Businesses to enjoy 250% tax deduction on wages if employees volunteer at IPCs
Posted 30 Jun 2016 15:37 Updated 30 Jun 2016 16:04
SINGAPORE: From Jul 1 this year to the end of 2018, some businesses in Singapore will enjoy up to 250 per cent tax deduction on wages and related expenses, the Ministry of Finance (MOF), Inland Revenue Authority of Singapore (IRAS) and Ministry of Culture, Community and Youth (MCCY) said in a joint press release on Thursday (Jun 30).
The tax deduction applies to companies that send employees to volunteer and provide services, including secondments, to Institutions of a Public Character (IPCs) under the Business and IPC Partnership Scheme (BIPS), subject to receiving IPCs’ agreements, the authorities said.
The services include professional services such as in the areas of legal, human resources and accounting, or general voluntary services for IPCs, they added.
IPCs are registered charities that are allowed to issue tax-deductible receipts to donors who want to claim tax relief based on the amount of qualifying donations made. These charities must serve the needs of the community in Singapore as a whole, and not be confined to sectional interests or groups based on race, belief or religion, according to MCCY's website.
Currently, donors to IPCs already enjoy tax relief for 250 per cent of the donations.
BIPS was introduced in Budget 2016 to encourage employee volunteerism through businesses, and forms part of the Government’s efforts to promote philanthropy and volunteerism.
When he announced the scheme on Mar 24, Finance Minister Heng Swee Keat said it would boost corporate social responsibility (CSR) and make it easier for employees to give back through their workplaces.
In their press release on Thursday, the authorities said: "Through volunteering activities or secondments, businesses and IPCs can build enduring and sustained partnerships, benefiting both parties ... In the long run, the Government hopes to foster a widespread culture of caring in Singapore, where businesses and employees can play a greater role in meeting social needs and building a caring and cohesive society."
The scheme comes with some caveats, however. For example, the donation of goods and wages of the owners of sole proprietorships, partnerships and companies do not qualify for the tax deductions. The companies must also not have applied for other incentive schemes for the same services, and there is a cap of S$250,000 per year of assessment and S$50,000 per calendar year for the expenditure of each business and IPC respectively.
The guidelines and FAQs for IPCs interested in participating in BIPS can be found on the MOF and Charity Portal websites, and more information for businesses can be found on the IRAS website.
- CNA/mz
- wong chee tat :)
Showing posts with label iras. Show all posts
Showing posts with label iras. Show all posts
Thursday, June 30, 2016
Thursday, June 16, 2016
Singapore joins tax framework led by OECD and G20
Singapore joins tax framework led by OECD and G20
Under the new tax framework, Singapore will implement minimum standards aimed at preventing "aggressive tax planning" by multinationals.
By Nicole Tan
Posted 16 Jun 2016 19:41
SINGAPORE: Locally headquartered multinationals will soon have to file reports broken down by country as well as income and taxes to the Inland Revenue Authority of Singapore (IRAS).
In a statement on Thursday (Jun 16), the Ministry of Finance announced that Singapore is joining the tax framework led by the Organisation for Economic Co-operation and Development (OECD) and G20.
The OECD Base Erosion and Profit Shifting (BEPS) Action Plan was initiated in 2013. Under the framework, Singapore will implement minimum standards aimed at preventing "aggressive tax planning" by multinationals. The framework also includes setting standards on countering harmful tax practices, preventing treaty abuse, transfer pricing documentation, and enhancing dispute resolution.
This supports the principle that companies are taxed in the country where the economic activity takes place.
Multinational firms with a group turnover of more than S$1.125 billion and whose parent firms are in Singapore will have to report financials and economic activity to the tax authority on a country-by-country basis, for financial years starting in 2017.
IRAS will consult Singapore-headquartered multinationals further on the implementation details of country-by-country reporting (CbCR), and release details by September 2016.
NOT MANY WOULD BE AFFECTED: PwC
Tax consultants estimate that less than 100 firms will be affected. Still, advocating such tax principles can help raise the city-state's competitiveness.
"There won't be a large number of companies affected,” said Ms Nicole Fung, transfer pricing leader at PricewaterhouseCoopers Singapore. “Our estimate: It'll be less than 100. And these companies are not just in Singapore. They're global companies and they play in the international space. And so in terms of additional costs, I don't think there will be additional cost because even if Singapore doesn't have these requirements, they would have to comply with other jurisdictions that have these requirements.
“We actually end up being more competitive when we're adhering to it, because global companies just want to run their business. They don't really want to have issues regarding their tax.
"So they would want to be located in a country where the country embraces these principles, is respected, part of the international community where these principles are concerned, so that at the end of the day, the company or the group is not tainted just by virtue of the fact that it has operations in Singapore," Ms Fung said.
- CNA/ek
- wong chee tat :)
Under the new tax framework, Singapore will implement minimum standards aimed at preventing "aggressive tax planning" by multinationals.
By Nicole Tan
Posted 16 Jun 2016 19:41
SINGAPORE: Locally headquartered multinationals will soon have to file reports broken down by country as well as income and taxes to the Inland Revenue Authority of Singapore (IRAS).
In a statement on Thursday (Jun 16), the Ministry of Finance announced that Singapore is joining the tax framework led by the Organisation for Economic Co-operation and Development (OECD) and G20.
The OECD Base Erosion and Profit Shifting (BEPS) Action Plan was initiated in 2013. Under the framework, Singapore will implement minimum standards aimed at preventing "aggressive tax planning" by multinationals. The framework also includes setting standards on countering harmful tax practices, preventing treaty abuse, transfer pricing documentation, and enhancing dispute resolution.
This supports the principle that companies are taxed in the country where the economic activity takes place.
Multinational firms with a group turnover of more than S$1.125 billion and whose parent firms are in Singapore will have to report financials and economic activity to the tax authority on a country-by-country basis, for financial years starting in 2017.
IRAS will consult Singapore-headquartered multinationals further on the implementation details of country-by-country reporting (CbCR), and release details by September 2016.
NOT MANY WOULD BE AFFECTED: PwC
Tax consultants estimate that less than 100 firms will be affected. Still, advocating such tax principles can help raise the city-state's competitiveness.
"There won't be a large number of companies affected,” said Ms Nicole Fung, transfer pricing leader at PricewaterhouseCoopers Singapore. “Our estimate: It'll be less than 100. And these companies are not just in Singapore. They're global companies and they play in the international space. And so in terms of additional costs, I don't think there will be additional cost because even if Singapore doesn't have these requirements, they would have to comply with other jurisdictions that have these requirements.
“We actually end up being more competitive when we're adhering to it, because global companies just want to run their business. They don't really want to have issues regarding their tax.
"So they would want to be located in a country where the country embraces these principles, is respected, part of the international community where these principles are concerned, so that at the end of the day, the company or the group is not tainted just by virtue of the fact that it has operations in Singapore," Ms Fung said.
- CNA/ek
- wong chee tat :)
Wednesday, March 16, 2016
Bloggers taken by surprise by IRAS letter on taxable income
Bloggers taken by surprise by IRAS letter on taxable income
938LIVE reports: The memo received by bloggers states that all non-monetary benefits “may be taxable and must be declared”. One blogger said it was the first time she received such a letter.
By Lee Gim Siong, 938LIVE and Justin Ong
Posted 15 Mar 2016 22:07 Updated 15 Mar 2016 22:56
SINGAPORE: Some members of Singapore’s blogging community have expressed surprise at a letter they have received from the Inland Revenue Authority of Singapore (IRAS) clarifying income components - including products or services received via their websites - which need to be declared as part of their annual Income Tax Return.
938LIVE has seen pictures of the letter in question. The memo states that all non-monetary benefits, including sponsorship of products or services received in return for writing or reviewing the sponsors’ products “may be taxable and must be declared”.
Prominent blogger Wendy Cheng, or Xiaxue, told 938LIVE this is the first time she has received such a letter from IRAS.
Ms Cheng said while she is aware that income generated from her website is subjected to tax, it is “difficult” to declare certain benefits-in-kind.
“If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it? Other things like, for example, some fans give me something that’s handmade, how do I put a value on that?”
“Either that or I have to send it back to the company, but that’s very nasty. It’s like saying: 'I don’t like your product'; so it doesn’t make sense to me,” she added.
The IRAS letter sent to bloggers
Kenneth Lee, who blogs on www.5meanders.com wrote: “I think it’s sad, and a little funny, that we’ve come to a point in our country’s storied existence when a channel of expression is taxable.”
Local blogger Alvin Lim, who owns alvinology.com and asia361.com, told Channel NewsAsia the move by IRAS seemed “stringent and rather extreme”.
“If this is really true, it will kill the whole blogging scene. Who will go for food tastings now? IRAS also has to be fair to bloggers - most of us are one-man shows with no resources to do these things,” he said, adding that he presently files taxes under a registered company.
Mr Lim also noted that it would be “double standards” if the same were not applied to media companies. “Do journalists file taxes for media gifts, food tastings, family trips or media junkets?” he asked.
938LIVE understands that IRAS sent the letter as part of its regular engagement with the self-employed and is not meant to target or clamp down on bloggers.
Social media marketing firm Gushcloud said it is aware that the letter has been sent to bloggers under its management, adding that it regularly holds workshops and 1-on-1 meetings to answer their questions on the filing of their taxes.
A food blogger who declined to be identified said he has always been aware of the need to declare the benefits he received through his blog.
More information on what bloggers need to declare can be found here.
- 938LIVE/ek
- wong chee tat :)
938LIVE reports: The memo received by bloggers states that all non-monetary benefits “may be taxable and must be declared”. One blogger said it was the first time she received such a letter.
By Lee Gim Siong, 938LIVE and Justin Ong
Posted 15 Mar 2016 22:07 Updated 15 Mar 2016 22:56
SINGAPORE: Some members of Singapore’s blogging community have expressed surprise at a letter they have received from the Inland Revenue Authority of Singapore (IRAS) clarifying income components - including products or services received via their websites - which need to be declared as part of their annual Income Tax Return.
938LIVE has seen pictures of the letter in question. The memo states that all non-monetary benefits, including sponsorship of products or services received in return for writing or reviewing the sponsors’ products “may be taxable and must be declared”.
Prominent blogger Wendy Cheng, or Xiaxue, told 938LIVE this is the first time she has received such a letter from IRAS.
Ms Cheng said while she is aware that income generated from her website is subjected to tax, it is “difficult” to declare certain benefits-in-kind.
“If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it? Other things like, for example, some fans give me something that’s handmade, how do I put a value on that?”
“Either that or I have to send it back to the company, but that’s very nasty. It’s like saying: 'I don’t like your product'; so it doesn’t make sense to me,” she added.
The IRAS letter sent to bloggers
Kenneth Lee, who blogs on www.5meanders.com wrote: “I think it’s sad, and a little funny, that we’ve come to a point in our country’s storied existence when a channel of expression is taxable.”
Local blogger Alvin Lim, who owns alvinology.com and asia361.com, told Channel NewsAsia the move by IRAS seemed “stringent and rather extreme”.
“If this is really true, it will kill the whole blogging scene. Who will go for food tastings now? IRAS also has to be fair to bloggers - most of us are one-man shows with no resources to do these things,” he said, adding that he presently files taxes under a registered company.
Mr Lim also noted that it would be “double standards” if the same were not applied to media companies. “Do journalists file taxes for media gifts, food tastings, family trips or media junkets?” he asked.
938LIVE understands that IRAS sent the letter as part of its regular engagement with the self-employed and is not meant to target or clamp down on bloggers.
Social media marketing firm Gushcloud said it is aware that the letter has been sent to bloggers under its management, adding that it regularly holds workshops and 1-on-1 meetings to answer their questions on the filing of their taxes.
A food blogger who declined to be identified said he has always been aware of the need to declare the benefits he received through his blog.
More information on what bloggers need to declare can be found here.
- 938LIVE/ek
- wong chee tat :)
Monday, December 8, 2014
组屋屋主明年将缴较低房产税
组屋屋主明年将缴较低房产税
2014年12月08日 1518
（联合早报网讯）从明年1月1日起，住在三房式至五房式及公寓式组屋的屋主将缴交较低房地产税。
新加坡国内税务局（IRAS）今天发文告说，由于市场租金下跌，当局将下调政府组屋的年值（annual value）约3％，比起两年前，组屋住户明年须缴交的房地产税将减少42元至54元。一房和二房式组屋的屋主明年继续无须缴交房地产税。
税务局定期评估住屋的年值，主要是根据住屋的潜在全年租金来计算。这已是组屋住户连续第二年缴交较低的房地产税。
累进房地产税率从今年起生效，在这项调整下，自住房屋免税年值限额从6000元上调至8000元，之后的最低税率区间为4％，然后逐渐增加至最高的15％。（本报记者：陈紫筠）
（联合早报网编辑：沈茂华 )
- wong chee tat :)
2014年12月08日 1518
（联合早报网讯）从明年1月1日起，住在三房式至五房式及公寓式组屋的屋主将缴交较低房地产税。
新加坡国内税务局（IRAS）今天发文告说，由于市场租金下跌，当局将下调政府组屋的年值（annual value）约3％，比起两年前，组屋住户明年须缴交的房地产税将减少42元至54元。一房和二房式组屋的屋主明年继续无须缴交房地产税。
税务局定期评估住屋的年值，主要是根据住屋的潜在全年租金来计算。这已是组屋住户连续第二年缴交较低的房地产税。
累进房地产税率从今年起生效，在这项调整下，自住房屋免税年值限额从6000元上调至8000元，之后的最低税率区间为4％，然后逐渐增加至最高的15％。（本报记者：陈紫筠）
（联合早报网编辑：沈茂华 )
- wong chee tat :)
Tuesday, August 20, 2013
IRAS warns of scam email
IRAS warns of scam email
POSTED: 20 Aug 2013 5:41 PM
The IRAS has warned of a scam email with the subject title "IRAS Reward".
SINGAPORE: The IRAS has warned of a scam email with the subject title "IRAS Reward".
The scam email asks recipients to click on an attached link to fill in a form on a website to claim cash rewards, says the Inland Revenue Authority of Singapore (IRAS).
Members of the public should not respond to the email, click on its hyperlink or provide their particulars. The email and the website are scams, says IRAS.
The IRAS has made a police report and is investigating the matter.
Anyone who has received a suspicious email, letter, SMS or phone call purportedly from IRAS should immediately contact IRAS at iras@iras.gov.sg or call 1800 356 8225 to verify the authenticity of such a request.
- CNA/ir
- wong chee tat :)
POSTED: 20 Aug 2013 5:41 PM
The IRAS has warned of a scam email with the subject title "IRAS Reward".
SINGAPORE: The IRAS has warned of a scam email with the subject title "IRAS Reward".
The scam email asks recipients to click on an attached link to fill in a form on a website to claim cash rewards, says the Inland Revenue Authority of Singapore (IRAS).
Members of the public should not respond to the email, click on its hyperlink or provide their particulars. The email and the website are scams, says IRAS.
The IRAS has made a police report and is investigating the matter.
Anyone who has received a suspicious email, letter, SMS or phone call purportedly from IRAS should immediately contact IRAS at iras@iras.gov.sg or call 1800 356 8225 to verify the authenticity of such a request.
- CNA/ir
- wong chee tat :)
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