Viewpoints
2020-12-01
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, […]
2020-12-01
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 […]
2020-12-01
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 […]
2020-12-01
Guide to Relocating/Settling Down in Singapore Singapore is considered by many investor/business owner as the gateway to ASEAN by having one of the lowest corporate tax rates and the government business-friendly policies make its easy for foreign companies to relocate or set up their office in Singapore. A number of famous entrepreneurs (UK billionaire James Dyson and the owner of Haidilao Hot Pot Zhang Yong) had relocate their headquarter/office to Singapore in order to take advantage of the great number of business opportunities and benefits is offers. This article will give you an overview on the reason to relocation to Singapore, the procedure as well as how to settle down in Singapore. The Advantages of Singapore (1) 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 […]
2020-11-30
Introduction to Air Travel Bubble Singapore-Hong Kong Singapore and Hong Kong have reached an in-principle agreement to establish a two-way Air Travel Bubble (“ATB”). This will allow travel between both cities without quarantine. The ATB is a milestone arrangement between two aviation hubs and seeks to revive air travel in a safe and progressive way. Eligibility Criteria for ATB (1) Flying from Singapore You are eligible to fly from Singapore to Hong Kong under the ATB arrangement if you: (a) have stayed in Singapore and/or Hong Kong at least 14 consecutive days before departure. (b) fly direct on a designated ATB flight. (c) are not a Work Permit or S Pass holder working in construction, marine shipyard or process sectors. (d) test negative for Covid-19 within 72 hours before your flights and upon your arrival at Hong Kong International Airport. You will […]
2020-11-26
U.S. Individual Tax-Itemized Deduction or Standard Deduction? There are two ways you can take deductions on your federal income tax return: you can itemize deductions or use the standard deduction. Deductions reduce the amount of your taxable income. You should choose the deduction method, which is the most tax advantageous to you. The standard deduction amount varies depending on your income, age, whether or not you are blind, and filing status and changes each year. For 2020, the standard deduction for married filing jointly is $24,800. For single taxpayers and married individuals filing separately, the standard deduction is $12,400, and for heads of households, the standard deduction will be $18,650 for tax year 2020. Please note that certain taxpayers cannot use the standard deduction: A married individual filing as married filing separately whose spouse itemizes deductions. An individual who files a tax return for a period […]
2020-11-26
Tips When You Hire Employees in U.S. As a business owner, you must obtain the following information when you hire employees: Eligibility to Work in the United States You must use Form I-9 to verify the identity and employment authorization of individuals hired for employment in the United States. Both employees and employers (or authorized representatives of the employer) must complete the form. Employee’s Social Security Number You are required to get each employee’s name and Social Security Number (SSN) and to enter them on Form W-2. You should ask your employee to show you his or her social security card and record the information. Please note that an individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN. Employee’s Withholding You should have a Form W-4, Employee’s Withholding Certificate, on file for each […]
2020-11-26
Social Security Collected by Tax Bureau in Shanghai In 2018, “Plan for the reform of the state and local tax collection and administration systems” issued by General Office of the China Central Committee and General Office of the State Council has clearly proposed the scheme that the social security will be collected by tax bureau. Now, the contribution of social security for the company and the flexible employment will start to be collected by tax bureau from November 1st, 2020. For more information, please refer to “The notice of social security collected by Tax Bureau” issued on October 30th, 2020. The scope of contribution for social security could refer to the following chart: Category Social security Company Pension insurance, medical insurance (include maternity insurance), occupational injury insurance and unemployment insurance Flexible Employment (Including self-employed businesses without employees, part-time employees who are not participating in basic pension insurance […]
2020-11-26
Restrictions on Labour Dispatch in China The term labour dispatch refers to the practice of hiring employees through a labour dispatch service agency, as opposed to direct employment. There is a triangular relationship among the labour dispatch agency, the actual employer and the dispatched employees, where the actual employer enters into a labour dispatch service contract with a labour dispatch service agency and the agency enters into a labour contract with the employee and then dispatches the employee to work for the actual employer. As a tool for flexible headcount, labour dispatch used to be a mainstream employment arrangement in China. However, in practice, the abuse of labour dispatch arrangements has damaged the legitimate rights of the dispatched employees. In order to regulate the use of labour dispatch arrangements and offer better protection to dispatched employees, China has issued a serial of new regulations on labour dispatch. The […]
2020-11-26
New Business Registration Rules to be Implemented in Shenzhen China On 5 November 2020, the Standing Committee of Shenzhen Municipal People’s Congress officially issued the revised Business Registration Rules in Shenzhen Special Economic Zone (hereinafter referred to as the Rules). The revised Rules will come into force on 1 March 2021. The major changes in this revision are as follows: Strike Off System According to Article 27 of the new Rules, if a commercial entity is listed in the abnormal operation list or marked as abnormal operation status for two years due to failure to get in touch through its registered address or business place, and no tax declaration in recent two years, the business registration authority may make a decision to strike off its name from the register. When the name of a commercial entity has been stroked off, it is also required to complete […]