FAQ

The applicant is required to meet the following minimum commitment:

MPA requires vessels to comply with the following:

i) All power driven vessels irrespective of size are required to be fitted with a working transponder as a port entry requirement. Details of this requirement are contained in Port Marine Circular No. 10 of 2010, which can be found at MPA's website.

ii) The owner, agent, master or person-in-charge of a vessel irrespective of size is required to notify the Port Master via MARINET, E-mail, Telefax or Telex at least 12 hours prior to the arrival of the vessel. A vessel coming from a nearby port, with less than 12 hours steaming time to Singapore, shall immediately on departure from such port notify the Port Master. In addition, these vessels are required to confirm the vessels' arrival by VHF radio to the Singapore Vessel Traffic Information Service (VTIS) when entering the Singapore Strait. Details of these notification procedures are contained in
Port Marine Circulars No. 20 of 2008 (for vessels 300 GT or more) and No. 10 of 2011 (for vessels less than 300 GT) which can be found at MPA's website.

iii) The owner, agent, master of passenger vessels including high-speed passenger craft, cargo ships including high-speed craft of 500 GT and above, and Mobile offshore units, including mobile offshore drilling units is required to submit the Pre-Arrival Notification (PAN) to the Port Security Unit at Fax No. (65) 6221 3036 or email: isps@mpa.gov.sg at least 24 hours before the ship's arrival in Singapore. A vessel coming from a nearby port, with less than 24 hours steaming time to Singapore, shall immediately on departure from such port submit the Pre-Arrival Notification (PAN) to the Port Security Unit of MPA. Details of these notification procedures are contained in Port Marine Circular No. 05 of 2013, or as revised, which can be found at MPA's website.

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).