Maybank Investment Bank analysts say new property tax rebate likely to benefit both of the country’s IRs. <\/p>\n\n\n\n\n\n\n\n
Singapore.- Local government has revealed its budget for 2020 and a new tax system to become effective on March 2022. <\/p>\n\n\n\n
According to Samuel Yin Shao Yang, Associate Director of Research at Maybank Investment Bank, the new system will not have a material impact on the two integrated resorts in Singapore.\u00a0<\/p>\n\n\n\n
The annual tax rate on mass gross gaming revenue (GGR) will go from a flat rate of 15 percent to a rate of 18 percent for the first SGD3.1 billion (\u20ac2 billion) of GGR collected by casino operators. <\/p>\n\n\n\n
Mass GGR in excess of SGD3.1 billion will be taxed at a rate of 22 percent, the government announced.<\/p>\n\n\n\n
Singapore has two casino complexes: Resorts World Sentosa, operated by Resorts World at Sentosa Pte Ltd, a unit of Genting Singapore Ltd; and Marina Bay Sands, operated by Marina Bay Sands Pte Ltd, a subsidiary of United States-based Las Vegas Sands Corp.<\/p>\n\n\n\n
Mr Yin noted that the 2020 budget included a 10 percent property tax rebate for integrated resorts. He added that the previously announced hike in the Goods and Services Tax (GST) to 9 percent from 7 percent would \u201cbe delayed from some time between 2021 and 2025 to some time between 2022 and 2025\u201d.<\/p>\n\n\n\n
Mr Yin said the property tax rebate was likely to translate into a cost saving of SGD3.8 million (\u20ac2.5 million) for Genting Singapore for full-year 2020. \u201cThis constitutes only 70 basis points of our full-year 2020 core net profit forecast of SGD539.1 million (\u20ac357 million),\u201d the Maybank analyst stated.<\/p>\n\n\n\n
The Maybank analyst said the institution was expecting the 50 percent casino entry levy hike announced in April last year \u201cwould be rolled back a tad\u201d by the government, with an announcement to be made during the 2020 budget presentation, which eventually did not happen. <\/p>\n\n\n\n
That was a reference to a 50 percent hike on the daily entrance tax Singaporean citizens and permanent residents need to pay to be allowed inside a local casino. The annual levy was also increased at the time, to SGD3,000 (\u20ac1900) from SGD2,000 (\u20ac1200).<\/p>\n\n\n\n
\u201cHopefully there will be more aid and relief [measures for casino resorts] post-budget 2020,\u201d Mr Yin added.
<\/p>\n","protected":false},"excerpt":{"rendered":"
Maybank Investment Bank analysts say new property tax rebate likely to benefit both of the country’s IRs.<\/p>\n","protected":false},"author":2,"featured_media":3659,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Singapore's 2020 budget introduces a new tiered GGR tax system for Integrated Resorts (IRs), increasing rates for higher revenue tiers, effective March 2022. Concurrently, a 10 percent property tax rebate for IRs is announced, alongside a delay in the Goods and Services Tax (GST) hike. Analysts from Maybank Investment Bank assess the net financial impact on operators like Genting Singapore and Las Vegas Sands, noting the absence of a rollback on the previously increased casino entry levies.","focusai_entities":"Maybank Investment Bank, Samuel Yin Shao Yang, Resorts World Sentosa, Resorts World at Sentosa Pte Ltd, Genting Singapore Ltd, Marina Bay Sands, Marina Bay Sands Pte Ltd, Las Vegas Sands Corp","focusai_location":"Singapore","focusai_target_profile":"ceo_executive (0.95), regulator (0.85), compliance_legal (0.8), operator_casino (1.0), investor_analyst (1.0), journalist_researcher (0.9)","focusai_suggestions":[{"label":"GGR Tax Impact Analysis?","query":"How will the new tiered GGR tax structure, particularly the 22% rate for GGR exceeding SGD3.1 billion, specifically impact the high-roller segments and overall profitability of Singapore's Integrated Resorts?"},{"label":"Net Financial Effect on IRs?","query":"What is the projected net financial impact on Genting Singapore and Marina Bay Sands, considering the combined effects of the increased GGR tax, the 10% property tax rebate, and the delayed GST hike?"}],"footnotes":""},"categories":[160,156,158,16333],"tags":[29,337,169,2895],"class_list":["post-3640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-regulation-news","category-slider-home","category-south-east-asia-news","tag-casino","tag-regulation","tag-singapore","tag-taxes"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=3640"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3640\/revisions"}],"predecessor-version":[{"id":3669,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3640\/revisions\/3669"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/3659"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=3640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=3640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=3640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}