GST claim on Prescribed Expenses for Qualifying Funds
GST is chargeable on fund management and other services by GST-registered suppliers to funds belonging in Singapore. Based on GST principles, only GST registered funds making taxable supplies can claim input tax. Where funds are not GST-registered, the input tax incurred will be irrecoverable.
To simplify the GST rules and process for qualifying funds to claim GST, the Minister for Finance has announced in Budget 2009 to allow, by way of Ministerial remission, qualifying funds that are managed by a prescribed fund manager in Singapore to claim a substantial portion of the GST incurred on prescribed expenses. The remission will take effect from 22 Jan 2009 to 31 Mar 2014 (both dates inclusive).
Details of the GST remission (such as the types of qualifying funds, qualifying conditions, prescribed list of expenses and procedures to claim GST) has been released by the Monetary Authority of Singapore (MAS) to fund managers, banks and trust companies in Apr 2009.