IRAS takes a comprehensive approach towards tax compliance by companies by conducting both risk-based and random audits across all industries to ensure good coverage across the corporate base. To do so, IRAS uses data analytics and other tools to profile companies according to their compliance risk.

• Upcoming compliance audit focus

Focus area of IRAS’ upcoming compliance programmes include the Withholding Tax. The withholding tax (“WHT”) is applicable when a person (known as the payer) makes payments subject to WHT in Singapore (e.g. interest, royalty, technical service fee, management fees & director’s fees) to a non-resident person (known as the payee). The payer must withhold a percentage of the payment and pay the amount withheld to IRAS as WHT. The rate of WHT varies depending on the type of payment and the country of residence of the payee, taking into account the anti-double taxation agreement (“DTA”), when applicable.

It is important for companies to comply with Singapore’s WHT requirements to avoid late payment penalty. Companies that have failed to comply with WHT requirements are encouraged to make a voluntary disclosure to IRAS before they are uncovered in an audit in order to benefit from reduced penalties.

• Ongoing audit programmes

IRAS continues to focus compliance efforts on the following items.

1. Timely Filing of Corporate Income Tax Returns (Form C-S/ Form C-S (Lite)/ Form C). It is important that companies file their Corporate Income Tax Returns promptly to ensure timely finalisation of their tax and financial matters. Under the law, failure to file the Corporate Income Tax Return on time is an offence.

à IRAS doesn’t hesitate to take strong deterrent measures against taxpayers who do not file their tax returns on time, in particular, errant directors who operate multiple companies.

2. Claiming of Private or Non-Deductible Expenses. For expenses to be tax deductible, the expenses must be wholly and exclusively incurred in the production of income, meaning to say, these expenses must be expended solely for business purposes and must not include any non-business element, such as family meals, vacation/ overseas holiday expenses and domestic groceries.

à IRAS regularly audits companies to ensure that their expenses have been claimed correctly and there has been no under-declaration of taxes. IRAS will not hesitate to impose penalties on non-compliant companies.

3. Recognition of Income from Construction Contracts and Provisions Claimed by Construction Companies. Income derived from construction contracts is recognised progressively over a period of time – commonly known as the Percentage of Completion method of income recognition. For income tax purposes, IRAS accepts the accounting recognition of income over time as it is consistent with the tax rule of taxing income when it is accrued.

à The objective of the compliance reviews on construction companies is to ascertain that income and expenses have been correctly reported for tax purposes.

4. Companies Exempted from Filing Corporate Income Tax Returns. IRAS exempts companies from the requirement to file Corporate Income Tax Returns if:

• The company has filed Form C-S/ Form C-S (Lite)/ Form C as a dormant company for 2 consecutive Years of Assessment; or
• The company has applied for waiver to file Form C-S/ Form C-S (Lite)/ Form C on grounds that it is dormant and has no immediate intention to recommence business.

Companies that are exempted but subsequently recommence business must file a Corporate Income Tax Return for the relevant year in which they recommence their business. They must inform IRAS and request for a Corporate Income Tax Return.

à IRAS regularly reviews companies that have been granted exemption from filing Corporate Income Tax Returns to ensure that they have remained dormant. Companies found to have recommenced business but failed to meet their filing obligations may be liable to penalties.

6. Taxability of Income/ Gains from Sale of Properties. Taxpayers may purchase property and derive gains upon the sale of such property. Whether such gains are taxable as revenue receipts or exempt as capital gains depends on whether the taxpayer is considered to have engaged in the trade of buying and selling of properties or derive gains which are of an income nature. The frequency of transactions, length of time the properties were held and the manner they were financed are some indicators of whether the taxpayer intended to trade in properties.

à IRAS regularly examines taxpayers who have engaged in such transactions to evaluate if they have filed their tax returns correctly.

7. Digital Economy. in the year 2023, IRAS has focused its attention on taxpayers whose business model revolves around the digital economy such as content creators and social media influencers. The following common errors must be avoided by taxpayers:

• Omission/ understatement of income including sponsorship & gifts received.
• Incorrect claim for expenses, such as personal entertainment & travelling for non-business purposes.
• Failure to keep proper records on the actual income received and/or expenses incurred.

à Where discrepancies/ errors are found by the taxpayers themselves, they should make a voluntary disclosure to IRAS before they are uncovered in an audit in order to benefit from reduced penalties.

8. Deductibility of Interest Expenses and Borrowing Costs. Interest expenses and qualifying borrowing costs incurred on loans or borrowings specifically taken up to finance income-producing assets are deductible against the income produced. Where the loans or borrowings were obtained for non-income producing purposes, such expenses and costs are not tax deductible. In cases where the company is unable to identify and track the use of an interest-bearing loan to specific assets financed by the loan, the total asset method is to be applied to allocate the common interest expenses and qualifying borrowing costs to the non-income producing assets and no deduction is to be claimed on the allocated expenses and costs.

àIRAS regularly examines the tax returns of taxpayers who incur interest expenses and borrowing costs to ensure that tax deductions have been correctly claimed on such expenses.

• Specific compliance-related mistakes and issues

Specific mistakes identified from past and ongoing compliance programmes are:

1. Abuse of Tax Exemption Schemes Intended for Companies. It generally takes the following forms:

• Allocating the income of an existing profitable going concern to a few shell companies so that the chargeable income of each shell company is within the threshold for tax exemption
• Charging fees/ expenses to an existing profitable going concern by shell companies without any bona fide commercial reasons. The shell companies claim the tax exemption on the income they receive from the profitable going concern, while the latter claims tax deduction on the fees/ expenses paid to the shell companies
• Under-remunerating director(s)/ shareholder(s) for their work so as to retain profits in the companies and take advantage of the tax exemption schemes and/or difference in tax rates between companies and individuals

2. Erroneous Claims for Capital Allowances. This can have the shape of:

• Claiming Capital Allowances on Assets Not Considered as Plant & Machinery (‘P&M’). Examples of items that are not P&M are doors, ceiling works, interior design fee, flooring and toilet/ plumbing items. Lightings that are for general illumination as well as fittings for general electricity which form part of the premises are also not considered as P&M. Similarly, renovation works such as the permanent improvement of the office are capital in nature and do not qualify as P&M.
• Claiming Capital Allowances on Assets Used by Another Party. Capital allowances on P&M are only allowed to a company if the P&M are used directly in and specifically for that company’s trade. No capital allowance is allowable where the P&M in question are used by another party.
• Not Making Adjustments to Disallow Depreciation Expense. Some companies would not have adjusted their taxable income for depreciation expense. As depreciation is an accounting charge for the wear and tear, age or obsolescence of fixed assets, it is not deductible for income tax purposes.
• Error in Calculating Balancing Allowance/ Balancing Charge. Some companies would compute balancing allowance/ balancing charge erroneously. Where fixed assets are sold after being used for some years, the selling price of those fixed assets must be taken into account when computing the balancing allowance or charge. In addition, where asset is sold below open market price, it will be deemed to have been sold at the open-market price as at date of disposal or the date on which it permanently ceased to be used for computing balancing allowance/ balancing charge.

3. Related Party Services Not Priced at Arm’s Length. Some companies can recover only the cost of the services without mark-up from the related parties, or just on direct costs. This is inconsistent with the arm’s length principle. The company should charge an appropriate arm’s length fee for the support services it rendered to the related parties.

If the service fee is not charged at arm’s length, IRAS can make a transfer pricing adjustment.

4. Investment Dealing Company. An investment dealing company is a company whose primary activities is to buy and sell investments with a view to making a profit. The investments are trading stocks of the company. Hence, any gain from the sale of these investments is assessable to tax under section 10(1)(a) of the Income Tax Act 1947.

An investment dealing company also derives distributions from its trading stocks in the normal course of trade. For example:

• dividend from equity instruments;
• interest from debt instruments; and
• interest from qualifying debt securities (where it is subject to concessionary tax rate).

Such distributions form part and parcel of the trading receipts of the company.

Dividend income is exempt from tax if it is a:

• Singapore one-tier exempt dividend
• Foreign dividend satisfying conditions under the Foreign-Sourced Income Exemption (“FSIE”) regime.

An investment dealing company may derive trading receipts that are exempt from tax, subject to concessionary tax rate and subject to prevailing corporate tax rate. If so, the allowable expenses and capital allowances are to be apportioned to the different streams of income.

L'articolo IRAS’ audits of company tax acompliance proviene da Algebra.

If Australia is to meet its commitment to reduce greenhouse gas emissions to 43% below 2005 levels by 2030, we need to cut emissions faster,” researchers from Griffith University recently wrote. “Even if all current government policy commitments are achieved – an unlikely outcome given delays in implementation – emissions are still projected to be only 40% below 2005 levels by 2030.”

The principles behind Australia’s emissions reduction focus on technology rather than taxes, says TonyGreco, IPA’s General Manager Technical Policy.

“Technology is influencing a certain level of success in the race to reduce emissions, but it’s not as much as tax policy could achieve, and it’s not enough,” Greco says.

At the recent Asia Oceania Tax Consultants Association (AOTCA) 2023 conference in Tokyo, Greco reported on how Australia’s tax system could incentivise change better. The right tax treatment, he said, will increase and accelerate investment in renewable and energy-efficient solutions to enable greater emissions reduction in less time.

In very specific areas, such as State and Territory treatment of electric vehicle purchases from a fringe benefits tax or stamp duty perspective, the tax system has been used as a carrot to influence positive outcomes, he said.

And, under the Small Business Energy Incentive, businesses with a turnover of less than $50 million can access a bonus deduction equal to 20% of the cost of an eligible asset that improves energy efficiency. But even in this case, assets that have a dominant purpose of generating electricity, such as solar panels, are excluded from the scheme.

Such policies, Greco said, aren’t doing enough to encourage the level of transition that is required to meet Australia’s 2050 net zero goal.

Finding the perfect balance of carrot and stick

Success in encouraging the required level and type of investment in technology, infrastructure, innovation and change across industry sectors requires a delicate balance, says Fiona Reynolds, Chair of the United Nations Global Compact Network Australia and former CEO of UN-supported network Principles for Responsible Investment.

“It’s about balancing the carrot and the stick,” says Reynolds. “You need the right incentives and regulatory environment.”

She points to Europe as an example of “too much stick”, where innovation is stifled by red tape and regulation.

“But if you look at the United States, they’ve introduced the Inflation Reduction Act that is about incentivising a capitalist system with tax incentives and grants to innovate and invest. That is only a year old, and it is working. There has been huge investment into renewable energy and a huge amount of new jobs created.”

And there in lies Australia’s opportunity, Reynolds believes. She says the current government deserves an A on its report card for ambition, direction and effort. And while 10 years of inaction before it came to power left Australia trailing globally, being behind other nations could have its own advantages.

“Because we’ve come a bit later to this, we have the ability to look at what has worked around the world and what hasn’t,” Reynolds says.

“What can we learn? We have to make sure we get the incentives right, and that there is still some regulatory pressure but not too much, not to the point where it stifles innovation.”

Right now, a combination of incentives, frameworks, reporting and transparency is being developed. That’s essential because investors need to know what companies are doing, and when. And companies require confidence around the fact that they won’t be delayed by years of regulatory red tape.

Tax incentives help reduce risk

Consider the risk investors take when they inject capital into new technologies and sectors, Reynolds says.

“Some of these areas really are new. After all, we haven’t decarbonised the global economy before,” she says.

“If you’re thinking about new areas of investment, you want to know that some of the risk has been removed. If that’s through the taxation system, that can be good. If it’s through other incentives, if it’s government underwriting, for example, it can also make investors feel more comfortable.”

And there is currently a high level of enthusiasm amongst investors to support renewable technologies, and other solutions that strengthen sustainability, particularly over the long term.

“There is risk in these investments, but there is also huge potential,” Reynolds says. “Investors have opportunities to make investments that are good for Australia, but that they’re also going to make money from because they get in on the ground floor.”

Every form of incentive helps, she says. Tax incentives help solve one issue, among other challenges.

“The government really has to look at each sector of the economy and work out what has to be done in each one,” Reynolds says.

“You’ve got the energy sector, aviation, shipping, agriculture. You’ve got all of these key elements, and you have to work out the pathways for the sector and bring in regulation, legislation, incentives and standards at those sector levels. Plus, entire workforces need upskilling. There is a lot of work to be done, and it is being done.”

The government on 2 November 2023 released its Sustainable Finance Strategy consultation paper, aimed at identifying ways to remove barriers to climate and sustainability investment.

L'articolo Tax incentives and regulation needed for greenhouse emissions reduction proviene da Algebra.

The United Arab Emirates authorities have recently received significant recognition from the Financial Action Task Force (FATF) as they have been removed from the so-called “Grey List” for combating money laundering and terrorism financing.

The Financial Action Task Force (FATF), established in 1989 during the G7 in Paris, is an intergovernmental organization dedicated to protecting the global financial system and economy from threats such as money laundering, terrorism financing, and proliferation of weapons of mass destruction. The FATF Secretariat is located at the Organization for Economic Co-operation and Development (OECD), while the presidency, lasting two years, is entrusted to senior officials appointed by member states.

Currently, the presidency of the FATF is held by Singapore, represented by Raja Kumar, for the period from July 1, 2022, to June 30, 2024.

The decision to remove the United Arab Emirates from the “Grey List” reflects the country’s efforts to promote financial transparency and ensure a safe environment for international investors.

Dubai as new destination for Italian real estate investments – Tax regulations and implications for Italian residents

Despite these significant advancements, Italian investors must be aware of the Italian tax implications associated with foreign income and property in the UAE.

Dubai, a key Emirate in the United Arab Emirates, is ambitiously pursuing its growth vision until 2040, focusing on infrastructure development and attracting investments and talent.  The recently approved Masterplan 2040 outlines an integrated project aimed at enhancing residential areas, expanding public transportation, preserving natural landscapes, and promoting economic activities. With a bustling construction environment, Dubai offers favourable conditions for investment, backed by security, quality education, healthcare services, and a culture of tolerance.

The real estate market in Dubai has seen significant growth, with Italian investors among the prominent buyers, attracted by the quality construction and lucrative returns offered by the market.

Under fiscal perspective, it important to note that Italian tax law requires Italian residents to declare all foreign incomes, including those derived from rentals in the UAE, and pay the corresponding taxes in Italy. This means that incomes generated in the UAE are subject to Italian taxation, even if they are tax-exempt in the country of origin.

Additionally, it is important to highlight that although the FATF has excluded the UAE from the “Grey List,” according to the Italian ministerial decree of May 4, 1999 (published in the Official Gazette no. 107 of May 10, 1999), the United Arab Emirates continue to be included in Italy’s “blacklist” of countries with privileged fiscal status for tax purposes.

The primary tax consequence of transferring fiscal residence to countries included in Italy’s blacklist is the legal presumption of maintaining fiscal residence in Italy until proven otherwise by the expatriate.

Consequently, the presence of a country on Italy’s blacklist triggers a shift in the burden of proof regarding the actual fiscal residence of Italian citizens who have emigrated to the countries listed (under Article 2, paragraph 2-bis of the Italian Consolidated Italian Income Tax Act).

In particular, Article 2, paragraph 2, stipulates that in the event a person establishes permanent residence in one of these countries, it is their responsibility to provide evidence contrasting the presumption of fictitious foreign residence. Therefore, according to our tax regulations, individuals who emigrate to Italy’s blacklisted countries are required to demonstrate that the transfer of residence is genuine and not related to tax evasion mechanisms.

For individuals removed from the records of the resident population and enrolled in the Registry of Italians Residing Abroad (AIRE) transferred to blacklisted countries, the presumption of residence in Italy applies. This unless the taxpayer can provide evidence to the contrary. This is a crucial aspect. The contrary evidence must be specific, precise, and able to convince the tax administration to consider the taxpayer’s foreign fiscal residence. Therefore, it is advisable to seek assistance from experienced tax consultants.

Hence, the mere transfer of residence to the UAE and registration with AIRE may not be a definitive solution to escape Italian taxes.

It is also worth noting that since December 29, 2023, after Legislative Decree no. 209/2023, the rules for determining the fiscal residence of individuals and legal entities in Italy have been strengthened, making it even more crucial for Italian investors to fully understand the implications of their tax status. Therefore, seeking assistance from experts in international taxation is advisable.

Penalties for Non-Compliance with Tax Obligations

It is essential to emphasize that failure to comply with tax obligations can have serious consequences for Italian investors. Penalties for failure to declare foreign income are significant and may include doubling of penalties and extension of assessment periods.

Conclusion

In conclusion, Italian investors operating in the United Arab Emirates must be aware of their tax responsibilities in both countries. It is essential to consult qualified tax experts and stay updated on relevant tax and financial regulations to ensure compliance with tax obligations and mitigate risks associated with international investments.

L'articolo The united arab emirates exit the FATF “grey list”: what are the tax implications for italian investors in the region? proviene da Algebra.

Forming a tax group offers several advantages, such as the ability to submit a unified group tax return and the flexibility to transfer tax losses, assets, and liabilities among group members without incurring tax consequences. However, there are also potential drawbacks to tax grouping:

1. The zero rate on profits up to AED 375,000 applies at the group level and does not vary based on the number of group members.
2. The revenue limit for small business relief remains capped at AED 3 million for the entire group.
3. Tax group members bear joint and several liability for tax debts arising during their membership in the group.

Conditions for Tax Grouping: According to the CTL, a tax group is defined as two or more resident taxable entities treated as a single taxable entity. Electing for tax grouping requires the parent company and relevant subsidiaries to meet specific eligibility criteria and jointly apply to the FTA. The following conditions must be met throughout the relevant tax period:

• All companies must be resident juridical entities, distinct legal entities incorporated or effectively managed and controlled within the UAE.
• The parent company must directly or indirectly own at least 95% of the share capital, voting rights, or profits and net assets of each subsidiary.
• None of the entities in the group can be exempt persons or qualifying free zone persons.
• All group companies must share the same accounting period and adhere to the same accounting standards (IFRS or IFRS for small and medium-sized companies).

Application Timing and Group Formation: The timing of the application for group treatment determines when the tax group is established. The FTA’s guidance emphasizes that the application must be submitted before the end of the desired tax period for grouping. Failure to do so results in tax group status commencing in a subsequent tax period, as determined by the FTA.

Upon the formation of a tax group, a new tax reference number (TRN) is assigned to represent the group administratively. Individual TRNs are retained by group members and can be utilized if they exit the group.

Taxable Income Calculation for the Group: The parent company is obligated to compute the group’s taxable income by consolidating the financial accounts of each subsidiary, eliminating intragroup transactions. Tax consolidation may differ from accounting consolidation due to potential tax-specific adjustments. Transfer of tax losses between group members is allowed, provided they were incurred during their membership in the tax group. Pre-group tax losses can be offset against taxable profits attributed to the respective member.

Attribution of Taxable Income: Despite preparing consolidated accounts for the entire group, taxable income must be attributed to individual members in specific cases, such as unutilized pre-grouping tax losses, income subject to foreign tax credit, benefits from CTL tax incentives, and unutilized carried forward pre-grouping net interest expenditure. Attribution must adhere to the arm’s length principle.

Interest Deduction Limitation Rule: The limitation on net interest expenditure, allowing a deduction up to 30% of EBITDA or AED 12 million, applies to the entire tax group as a single entity, not to individual members. Disallowed interest expenditure is carried forward for ten tax periods. Ceasing to exist as a tax group without replacement results in the loss of unused net interest expenditure.

Foreign Tax Credits: Tax groups can claim a tax credit for foreign tax paid on overseas income, limited to the lower of the foreign tax and UAE corporate tax due on the same income, deducting related expenses. An election is available to exclude foreign permanent establishment income from total profits, with the parent company making the election binding for all group members.

Compliance Requirements: Ensuring compliance with conditions in each tax period is essential for the tax group. Non-compliance leads to termination of tax group status, effective from the beginning of the non-compliant period. Compliance obligations include filing a joint application for new entrants, preparing consolidated financial statements, filing a tax return for the group, paying corporate tax, seeking tax refunds, registering/deregistering the tax group, maintaining transfer pricing documentation, and liaising with the FTA on corporate tax matters.

Changes in the Tax Group: Provisions exist in the CTL for scenarios such as replacing a parent company, transferring a member’s business, joining or leaving the group. The parent company must submit an application to the FTA, specifying the affected tax period, with deadlines for submission. Events like a member joining or leaving the group impact the composition of the single tax return for the group.

Cessation of the Tax Group: A tax group ceases to exist if approved by the FTA following a parent company’s application, if the parent company is no longer eligible, or if there are only two members, and one transfers its business to the other. Dissolution can occur either from the beginning of the tax period or the effective date of the transfer of business. Upon cessation, the tax group is deregistered from corporation tax. Disbanding requires the parent company to confirm the payment of corporate tax liabilities and penalties, along with filing all tax returns.

L'articolo UAE Guidance on group taxation. proviene da Algebra.

 Legal provisions:

• Art. 47-bis DPR 917/1986
• Art. 167, paragraph 4 DPR 917/1986
• Legislative Decree 147/2015
• Legislative Decree 142/2019

Reference practices:

• Circular AdE n. 51E/2010
• Circular AdE n. 35E/2016
• AdE Provision Prot.376652/2021

The legal context of dividends from companies residing in blacklisted countries
The first paragraph of Article 47-bis of the Italian Consolidated Tax Act (TUIR) establishes the circumstances under which the tax regimes of states or territories other than those of the EU or members of the EEA, with which Italy has entered into agreements for effective exchange of information, should be considered “privileged.”

There are two situations in which foreign dividends from blacklisted countries are relevant in Italy:

1. Situation of control over the foreign company: actual taxation is considered The first case concerns a non-resident company or organization located in Italy that is controlled by a resident participant in Italy and meets the condition referred to in paragraph 4, letter a), of Article 167, i.e., it is subject to an effective taxation lower than half of what would have been applied if it were resident in Italy.
2. Situation of lack of control: nominal taxation is considered The second case concerns the lack of control as required in the first case. In this situation, the nominal tax level is relevant if it is lower than 50 percent of the tax applied in Italy. However, special regimes not structurally apply to all entities engaged in activities similar to the participating company should also be considered. These special regimes should be available based on the beneficiary’s specific subjective or temporal characteristics. They should provide exemptions or other reductions of the taxable base, thereby reducing the nominal tax below the indicated threshold.

Ruling – Simplified test for dividends from companies residing in blacklisted countries
Interesting insights emerge from the recent response provided by the Revenue Agency to a ruling request, which has not yet been published. The issue concerns the tax regime applied to dividends from entities resident in blacklisted countries, governed by Article 47-bis of the TUIR.

In the specific case, it involves an individual who holds a direct, non-controlling interest in a non-EU company subject to a foreign nominal tax rate of 11.85% in 2022, which is less than half of the nominal rate of Italian IRES (12%), and therefore falls within the regime provided by Article 47-bis, paragraph 1, letter b) of the TUIR, taxing the dividends according to the standard IRPEF rates specified in Article 47, paragraph 4, of the TUIR.

Taxpayer’s position and proposed solution.

The anti-avoidance provision does not apply if it can be demonstrated through the probative ruling that the holdings do not result in the localization of income in states or territories with a privileged tax regime (the so-called second exemption).

In this regard, it should be noted that following the legislative changes related to the adaptation to the ATAD Directive (implemented in Italy by Legislative Decree 142/2018), the second exemption was eliminated from the CFC regime under Article 167 of the TUIR (which is now based on effective taxation, requiring a foreign effective tax rate compared to the virtual Italian rate), but it is still provided

L'articolo Taxation of dividends from blacklisted countries to individual residents in Italy proviene da Algebra.

Now, IEG Asia is preparing for its second event, the Singapore International Jewelry Expo 2023 (SIJE), with the continued support of Algebra. This highly anticipated trade show will take place from July 13 to 15, 2023, at the Marina Bay Sands Expo and Convention Centre in Singapore. With an expected attendance of over 20,000 visitors and the participation of more than 800 exhibitors from approximately 25 countries, SIJE will showcase a diverse range of products and services related to the jewelry industry, including diamonds, gemstones, jewelry, watches, and more.

Notably, the Singapore International Jewelry Expo 2023 will also feature the participation of several leading Italian companies in the jewelry industry. Supported by Algebra’s management consulting expertise, these Italian companies are renowned for their craftsmanship and the creation of exquisite jewelry pieces. Visitors attending SIJE will be able to explore and appreciate their unique designs and impeccable artistry, witnessing the fusion of Italian excellence with the international jewelry landscape.

In addition to the exhibition, the Singapore International Jewelry Expo 2023 will offer attendees educational and networking events such as seminars, workshops, and fashion shows. These activities will provide valuable insights into the latest trends and innovations in the jewelry industry and serve as a platform for professionals to connect with suppliers, buyers, and industry leaders.

IEG Asia, in collaboration with Algebra’s management consulting support, continues to provide valuable experiences and networking opportunities for industry professionals through its trade shows. Participants can connect with global suppliers and buyers, stay informed about industry advancements, and attend educational sessions to enhance their knowledge and skills. For more information about these upcoming events and to stay updated on the latest trends and innovations, visit the respective expo’s website.

L'articolo IEG Asia successfully organized the International Coffee & Tea Asia Expo and Café Asia 2023 proviene da Algebra.

To bolster retirement savings and ensure long-term sustainability, the CPF Board has unveiled a series of enhancements to the CPF scheme starting September 2023. These changes aim to provide greater financial security for CPF members.

Outlined below are the planned increases in CPF contribution rates:

• Employee contribution rates:
  • Effective 1 September 2023, the employee CPF contribution rate will rise from 20% to 21% for the initial $6,300 wages.
  • Effective 1 January 2024, the employee CPF contribution rate will increase from 21% to 22% for the initial $6,800 of wages.
• Employer contribution rates:
  • Effective 1 September 2023, the employer CPF contribution rate will increase from 17% to 18% for the initial $6,300 of wages.
  • Effective 1 January 2024, the employer CPF contribution rate will increase from 18% to 19% for the initial $6,800 of wages.

In addition to these CPF rate adjustments, the 2023 budget has introduced several measures aimed at supporting CPF members:

• Increased CPF contribution limits: Starting from 2023, CPF contribution limits will be raised. This will empower members to save more effectively for their retirement.
• Enhanced CPF withdrawal rules: From 2023 onward, CPF withdrawal rules will be improved, streamlining the process for members to access their CPF savings for approved purposes. This includes funding housing purchases and financing their children’s education.
• CPF education savings: The CPF will extend additional education savings to children from low-income families, ensuring equal opportunities for all children to receive a quality education.

In summary, the CPF enhancements, such as increased contribution rates and streamlined withdrawal processes, offer employers a range of positive benefits.

These include promoting employee financial security, attracting top talent, fostering solid employer-employee relationships, and contributing to national development. Embracing these changes can lead to a motivated workforce, enhanced job satisfaction, and overall organizational success.

L'articolo CPF Enhancements in Singapore from 2023 onwards proviene da Algebra.

The opportunity to organize the 2023 WCD has enabled TGI to establish a presence in Singapore, where they will further develop their business in the region. As the only Italian company with an office in Singapore dedicated to event management, TGI is well-positioned to expand its reach and deliver exceptional experiences to clients in Asia.

Algebra’s team is proud to partner with Triumph Group International (TGI) in their endeavor to organize the 2023 World Congress of Dermatology (WCD) in Singapore. As a trusted corporate service provider based in Singapore, Algebra brings expertise to support TGI’s efforts to expand its business in the region.

This significant achievement is a testament to TGI’s commitment to excellence and ability to execute large-scale conferences with precision and professionalism. By successfully partnering with the Singapore Dermatological Society (SDS) and leveraging its local expertise, TGI has ensured the success and relevance of the 2023 WCD, creating an event that combines international perspectives with a deep understanding of the regional dermatological landscape.

As the 2023 WCD approaches, TGI’s dedication to delivering a comprehensive scientific program, engaging networking opportunities, innovative exhibitions, and cultural experiences remains unwavering. The event will not only advance knowledge in the field of dermatology but also provide a platform for industry professionals to forge new connections, foster collaborations, and drive advancements that will shape the future of the dermatological practice.

Organizing the 2023 WCD has been a transformative achievement for Triumph Group International. With the opening of its office in Singapore and its commitment to delivering outstanding events, TGI is poised to make a lasting impact on the Asian market, solidifying its position as a global leader in event management and showcasing the capabilities of Italian expertise in the field.

L'articolo World Congress of Dermatology 2023 in Singapore proviene da Algebra.

1- GST rate will increase from 7% to 8%

Singapore will increase its GST from January 1, 2023, from seven to eight percent. The change is only the first of two planned increases in the GST rate as announced in the 2022 budget. The second increase, from 8% to 9%, will occur on January 1, 2024.

GST-registered businesses must be prepared for the upcoming rate change. Systems, documents and data automation may also be affected by the change. For a smooth change, few items should be prepared for the rate increase such as:

• Accounting, and Sales Systems
• Update of sales invoicing formats
• Point of Sale system changes
• Price lists
• Changes to prices listed on websites or product shelves
• Modification of internal price lists and product brochures
• Contracts

Other process that may be affected by the changes:

• impact in cashflow
• Proper communication with costumer how GST increase will impact them

Transitional rules to take note

The timing of supply continues to be based on the invoicing date or payment date, whichever is earlier.

For any goods/services fully delivered before 1 January 2023, it is possible to charge GST at the old rate for the full value of goods/services received, even if the time of supply is after 1 January 2023.

For any goods/services partially received before 1 January 2023, it is possible to charge GST at the old rate on the portion of goods/services received before 1 January 2023, even if the time of supply is after 1 January 2023.

2 – Changes to the Overseas Vendor Registration (OVR) regime

Under the current OVR regime, it is mandatory to register for GST for any overseas supplier if:

• the global turnover exceeds S$1 million;
• he supplies B2C (Business to Consumer) with digital services in Singapore exceeding S$100,000 for the relevant 12-month period.

With effect as of 1 January 2023,  the OVR regime will be extend to the supplies of:

• non-digital services
• import of low value goods (no dutiable good not exceeding S$400)

Examples of non-digital services include advisory, professional, consultancy or educational services supplied from outside Singapore.

3 – Travel Agency Services

From 1 January 2023, travel arrangements by local agents will no longer be based on the place of destination.

Travel agency services to customers can only be zero rated if the customer is an overseas person or a GST-  registered person in Singapore. This change only applies to the travel agent fees. However, this means holiday travel may become a slightly more expensive affair for individuals.

L'articolo GST Changes from 1st January 2023 proviene da Algebra.

The first home benefits also extend to an Italian citizen residing abroad who is registered with the AIRE and not.

In order to use the first home tax concessions, they also have the residence requirement to be moved within 18 months, but in the case of a resident abroad, the Agenzia delle Entrate has clarified that the tax benefit can also be applied regardless of the change in residence in the same city hall.

In fact, Note II bis affixed to Article 1 of the Tariff, Part I, attached to the Presidential Decree 26 April 1986 n. 131, provides that the citizen residing abroad can take advantage of the “first home” facility if you buy a home in any municipality of the national territory. 

For Italian citizens residing abroad, it must be a first home owned on Italian territory.

The buyer must not:

1. be the exclusive owner or in communion with the spouse of property rights, usufruct, use and residence of another house in the territory of the Municipality where the property to be purchased is located;
2. shall not be entitled, not even for shares or in legal communion, throughout the national territory, of property rights, use, usufruct, dwelling or bare ownership, on another house, purchased, even by the spouse, taking advantage of the facilities of the first house;
3. the residence, however, must not be moved to the new house on Italian territory but the deed must be made in Italy and the declarations indicated above must be issued.

In this sense, the citizen who is resident abroad, which to be clear means in a very simplistic way that he stays for more than 183 days in the territory of another State than Italy or that on the basis of other requirements is not considered as such. , will be able to proceed with the purchase of a house taking advantage of the lower registration tax (2%) and mortgage and cadastral taxes (equal to Euro 50 each) compared to taxpayers who buy second homes.

Finally, as regards the quality of “Italian residing abroad”, it is not necessary to document this condition with a certificate of registration with the AIRE (the registry of Italians residing abroad) but a self-certification of the interested party is sufficient (Article 46 of the Presidential Decree 445/2000).

The tax return and taxation on the property available or leased: IMU, TASI and TARI

The property of the non-resident person in Italy may be held at the disposal of the owner (therefore not leased) or leased. In the event that the property is held at the disposal of the owner, the latter will have to pay the IMU on the property however, he / she will not have to pay personal income tax. Only (not rented) properties held in Italy by non-residents who receive a foreign pension in the country of residence are partially exempt (37.5%) from IMU. (There is a bill to extend the benefit to those who do not receive a pension.)

On the other hand, if the property is rented, the non-resident subject must declare his / her income in the tax return and can choose whether to lease the property by applying the flat rate tax with a substitute tax of 21% (or 10% in the case of an agreed rent) or apply the ordinary personal income tax rates. The property will also be subject to taxation for IMU and TASI purposes.

Payments

For residents abroad who own properties in Italy and who cannot pay with F24, the tax must be paid by bank transfer to the Municipality where the properties are located. The coordinates on which to make the transfer must be requested from the Municipality, at the Tax Office.

In general, it is a good idea to insert the same data contained in Form F24 in the reason for payment, i.e. tax code or VAT number of the taxpayer, indication of the tax paid (IMU / TASI / TARI), the reference year, indicate if it is of “Advance” or “Balance”. If possible, insert the Tribute Codes as well.

L'articolo Residents abroad and first home facilities proviene da Algebra.