Singapore Tax Agency Clarifies Alternative Net Tonnage Tax Basis for Shipping Companies

The Singaporean Inland Revenue Authority Oct. 23 issued guidance on the alternative net tonnage basis of taxation (NTT basis) for shipping companies, as announced in the 2024 budget. The guidance explains that: 1) the NTT basis is available from assessment year 2024 for specified shipping enterprises, approved international shipping enterprises, and approved shipping investment enterprises; 2) qualifying entities must apply the NTT basis to all qualifying ships, calculating the income tax base based on each ship’s net tonnage, daily income per net ton, and days in operation; 3) tax exemptions, deductions for unutilized items, and claims for carry-backs or group ...