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

WATSON, FARLEY & WILLIAMS LLP
Introduction
Since 1969, profits from the operation of Singapore flag ships in international waters have
been exempt from income tax in Singapore. This exemption assisted in the substantial
expansion of the Singapore fleet during the 1970s and 1980s. However, in many cases
there was little further benefit to Singapore and its economy, since a large part of that fleet
was operated, both commercially and technically, outside Singapore.
In order to help develop Singapore into a truly international maritime centre and to
encourage major shipowners (both local and foreign) to increase the use of Singapore as
a base for the management and control of their shipping operations, Singapore introduced
in 1991 a tax incentive under the Approved International Shipping Enterprise ("AISE")
Incentive Scheme to exempt shipping companies awarded AISE status from tax on the
income from vessels operated by them, whether registered under Singapore flag or
elsewhere.
3