Viewpoints
2020-04-22
Guide to Taiwan Profit-Seeking Enterprise Income Tax Introduction The Profit-seeking Enterprise Income Tax is the income tax levied by the Taiwan government on the surplus of Taiwan’s profit-seeking enterprise, and the nature of it is similar to Enterprise Income Tax in China. The taxpayers includes corporate legal persons, and sole proprietorship, partnership, company (including a Taiwan branch of a foreign company), and any other form of organization that operates for profit-seeking purposes through a fixed place of business, regardless of whether the enterprise is owned by the government, private sector, or jointly by the government and the private sector. The taxable income of profit-seeking enterprise is the net income after deducting various expenditures, losses and taxes from their total income. Tax Base and Tax Rate A profit-seeking enterprise in the form of a sole proprietorship, partnership, or company (including a subsidiary that is wholly owned by […]
2020-04-22
Guide to Taiwan Business Tax Introduction Taiwan implemented the business tax, which levied on value added in 1986. The scope of taxation includes the sales of goods, services and import of goods. The tax base is the balance of its total revenue minus capital equipment and non-capital expenditures in every month or every two months. Business tax rate divided into two types, the general tax calculation business entities and special tax calculation business entities. The former refers to the business entities who are taxed on value added tax, and the latter refers to the business entities who are taxed on the total amount of revenue. Scope of Taxation Pursuant to the Value-added and Non-value-added Business Tax Act (Business Tax Act or BTA), the sale of goods and the provision of services in Taiwan, as well as the import of goods into Taiwan, are subjected to business tax. […]
2020-04-22
Comparison of Major Taxes in Taiwan and Mainland China No. Taiwan Mainland 1 Profit-seeking Enterprise Income Tax: § Basic tax rate is 20% § The tax rate is 12% after the implementation of Income Basic Tax Act (thereafter [Alternative Minimum Tax]). § For a profit-seeking enterprise with independent legal personality, while the current year’s surplus is not distributed in the following year, an additional 5% profit-seeking enterprise income tax is required § Loss carrying forward period is 10 years Enterprise Income Tax § Basic tax rate is 25% § Preferential tax rate for high-tech enterprises: 15% § Preferential tax rate for small low-profit enterprises: 10%, 5% § No tax regulations for undistributed surplus § Loss carrying forward period is 10 years 2 Value-added and Non-value-added Business Tax: Scope of Taxation: § In /into Taiwan – Sales of goods – Sales of services, including sales of [electricity labor] – Import of […]
2020-04-16
Introduction to Individual Income Tax in Singapore Singapore has one of the lowest tax rates in the developed countries and is considered as “a global legal tax haven”. Singapore’s low tax rate, and its favourable tax policies, stable living environment have made the Singapore business environment even more attractive to global investors. The highest corporate income tax rate in Singapore is 17%, the highest Individual Income Tax rate is 22%, and there are no capital gains or inheritance taxes. This article will give a brief introduction to the tax principles, tax rates, the definition of tax resident and the filing requirements of Individual Income Tax in Singapore, and will be provided as a reference for Kaizen’s clients who are considering investment and immigration to Singapore. In revising this article, we have taken into account the laws and regulations in force as of 28 February 2020 and the relevant policies […]
2020-04-15
Notice of Singapore Tax and Annual Return Filing Extension As part of its support to taxpayers in light of the latest measures to manage the COVID-19 situation, the Inland Revenue Authority of Singapore (IRAS) and Accounting and Corporate Regulatory Authority (ACRA) announced the automatic extension of deadlines for tax filing for individuals and businesses as well as filing annual returns. Q: What is the extended filing due date for individual income tax? A: Income tax for Individuals (including sole proprietors and partnerships) were originally due on 18 Apr 2020 has been extended to 31 May 2020. This is an automatic extension no application is required. Q: Is there any extension for filing of Estimated Chargeable Income (ECI)? A: Since the ECI filing deadline is 3 months after the financial year end, the extension of filing of ECI will only granted to the companies with Financial Year […]
2020-04-15
Vietnam Company Annual Compliance Requirements and Fees This guide provides a summary of the various maintenance and compliance requirements for the Vietnam Company that incorporated in accordance with the Vietnam Investment Law 2014 and an estimation of the costs likely to be incurred to comply with those requirements. Section 1 is about the preparation of the monthly financial statement of the Vietnam Company. Every Vietnam Company is required to prepare a financial statement every month and submit the financial statement to the Department of Taxation in Vietnam. Section 2 and Section 3 describes the information of Corporate Income Tax (CIT) and Value-Added Tax (VAT) of the Vietnam Company. Section 4 of this guide states the requirement of the Annual Audit for the Vietnam Company. Section 5 states the requirements to employ employees in Vietnam, including the introduction of social insurance, medical insurance, unemployment insurance, etc. Section 6 lists out […]
2020-03-12
General Guide to Director’s Liability in Australia When a director breaches a duty in Australia, the consequences depend on whether it is a general law duty or a statutory duty that is breached, and also what sort of remedy is being sought. A breach of a statutory duty may be so serious that a civil or even criminal penalty is imposed on the director. Summary 1. Business Judgement Rule Defence The narrow business judgment rule defence applies not only to the obligation to act cautiously, but also to the satisfaction of similar obligation in common law and in equity. The business judgment rule relates to a decision making, not only for an unintentional inaction. Therefore, the directors will need to make or avoid from making a decision. If they refrain from making a decision, that must be a considered action. The fact that all the criteria for the defence are […]
2020-03-12
Vietnam Company Registration Procedures and Fees Unless otherwise indicated, the Vietnam Company stated in this quotation refers to a Trading (Wholesale) Company formed and incorporated in Ho Chi Minh City or Hanoi City in accordance with the Law On Investment in Vietnam. Summary Our fees for the establishment of a Trading (wholesale) company in Vietnam Ho Chi Minh City or Hanoi City is USD 8,500. The fees quoted included Kaizen service fees, Vietnam registered address for one year, the local agent service fee for one year and the official registration fee. In short, this quotation included all the costs necessary to set up a company in Vietnam. For details, please refer to Section 1 of this quotation. For the incorporation of a Vietnam Company, client shall provide the identification documents and address proof of each shareholder and director, the proposed registered capital, the capital allocation of shareholders (if more than […]
2020-03-02
February 2020 Singapore Tax Singapore Budget 2020 The Singapore Budget is the country’s fiscal plan for the current financial year that is planned with Singapore’s current and future needs in mind. With the COVID-19 outbreak at a time of an uncertain economic outlook, 2020 has already seen its fair share of challenges. Deputy Prime Minister and Minister for Finance, Mr Heng Swee Keat, delivered his Budget 2020 speech on 18 Feb 2020. This year’s budget most commendable aspect is its focus beyond the immediate and medium-term, by continuing to catalyse enterprise transformation for the long-term, to help enterprises re-orientate their business models and operations. This article will provide you with the key measures on business tax, personal income tax, indirect tax, and others. I. CORPORATE INCOME Tax 1. Corporate income tax rate and rebate The corporate income tax will remain at 17% and no changes to the partial […]