Singapore's Ministry of Finance has opened for public consultation three proposed legislative amendments under the draft Stamp Duties (Amendment No. 2) Bill 2010.
The draft Stamp Duties (Amendment No.2) Bill 2010 implements a tax change announced in Budget 2010 as well as two non-Budget changes arising from the periodic review of the stamp duty regime.
The first proposed amendment calls for stamp duty relief for qualifying mergers and acquisitions (M&As). This tax incentive was announced in the 2010 Budget Statement along with the income tax allowance for qualifying M&As to support business restructuring.
Another amendment clarifies that the Minister for Finance may impose conditions for any reduction or remission of stamp duty.
The third proposed amendment involves breaches of stamp duty relief. When qualifying conditions for stamp duty relief (e.g. for transfer of assets between associated entities) are breached, the stamp duty that was earlier granted relief will be required to be paid within a month of the notice of payment issued by the Commissioner of Stamp Duties. Failure to do so will attract late payment penalties.
The consultation will run until 19 August 2010.