Singapore

Tax Alert 

KPMG's Tax Alert examines and discusses the recent tax developments in Singapore and the implications thereof.
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    2016
    February
  • February 2016 - Issue 6 (PDF, 91KB) New
    Income Tax Implications Arising from the Adoption of FRS 115 Revenue from Contracts with Customers
    In this issue of Tax Alert, we bring to you the income tax implications which may arise with the introduction of the accounting standard FRS 115 Revenue from Contracts with Customers.

    For Singapore income tax purposes, an income is subject to tax if it is sourced in Singapore (i.e. it is derived from or accrued in Singapore), or if foreign-sourced income is received or deemed to be received in Singapore, unless specifically exempted under the Singapore Income Tax Act.


  • February 2016 - Issue 5 (PDF, 231KB) New
    In this issue, we will provide a summary of Good Services Tax (GST) updates impacting businesses in Singapore.
    Issue 05 | February 2016 In this issue, we will provide a summary of Goods and Services Tax (GST) updates impacting businesses in Singapore.

    It is common for an overseas company to enter into a contract with a Singapore GST-registered service provider, for services to be performed for companies in and outside Singapore. As services rendered for the direct benefit of a Singapore company are subject to GST, the overseas company may incur irrecoverable GST.


  • January
  • January 2016 - Issue 4 (PDF, 289KB) New
    In this issue, we will provide a summary of Good Services Tax (GST) updates impacting businesses in Singapore.
    India is considered to be one of the fastest-growing global economies and ranked among the top three most attractive destinations for inbound investments.

    In November 2015, India further liberalised its foreign direct investment (FDI) rules to encourage more foreign investment into the country. The liberalisation is twofold:

    • New sectors including plantation activities and duty-free shops have been opened up for foreign investment.
    • Existing FDI conditions have been liberalised in various sectors such as construction development, defence and single-brand retail trading.

  • January 2016 - Issue 3 (PDF, 243KB)
    Transfer Pricing Developments in Singapore: New 2016 Guidance Released by IRAS
    On 4 January 2016, the Inland Revenue Authority of Singapore (IRAS) released the third edition of its transfer pricing guidance (TPG3) for Singapore taxpayers.

    Compared to the previous edition, TPG3 contains expanded IRAS' viewpoints on several fronts - especially on:

    • the administrative process leading to an Advance Pricing Arrangement (APA); and
    • the derivation of the cost base to which the cost plus mark-up is to be applied.

  • January 2016 - Issue 2 (PDF, 203KB)
    The AEC presents opportunities, challenges and changes for SMEs
    On Nov 22 2015, Asean leaders established the Asean Economic Community (AEC), which came into effect on Dec 31. One of its aims is to promote freer movement of trade and capital in the region. In practice, this means that tariff barriers between the 10 Asean countries will be eliminated while non-tariff barriers will be phased out. Restrictions on cross-border investment and the movement of labour within the region will also be progressively lifted.

    The impact on enterprises will be significant. Consumer businesses will gain access to a combined market of approximately 625 million customers at a time when the middle class is growing in size and affluence. B2B businesses will gain access to an equally wide customer base that is also taking advantage of the AEC to expand around the region.

    Small and medium-sized enterprises (SMEs) stand to benefit greatly from the upside of new markets, cheaper resources and more sources of capital. But they are also particularly vulnerable to the downside of steeper competition and market volatility, as they may not have the capital or experience to adjust their strategies


  • January 2016 - Issue 1 (PDF, 104KB)
    Withholding tax (WHT) rate applicable to dividends from South Korean Real Estate Fund (REF) trusts
    KPMG has recently obtained an official public tax ruling from the South Korean Ministry of Strategy and Finance (KMSF) regarding the applicability of a reduced withholding tax (WHT) rate to dividends distributed from Real Estate Fund (REF) trusts.

    This ruling would enable companies resident in countries which have a tax treaty with South Korea to benefit from a lower WHT rate (down to 5% for some countries instead of 15%) on dividends distributed from REF trusts (established prior to 4 November 2015) which have fulfilled certain conditions.


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