Aircraft Leasing Scheme and Aircraft Investment Manager Incentive

Who qualifies

• Must be registered in Singapore.
• ALS is for qualifying aircraft leasing companies, business trusts, or companies undertaking aircraft or aircraft-engine leasing and related activities in Singapore.
• AIM is for aircraft investment managers managing or advising an approved aircraft leasing company and is tied in with ALS.
• For the 8% ALS concessionary rate: employ at least 5 additional Skilled Employees based in Singapore by Year 5 and incur annual Total Business Spending of at least S$15 million by Year 5; on subsequent renewal, 1 additional Skilled Employee and S$17 million.
• For the 10% ALS concessionary rate: 5 additional Skilled Employees by Year 5 and annual Total Business Spending of at least S$13.5 million by Year 5; on subsequent renewal, 1 additional Skilled Employee and S$15.5 million.
• Not eligible if the entity falls within Singapore Government sanctions lists, engages in illegal activities, regulated military goods or tobacco, is under investigation for regulatory breaches, is a MAS-licensed financial institution, or is an MPA-regulated shipping entity, unless specifically referred by MAS or MPA.
• An SPC may be approved under ALS only if wholly-owned (directly or indirectly) by the Aircraft Leasing Company, is in the business of aircraft/aircraft-engine leasing, and has legal (or, where impractical, beneficial with audited-report evidence) title over at least one aircraft or aircraft engine.
• During the incentive period the entity must submit to EDB an annual progress update (APU) in the prescribed format and/or an external auditor's report on progress against the terms and conditions.

What it funds

• Working capital, trade or project financing schemes

Concessionary tax rate of 8% or 10% for ALS and 10% for AIM on qualifying income; no dollar cap stated. Withholding tax exemption on interest and qualifying related payments on loans for aircraft or aircraft-engine acquisition is also available. The Aircraft Leasing Company and approved SPCs may also make an irrevocable election to depreciate the aircraft over any number of years from 5 to 20 years.

Payment: Delivered as a tax deduction, allowance or credit.

How to apply

Submit a formal application to EDB containing the Core Form and Supplementary Form.

1. Prepare the Core Form with projected incremental employment, fixed-asset investment, and total business expenditure.
2. Prepare the Supplementary Form with employment, proposed activities, and proposed special-purpose-company details.
3. Submit the formal application to EDB.

Documents

• Core Form
• Supplementary Form
• Self-Declaration Form for Automatic Withholding Tax Exemption on Interest and Related Payments (if applicable) — Only for the withholding tax exemption; submitted to EDB with relevant documentation by the 15th of the month immediately following the first qualifying payment.

Contact: https://www.edb.gov.sg/en/contact-us

Application window: Qualifying period stated in the factsheet is five years.