Abstract
The provision of life insurance policies is exempt from GST in Singapore. The exemption is not extended to non-life insurance policies, also referred to as general insurance policies, the premiums of which are subject to GST at the standard rate of 7% or zero-rated (liable to GST at 0%) as the case may be. Broking and intermediary services are generally taxable, other than such services for the arrangement of reinsurance contracts. The arrangement and provision of reinsurance is exempt from GST. There are generally few issues on the GST treatment of insurance and related services in view of the fact that only the above categories of insurance services are exempt from GST. One of the usual concerns for industry players in Singapore lies with the recoverability of input tax, which can be subject to restriction due to the making of exempt supplies.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
Menon (2013).
- 2.
Ministry of Trade and Industry and Ministry of Finance (1993).
- 3.
Real Estate Developers’ Association of Singapore, submission to Select Committee, Parliament of Singapore (1993, p. B–100).
- 4.
Goods and Services Tax Act 1993, Cap. 117A (GST Act).
- 5.
Inland Revenue Authority of Singapore, GST: Guide on Reimbursement and Disbursement of Expenses, e-Tax Guide, 31 May 2013, para. 6.39.
- 6.
Monetary Authority of Singapore, Your Guide to Investment-Linked Insurance Plans, http://www.mas.gov.sg/~/media/Moneysense/Guides%20and%20Articles/Guides/Investment-linked%20Policies_English.pdf (accessed on 31 March 2016).
- 7.
Inland Revenue Authority of Singapore, GST: Guide for the Insurance Industry, 3rd ed., e-Tax Guide, 10 June 2016, para. 3.6.4.
- 8.
Inland Revenue Authority of Singapore, GST: Guide for the Insurance Industry, 3rd ed., e-Tax Guide, 10 June 2016, para. 3.1.5.
- 9.
Inland Revenue Authority of Singapore, GST: Guide for the Insurance Industry, 3rd ed., e-Tax Guide, 10 June 2016, para. 3.1.6.
- 10.
GST Act, Fourth Sch. Part III, para. 3(1).
- 11.
Ministry of Trade and Industry and Ministry of Finance (1993).
- 12.
Inland Revenue Authority of Singapore, GST Guide On Insurance: Cash Payments and Input Tax on Motor Car Expenses, e-Tax Guide, 31 December 2013, para. 3.
- 13.
Inland Revenue Authority of Singapore, GST Guide On Insurance: Cash Payments and Input Tax on Motor Car Expenses, e-Tax Guide, 31 December 2013, para. 5, Q20.
- 14.
Inland Revenue Authority of Singapore, GST Guide On Insurance: Cash Payments and Input Tax on Motor Car Expenses, e-Tax Guide, 31 December 2013, para. 4.
References
Menon, Ravi, Singapore as a Global Insurance Marketplace, Keynote Address, 12th Singapore International Reinsurance Conference, 6 November 2013, http://www.mas.gov.sg/news-and-publications/speeches-and-monetary-policy-statements/speeches/2013/singapore-as-a-global-insurance-marketplace.aspx (accessed on 30 March 2016)
Ministry of Trade and Industry and Ministry of Finance, Singapore, The Goods and Services Tax, White Paper, 9 February 1993
Select Committee, Parliament of Singapore, Report of the Select Committee on the Goods and Services Tax Bill (Bill no. 14/93), 7 September 1993
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Koh, S.H., Lee, R. (2017). GST and Insurance: Singapore. In: van Brederode, R., Krever, R. (eds) VAT and Financial Services. Springer, Singapore. https://doi.org/10.1007/978-981-10-3465-7_19
Download citation
DOI: https://doi.org/10.1007/978-981-10-3465-7_19
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-3463-3
Online ISBN: 978-981-10-3465-7
eBook Packages: Law and CriminologyLaw and Criminology (R0)