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Singapore shipowners seeking more double taxation agreements

Singapore shipowners seeking more double taxation agreements
The Singapore Shipping Association (SSA) is pushing for the city-state to have more double taxation agreements.

Speaking at a media briefing on Tuesday, Rene Pedersen, chairman of the SSA International Committee said, “Singapore today has some 65 double taxation agreements and that’s actually not a lot.” By comparison the UK has some 135 double taxation agreements and Norway close to 130.

Explaining why this was important he said: “It will give us a credit for freight taxes, it will ensure we can work with Singapore-flagged offshore units in foreign waters.”

Some the 65 agreements Singapore has also outdated. For example in the case of Indonesia Singapore-flagged vessels get 50% credit on VAT levied on freight, but Hong Kong-flagged vessel gets a 100% credit.

“As part of the international committee we will create a working group who can assist and give advice to government agencies on this issue in Singapore,” said Pedersen, who is also managing director of AP Moller Singapore, the largest shipowner on the Singapore-flag.

“For us to develop as a shipping industry and an offshore industry in the future we need to have a better network of double taxation agreement.”