Notice: Goods and Services Tax (“GST”) Changes with effect from 1 January 2023Last Updated: December 21, 2022
Please be informed that GST rate changes will impact financial services with effect from 1 January 2023:
1. GST rate will increase from 7% to 8% from 1 January 2023 and 8% to 9% from 1 January 2024
2. GST will be computed on the recovery of overseas brokerage (and other trade related charges) for shares traded on overseas exchanges
Some examples of fees and services that are subjected to GST include commission, custody fee, handling fee, advisory fee, exchange fee etc.
With effect from 1 January 2023, the prevailing GST rate will be applied on the recovery of all overseas/foreign brokerage and trade-related charges from clients of Singapore brokers.
Example of the changes for overseas contract:
|BEFORE 1.1.2023||FROM 1.1.2023|
|Brokerage (GST 7%)||Brokerage (GST 8%)|
|FFP* (No GST)||FFP* (GST 8%)|
* FFP (Foreign Fee Paid) refer to the foreign trade related charges like exchange fee, stamp duty, clearing fee, Sales tax, trading fee etc.