Incentive and Exemption Schemes

Incentive schemes

Incentives for growth and regionalisation as well as capability development are available and law practices can consider applying to qualify for them. Please refer to the following websites for information on incentives available:

• Economic Development Board
• Enterprise Singapore

Please note that applications for these incentives are subject to the approval of the respective agencies administering the incentives.

For more information, please submit your enquiry via Contact Us @ OneMinLaw or the Economic Development Board at clientservices@edb.gov.sg.

Work Pass Exemption for Arbitration and Mediation Services

As of 1 February 2008, non-residents do not need to apply for a work pass to carry out arbitration and mediation work in Singapore for up to 90 days in a calendar year.

They only need to have a Short-Term Visit Pass issued by the Immigration & Checkpoints Authority (ICA) of Singapore, upon arrival in Singapore, in order to stay in Singapore to carry out the arbitration and mediation work.

They also need to notify the Ministry of Manpower (MOM) by submitting an e-notification through MOM’s e-Notification system after they have arrived in Singapore, but before they carry out the arbitration and mediation work.

For more information, please refer to MOM’s website.

Concessionary Tax Rate for Non-Resident Arbitrators

From 1 April 2023 to 31 December 2027, gross income derived by non-resident arbitrators from arbitration work carried out in Singapore will be subject to a concessionary withholding tax rate of 10%. Alternatively, non-resident arbitrators may elect to be taxed at 24% on net income.

This concessionary tax rate is applicable to all non-resident arbitrators who are appointed for any arbitration proceedings governed by the Arbitration Act or the International Arbitration Act, or would have been governed by either of those Acts had the venue of arbitration been Singapore.

The concessionary withholding tax rate will lapse with effect from 1 Jan 2028. Gross income derived by a non-resident arbitrator from arbitration work carried out in Singapore will be subject to withholding tax at the standard rate of 15% for non-resident professionals. Alternatively, the non-resident arbitrator may elect to be taxed at 24% on his or her net income.

For more details, please refer to the Inland Revenue Authority of Singapore’s (“IRAS”) website.

Concessionary Tax Rate for Non-Resident Mediators

From 1 April 2023 to 31 December 2027, gross income derived by non-resident mediators from mediation work carried out in Singapore will be subject to a concessionary withholding tax rate of 10%. Alternatively, non-resident mediators may elect to be taxed at 24% on net income.

The concessionary tax rate applies to income derived for mediation services for a mediation that took place in Singapore or was planned to take place in Singapore but the dispute was settled before the mediation, including services that were rendered pursuant to an agreement to mediate specifying Singapore as the venue for the mediation. To qualify, at least one of the following must apply: (a) the mediator is certified or accredited according to the next paragraph, or (b) the mediation is administered by a designated mediation service provider as described in the next paragraph.

Qualifying mediation service providers under sections 13(16) and 43(10) of the Income Tax Act:
1. Singapore International Mediation Centre
Qualifying mediator certification or accreditation schemes under sections 13(16) and 43(10) of the Income Tax Act:
1. SIMI Credentialing Scheme (SIMI Certified Mediator), Singapore International Mediation Institute

The concessionary withholding tax rate will lapse with effect from 1 Jan 2028. Gross income derived by a non-resident mediator from mediation work carried out in Singapore will be subject to withholding tax at the standard rate of 15% for non-resident professionals. Alternatively, the non-resident mediator may elect to be taxed at 24% on his or her net income.

For more details, please refer to the IRAS website.

Work Pass Exemption for Arbitration and Mediation Services

As of 1 February 2008, non-residents do not need to apply for a work pass to carry out arbitration and mediation work in Singapore for up to 90 days in a calendar year.

They only need to have a Short-Term Visit Pass issued by the Immigration & Checkpoints Authority (ICA) of Singapore, upon arrival in Singapore, in order to stay in Singapore to carry out the arbitration and mediation work.

They also need to notify the Ministry of Manpower (MOM) by submitting an e-notification through MOM’s e-Notification system after they have arrived in Singapore, but before they carry out the arbitration and mediation work.

For more information, please refer to MOM’s website.