Viewpoints from Kaizen
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 […]
Measures to Facilitate HK and Macao Residents in Shenzhen
Measures to Facilitate HK and Macao Residents in Shenzhen Recently, Shenzhen Municipality has announced a series of measures to further facilitate the development of Hong Kong and Macao residents in Shenzhen (hereinafter referred to as the Measures). The Measures consists of 18 policies that aim to facilitate the study, employment, entrepreneurship and life of Hong Kong and Macao residents in Shenzhen. Hong Kong and Macao residents are given the equal treatment of Shenzhen registered residents by 4 policies, which include: Further support Hong Kong and Macao students to have internship and employment in Shenzhen (Article 7); Further support Hong Kong and Macao youth to participate in innovation and entrepreneurship activities in Shenzhen (Article 11); Provide public transport concessions for Hong Kong and Macao residents coming to Shenzhen (Article 16); Further promote social security cooperation between Shenzhen, Hong Kong and Macao (Article 17). Besides, Hong Kong and Macao […]
Employment and Entrepreneurship Subsidies in Hengqin
Employment and Entrepreneurship Subsidies in Hengqin The Management Authority of Heqing New Area of Zhuhai, China issued the Subsidy Measures for Employment and Entrepreneurship of Hong Kong and Macao Residents in Hengqin New Area (hereinafter referred to as the Subsidy Measures) on 22 November 2020, which shall be implemented from the date of issuance to 31 December 2022. The main contents of the Subsidy Measures are as follows: Social Insurance Subsidies for Employers to Recruit Hong Kong and Macao Residents For enterprises (except government institutions and labour dispatch units) registered in Hengqin New Area and Hongwan Area with real offices in the region, recruit Hong Kong and Macao residents, sign labour contracts with a term of more than one year, and pay social insurance premiums in accordance with laws and regulations, full subsidy will be given according to the contributions of basic pension, medical (maternity), unemployment and […]
Singapore Goods and Services Tax Guide
Singapore Goods and Services Tax Guide Goods and Services Tax (GST) is similar to Valued Added Tax (VAT) in other countries and is a relatively new form of tax in Singapore. GST was implemented on 1st April 1994 in Singapore. The Singapore GST Act is modelled on the UK VAT legislation and New Zealand GST legislation. The Inland Revenue Authority of Singapore (IRAS) acts as the agent of the Singapore government and administers, assesses, collects and enforces payment of GST. The purpose of introducing GST to Singapore is to maintain a stable tax base while reducing personal and corporate income tax. GST is an indirect tax, expressed as a percentage (currently 7%) applied to the selling price of goods and services provided by GST registered business entities in Singapore. This guideline provides an overview of the key concepts of Singapore’s GST system: definition of GST, registration requirements, […]
Remote Seller in U.S.: Economic Nexus
Remote Seller in U.S.: Economic Nexus Physical presence (employee, warehouse) was previously the only consideration where sales tax nexus is concerned. Over the past several years, many states have enacted economic nexus laws that require remote sellers to collect and remit sales tax if they exceed certain thresholds even if they do not have the physical presence in the state. The below chart provides you a summary of the economic nexus thresholds for some states as of November 10, 2020. For more states data and details, please consult with our consultants. State Nexus Effective Date Remote Seller Threshold Alabama 10/1/2018 Sales of TPP of more than $250,000 in prior calendar year; No transaction threshold Arizona 10/1/2019 Annual gross retail sales or income from online sales into Arizona is more than $200,000 in 2019, $150,000 in 2020 and $100,000 in 2021 and thereafter. California 4/1/2019 The total combined […]
Introduction to Macau Corporate Income Tax
Introduction to Macau Corporate Income Tax Carrying out commercial or industrial activities in Macau comes with certain tax obligations. The major obligations affecting all businesses in Macau are the industrial tax and profits tax. However, in recent years, industrial taxes have been exempted by the Macau Government and the profits tax threshold has also been increased in 2018. As such, Macau is one the region with the lowest corporate tax liability in Asia. Complementary tax is imposed on the worldwide income earned by Macau-registered entities, irrespective of where their residence or headquarters are situated and irrespective of the nature of the income (except rental income). In the case where a foreign entity is engaged in commercial/industrial activities and/or rendering services in Macau, the resultant gain from such commercial/industrial activities and/or services rendered will be subject to complementary tax. Other than income from ordinary course of business, capital […]