What are the total business spending and headcount
requirements under the MSI?
The applicant is required to meet the following
International Shipping Enterprise Award
S$27.5mil over 5 years
Leasing (Ship) Award
S$25mil over 5 years
MSI–Maritime Leasing (Container) Award
S$12mil over 5 years
S$8mil over 5 years
MSI–Shipping-related Support Services Award
Incremental S$6mil over 5 years
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).
Company rendering qualifying ship management services
Qualifying related company
Section 13A company (as described in FAQ)
A company: -
i) at least 50% of the total number of issued ordinary shares of which are beneficially and directly owned by the Section 13A company; and
ii) that owns or operates a Singapore-flagged ship or a newbuilding that is to be flagged as a Singapore ship (in respect of which the qualifying ship management services are rendered).
MSI-AIS parent company /
MSI-AIS managing company /
MSI-AIS local subsidiary /
MSI-AIS sister company
An entity approved under the MSI-AIS award as an:
- MSI-AIS parent company;
- MSI-AIS managing company;
- MSI-AIS sister company2;
- MSI-AIS local subsidiary2; or
- MSI–AIS approved network company;
owns or operates a Singapore–flagged or foreign-flagged ship or a newbuilding that is to be flagged as a Singapore or foreign ship (in respect of which the qualifying ship management services are rendered).
2If the MSI-AIS parent / managing company / sister company / local subsidiary provides qualifying ship management services to a qualifying related company that only owns or operates Singapore-flagged ships, the MSI-AIS parent / managing company / sister company / local subsidiary has to make an application for MSI-AIS local subsidiary / sister company (Singapore flagged vessels) status for the said company for the purpose of qualifying for this tax exemption.
What are the schemes implemented by MPA which are available for the port and maritime community ?
MPA has implemented the following schemes: (i) Maritime Cluster Fund to facilitate the enhancement of local expertise in maritime services that are high value-added and knowledge-based such as ship management, ship financing, ship brokering/chartering, maritime law/arbitration, port terminal management and marine engineering. Please visit our website for more details.
(ii) Maritime Innovation and Technology (MINT) Fund to enhance maritime research and development capabilities in the tertiary and research institutes and to develop the maritime technology industry in Singapore. Please visit our website for more details.
(iii) Maritime Enterprise IT Development (MERIT) programme to enhance the IT capabilities of local maritime SMEs and increase the competitive advantage of the smaller players in the maritime value chain. Please visit our website for more details.
The ship management income must be derived:
a. by a Section 13A company, an MSI-AIS parent company or an MSI-AIS managing company, or with effect from 19 February 2020, an MSI-AIS sister company or an MSI-AIS local subsidiary, as described in FAQ; and
b. from the rendering of qualifying ship management services (as listed in FAQ) to qualifying related companies as defined in FAQ.