The Inland Revenue Authority of Singapore (IRAS) has published new guidance on the tax treatment of Public-Private Partnerships (PPPs) called "IRAS e-Tax Guide - Tax Treatment of Public-Private Partnership Arrangements".

This 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.

For tax purposes, the CIT will establish the scope of the PPP operator’s trade or business according to the accounting treatment of the PPP project. The
scope of a PPP operator’s trade or business will typically fall within one of the following categories -

• Operation & Maintenance (O&M) service provider;
• Finance Lease lessor11 and O&M service provider; or
• Design, construction, and O&M service provider.

Once the scope of the PPP operator’s trade or business is determined on the basis of its accounting treatment, the tax treatment is defined and cand be found in the e-Tax guide.

You can download the IRAS e-Tax Guide by clicking on the link below:

https://www.infrapppworld.com/report/iras-e-tax-guide-tax-treatment-of-public-private-partnership-arrangements