("ais") incentive - Watson, Farley & Williams

WATSON, FARLEY & WILLIAMS LLP
Utilisation of the Block Transfer Scheme, currently due to expire on 31 December
2013, is also a potential alternative for utilisation by AISE companies, details of
which at Annex A.
16 For a period of five years with effect from year of assessment 2009, vessel sales
by AISE companies will continue to be treated as tax exempt capital gains, so long
as there is ownership and trading/operation of the relevant vessel(s). In his Budget
speech on 15 February 2008, the Minister for Finance expanded the concession
to apply to gains from both the sale of ships which are subsequently leased back
and the sale of shares in a special purpose vehicle which holds the vessels, as
well as to foreign exchange gains, and gains from risk management activities.
With effect from year of assessment 2009 (for a five year period), gains from the
sale of shares in a special purpose vehicle which holds vessels will also be
exempt.
For further information, please contact any of the following:
Chris Lowe (email clowe@wfw.com) / Ken Cheung (email kcheung@wfw.com) /
Goh Mei Lin (email mlgoh@wfw.com) / Damian Adams (email dadams@wfw.com) at:
Watson, Farley & Williams LLP
16 Collyer Quay
#12-02 Hitachi Tower
Singapore 049318
Tel: + 65 6532 5335
Fax: + 65 6532 5454
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