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Issue 04-2011 | ||||||||
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A bumper issue as we head into the year end on a high note! A 'Happening' Q3 Ø Understanding the Inland Revenue Authority of Singapore (IRAS) better; Ø Comments on IRAS’ Disputes Resolution Process for Companies A Warm Tropical Welcome Join the Singapore Institute of Accredited Tax Professionals (SIATP) in welcoming its latest board member, Mr Alan Ross, Head of Tax at PricewaterhouseCoopers (PwC). Relocating from Canada where he was a Partner in PwC, Alan has helmed the tax practice in PwC Singapore since January 2011. He is however not new to Asia and was previously based in the region for eight years. Besides SIATP, Alan is also a board member at the Tax Academy of Singapore and is a member of the Institute of Chartered Accountants of Scotland. Click here to view the SIATP Board of Directors. Looking ahead, here’s what’s coming up: ü Read all about the essentials of the Goods & Services Tax in this issue of Taxlogue. ü Sign up for the upcoming ATTS Tax Forum on the Productivity and Innovation Credit Scheme. ü Don’t miss out on the next technical discussion on capital allowances covering the case of ATG v Comptroller of Income Tax. This will be facilitated by Mr Leung Yew Kwong, Partner, WongPartnership LLP. | ||||||||
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| Please click on the following for news on: | ||||||||
| Corporate Tax | ||||||||
| Corporate Tax Filing Matters The YA2011 Offline Form C is now available. Need to ‘double confirm’ if all is in order as 30 November approaches? Check out the corporate tax filing tips comprising checklist and list of tax reliefs, and deductions available for companies. Preparing tax computation for Shipping Companies This provides shipping companies with a highlight of pointers to note. Updates on the Productivity and Innovation Credit (PIC) Scheme Get your queries answered at the updated FAQs on PIC here. In addition, here is more information on equipment which companies wishing to automate their processes and to enhance productivity, may apply, for the PIC on a case-by-case basis. Summary of Responses - Public Consultation on Draft Income Tax (Amendment) Bill 2011 Read about the suggestions that will be adopted. | ||||||||
| Corporate Tax E-Tax Guides | ||||||||
| e-Tax Guide: Imposition of Stamp Duty on Sellers for Sale or Disposal of Residential Property (7th Edition) – Revised e-Tax Guide e-Tax Guide on Ascertainment of Income from Business of Making Investment – New e-Tax Guide e-Tax Guide on Tax Exemption for Foreign-Sourced Income – New e-Tax Guide New e-Tax Guide on Group Relief System - New e-Tax Guide e-Tax Guide for Pharmaceutical Manufacturing Industry: Tax Treatment of Research & Development and Intellectual Property-Related Expenditures – New e-Tax Guide | ||||||||
| Goods & Services Tax (GST) | ||||||||
| Access to eTax Portal GST-Registered businesses are invited to update contact details to gain access to a host of e-services and receive timely updates. Subscribe to email alerts to receive reminders to e-File your GST returns. Smooth Sailing for the Marine and Shipping Sector With effect from 1 Oct 2011, the scope of zero-rating of repair and maintenance services has been extended. Updates on the Approved Marine Customer Scheme (ACMS) The scheme is designed to ease compliance for businesses procuring goods for use or installation on internationally bound commercial ships. Specialised Warehouse Scheme (SWS) Since 1 October 2011, the above scheme has been implemented to facilitate the zero-rating relief on certain supplies to overseas persons. A Boost for the Biomedical Industry The Approved Contract Manufacturer and Trader (ACMT) Scheme, designed to relieve businesses that have substantial business with non-GST registered overseas customers, of the need to account for GST on value-added activities performed on the goods of such customers, has been extended to contract manufacturers of Active Pharmaceutical Ingredients (APIs) in the biomedical industry. Since October 2011, a new GST relief has been granted for all Clinical Trial Materials (CTMs) imported into Singapore so long as they are for local clinical trials, re-export or disposal. Under the relief, no import GST is payable upfront on such importation of CTMs. MOF accepts half of the suggestions on the draft Goods and Services Tax (Amendment) Bill Read about the 11 of 22 suggestions MOF will implement. Company and director charged in court for GST fraud Suharry Bin Abdullah (“Suharry”), the director of a beverage company, Republic Beverages Company Private Limited (“RBC”) was sentenced to 4 months’ jail and ordered to pay a penalty of $140,023.59 for creating false GST entries and fictitious invoices to defraud the Comptroller of GST. RBC was fined $40,000 and ordered to pay the same amount of penalty. Tourist Found Guilty of False GST Claims Mr Hung Yat Sing, a 46-year-old from Hong Kong pleaded guilty to four charges of making false declarations in order to claim Goods and Services Tax (GST) of $5,481 on pearl necklaces and bracelets that were not purchased by him. Hung was found guilty and fined $16,000 or, in default, 64 days’ imprisonment. Paying for their own folly - three men arrested for cheating on the Tourist Refund Scheme Pakkiri Mohamed Abdul Karim, 43, and Perumal Sugumaran, 42, and a Singaporean man, 74, were arrested for cheating on the Tourist Refund Scheme by conspiring to retain 11 pieces of “Goods and Services Tax (GST) refunded” jewellery in Singapore. Pakkiri and Perumal were each sentenced to a Court fine of $3,000 or, in default, three weeks’ imprisonment. Investigations are still ongoing for the Singaporean offender. | ||||||||
| GST E-Tax Guide | ||||||||
| e-Tax Guide on Fringe Benefits – Revised e-Tax Guide e-Tax Guide for the Biomedical Industry – New e-Tax Guide e-Tax Guide: Approved Contract Manufacturer and Trader (ACMT) Scheme – Revised e-Tax Guide e-Tax Guide on Specialised Warehouse Scheme and Zero-rating of Supplies – New e-Tax Guide e-Tax Guide for the Marine Industry – New e-Tax Guide e-Tax Guide: Electronic Tourist Refund Scheme (eTRS) – Revised e-Tax Guide | ||||||||
| Listing of New Bilateral Agreements/ Revisions for the Avoidance of Double Taxation (DTAs) | ||||||||
| Albania (19 July 2011) India (12 Aug 2011) Uzbekistan (10 Oct 2011) Click here for more information on existing tax treaties. | ||||||||
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| Upcoming Professional Development Tax Courses | ||||||||
| Corporate Tax Seminars for Companies The Corporate Tax Seminar is specially designed to equip companies with basic knowledge on corporate taxation. Participants will hear from our speakers on the general tax obligations companies need to observe and the common tax schemes they can benefit from. Participants will also be guided through the e-Services Authorisation System (EASY) and e-Services available for corporate tax transactions. Newly incorporated companies and companies not represented by tax agents are strongly encouraged to attend the seminar. The seminar will also be useful for existing companies that are not represented by tax agents. Course date: 9 November 2011 Year End Corporate Tax Updates and Corporate Tax Planning Workshop This programme aims to provide an update on the recent pertinent corporate tax changes as well as highlight the proposed changes to the Income Tax Act and other new changes that will take effect in the coming year. It will cover both tax compliance and tax planning issues. Emphasis will be placed on year end corporate tax planning and handling of year-end tax provision and tax-related audit issues. Course date: 14 November 2011 Goods and Services Tax: Operation, Accounting, Administration and Returns This one-day programme will address the following: i. Understanding the concepts of the Goods & Services Tax (GST), its rules and regulations. ii. Administering the registered entity’s compliance with the various rules and regulations. iii. Accounting for GST and completing the periodic GST returns for submission to the Inland Revenue Authority of Singapore. iv. Maintaining accounting and other related records to ensure compliance with the GST rules and regulations. Course date: 17 November 2011 Recent Developments in Transfer Pricing This programme is designed to discuss recent developments in transfer pricing and practical ways to manage transfer pricing exposure. Course date: 24 November 2011 Withholding Tax Withholding tax is an area which tends to be overlooked by many companies. The responsibility of withholding tax deduction and accountability lies with the Singapore companies that are making the payments to non-residents. Hence, this programme aims to provide participants with the knowledge of the types of payments that are subject to withholding tax, the administrative procedures that need to be complied with. Course date: 24 November 2011 ATTS Tax Forum 2011: Productivity and Innovation Credit (PIC) Scheme This forum will cover topics on: i. PIC Overview ii. Tax Benefits iii. How to Claim PIC iv. Tax Deferral Option v. Details on What Qualities for PIC Course date: 25 November 2011 Tax Incentives: Applicability to Financial and Non-Financial Institutions This workshop aims to provide the participants with a general overview of certain key tax incentives relating to both financial and non-financial industries. Participants should be able to gain an insight on the process involved in negotiating tax incentives from the relevant government agencies and understand the important roles played by tax lawyers and tax consultants in tax incentive negotiation. Course date: 28 November 2011 Recent Amendments in Income Tax (An Overview) The purpose of this programme is to familiarise participants with the objectives of recent amendments in Income Tax. Course date: 01 December 2011 GST Course 'Introduction to GST' To equip businesses with basic knowledge on GST, IRAS offers the course “Introduction to GST” via e-Learning or seminar. Businesses that have voluntarily registered for GST must complete the course within three months from the effective date of registration. If you are completing the course via e-Learning, your particulars (business name, business reference number, your name and designation) will be requested for submission to IRAS upon passing the quiz at the end of the course. The course covers topics including: i. Important GST principles ii. Charging and claiming of GST iii. How to complete and file your GST returns iv. What records and documents to keep v. Responsibilities of a GST-registered business vi. How to avoid making mistakes in GST accounting Course date: 01 December 2011 Decoding Capital Allowances Confused over capital allowances where “plant” is used by external contractors? Are such claims allowable only under the Integrated Industrial Capital Allowances scheme? Be in a more confident position to advise your clients or your employer on the capital expenses that can be claimed under the capital allowances scheme. Join the Singapore Institute of Accredited Tax Professionals (SIATP) at the next discussion forum presented by Mr Leung Yew Kwong, Partner, WongPartnership LLP. Course date: 05 December 2011 Property Tax: Determining the “Right” amount Accountants should Pay To have an appreciation of Property Tax and reliefs provided for in the Property Tax Act, accountants will need to understand the principles underlying Property Tax and how these are determined. This seminar aims to do just that. This half-day programme will be useful for accountants seeking a deeper understanding in Property Tax and in determining the “right” amount of Property Tax to pay. Course date: 05 December 2011 Managing Transfer Pricing in Asia This seminar explores the recent developments in transfer pricing in Asia. Participants will have the opportunity to discuss, through case studies, practical ways to manage transfer pricing exposures in Asia. Course date: 07 December 2011 Seminars on Productivity and Innovation Credit Scheme and Budget 2011 Highlights for Businesses The Productivity and Innovation Credit (“PIC”) was introduced in the Singapore Budget 2010 and further enhanced in Budget 2011 to encourage productivity and innovation, by providing enhanced tax incentives for investments in a wide range of activities: automation equipment; training of employees; research and development; registration of intellectual property rights; acquisition of intellectual property rights; and design. In addition, the Singapore Budget 2011 also introduced a series of other tax measures to help enterprises. To facilitate businesses’ understanding of the PIC scheme and provide an overview of the Budget 2011 highlights, IRAS will be conducting a series of seminars. Course date: 07 December 2011 Cross border Tax Issues for Singapore Companies Venturing into Hong Kong SAR and China This half-day workshop aims to offer guidance on business development, identify opportunities and to analyze tax implications for Singapore companies venturing into Hong Kong and China. Course date: 19 December 2011 Advanced Goods and Services Tax (GST) Workshop This workshop aims to provide the participants with a more in-depth understanding of the different GST issues concerning various types of business transactions that may arise and in such situations, how tax lawyers and tax consultants could apply the GST legislation to resolve these matters. Due to the nature of this workshop, participants will be assumed to have equipped with a basic understanding of the GST concepts before attending this workshop. Course dates: 29 to 30 December 2011 Maximising Government Grants and Deductions/Allowances of Up to 400%: Productivity and Innovation Credit Scheme and how it affects your Income Tax Computation The objective of this course is to provide accounting and tax professionals with guidance on the application of the Productivity and Innovation Credit Scheme and the tax implications of its various features. Course date: 10 January 2012 | ||||||||
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| It is critical that businesses file their Goods and Services Tax (GST) return accurately as the GST scheme is a self assessment regime and businesses which do not comply, face stiff penalties. It is thus in the interest of businesses to get their GST processes right, right from the start. Read about what you should know about the GST in this issue’s article by PricewaterhouseCoopers’ Accredited Tax Advisors (GST) Mr Koh Soo How (Partner) and Mr Eddie Soh (Manager). | ||||||||
| Taxlogue is a compendium of recent tax developments that may be of relevance and interest to you. Please send all comments and suggestions to enquiry@siatp.org.sg. | ||||||||
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Disclaimer Taxlogue is intended for general guidance only. Professional advice should be taken before applying the content to your particular circumstances. While we endeavour to ensure that the information in Taxlogue is correct, no responsibility for loss to any person acting or refraining from action as a result of using any such information can be accepted by the Institute. To unsubscribe or update your contact details, please email to enquiry@siatp.org.sg | ||||||||
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About Us The Singapore Institute of Accredited Tax Professionals (SIATP) is the first dedicated accreditation body for tax professionals. Set up by the Institute of Certified Public Accountants of Singapore in partnership with the Tax Academy of Singapore, SIATP aims to heighten the recognition of the tax profession and cater to the market’s need for tax specialists with highly advanced technical knowledge, skill sets and industry-recognised credentials. For more information, please visit our website, www.siatp.org.sg. |
