Maritime Sector Incentive (MSI) - Maritime Leasing (MSI-ML) Award

Maritime Sector Incentive (MSI) - Maritime Leasing (MSI-ML) Award | Bestar

Maritime Sector Incentive (MSI) - Maritime Leasing (MSI-ML) Award

The MSI-ML incentives encourage entities to use Singapore as their capital and funding base to finance their ships or sea containers.

Benefits

Under the MSI-ML incentive, ship or container leasing companies, business trusts or partnerships will enjoy tax incentives for up to 5 years on qualifying leasing income.

Approved administrators of asset owning entities will receive a reduced tax rate of 10% on their qualifying management income.

The MSI-ML award covers operating leases and qualifying finance leases to allow flexibility in asset ownership with regard to lease and charter options.

Who is Eligible

Applicants with a good track record and a demonstrable business plan in ship and container financing business in Singapore can apply for the MSI-ML award on or before 31 December 2026.

Applicants must be able to demonstrate in their business plan how the ship or container financing business will generate an economic contribution in Singapore through total business expenditure, number of professionals employed, additional activities to be undertaken in Singapore and ensuring strategic or business decision-making functions will be conducted in Singapore.

How to Apply

Contact us for more information.

How Bestar Singapore Can Help

Maritime Sector Incentive (MSI) - Maritime Leasing (MSI-ML) Award

To thrive in Singapore's competitive maritime landscape, leveraging the Maritime Sector Incentive (MSI) is a strategic move. The Maritime Leasing (MSI-ML) Award specifically empowers entities to use Singapore as a capital base for financing vessels and sea containers.

Bestar Singapore acts as a specialized consultant and corporate service provider, bridging the gap between maritime enterprises and the Maritime and Port Authority of Singapore (MPA).

1. What is the MSI-ML Award?

The MSI-ML Award is designed for ship or container leasing companies, business trusts, and partnerships. It aims to anchor financing and leasing operations in Singapore through significant tax benefits.

Key Benefits

• Tax Concessions: Enjoy tax concessions for up to 5 years on qualifying leasing income.

  
  

• Management Incentive: Approved managers of the asset-owning entity receive a concessionary tax rate of 10% on qualifying management income.

  
  

• Flexibility: Covers both operating and finance leases for ships and containers.

  
  

• Alternative Taxation: As of 2024/2025, entities may elect the Net Tonnage Basis of Taxation (NTT), aligning with international practices and providing tax certainty.

2. How Bestar Singapore Enhances Your MSI-ML Application

Navigating the MSI-ML requirements involves more than just filling out forms; it requires a robust business case and strict compliance. Bestar Singapore provides a "one-stop-shop" approach:

A. Strategic Business Planning

To qualify, applicants must demonstrate a strong track record and a clear business plan. Bestar assists in:

• Economic Contribution Modeling: Ensuring your plan meets the minimum commitment (e.g., approximately S$25 million to S$28 million in total business spending over 5 years).

  
  

• Headcount Strategy: Planning for the required professional headcount (typically at least 3 to 6 professionals depending on the specific award).

B. Regulatory & Tax Compliance

The maritime tax landscape is complex, especially with recent BEPS 2.0 developments. Bestar helps by:

• Tax Advisory: Navigating the transition to the Net Tonnage Basis of Taxation (NTT).

  
  

• Withholding Tax (WHT) Management: Advising on WHT exemptions for interest and lease payments to non-residents.

  
  

• Audit & Reporting: Managing the annual reporting requirements required by the MPA to maintain the award.

C. Corporate Secretarial & Vessel Registration

• Vessel Registration: Streamlining the registration of ships with the Singapore Registry of Ships (SRS).

  
  

• Incorporation: Handling the setup of Special Purpose Companies (SPCs) often used in leasing structures.

3. Optimization for Success

When Bestar handles your MSI-ML journey, we ensure your business is "Optimized" in every sense:

• Enhancing your presence so that global partners find your Singapore-based leasing entity.

  
  

• Structuring your business model to convert tax savings into reinvestment and growth.

  
  

• Ensuring your firm’s profile and compliance data are correctly interpreted, positioning you as a "low-risk, high-value" maritime player.

Summary of Requirements (MSI-ML)

Criteria	Ship Leasing	Container Leasing
Typical Spending	~$28M over 5 years	~$8M - $12M over 5 years
Min. Headcount	3 Professionals	3–6 Professionals
Tax Rate	Concessionary/Exempt	Concessionary/Exempt
Award Tenure	5 Years (Renewable)	5 Years (Renewable)

Note: Requirements were updated as of January 1, 2026. It is vital to use current figures for your business plan.

Checklist of Documents you'll need for an MSI-ML Application with Bestar

A checklist for your MSI-ML application with the necessary documents, including business plans, financial projections, and personnel profiles.

MSI-ML Application Checklist

• Certificate of Incorporation for the Singapore entity

• Profile of key management personnel and maritime professionals

• Detailed 5-year business plan and financial projections

• Projected annual business spending (ABS) in Singapore

• Details of vessels or containers to be leased (registration, age, tonnage)

• Description of existing track record in maritime leasing or financing

• Proposed organizational chart for the Singapore office

Request for Proposal