Tax Services

Tax news alert

2011

• Tax Update - July 2011
  July 2011
  This tax alert covers a recent Singapore tax case on section 33 of the Income Tax Act. 
• Tax Update - May 2011
  May 2011
  This tax alert covers the enhancements to the Productivity and Innovation Credit (PIC) scheme and the PIC Tax Deferral option. 
• Singapore Tax News - issue 1
  February 2011
  Tax developments covered include a tax case on interest rate swap payments, donations to IPCs, staggered timeline for raising tax assessments and new tax treaties. 

2010

• Tax update - September 2010
  September 2010
  Updates on recent withholding tax developments regarding payments for services rendered outside Singapore, and the IRAS administrative concession for related party services rendered in Singapore. 
• Singapore Tax News - issue 2
  August 2010
  Recent tax developments covered in this issue include the Productivity and Innovation Credit scheme, and public consultation on the draft Income Tax (Amendment) Bill 2010.
• Singapore Tax News - issue 1
  January 2010
  This issue deals with recent tax developments in Singapore such as its move to the OECD white list, ratification of DTAs, extension of the Jobs Credit Scheme, and the withholding tax waiver for partnerships with non-resident partners. 

2009

• Tax news - Singapore and beyond (issue 03/2009)
  September 2009
  In this issue, we highlight some recent tax developments in Singapore such as the public consultation exercise on both the draft Income Tax (Amendment) Bill and Income Tax (Amendment)(Exchange of Information) Bill, protocols and revised double taxation agreement to incorporate the exchange of information and the date of payment for withholding tax purposes.  Also included are highlights of China's investigation of secondment arrangements and Malaysia's deregulation of Foreign Investment Committee guidelines. 
• Tax news - Singapore and beyond (issue 02/2009)
  June 2009
  In this issue, we highlight some recent tax developments in Singapore such as the public consultation on Singapore's network of double taxation agreements, a proposed e-tax guide on the meaning of "machinery and plant", the Inland Revenue Authority of Singapore (IRAS) Voluntary Disclosure Program and the electronic submission of salary information to the IRAS. Also included are highlights of the Japan 2009 tax reform and a recent Singapore tax case on the taxability of a compensation receipt. 
• Tax news - Singapore and beyond (issue 01/2009)
  February 2009
  In this issue, we highlight the new tax framework for corporate amalgamations proposed by the Inland Revenue Authority of Singapore (IRAS), some recent tax changes in Singapore including the IRAS' adoption of 30 November as corporate tax filing deadline from year of assessment 2009, and two recent Singapore tax cases dealing with the meaning of "any business of the making of investments" and "plant" for capital allowance purposes.

2008

• Tax news - Singapore and beyond (issue 03/2008)
  November 2008
  This issue provides details of a recent Singapore tax case, and new circulars issued and public consultation exercises conducted recently by the IRAS; tax developments in Malaysia and Indonesia are also covered.
• Tax news - Singapore and beyond (issue 02/2008)
  August 2008
  Read this issue for a summary of several circulars issued by the IRAS and MAS on some of the tax changes proposed in the Singapore Budget 2008, as well as tax developments in Brunei and Thailand.
• Tax news - Singapore and beyond
  1st Quarter 2008
  Read this issue for details on:
  
  
  • the Singapore-Malta tax treaty which entered into force on 29 February 2008; 
  • changes to the medical expenses deduction for employers with effect from year of assessment 2008; 
  • update on the Ministry of Finance's policy regarding the waiver of shareholding test; 
  • the Hong Kong Budget for 2008-09 and 2nd Protocol to Hong Kong tax arrangement with mainland China; and 
  • another landmark Singapore case on section 10E.

• Tax news - Singapore and beyond
  4th Quarter 2007
  Read this issue for details on:
  
  
  • the new double taxation agreeemnts with Qatar and Estonia 
  • the authorities' change of policy concerning the waiver of shareholding test 
  • timing of the application for the FRS 39 tax treatment  
  • the new China Corporate Income Tax Law  
  • recent Hong Kong Court decisions against taxpayers on tax avoidance
    
    
• Tax news - Singapore and beyond
  3rd Quarter 2007
  This series of alerts seeks to highlight recent tax changes in Singapore and our neighbouring countries which are significant, and which are likely to have an impact on companies.In this inaugural issue, we cover:
  
  
  • the new Singapore and China double taxation agreement  
  • the draft Income Tax (Amendment) Bill 2007  
  • changes pertaining to the Tax Incentive Scheme for Fund Management  
  • Malaysian Budget 2008
    
    
• One-tier corporate tax system - Expiry of 5 year transitional period
  October 2007
  As you know, the one-tier corporate tax system (“one-tier system”) replaced the imputation tax system from 1 January 2003. As a transitional measure, companies resident in Singapore with dividend franking credits can stay on the imputation tax system till 31 December 2007. From 1 January 2008, all companies resident in Singapore will be under the one-tier system.

2005

• Update on taxation of benefits-in-kind – Administrative concessions
  August 2005
  Under the law, every benefit received by an employee is taxable. In practice however, employers may have difficulty in allocating and reporting certain benefits to specific employees. In October last year, the Inland Revenue Authority of Singapore (IRAS) in recognizing this, had released a list of Benefits-In-kind (BIKs) which are granted administrative concession.
• Singapore India tax news alert 2005
  July 2005
  In June 2005, Singapore and India signed a landmark Comprehensive Economic Cooperation Agreement. This included a Protocol that improves certain provisions in the existing tax treaty between the two countries. The Protocol will come into force on 1 August 2005. We highlight the improvements made to the treaty and their implications to investors who have or are planning to make investments in India.

2004

• Deemed exercise rule – tracking option
  August 2004
  The alert provides some details of the Governme nt's recent decision to allow a tracking option for foreign employees (or Singapore permanent residents leaving Singapore permanently), instead of their being subject to the Deemed Exercise Rule.
• Employee stock options – concession for unexercised stock options
  April 2004
  The Ministry of Finance has recently given in-principle agreement to allow the tracking option for unexercised stock options held by employees who leave Singapore. For more details, read our latest news alert.
• Filing of income tax computations and financial statements in functional currencies other than Singapore dollars
  January 2004
  Currently, all income tax computations and accompanying financial statements submitted to the Comptroller of Income Tax (CIT) must be denominated in Singapore dollars (S$). Prior to the amendment to the Companies Act in 2002, all companies were required to file their financial statements in S$ with the Registrar of Companies and Businesses (RCB) unless approval was obtained from the RCB to do so otherwise. With the amendment to the Companies Act, there is no longer such a requirement for accounting periods beginning on or after 1 January 2003. Instead, the requirement is that financial statements must comply with the Financial Reporting Standards.

2003

• Retuning the CPF
  December 2003
  In the Government's continuing efforts on the restructuring of the economy, PM Goh delivered a Ministerial Statement in Parliament on 28 August 2003 announcing the need to boost Singapore's cost competitiveness by retuning the CPF scheme to stem out the outflow of jobs to emerging, lower-cost economies in the region.
• Income tax treatment of foreign exchanges gains or losses for businesses
  December 2003
  The Inland Revenue Authority of Singapore (IRAS) has issued a circular on 28 November 2003 regarding the income tax treatment of foreign exchange gains or losses for businesses. Find out more about the developments.
• Proposed German tax law changes
  August 2003
  The German Cabinet has recently decided to bring forward tax cuts from 2005 to 2004 to help jumpstart the flagging German economy and achieve the government's growth target for next year. The government's proposal also includes far-reaching changes to German tax law which, if implemented, would severely affect foreign investments in Germany and impact Germany's competitiveness as a holding location. These changes would also influence tax planning and business decisions for German groups with international operations.
• One-tier corporate tax system – significant developments
  11 July 2003
  The Inland Revenue Authority of Singapore (IRAS) has issued a circular on 27 June 2003 to supplement their earlier circular dated 15 August 2002 on the one-tier corporate tax system. The supplementary circular seeks to address and clarify many of the issues raised by taxpayers and their tax advisers after the release of the earlier circular.
• R&D and Intellectual Property Management Hub scheme
  10 July 2003
  A new incentive sc heme to increase the stockpile of funds available for R&D activities conducted in Singapore or controlled from Singapore was announced in the 2003 Budget statement. Further details of the R&D and Intellectual Property Ma nagement Hub scheme were released on 5 June 2003 by the Singapore Economic Development Board (“EDB”), which is administering the scheme.
• New transfer pricing documentation requirements in Germany
  June 2003
  On 11 April 2003, the German Finance Act 2003 ("the Act") was passed which amends, among other provisions, the German tax code in relation to transfer pricing documentation and penalty provisions. The new statutory documentation requirements increase the importance for all German groups with international operations, and for non-German corporations with transactions involving a German related party, to carefully manage their transfer pricing policies.
• Tax exemption for foreign income
  June 2003
  It was announced in the 2003 Singapore Budget statement that all remittances of foreign income in the form of dividends, branch profits and services income would be exempt from tax with effect from 1 June 2003. Further details of the tax exemption are now available and can be found in the circular issued by the Inland Revenue Authority of Singapore (“IRAS”) on 21 May 2003.
• Changes to withholding tax regime
  April 2003
  The IRAS has made certain changes to the withholding tax regime which take effect from 1 April 2003. You need to know these changes, especially if your business requires you to withhold taxes on payments to non-residents.
• Enhanced headquarters incentive
  January 2003
  The Singapore Economic Development Board (EDB) unveiled on 7 January, 2003 a new and enhanced program to attract more company headquarter operations to Singapore. The program is available to multinational companies (MNCs) that have not yet set up a regional headquarters in Singapore and those that want to expand their presence in Singapore.

2002

• Loss transfer system of group relief
  November 2002
  The Inland Revenue Authority of Singapore has issued a circular on 23 October 2002 providing further details of the loss transfer system of group relief which takes effect from the year of assessment 2003. The circular sets out the conditions for claiming group relief, transfer rules, exclusions and also the administrative requirements.
• Malaysian tax changes
  October 2002
  The Malaysian Prime Minister and Minister of Finance delivered the 2003 National Budget in Parliament on 20 September 2002. Read the attached document for details regarding two tax changes which will have an impact not only on Malaysian domestic companies but also on foreign companies doing business in Malaysia.
• Share buyback
  October 2002
  Current stock prices on the SGX are depressed and companies are allowed to buy back shares from their shareholders. A number of companies have in recent years embarked on share buyback programmes. Should you do it now?
  
  To assist you in your decision process, the attached document sets out the various Companies Act requirements and the income tax implications of such an exercise. Please contact us if you have any queries or require assistance in evaluating the benefits of having such a scheme or advice on the income tax implications of any particular share buy-back programme you may have in mind.
• NOR scheme and employee stock plans
  September 2002
  It was announced in the 2002 Singapore Budget that certain changes would be made to the tax treatment of employee stock options and other forms of employee share ownership plans. A Not Ordinarily Resident ("NOR") taxpayer scheme was also introduced to help to attract talent to Singapore and encourage senior management of companies to use Singapore as their base for regional activities.
  
  Further details of the above changes and new scheme are no w provided in 2 circulars issued by the Inland Revenue Authority of Singapore ("IRAS") on 31 August 2002. Read our two Newsflashes for some of the more pertinent points covered in the IRAS circulars.
• New one-tier corporate tax scheme
  August 2002
  The Inland Revenue Authority of Singapore has issued a circular on 15 August 2002, providing details on the implementation of the new one-tier corporate tax system which was announced in the 2002 Singapore Budget. Read this issue of NewsFlash for more details.
• Interest-free/Subsidized interest rate loans
  July 2002
  Find out more about the recent IRAS' clarification on taxability of interest-free/subsidized interest rate loans in this issue of NewsFlash.