Singapore GST – Revised e-Tax Guide for Biomedical Industry


IRAS has amended the e-Tax Guide for the Biomedical Industry on 11 November 2016.  This post summarizes the changes:

1 The following paragraphs have been removed

– Paragraph 3  – 2011 budget changes
– Paragraph 5.3 on GST treatment on CM’s supplies and input tax entitlement prior to 1 Oct 2011
– Appendix 1 on tax treatment of research and laboratory testing services prior to 1 Oct 2009

2.  The following amendments have been made in this edition

  • Paragraph 3 on importation of medicinal and therapeutic products for clinical trialsTo support local clinical research and ease business compliance, a local intermediary (e.g. a logistics company or research organization) engaged by an overseas pharmaceutical or biotechnical company (“overseas sponsor”)  (“CTM”) can apply for GST relief (i.e. not pay GST) on the importation of CTM into Singapore for local clinical trials, re-export for overseas clinical trials, or destruction / disposal in Singapore .  The relief is granted on the basis that the CTM cannot be legally traded or sold and hence, are not for private consumption.
  • Paragraph 4 to summarize the benefits of the ACMT scheme
    • Disregard the supply of value-added contract manufacturing services to your overseas client (i.e. not charge GST on the supply). The value-added services under the scheme include processing, assembly, Quality Control (QC) and functional testing. This applies to consignment, modified turnkey and full turnkey arrangements.
    • Disregard the supply of value-added contract manufacturing services to your overseas client relating to failed or excess productions (i.e. not charge GST on the supply)
    • Enjoy GST suspension (i.e. not pay GST) on the import of your own goods and goods belonging to your overseas client
    • Recover as your input tax, the GST incurred on goods purchased locally by your overseas client and delivered to you on which you perform value-added services under the ACMT scheme.

If you have any questions, please contact suppor@whm-consulting.com.

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