Transfer of a going concern

• Main Author: OOI, Vincent
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Tax; Tax Law; Business Law, Public Responsibility, and Ethics
• Online Access: https://ink.library.smu.edu.sg/sol_research/2828; https://ink.library.smu.edu.sg/context/sol_research/article/4786/viewcontent/15._Transfer_of_a_Going_Concern.pdf
• Institution: Singapore Management University

GST transfers of a going concern—overviewThe 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.