Transfer of a Going Concern
LexisNexis Practical Guidance: Singapore Tax, 2018
Posted: 16 Aug 2019
Date Written: October 1, 2018
The sale of a business is in substance the sale of a number of assets bundled together. Generally, GST would be charged on the transfer of each asset according to the rules applicable to that asset, i.e. standard-rate, zero-rate or exempt.
However, where a business is transferred as a going concern (a “TOGC”), the transaction may be treated as an excluded transaction under the Goods and Services Tax (Excluded Transactions) Order. If so, the trans-action would be treated as neither a supply of goods nor a supply of services and therefore outside the scope of GST. No GST is then chargeable on the sale of the business.
Keywords: Tax Law
Suggested Citation: Suggested Citation