Viewpoints
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 […]
2020-02-27
26 February 2020 Hong Kong Business Summary of Hong Kong SAR Budget for 2020/21 Financial Secretary Paul Chan Mo-po announced the 2020/21 Hong Kong Budget on 26 February 2020. Hong Kong’s economy has seen negative growth since the second half of 2019 due to the double whammy of the extradition bill crisis and an outbreak of the novel coronavirus disease. Therefore, Hong Kong Government will implement new relief measures to respond the public concern, including cash payout. In view of the negative growth in 2019, Hong Kong Government will implement counter-cyclical measures, with the objective of “supporting enterprises, safeguarding jobs, stimulating the economy and relieving people’s burden”, so as to help Hong Kong tide over the difficulties. The major proposals with respect to tax for individual and business are summarized as below: Economic Situation in 2019 1. Total exports of goods fell by 4.7 per cent in real terms for […]
2020-02-27
February 26, 2020 Hong Kong Business Hong Kong Plans to Waive Annual Return Registration Fee for Two Years Financial Secretary of the Hong Kong Special Administrative Region, Mr. Paul Chan Mo-po proposed to waive the registration fee for all annual returns (except for late delivery) for two years. Currently, the budget is under the scrutiny by the Legislative Council, but it is expected to be approved. For every limited company registered in the Hong Kong Companies Registry, including local company and non-Hong Kong company, it requires to file an annual return to the Hong Kong Companies Registry within 42 days after the company’s return date. If the budget is approved, the registration fee for annual return shall be： Registration Fee of Annual Returns for Local Private Companies Having a Share Capital (Form NAR1) If delivered HKD within 42 days after the company’s return date@ Waive^ more than 42 days after […]
2020-02-27
Hong Kong Taxation The HKSAR Government Proposes to Reduce the Profits Tax for the Year of Assessment 2019/20 On 26 February 2020, the Financial Secretary of Hong Kong, Mr. Paul Chan Mo-po, delivered 2020/2021 Budget. He proposed a one-off reduction of profits tax for the year of assessment 2019/20 by 100%, subject to a ceiling of HK$20,000 per case. This concessionary measure is applicable for the profits tax for the year of assessment 2019/20, that is, for the accounting year ended within the period from 1 April 2019 to 31 March 2020. No additional application for this proposed concessionary measure is required. Taxpayers should file their profits tax returns as usual. Although this proposed concessionary measure is subject to review and approval by the Legislative Council of Hong Kong, it will generally be adopted based on experience. 1. Hong Kong’s Tax System Hong Kong adopts a territorial source principle of […]
2020-02-24
February 23, 2020 China Taxation Analysis of Preferential Policies for Shenzhen Enterprises during the Epidemic Updated to February 2020 Since the outbreak of the “Novel Coronavirus Pneumonia” (hereinafter referred to as NCP) in China, the central and local governments have issued a series of policies aimed at easing the difficulties and burdens of enterprises. For the preferential policies generally enjoyed by small and medium-sized enterprises in Shenzhen, Kaizen sorted out the important contents that enterprises should pay attention to and deal with promptly in the near future and hereby listed below for your reference. I. Reduction or Exemption of Property Rent Non-state-owned enterprises, scientific research institutions, medical institutions and individual industrial and commercial households that lease the properties (including factory buildings, innovation industrial buildings, office buildings, agricultural products wholesale markets, commercial shops, storage and logistics facilities and supporting service buildings) owned by municipal and district governments and district-owned, stated-owned enterprises […]
2020-01-13
Comparison of Taiwan Branch and Subsidiary When a foreign company decides to set up an operation in Taiwan to carry out business activities, it could choose either a limited liability company (or a company limited by shares) or a branch office. A limited liability company is a separate legal entity independent from its parent company, whereas a branch office is merely an extension of the operation of the head office. This article introduces briefly the difference between a limited liability company and a branch office in Taiwan. 1. Definition and Main Differences Between a Branch and a Subsidiary A subsidiary is incorporated pursuant to the Company Act and is an independent legal entity. A subsidiary can be listed in the stock market and is entitled to various tax incentives. When a subsidiary distributes dividends to its foreign shareholders, it is subject to 20% withholding tax. A branch is also incorporated […]
2020-01-10
China Taxation Guidance on Annual Individual Income Tax Declaration for Fiscal Year of 2019 in China
December 2019 China Taxation Guidance on Annual Individual Income Tax Declaration for Fiscal Year of 2019 in China On December 31, 2019 China’s State Administration of Taxation issued the “Announcement of Annual Individual Income Tax Declaration for Comprehensive Individual Income for fiscal year of 2019”, which provides detailed guidance for handling the annual individual income tax declaration for fiscal year of 2019. We have sorted out the main content of this announcement as following for your reference. In accordance with the provisions of the Individual Income Tax Law, by the end of fiscal year of 2019, individual residents need to aggregate four types of income, including “Wages and Salaries”, “Labor Remuneration”, “Author’s Remuneration”, and “Royalties” (hereinafter refer to as “Comprehensive Income”), and deduct RMB60,000 expense, special deductions, special additional deductions and other deductions determined by the laws for the period of 01.01.2019 – 31.12.2019; then multiply with the applicable tax […]
2019-12-11
With two offshore company types available in Seychelles, this is a very important question. Here are some general considerations. By no means they represent the final and absolute recommendation but may prove useful as a general guideline. Special License Company (CSL) The CSL would be the preferred choice for clients planning business transactions with counterparties who are located in high-tax countries with an intrusive regulatory environment. In such countries, fiscal countermeasures are possible against the traditional zero-tax companies (IBCs), but are less likely against low-tax companies (CSLs). On the same note, if the business circumstances require proving that the company is actually a taxpayer in its country of registration, only a Special License Company would satisfy this condition. The CSL is also the right vehicle if clients expect to utilize the benefits of the double-tax avoidance treaties, concluded by Seychelles. In perspective, a CSL is the appropriate choice when it`s […]