Season's greetings!

Getting updated on terminations at our HR knowledge clinic

Last week, Wolters Kluwer Singapore ran one of our knowledge clinics in Singapore, in the area of human resources, focusing specifically on terminations. We invited our Asia Pacific Employment Law Online subscribers to join us for the session, titled Managing Terminations of Employment in Asia.

Our speaker for the day was Fatim Jumabhoy from Herbert Smith Freehills. Her expertise and wealth of experience was evident throughout, not to mention her exceptional delivery of information.

She went through the legal requirements for disciplinary and dismissal handling when terminating employees across Asia, looking specifically at Singapore, Hong Kong, Malaysia, Indonesia, Japan and Korea. She also highlighted particular areas of concern that our attendees needed to be aware of, as well as discussing such topics as notice periods and severance payments.

“Akaun Emas”- A second retirement “nest egg” unveiled

Effective 1 January 2017, a new account called Akaun Emas (Gold Account) will be launched by Employees Provident Fund (EPF) for members working beyond the age of 55 following a consultation held with stakeholders.

Results from Members’ Consultation showed that 91,047 members had opted for an option to retain the full withdrawal age of 55 and to lock in new contributions until the age of 60. Akaun Emas was introduced in tandem with the increase of compulsory retirement age announced by the government from age 55 to age 60. Moreover, response from Members’ Consultation would have also been considered for the creation of this new account.

A Practical Guide to Financial Reporting Standards, Singapore (6th Edition) launching soon!

The long anticipated 6th edition of the WK A Practical Guide to Financial Reporting Standards, Singapore will be available for purchase on 13 December 2016!

A Practical Guide to Financial Reporting Standards, Singapore is a comprehensive guide to accounting standards in Singapore.

This 6th Edition covers all the Financial Reporting Standards (FRSs) and Interpretations of Financial Reporting Standards (INT FRS) issued by the Accounting Standards Council that are effective as at 1 January 2017. Also included are the three major FRSs that are effective on:

"A Practical Guide to Company Secretarial Obligations in Singapore" out soon!

That's right, A Practical Guide to Company Secretarial Obligations in Singapore will be out soon, and you can make a pre-order now! The book provides a clear and concise explanation of the laws and issues affecting corporate secretarial practice. 

This book will be a great help to both new company secretaries as well as senior company secretaries and those in a compliance role to understand and apply the requirements of a company and securities laws in fulfilling their obligations to their company and its offices. 

Hong Kong's Public Consultation on BEPS Implementation

A public consultation on the implementation of base erosion and profit shifting (BEPS) measures proposed by the OECD was launched by the Hong Kong government on 26 October 2016. 

The top priority in the package put forward by the OECD is to monitor the implementation of four minimum standards: countering harmful tax practices, preventing treaty abuse, imposing country-by-country (CbC) reporting requirements, and improving the cross-border dispute resolution regime.

Our buzzing SOY Books Promotion

If you haven't heard of our 2017 SOY Books Promotion yet, well don't worry, you still have time. We started on the 17th of October 2016 and we've been motoring along nicely. But what's SOY, you ask? Right, let me give you a bit of background.

SOY stands for start of year. In this instance, our campaign involves Wolters Kluwer books that are expected to be out in the first quarter of 2017. Well, for the first time, we're giving you a chance to pre-order these books early, rather than wait for 2017 to send in your order! AND, since we believe that the end of the year should have a feel good touch to it, we'll throw in a couple of extras! Interested? Read on!

BR1M: Friend or foe?

Ever since the launch of 1Malaysia People’s Aid (BR1M) in 2012, its allocation has expanded from RM2.6b (2012) to RM5.9b (2016). It began as a single payment of RM500 and RM250 to eligible households and single individuals respectively. 2016 sees the government doling out amounts of RM1,050, RM1,000, RM800 and RM400 to different categories of eligible recipients.

The need for BR1M cannot be denied. It targets households that earn less than RM4,000 per month and singe individuals that earn less than RM2,000 per month. Increased costs of living have left the M40 group feeling the pinch, what more of those in the B40 group? However, these cash payments can only go so far by making the recipients feel slightly less poorer for a few weeks at a stretch. It temporarily alleviates the symptoms but it does not address the root cause of the existence of the B40 group and people remaining in there.

Why do people still remain in poverty?

BEPS: Multinationals must be ready

Transfer pricing has always been an avenue used by many multinationals to reduce their tax liabilities, albeit in a legal manner. Different jurisdictions have differing tax regimes and frameworks. Large companies can do a massive amount of business throughout the world, but, thanks to some smart profit-shifting arrangements, end up booking most of the profits in jurisdictions with minimal tax.

The speedy growth of e-commerce and the digital economy has made it easier for companies to grow beyond their traditional boundaries, and the need for governments to clamp down on loopholes in the international tax system has never been more apparent.

It is pretty much an accepted fact that most of the existing tax rules were designed in an era where there was very little economic integration between countries, and with a high reliance on physical property, plant and equipment. To keep in pace with the current era, tax rules must change and jurisdictions across the world must collaborate and work together,

Are you maximising the use of your Intelliconnect resources?

While we at Wolters Kluwer are obviously happy when you agree to purchase one of our high quality online subscriptions (whether it's for tax, GST, accounting or human resources), we would be even more happier if you make full use of all the features that we've developed to help you in your work!

As such, I'd just like to take a short while to remind you of a few of the many features that Intelliconnect has which you should take full advantage of:

Draft law on national SME development

The National Small and Medium Enterprise (SME) Bill 2016 is being drafted to support SMEs and is aimed at strengthening the country's SME development in line with Prime Minister Datuk Seri Najib Tun Razak's wish of empowering SMEs.

The Bill highlights the function of the National SME Development Council in terms of assisting the government to develop the sector and matters related to special SME funds, as well as funds that had been announced.

The Wolters Kluwer Budget Conference... an experience in itself!

The Budget 2017 announcement is less than one month away, and Wolters Kluwer is on the ball. This year, we're pulling out all the stops to ensure you get the most out of our annual Budget Conference.

Wolters Kluwer has gathered together prominent figures from all the major international professional firms, key government officials and representatives from the corporate world. They'll cover everything from the Budget 2017 highlights, the latest developments on BEPS and transfer pricing, tax issues and strategies, GST insights and developments, as well as planning and takeaways for businesses as we look to 2017 and beyond.

Make sure you reserve your spot quickly!

What else do we have in store? Well, once the Budget has been announced, we're opening the floor for all of you to ask us related questions through our Facebook page. If there's anything you would like us to discuss, anything that you feel needs to be given more emphasis, let us know and we'll let our expert panelists address them. We're not going to presume to know what you consider important. if there's any Budget-related issue that's critical for you, tell us!

Aside from what you'll hear at the conference, we also plan to compile electronically a collection of Thought-Leadership articles on Budget 2017, articles written by our respected speakers and authors for you to digest and think about.

Last year's edition of the ever popular Budget Booklet. Get a
complimentary copy of the 2017 edition at our Budget Conference!

Finally, to round it all up, those of us who join us for the conference will also receive a free entry to an exclusive half-day Tax Forum on tax saving tips for 2017! Yes, this is a complimentary seminar which acts as a follow up to the Budget Conference, leaning towards the practical aspects of tax planning.

Value enough for you? I'll just say this: if there's one Budget Conference you plan to be going to this year, it should be this one.

Our excellent team will be around to help you with everything you might need.

The Wolters Kluwer Budget Conference 2017. An experience in itself.

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Sign up here or through our regular and enjoy a 10% off if you register by 31 October 2016! From there, you'll also be able to download the brochure to find out all you need to know.

See you there!

Malaysia Budget 2017: Where do we stand

The Malaysia Budget 2017 announcement is now less than one month away. Feedback from institutions as well as the general public have been pouring in since the second quarter of the year. The official public submissions deadline for Budget 2017 through the official website bajet2017.najibrazak.com ended on the 21^st of September 2016, just two days ago. Credit to the public for making use of this opportunity and it’s encouraging to see more views and opinions to help the Government in the Budget 2017 preparation.

Looking at the submissions, some of the most popular comments from the public included calls for contract staff in the civil service to be absorbed and given permanent employment. Those include officers who are part of the price watch team, employed to monitor businesses for excessive pricing, which has seen significant activity with the implementation of the goods and services tax (GST). Although some of the comments appear to have been copied and pasted, there appears to be plenty of support by the public. According to one of the correspondents, there are about 1,300 of these officers at this point in time.

Meeting your CPE requirements in Singapore

As we approach the last quarter of the year, most of you professionals out there will be checking to make sure you are on track to satisfy all your professional requirements for the year or three-year period. We hope that you haven't waited too long though to start tracking your CPE hours. If you suddenly find you are still a long way towards fulfilling those requirements, the end of the year could start looking very near indeed!

Each of you would belong to a different association, and each association would have different requirements. It could get quite tricky, so here's a summary (click to enlarge):

Merdeka spirit, where art thou?

Source: https://en.wikipedia.org/wiki/Coat_of_arms_of_Malaysia

So, it has come to this.

Independence day is almost upon us (those of you working in the heart of the city can definitely concur – the road closures, random traffic holdups for the raptai, the aeroacoustics of whooshing jets) and yet, there seems to be a pervasive apathy towards the anniversary of our independence.

You may say that I am sorely mistaken – that I am filled with pessimism and there is an air of festivity.  

Eh, Merdeka sales damn good la! 59% off, okay? Damn cheap, you know.

What are you doing on Merdeka day? I’ll be nursing a mid-week hangover after attending the Merdeka party.

Have you not seen the Merdeka ads? It was so touching.

Introducing your new CCH IntelliConnect Browser Search

Dear valued subscriber,

You have told us that you want our content delivered seamlessly, and integrated with your preferred search engines.

We value your feedback greatly and we are delighted to tell you about an innovative new addition to your CCH IntelliConnect platform.

CCH IntelliConnect Browser Search is a complimentary browser add-on that displays results from your CCH IntelliConnect subscriptions when you search relevant keywords using your usual search engines, Google®, Yahoo!® or Bing®.

Watch our video to find out more!

Research Transformed - Cut the time you spend on research

CCH IntelliConnect Browser Search is available for download now and is complimentary for you.

We have had very positive feedback about the add-on from our clients in the United States and are excited to now introduce this brilliant feature across the Asia Pacific.

DOWNLOAD NOW

If you have any questions or require support in downloading and installing CCH IntelliConnect Browser Search, please get in touch with your local team.

	Singapore	Malaysia
Phone	800 6162 161	1800 181 151
Email	support@cch.com.sg	support@cch.com.my
Training	mktg@cch.com.sg	mktg@cch.com.my
Website	wolterskluwer.com.sg	wolterskluwer.com.my

Best Regards,
The Wolters Kluwer Team

Scenes from the launch of the GST Consumer Business module

It was a buzzing morning yesterday at Concorde Hotel as our guests turned up for the launch of the latest addition to our GST Knowledge Centre, the GST Consumer Business module, Our authors from Deloitte were on hand for an interesting knowledge sharing session, providing fresh insights into GST issues involving the consumer business sector.

Various issues were covered relating to the industry, from challenges arising from recent law changes, differentiating between goods and services, the direct selling industry,  internet business, and even virtual currency, a topic not really covered in the official RMCD Guides.

Remembering S R Nathan

https://www.remembering.sg/srnathan
https://www.facebook.com/RememberingSRNathan/

Gold, Silver, Bronze and Taxes

On 13 August 2016, 21-year-old Joseph Isaac Schooling, a third-generation Singaporean, made history by winning Singapore's very first Olympic gold medal in the men’s 100m butterfly event.

For his historic victory, Joseph will be rewarded with a prize money of S$1m.

The Multi-Million Dollar Award Programme (MAP), administered by the Singapore National Olympic Council, provides a cash payout to athletes who win medals at the Olympic, Asian, Commonwealth and South East Asian Games.

The largest gold medal award is S$1m, payable to the athlete who claims an individual gold medal at the Olympic Games. Under the MAP, it is mandatory for all athletes to plough back 20% of their awards for the Olympic Games to their National Sports Association, for future training and development. All awards are taxable.

Taxing of digital businesses

In the recently concluded National Tax Conference (NTC) 2016, the subject of taxing of online or digital businesses was among the topics highlighted and given emphasis. In the keynote address at the NTC 2016, the Second Finance Minister said that the Government had formed a team to study the development of taxing on the digital economy.

With more businesses going digital, there is a need to look into the tax framework to address the taxing of online business as a new source of revenue and to create a level playing field between online and non-online business. It is understood that the Inland Revenue Board (IRB) is monitoring the development of digital business and studying these business activities to have them under the tax net.

Guide on GST compliant accounting software finally gets a revision

Editor's Note: As of 29th of August 2016, this guide has been removed from the RMCD website, with a note indicating that a revised edition based on the previous guide will be issued in the near future. As such, the information in this blog post is no longer relevant, and has been retained for historical purposes only.
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When implementing GST, the accounting software you use can really be the determinant as to how smooth the process will be. And where Malaysia is concerned, right now, it has to be flexible enough to be able to adapt to ever changing circumstances.

Prior to GST being effective, the Royal Malaysian Customs Department (RMCD) had issued Guide to Enhance Your Accounting Software to be GST Compliant.  Let's face it though, there were still a lot of gray areas that weren't addressed and as such, companies had to make some tough calls more often than not, praying they would not come afoul of RMCD's interpretation of the law.

On the 20th of July 2016, the RMCD finally issued a revised edition, almost two years after the original came out. This was quickly followed by another revision on the 1st of August 2016. Let's take a quick look at some of the changes.

More hope for retrenched professionals, managers and executives (PMEs)

The Career Activation Programme, a community based peer-to-peer programme which was initiated by NTUC's PME division and social enterprise GioCareers will be enhanced to provide more comprehensive assistance for the laid-off PMEs aged 40 and above as they face the most difficulty in finding jobs. The Ministry of Manpower’s Labour Market Report revealed that PMEs constituted 65% of the overall redundancies in the first quarter of 2016.

Since the launch of the programme in July 2015, it has reached out to 98 mature PMEs over 10 sessions and managed to help 22 mature PMEs return to the workforce with a team of 30 career activists.

Revenue Recognition - Preparing for IFRS 15

Less than one and a half years from today, on 1 January 2018, the new IFRS 15 Revenue from Contracts with Customers will come into effect in both Malaysia and Singapore as MFRS 15 and FRS 115 respectively. It may seem quite far away, yet the stark reality is that all companies will need to begin implementation work now.  By starting early, companies will have a higher chance of avoiding costly errors and delays caused by haphazard last-minute implementation.

For most entities, IFRS 15 will impact the measurement, recognition and disclosure of revenue — one of the most important financial performance indicators used by investors and analysts. It is imperative that an entity can transition successfully and as smoothly as possible to the new standard. Early communication to stakeholders and advanced planning will be critical to avoid uncertainty.

Predictive Intelligence - A New Era

In today's business environment of intense competition, every professional accounting firm is always angling for an advantage over rival firms. If you're one of the top personnel of such a firm, that means you're always on the lookout for new business opportunities.

For every external event that pops up, whether it's new tax legislation, new guidelines on financial reporting standards, the results of a court case, or new listed company requirements, you'll want to see how you can make use of these events to find opportunities to serve both existing and potential clients.

Such a process could take ages, because, let's face it, every customer is different. You'd have to go through your client database to determine whether any of them are impacted from these latest developments and decide how best you can help your client. It's a time-consuming task.

Credit: aboutmodafinil.com 

Wouldn't it be great if there was a way that you could simplify that decision-making? Where you could have a system that could match those events to the customers impacted from the events and help narrow down those options?

Costly GST Mistakes that Businesses should Avoid - Part 4 - Services Invoiced to Foreign Customers

This is the final instalment of a 4 part series on GST written by Thenesh Kannaa, Partner of TraTax Malaysia
(Speaker for the upcoming Wolters Kluwer workshop, GST Health Check: Ensure Compliance - Avoid Costly Mistakes held in Kuala Lumpur on the 21st of July 2016)

The previous three instalments can be viewed here:

• Part one: Contractual terms
• Part two: Price displays
• Part three: Property investors

Services invoiced to foreign customers

When a GST-registered business invoices a foreign customer for a service, the structure of the GST Act 2014 suggests that the fee would be subject to GST at the standard rate of 6% unless the criteria to apply the rate of zero is met. There are 27 different provisions pursuant to which a service fee may be zero-rated. One such provision is paragraph 12, Second Schedule, GST (Zero-Rated Supply) Order 2014. Para 12 allows a service fee to be zero-rated where all of the following criteria are met:

4 Costly GST Mistakes that Businesses should Avoid - Part 3 - Property Investors

This is the third of a 4 part series on GST written by Thenesh Kannaa, Partner of TraTax Malaysia
(Speaker for the upcoming Wolters Kluwer workshop, GST Health Check: Ensure Compliance - Avoid Costly Mistakes held in Kuala Lumpur on the 21st of July 2016)

The previous two instalments can be viewed here:

• Part one: Contractual terms
• Part two: Price displays

For our third instalment today, we discuss GST implications with regards to property investors. 

Property Investors

GST applies only when a person makes a taxable supply in the course or furtherance of a business carried on by him. It is vital for property investors to determine whether their property-related activities constitute a business. Often property investors do not occupy premises, employ staff or register themselves with the Companies Commission of Malaysia as carrying on a business. Nevertheless, they may be treated as carrying on a business for the purposes of GST.

4 Costly GST Mistakes that Businesses should Avoid - Part 2

This is the second of a 4 part series on GST written by Thenesh Kannaa, Partner of TraTax Malaysia
(the first part can be accessed here).

(Speaker for the upcoming Wolters Kluwer workshop, GST Health Check: Ensure Compliance - Avoid Costly Mistakes held in Kuala Lumpur on the 21st of July 2016)

For today's Part 2 instalment, we discuss GST implications with regards to contacts. 

Contractual Terms

Where contracts are entered into, GST implications must be taken into account. The primary consideration is who bears the GST. The general principle is that the price agreed is treated as inclusive of GST, unless the contract clearly states otherwise. This principle applies to contracts entered into before 1^st April 2015 as well as those entered into from and after that date.

New Website. Not Just a Makeover.

Our newly redesigned website has a clean uncluttered design, enhanced content and improved search functionality to allow you connect better with us online.
 

Key features of the website include:

• Interactive & Mobile-Friendly – We want to encourage more use of the online platform to deliver efficient, friendly and responsive service to you. With our interactive website you can reach us and access information and services easily and quickly on any mobile device.
• Integrated – From software solutions to online subscription services to authoritative and accurate content, you will find it a breeze to browse through our offerings and what you need.
• User-Friendly eStore – We present a new online store so that you can purchase books, ebooks and make bookings for our popular seminars and workshops easily.

Visit us at:
Malaysia l  www.wolterskluwer.com.my    
Singapore  l  www.wolterskluwer.com.sg

Selamat Hari Raya Aidilfitri to all our friends and customers!

Tax moods: Now you see me, now you don’t

Singapore has recently announced that it will be joining the inclusive framework for the global implementation of the Base Erosion and Profit-Shifting (BEPS) Project. The general idea behind BEPS is to shift profits away from high-tax jurisdictions to low-tax jurisdictions using mechanisms such as hybrid mismatches, special purpose entities (SPE), and transfer pricing. As such, the key principle underlying the BEPS Project is that profits should be taxed where the real economic activities generating the profits are performed and where value is created.

4 Costly GST Mistakes that Businesses should Avoid

This is the first of a 4 part series on GST written by Thenesh Kannaa, Partner of TraTax Malaysia

(Speaker for the upcoming Wolters Kluwer workshop, GST Health Check: Ensure Compliance - Avoid Costly Mistakes held in Kuala Lumpur on the 21st of July 2016)

Despite the Royal Malaysian Customs (RMC) conducting many hand-holding programs and issuing many guidelines, including numerous industry guides, mistakes continue to be made by businesses with regards to GST. The purpose of this series of articles is to highlight four of the costly GST mistakes that both SMEs and larger businesses can and should avoid. Today's instalment highlights the aspect of price display.

Display of prices including GST

It is a statutory requirement that if a GST-registered business displays, advertises, publishes or quotes the price of any goods or services that it offers for sale, such prices must be GST-inclusive unless the RMC has approved otherwise. The intention of the law is to ensure that customers pay no more than the price they see. 

Launch of Malaysia GST – Manufacturing

The Wolters Kluwer Industry Specific Modules for the Malaysia GST Reporter was launched on 23 June 2016 during the “GST Professional Series” event held at the Concorde Hotel, Kuala Lumpur. The industry specific modules are an extension of the Malaysia GST Reporter.

The first industry to kick-start the launch of the modules is the manufacturing sector authored by Bernard Yap and Dave Ananth of Ernst & Young Tax Consultants Sdn Bhd. The launch was attended by customers from the manufacturing sector who were given a talk on the potential GST challenges and issues related to the manufacturing sector by Dave Ananth. The GST challenges and issues as well as how to manage and apply the correct treatment are explained in greater detail by the authors in this online publication.

Singapore's internet ban for public officers

Singapore has decided to block internet access from computers used by public officers in an attempt to strengthen cyber security. There are currently 100,000 computers used by public officers and all of them will be affected by the new policy.

To ensure the safety of the Government's IT infrastructure as well as to prevent the spread of all types of malware that might enter the Government's email network, there is a need for strong security interventions. To be clear, the Government clarified that internet terminals will be installed in offices if public officers need to access the web. They can also use their personal devices to connect online.

The Straits Times reported that the announcement has garnered strong reactions from general public, with several describing the move as 'backward' and contradictory of the Smart Nation movement especially considering the fact that Singapore is one of the more wired countries in the world. The policy can be expected to be implemented by May 2017.

Spotlight on - Tan Liong Tong

Those of you in the Malaysian accounting world no doubt know of Professor Tan Liong Tong. Whether it's his reference books or his technical seminars, Professor Tan has dedicated a significant portion of his life to imparting accounting knowledge to students and working professionals alike.

He has been involved in many of our recent accounting-related publications here in Malaysia, and his books are constantly in high demand. Not only does he covers standards as a whole, such as the Malaysian Financial Reporting Standards and the Malaysian Private Entities Reporting Standard, he also zeroes in on specific complex topics such as financial instruments and deferred taxation.


At the same time, he is one of our key speakers for accounting related events, covering many topics from implementing new standards and adapting to the latest changes in existing standards.

Guide to Company Secretarial Practice in Malaysia (3rd Edition) is here!

Guide to Company Secretarial Practice in Malaysia (3rd Edition) is now available for purchase.

This book provides a clear and concise explanation of the legislative framework, compliance requirements and ramifications of company secretarial practice in Malaysia. Particular regard is given to the application procedures and compliance work of a company secretary. Readers will obtain an insight to the provisions of company law in Malaysia and how they are applied in the commercial world.

Singapore Master Tax Guide Handbook 2016/17 (35th Edition) launching soon!

The long anticipated 2016 edition of the WK Singapore Master Tax Guide Handbook will be available for purchase on 27 May 2016!

The WK Singapore Master Tax Guide Handbook is the tax reference book that provides guidance to help its readers understand, apply and comply with today’s complex tax laws and changes.

This book aims to:

• provide accurate and legally sound information on the Singapore income tax regime, as well as examples, in enhancing your understanding on the principles and fundamentals of the Singapore tax system
• fulfil your tax compliance requirements in avoiding penalties and tax risks exposure
• keep you updated on the myriad of changes in tax laws and effectively structure the business to maximise incentive claims and minimise tax liabilities.

Happy Wesak Day!

Additional benefits for parents of new-born babies brings joy

The announcement by the Singapore government to provide additional leave benefits for parents shows the nation’s support for a family and work life balance and is definitely an effort to be applauded.

Senior Minister of State Josephine Teo said that South Korean and Danish employers who are supportive of pro-family policies mentioned that if aspiration of employees to achieve better work-life balance is met, then businesses stand a better chance of obtaining more talented employees and it is beneficial for businesses.

Interested in writing for Wolters Kluwer?

Are you passionate about your work and love what you do, to the extent that you wish to pass on your knowledge to others? Are you interested in writing extensive commentary and discussion on tax, accounting or legal matters, to be read and relied on by thousands in the community?

If you are, why not talk to us at Wolters Kluwer? We are constantly on the lookout for experts who can not only bring depth to our existing content, but also to address other potential areas which our customers are looking for help on. Whether its through our sales personnel, or to our company representatives at our events, let us know! If we can establish a market for your proposed content, we will help to make it happen.

Singapore Tax Workbook 2016/17 (19th Edition) launching soon!

The latest edition of the Wolters Kluwer Singapore Tax Workbook will be available for purchase on 6 May 2016! This year’s edition is out later than usual because of the delay of the 2016 Budget announcement. Thanks to the hard work of the author Professor Sum Yee Loong, technical reviewer Associate Professor Clement Tan Kai Guan and editorial team, we are pleased to announce that the book will be available for purchase just slightly more than a month after the Budget announcement on 24 March 2016.

Replete with the Association of Chartered Certified Accountants’ (ACCA) taxation examination questions and model answers, the Workbook is an indispensable reference for students preparing for taxation examinations.

Are you tax compliant?

In a recent news report, a total of 108 companies in the Klang Valley have been identified for not submitting their tax returns between 2012 and 2014 and these companies will be visited by the Inland Revenue Board (IRB) officers with the purpose of understanding the reason of not submitting the tax returns. According to IRB in these cases, these companies could have either folded or deliberately avoid paying taxes. Tax evaders could face a penalty of up to 300% of what they owed in undisclosed taxes.

Re-employment age of older workers lifted!

A decision has now been taken to increase the age from 65 to 67 years. The change means that older employees up to the age of 67 should be given the option to continue working. The current re-employment age is 65, which was outlined in 2012. The Government first set the goal of raising the re-employment age to 67 in 1993.

Singapore currently has a tight labor market, and many employers are already re-employing older workers for their skills and to mentor younger employees or new recruits. Ahead of the changes, the Government will continue supporting these employers who are already employing workers above 65 and will extend the additional wage offset of 3% till 1 July 2017. Separately, a legal provision allowing companies to cut the wage of employees who turn 60 will be removed from 1 July 2017.  

Blogging now taxable

Lo and behold! Singapore bloggers have revealed that they have received a letter from the Inland Revenue Authority of Singapore (IRAS), requiring them to clarify their income sources, which include products or services received via their websites.

According to the online statement, “Payments in exchange for services performed by social media influencers such as bloggers, You Tubers, etc. can take the form of money, goods or services. All monetary and non-monetary payments/benefits-in-kind are taxable if they are given in return for services rendered or to be rendered by you. Any benefits whether monetary or in-kind provided to your family and friends will be taxable in your name.”

The statement can be viewed here.

Most personal bloggers write for themselves with the idea that whoever who wants to read can choose to do so. When their following grows, they tend to experiment with various forms of advertising to cover the expenses of running the site. Server cost, domain cost as well as the time and other hidden costs usually make up a bulk of the expenses. Hence, one would turn to advertising to earn some revenue to cover the expenses.

Blogging as a taxable income is not something new – countries such as Canada also require bloggers to declare any income through personal blogs. The catch here is whether IRAS decides that your blog is a business, or a hobby. If your blog is a business, which resulted in a profit in previous years, you would probably receive a letter from IRAS soon. For most of the general population who blog as a personal hobby, you should probably be safe!

Companies Bill 2015 – Doing business will not be the same anymore

A comment by Dr Aiman Nariman Binti Mohd Sulaiman, Professor at the International Islamic University Malaysia and author of Malaysian Company Law: Principles and Practices:

(Speaker for the upcoming Wolters Kluwer (WK) seminar, “Companies Bill 2015 – Doing Business Will Not Be The Same Anymore” to be held at Concorde Hotel, Kuala Lumpur)

The Companies Bill 2015 contains wide ranging reforms including the introduction of several provisions that impact on shareholders’ right to participate in decision making and directors’ authority to manage the company’s business.There are also changes in relation to meeting rules and procedures. 

Singapore Budget 2016

This is it, folks.

After weeks and weeks of discourse from people from various walks of life - economists, market leaders, MPs and the people - we are less than 24 hours away from hearing Minister for Finance, Mr Heng Swee Keat, deliver the 2016 Budget Statement.

Here is a quick summary of the expectations for the Budget (because we at Wolters Kluwer believe in presenting you with the necessary information without unnecessary noise):

Source: http://blog.gopenske.com/

• There will be a re-focus on the economy to boost the new Government's coffers.
• There will not be any massive social handouts, as high-impact social measures were implemented prior to the Government wrapping up the elections in 2015. 
• There is a huge spotlight on small and medium-sized enterprises (SMEs). SMEs are expecting short-term measures to cope with the slow economy. 
• The Government will also implement medium-term strategies for SMEs and local businesses, with a view on internationalisation and enhancing value creation, productivity gains and innovation.
• Bigger businesses will not be left out, however, help will be targeted to industries that are greatly affected by the uncertain global and domestic economy.
• The Government may impose GST on e-commerce transactions to expand their revenue base.
• There will be no removal of property cooling measures, as the property market is just beginning to stabilise.
• The transition to reduce dependency on a foreign workforce will continue.
• The Budget is expected to be mildly expansionary, with a token deficit.

It should be noted that the broad swath of middle-income citizens will be watching the Budget to see if they will receive some form of handout to cope with the increasing living costs.

How to catch it?
The Budget Speech will be available via the following channels:

• • A live broadcast on Channel NewsAsia, with Mandarin interpretation.
• • A live broadcast on the radio on 938Live.
• • A live webcast on the Singapore Budget Website (www.singaporebudget.gov.sg), on the Channel NewsAsia website (www.channelnewsasia.com), and on MediaCorp’s Toggle interactive service (www.toggle.sg), as well as the Singapore Budget mobile application.

If you do not have time to catch the Budget Speech, fret not. Wolters Kluwer will be coming up with a special report on the Budget, so stay tuned for further details!

CCH Integrator, your solution for compliance and reporting!

In this era of rapid evolution, businesses need to continuously adapt to changing circumstances to stay relevant. Trends that are hot today may be stone cold tomorrow. At the same time, compliance and reporting requirements continue to increase as the need for transparency becomes more important than ever. How does an organisation keep up? 

That's where Wolters Kluwer comes in. If you're a company that has multiple layers of businesses that report to a wide range of jurisdictions, we have the solution for you.

Questions and Answers on Malaysian GST

"I have been working for a second-hand motor vehicle dealer, as an employee, for several
years. I think I know the business now, and I am making plans to acquire a licence and
commence business on my own account. I am aware of the GST margin scheme, but can you tell me how the scheme works?"

Looking for help on hedge accounting?

For many accountants out there, financial instruments has always been a tricky area to master. There are so many variables, and the need to exercise your own judgement. Hedge accounting is a specific area of financial instruments that accountants spend a lot of time trying to get right. 

IFRS 9 Financial Instruments (FRS 109 in Singapore) was released recently which introduced new rules for hedge accounting effective 1 January 2018. One of the key reasons for the new Standard is due to criticisms that the hedge accounting rules covered in the current IAS 39 Financial Instruments: Recognition and Measurement (FRS 139) can't be related back to an entity's risk management activities, the whole point of using derivatives in the first place.

Door shuts on Foreign Workers Recruitment

What did the government do?

Earlier this month, the authorities in Malaysian has imposed a recruitment freeze on foreign workers and it would be enforced with immediate effect.

The announcement came a day after Malaysia's Human Resource Minister Richard Riot Jaem signed a contract with Bangladesh to bring in 1.5 million workers from the country in stages and it raised major concerns by groups for the safety and the impact on the local labour market. Deputy Prime Minister Ahmad Zahid Hamidi said that the freeze was to push more Malaysians to take up employment opportunities in sectors slated for foreign workers.

Interestingly, the government is now urging all employers to hire local workers as employees. Without giving out any further details of the plan, Ahmad Zahid said the suspension would be in place while the government reviewed the two-tier levy programme for foreign workers.

How many foreign workers are there? 

The number of documented foreign workers are 2.1 million. The estimated number of illegal foreign workers is about 1.7 million. They are largely employed in the manufacturing, plantation, construction and service sectors.

Corporate Tax Audits and Voluntary Disclosure Routes

An article by: Renganathan Kannan, Partner of TraTax Malaysia

(Speaker for the upcoming Wolters Kluwer workshop, Navigating through Corporate Tax Audits & Investigation – Taxpayers’ Fundamental Rights held in Kuala Lumpur and Penang)

The Prime Minister, YAB. Dato' Sri Mohd Najib Bin Tun Abdul Razak has announced plans to enhance revenue collection and reduce tax leakages as part of the recalibration exercise of the 2016 Federal Budget. In order to reduce tax leakages, the Inland Revenue Board of Malaysia (IRB) plans to double tax compliance and audit efforts on tax evaders as well as give special consideration on relaxation for penalties on taxpayers who come forward and declare their past years’ income and settle their arrears before 15th December 2016 vide voluntary disclosure routes. The IRB issued an Operational Guideline (GPHDN 1/2016) on 10-02-2016 in line with the Prime Minister’s announcement on 28-01-2016.

Tax audit is an essential element of any self-assessment system. During the audit process, with is carried out with the objective of increasing the rate of voluntary compliance, the IRB applies numerous techniques and tools to examine the taxpayers’ records, financial affairs, documentations, substance of documentations and business practices.