Stamp duty and Goods and Services Tax for Sub-Funds of VCCs
01 March 2019
The Variable Capital Companies Act 2018 is expected to come into force in the second half of 2019. The MOF is currently consulting on the GST and stamp duty treatment of sub-funds in a VCC. It is proposed that for these purposes sub-funds will be treated as if they were separate entities in respect of supplies and transactions made.
The Variable Capital Companies Act 2018 was passed by the Singapore Parliament on 1 October 2018. It is not yet in force but is expected to come into force in the second half of 2019. The Ministry of Finance (MOF) is carrying out a consultation on the goods and services tax (GST) and stamp duty treatment of variable capital companies (VCCs), in particular, the treatment of sub-funds within a VCC. A write up on the salient characteristics of a VCC is available here.
The MOF had previously announced its proposed tax treatment of a VCC: