SINGAPORE Law and Practice Contributed by: Azmul Haque, Ashley Chew, Hu Yutong and Aaron Leong, Collyer Law LLC
Trade Agreements Singapore is party to a wide network of free trade agreements (FTAs), under which tariffs are often reduced or eliminated where the relevant rules of ori - gin are met. As a matter of policy, Singapore does not use tariffs to protect specific sectors. Instead, the focus is on keep - ing trade flows efficient and maintaining the country’s position as a regional trading and distribution hub. Global Developments Global trade developments have not led to significant increases in tariffs in Singapore. However, businesses should monitor sanctions and export controls, stra - tegic goods and customs requirements and supply chain disruptions. These factors may affect the ability to move goods or benefit from preferential treatment, even where tariffs remain low.
• to relieve any person from any liability to pay tax or to make a return under the Income Tax Act 1947; or • to reduce or avoid any liability imposed or that would otherwise have been imposed under the Income Tax Act 1947. The rule applies broadly and is intended to address artificial or contrived arrangements, even where they comply with the literal wording of the law. In addition to the GAAR, Singapore has various tar - geted anti-avoidance provisions, including: • transfer pricing rules, ensuring that related-party transactions are conducted on an arm’s length basis; • shareholding test rules, restricting the carry- forward of tax losses and allowances following substantial changes in ownership; and • deductibility limitations, restricting deductions where expenses are incurred in relation to non- taxable or exempt income. 5.8 Tariffs As a major trading hub, Singapore adopts an open and largely tariff-free regime, with most imports not being subject to customs duties. Goods that are not subject to duty may still attract import GST, unless a relief or exemption applies. In practice, importers are expected to classify goods correctly, determine cus - toms value and obtain the necessary permits. Dutiable Goods Singapore Customs identifies four principal categories of dutiable goods: • intoxicating liquors; • tobacco products; • motor vehicles; and • petroleum products and biodiesel blends. Rates may be ad valorem or specific, depending on the goods. In addition, certain controlled or prohibited goods are subject to separate regulatory regimes and may require approvals from the relevant authorities.
6. Competition Law 6.1 Merger Control Notification Section 54 Prohibition
Singapore’s merger and acquisition control regime is governed by the Competition Act 2004 and is based on the Section 54 prohibition, which prohibits mergers that have resulted in a substantial lessening of com - petition in any market in Singapore, or that may be expected to do so. The regime is effects-based and applies regardless of whether the parties are incorpo -
rated in Singapore or elsewhere. Types of Transactions Covered
The Section 54 prohibition applies to transactions that result in a change of control on a lasting basis, includ - ing:
• acquisitions of shares or assets; • mergers or amalgamations; and
• the creation of joint ventures to perform, on a lasting basis, all the functions of an autonomous economic entity. The key consideration is whether the transaction con - fers decisive influence over the target.
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