Viewpoints from Kaizen
Circumstances in Which Individuals No Need to Pay VAT for Providing Services
Circumstances in Which Individuals No Need to Pay VAT for Providing Services Individuals provide services abroad, or have cross-border taxable activites whereas can enjoy tax exemption as stipulated in tax law According to Measures for the Pilot Implementation of Replacing Business Tax with VAT, enterprises and individuals who sell services, intangible assets or real estates in China are VAT taxpayers. According to Administrative Measures (Trial) on VAT Exemption for Cross-border Taxable Activities by SAT, enterprises and individuals who have cross-border taxable activities in China can be exempted from VAT in light of relevant provisions. Therefore, individuals do not need to pay VAT for services provided abroad or have cross-border taxable activities that can enjoy tax exemption according to tax law. Overseas individuals provide services entirely abroad According to Measures for the Pilot Implementation of Replacing Business Tax with VAT, overseas enterprises or individuals do […]
Advantage of Incorporation of a Singapore Company
Advantage of Incorporation of a Singapore Company Singapore is Asia’s business epicentre, straddling both East and West. In fact, it has been consistently hailed as “the land of opportunity” by many, including the Economist. In recent years, a number of international corporations, have made Singapore its base for operating in Asia via Singapore. Besides having one of the lowest corporate tax rates, Singapore is also considered by many as the gateway to ASEAN. In addition, its many business-friendly policies make its easy for companies to set up and run their business in this South-east Asia country. The Advantage of Singapore Extensive Double Tax Treaties Singapore has an extensive network of double tax agreements (DTA), with more than 80 counties across the global. The key benefits of a DTA will be: The avoidance of double taxes; Lower withholding taxes and Preferential tax regime This […]
U.S. Gross Receipt Tax Introduction
U.S. Gross Receipt Tax Introduction A gross receipt tax (GRT) is a state tax on the gross revenues of a business. Gross receipts tax is similar with sales tax, but the two are inherently different. Sales tax is paid by the consumer based on the amount purchased. This is not an expense to the business owner because the amount owed to the taxing authority is no more than what the customer has paid. On the other hand, the gross receipts tax is a percentage of revenue received. Although some states do not charge sales tax on services rendered, you still must pay gross receipts taxes on the amount that you collect for those services. Gross receipts tax impact firms with low profit margins and high production volumes, as the tax does not account for a business’ costs of production, as a corporate income tax would. Each […]
U.S. Federal Tax Payment Options
U.S. Federal Tax Payment Options If you are not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There is also a penalty for failure to file a tax return, so you should file timely even if you cannot pay your balance in full. It is always in your best interest to pay in full as soon as you can to minimize the additional charges. This article will discuss U.S. federal tax payment options for your reference. You can choose to pay the tax electronically or by mail. Paying electronically is a convenient way to pay your federal taxes online, by phone for Electronic Federal Tax Payment System (EFTPS) or card payments, or from a mobile device. When paying electronically, you can schedule your payment in advance. You will receive instant confirmation […]
Comparison of Singapore Immigration Routes
Comparison of Singapore Immigration Routes Singapore is strategically located between the Pacific Ocean and the Indian Ocean, has attracted many high- net- worth people to immigrate due to its stable political environment, free trade economy, low tax rate and investment risk. Currently, there are mainly three routes to immigrate to Singapore, namely, Global Investor Programme (GIP), Single Family Office and Self- Employment Pass. Different immigration routes need to meet different conditions, the three immigration routes are briefly compared in the table below. Item GIP Single Family Office Self- Employment Pass Time to obtain Permanent Resident (PR) Directly grant PR once approved PR shall be applied for at least two years after Employment Pass (EP) application Eligible to apply for PR at least three years after EP application Eligibility of Applicant Established Business Owners, Next Generation Business Owners, Founders of Fast Growth Companies or Family Office Principals Certain educational […]
China to Implement Special VAT E-invoice
China to Implement Special VAT E-invoice On 20 December 2020, the State Taxation Administration of the PRC released a circular to implement special VAT electronic invoice among newly established and registered taxpayers (hereinafter referred to as new taxpayers) throughout the country. The main contents of the circular are as follows: Starting from 21 December 2020, special VAT electronic invoice will be implemented among new taxpayers in 11 regions, including Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Anhui, Guangdong, Chongqing, Sichuan, Ningbo and Shenzhen. Starting from 21 January 2021, special VAT electronic invoice will be implemented among new taxpayers in 25 regions, including Beijing, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Fujian, Jiangxi, Shandong, Henan, Hubei, Hunan, Guangxi, Hainan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Dalian, Xiamen and Qingdao. Electronic signatures will replace the invoice seal of the taxpayer. The legal effect, basic usage and basic use regulations […]
California Fictitious Business Name
California Fictitious Business Name Naming a business is an important branding strategy for a person or entity involved in a for-profit trade or business in California. California fictitious business name, also known as a California DBA (doing business as), is only used for branding purpose and is not a type of business structure. An individual or a business entity must file a fictitious business name (FBN) statement with the Registrar-Recorder/County Clerk’s office in the county where the business will be located. If the business is not located in California, the business needs to register with the Clerk of Sacramento County. Under California law, sole proprietors, partnerships, limited liability companies and corporations must file a DBA if they plan to operate under a different name. Filing a FBN statement makes the identity of the person doing business under the fictitious name available to the public. To file a […]
Are Employee Fringe Benefits Taxable in U.S.
Are Employee Fringe Benefits Taxable in U.S. Employers can offer fringe benefits to employees; common fringe benefits include health insurance, retirement plans, and parking passes. Although most employee fringe benefits are nontaxable and may be excluded from an employee’s income, some benefits must be reported on the employee’s Form W-2 and included in your taxable income. This article will discuss some common fringe benefits for your reference. Retirement Plans Employer contributions on behalf of their employees’ qualified retirement plans are not taxable to the employees when they are made. However, when the employee receives the distributions from a retirement plan, the amounts you received are taxable income. Accident and Health Benefits If an employer pays the cost of an accident or health insurance plan for an employees, including an employee’s spouse and dependents, the employer’s payments are not wages and are not subject to Social […]
U.S. Child and Dependent Care Credit
U.S. Child and Dependent Care Credit How to balance the family and work is a complicated topic for working couples. More and more family choose to send children to day care center to take care of their children during working time. According to IRS publication, you may be able to claim the U.S. child and dependent care credit if you paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work. The credit is limited to $3,000 for one qualifying individual or $6,000 for two or more qualifying individuals. Expenses paid for the care of a qualifying individual are eligible expenses if the primary reason for paying the expense is to assure the individual’s well-being and protection. If you received dependent care benefits that you exclude or deduct from your income, you […]
MONEY-CHANGING LICENCE IN SINGAPORE
MONEY-CHANGING LICENCE IN Singapore Money-changing licensees are licensed and regulated under the Payment Services Act (“PS Act”) to conduct only money-changing services ie. the service of buying or selling foreign currency notes. Entities that provide other payment services must hold a Standard Payment Institution Licence or Major Payment Institution Licence. Application requirements for Money-Changing Licence The individual applicant, partners or directors of a company applying should have a minimum of 1 year’s relevant working or business experience on a full-time basis. Individual – Sole proprietors, the applicant must be a Singapore citizen. Partnership or Limited Liability Partnership (LLP) – the majority of its partners should be Singapore citizens. If there are only two partners, only one need to be a Singapore Citizen. Singapore-owned Company – More than 50% of the equity shareholdings should be beneficially owned and effectively controlled by Singapore citizens. A majority of the board […]