What is the GST Remission Scheme about?
As announced during Budget 2023 Statement, funds that are not GST registered will have to shoulder GST (8% for 2023) on Singapore-based expenses if the GST remission scheme (granted until 31 Dec 2024) were not available.
This scheme allows qualifying funds (application with the IRAS needed) that meet qualifying conditions to claim qualifying GST incurred on expenses related to the fund’s investment activities at an annual recovery fixed rate which is fixed yearly by the MAS as follows:
Calendary Year Rate of Remission 2019 87% 2020 & 2021 88% 2022 89% 2023 91%
The qualifying fund can e-file its Statement of Claims (SOC) to claim the GST remission.
Under the administrative concession, the Funds need not file the quarterly SOC to the IRAS one month after the end of the respective quarters. The Funds may file their quarterly SOC after the due date subject to the following:-
- the GST claims are made on tax invoices dated within the relevant quarter; and
- the quarterly SOCs are filed within 5 years from the end of the relevant quarter.