Tax Incentive Schemes for Trusts

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