Income derived from rendering any of the following ship management services will qualify for the tax exemption:
a. Making a purchase or sale of the ship, or a decision regarding its ownership;
b. Deciding on the flag and registry of the ship;
c. Sourcing for and deciding on financing for the acquisition of the ship;
d. Awarding contracts, entering into alliances or deciding on pooling arrangements for the ship;
e. Securing employment or cargo for the ship;
f. Planning route and tonnage including the issuance of voyage instructions for the ship (tonnage refers to number of ships required for a particular route or voyage);
g. Appointing ship manager, ship agent or stevedore;
h. Collecting or arranging for the collection of freight, charter hire or other payments in exchange for the ship’s use;
i. Arranging insurance for the ship;
j. Undertaking crew related matters e.g. providing qualified/competent crew, appointing crew manager, providing crew training and arranging crew insurance;
k. Arranging and supervising drydocking, repairs, overhaul, alterations, maintenance or lay-up for the ship;
l. Ensuring that the ship is adequately equipped with supplies, provisions, spares and stores and lubricating oil;
m. Supervising the construction, conversion or registration of the ship;
n. Liaising with the relevant competent authorities or bodies on ship safety and manning requirements and other similar matters.
With effect from 24 February 2015:
o. Arranging for the provision of bunker fuel;
p. Providing post-fixture services such as voyage estimating and accounting and calculation of hire, freight, demurrage and/or dispatch monies due from or due to the charterers;
q. Arranging surveys;
r. Providing technical expertise including undertaking basic design and front end engineering works;
s. Appointing surveyors and technical consultants;
t. Supervising a sale and physical delivery of the ship;
u. Arranging sampling and testing of bunkers;
v. Providing pre-purchase inspection;
w. Ensuring (including auditing) internal, international, flag state and local port state requirements are complied with;
x. Supervising the maintenance and general efficiency of the ship.
Qualifying ship management services do NOT include corporate services (e.g. administrative and accounting services).
For the purpose of Section 13A of the ITA, these qualifying ship management services must be performed by a Section 13A company (as described in FAQ) in respect of a Singapore-flagged ship owned or operated by a qualifying related company (as set out in FAQ – qualifying related company of a Section 13A company).
For the purpose of Section 13F of the ITA, these qualifying ship
management services must be performed by an MSI-AIS parent company, managing company, sister company or local subsidiary in
respect of a ship owned or operated by a qualifying related company (as set out in FAQ – qualifying related company of an MSI-AIS parent company, managing company, sister company or local subsidiary).