The Inland Revenue Authority of Singapore (IRAS) has published an updated e-Tax Guide on the tax treatment of Public-Private Partnership (PPP) arrangements. The e-Tax guide explains the approach the Comptroller of Income Tax (CIT) takes to establish the scope of services carried on by the private sector operator involved in a PPP project and provides details on the income tax treatment that would apply. Typically, the scope of a PPP operator's trade or business will fall within one of the following categories with different tax treatment as explained in the updated e-Tax Guide:

• Operation & Maintenance (O&M) service provider;
• Finance Lease lessor and O&M service provider; or
• Design, construction, and O&M service provider.

The latest update to the e-Tax Guide includes the following changes:

• General editorial amendments to the e-Tax Guide;
• Consequential amendments to paragraphs 6.2, 7.9 and 7.10 to include SFRS(I) 15 (Revenue from Contracts with Customers);
• Amendment to footnote 4 to extend the tax treatment under Section 14S of the Income Tax Act to intangible asset created under a public-private partnership arrangement to which SFRS(I) INT 12 applies, and the amortisation of such asset that is recognised under SFRS(I) 1-38; and
• Amendments to the list of approved statutory boards in Annex C.

Click the following link for the e-Tax Guide - Income Tax: Tax Treatment of Public-Private Partnership Arrangements (Fourth Edition).