News Flash- GST changes for the Fund Management Industry
The MAS issued Circular FDD Cir 02/2014 on 31 March 2014 in respect of the GST remission for prescribed expenses for qualifying funds. While the circular confirms the 2014 Budget announcement of the extension of the GST remission to 31 March 2019 and a fixed input tax recovery rate of 90 percent for the period 1 January 2014 to 31 December 2014, it also introduces the rules on how the "belonging" status of a fund is to be determined for GST purposes (Separately, the IRAS has also updated the "belonging" rules in the e-tax guide "GST : Guide for the Fund Management Industry"). This has wide impact on the ability to apply zero-rating to services to an overseas incorporated fund. Read more about the background and implications of the rules in the latest Tax Bulletin.