What is PSG Grant?
The Major Exporter Scheme (MES) in Singapore is a scheme designed to ease the need for businesses to pay GST input tax on imported goods that are being re-exported. Without the major exporter scheme, businesses have to pay GST input tax immediately on goods imported while waiting to file and claim a refund on the same GST input tax after the goods have been exported.
However, with the Major Exporter Scheme (MES) and upon meeting the required conditions, businesses are given the privilege of not paying the GST input tax on imported goods which would be exported. This brings many benefits such as reducing the strain on their cash flow, and encouraging new businesses to come to Singapore to set up their import-export companies.
To qualify for the MES scheme, businesses must:
- have more than S$10 million of zero-rated supplies for the past 12 months or more than 50% of the total supplies are made up of zero-rated supplies;
- maintain good internal controls and proper accounting records;
- maintain good compliance records with IRAS and Singapore Customs.
GST Assisted Self-Help Kit (ASK)
In order to apply for MES, businesses need to submit a completed Form GST F10 and perform a self-review called Assisted Self-Help Kit (or ASK in short) and certified by an Accredited Tax Professional, OR participate in Assisted Compliance Assurance Programme (ACAP), OR (3) Perform an ACAP Annual Review (AAR) and submit the AAR Declaration form for business with a valid ACAP status.
When the MES status is expiring, businesses will be invited to renew if they continue to satisfy the qualifying conditions. WLP is able to assist you in the ASK self-review for you either for new application or renewal purposes. Besides ASK, WLP also assists clients in ACAP application, Voluntarily Disclosure to IRAS, representing the client in IRAS Tax Investigation and Audit, replying to IRAS Queries and other tax services.
Contact us now to find out how we can help your company file any relevant financial tax documents, or engage in our wide array of services aimed at taking administrative workload off your hands.
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