Dear Clients and friends
Singapore’s stunning first quarter GDP growth of over 13% has set the economy buzzing. A consequence of this is a tightening of the job market with unemployment falling to just 2%. Employer CPF rates are set to rise, with calls from unions to restore cuts agreed during the earlier slowdown and increases in Foreign Worker Levies with effect from July 2010 have already been announced to reduce reliance on foreign labour. A challenging time lies ahead for businesses, with increased opportunities coupled with tighter human resources. The 2010 Budget contained a strong emphasis on the need to increase productivity and many incentives have been provided for Singapore based businesses to become more productive.
Warmest Regards
Shanker Iyer
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NEWS |
Singapore Q1 2010 GDP expanded by 13.1%, set to grow by 7-9% in 2010
The Ministry of Trade and Industry (MTI) revised the growth forecast for Singapore economy to between 7 and 9 per cent for 2010 from the earlier 4.5 to 6.5 per cent, after an exceptionally strong first quarter led by manufacturing.
Advance estimates indicate that Singapore's GDP expanded by 13.1 per cent in Q1 from a year ago. On a seasonally adjusted quarter-on-quarter annualised basis, its GDP grew by 32.1 per cent. [MORE]
Singapore dollar to be allowed to appreciate
Singapore's central bank has announced a double dose of monetary policy tightening. [MORE]
Singapore's inflation to rise up to 3.5%
The Government expects Singapore's inflation to rise between 2.5 and 3.5 per cent this year, slightly higher than the earlier 2 to 3 per cent forecast.
The Ministry of Trade and Industry announced the revised projection for inflation, in view of the strong economic recovery in the first quarter. [MORE]
Employer CPF contribution rate set to rise
To help workers save for the future, the Singapore labour movement is calling on the Government to restore employers' Central Provident Fund (CPF) contributions fully or partially. [MORE]
Foreign worker levies to increase
Come this July, employers will have to pay higher levies for S-Pass holders as well as work-permit holders in manufacturing, service, marine, construction and process sectors.
The Ministry of Manpower has released details of these revised levies, which are meant to moderate the growth of the foreign workforce and encourage greater productivity. [MORE]
MAS to review Singapore's fund management industry
The Monetary Authority of Singapore (MAS) is reviewing the regulatory regime for financial intermediaries conducting fund management activities and the exemption regime for financial intermediaries engaged in leveraged foreign exchange trading. [MORE]
Sibor hits all-time low
Sibor is near the bottom and that it is a good time for individuals and corporates to hedge their interest exposure. [MORE]
Colour-coded compliance rating and Certificate of Compliance implemented for Singapore companies
ACRA has introduced Colour-coded Compliance Rating and Certificate of Compliance initiatives with the aim of inculcating a culture of voluntary compliance amongst the locally incorporated companies. [MORE]
FTAs yield over $700 m in tariff savings
Companies based in Singapore enjoyed more than $700 million in tariff savings last year as a result of the country’s Free Trade Agreements (FTAs). [MORE]
Strong demand for Singapore private homes in Q1 2010
Demand for new homes in the first quarter of this year more than doubled that of the fourth quarter of 2009.
This is despite the introduction of another set of property curbs in February. [MORE]
Further measures to cool Singapore property market
In September last year, the Singapore Government introduced a set of measures to temper the exuberance in the private residential market. The Government has continued to monitor the property market closely. While the September 2009 measures helped to cool the property market, there are recent signs that it is starting to heat up again. [MORE]
New home price index
A new property index that tracks condominium prices and gives timely updates on non-landed private properties may lead to trading in more sophisticated financial products like property derivatives. [MORE]
Singapore, Costa Rica ink FTA
Singapore and Costa Rica signed a broad-based and comprehensive Free Trade Agreement, which will reduce and remove trade barriers, strengthening bilateral economic ties. [MORE]
Duty—free liquor allowance changed from April
From April, the duty—free allowance for liquor changed to allow for an additional one litre of wine or beer in lieu of one litre of spirits. [MORE]
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SINGAPORE TAXATION UPDATE |
Budgets Around the World
The Minister for Finance presented the 2010 Budget Statement on 22 February 2010 which set the stage for increasing Productivity, Innovation, and building Capabilities of Singapore businesses. It focuses on building up the capabilities to transform Singapore into an advanced economy. The key goal of Budget 2010 is to steer businesses into enhancing productivity by 2% to 3% on a yearly basis and by a third over the decade. It was announced that the Government will launch a S$5.5 billion initiative to help enterprises and workers raise productivity by deepening skills and expertise. [MORE]
On 24 February 2010, the Financial Secretary, Mr. John Tsang Chun-wah, delivered his third budget speech of the current term for the Government for the 2010/11 fiscal year.
This special report summarises the budget proposals on tax revenue which are not final and will be reviewed by the Legislative Council shortly. Some of the proposals may be amended or may not be enacted at all. [MORE]
After the first budget of the UPA Government presented in July, 2009 soon after the newly elected government took charge, the regular budget of February, 2010 was eagerly awaited. The Finance Minister has in his masterly style presented a well balanced growth oriented Budget in the Parliament on 26th February, 2010 to achieve the following objectives: [MORE]
The Chancellor, Alistair Darling, presented his UK Budget 2010 on 24 March 2010 and took the opportunity to spell out the differences in approach between the Government and the Opposition in tackling the economic crisis and announced a number of eye-catching initiatives. [MORE]
Latest E-Tax Guides Issued by IRAS:
These e-tax guides were extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit www.iras.gov.sg for more information.
Tax Treaties Update
Singapore and Japan enhance tax cooperation
Singapore and Japan signed a protocol to incorporate the new internationally agreed Standard for the exchange of information for tax purposes upon request in their standing Agreement for the Avoidance of Double Taxation (“DTA”) on 4 February 2010. [MORE]
Casino tax
With the two Integrated Resorts (IRs), Marina Bay Sands and Resorts World Sentosa in Singapore and casinos being operational, the casino tax is a new tax introduced to levy tax on the casinos’ gross gaming revenue. [MORE]
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CORPORATE UPDATE |
ACRA unveils new initiatives
The Accounting and Corporate Regulatory Authority (ACRA) announced several new initiatives as an impetus for locally incorporated companies to comply with the corporate regulatory requirements as well as to acknowledge firms which have made the effort to comply. [MORE]
Changes to filing of financial statements in XBRL
- Changes to ACRA Taxonomy and FS Manager
- Revised Findings from Review of XBRL Financial Statements
[MORE]
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ACCOUNTING UPDATE |
Singapore's accountancy sector poised for a shake-up
The Committee to Develop the Accountancy Sector (CDAS) has put up 10 proposals for Singapore to become a leading global accountancy hub over the next 10 years: [MORE]
IPSASB Seeks Views on Accounting for Service Concession Arrangements by Grantors
The International Public Sector Accounting Standards Board (IPSASB) is seeking comments on an exposure draft (ED) that addresses accounting for service concession arrangements by the grantor. Service concession arrangements, often called Private Public Partnerships or PPPs, involve an operator providing services to the public on behalf of a grantor--usually the government or another public sector entity. For many countries, such arrangements are a means to ensure large-scale, infrastructure projects, such as the building of roads and airports, can be developed and provided to the public for use. However, in some cases, they are not recognized in the financial statements, effectively concealing the financial position of the grantor. [MORE]
Tips For Cost-Effective ISA Application
To help SMPs in applying ISAs in a cost-effective manner, the International Federation of Accountants (IFAC) staff, in support of the Adoption and Implementation Support initiative is pleased to attach an article entitled Tips for Cost-Effective ISA Application. [MORE]
IFAC Global Survey
Global accountancy leaders want the International Federation of Accountants to increase pressure for adoption, implementation, and enforcement of standards.
Investors and all consumers of financial information deserve clear, reliable, and consistent information, IFAC organizations from around the world asserted in a survey. [MORE]
Liabilities - amendments to IAS 37
The IASB staff have prepared a staff paper discussing one aspect of the working draft IFRS to replace IAS 37 Provisions, Contingent Liabilities and Contingent Assets. [MORE]
Limited Exemption from Comparative FRS 107
The ASC has issued Limited Exemption from Comparative FRS 107 Disclosures for First-time Adopters (Amendment to FRS 101). An entity shall apply that amendment for annual periods beginning on or after 1 July 2010. [MORE]
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HUMAN RESOURCE UPDATE |
Boost for older worker re-employment
More than 1,300 companies have signed up for grants to help them re-employ older workers.
A recent survey by the Ministry of Manpower showed that almost two-thirds of companies already allow employees to work past the statutory retirement age of 62. [MORE]
Jobless rate falls to 2.1%
The Singapore labour market showed resilience and grew for the first time amid an economic recession in 2009, with overall unemployment rate falling to 2.1 per cent last December.
It weathered the 2009 recession better than previous downturns, supported by the Resilience Package and concerted tripartite efforts to save jobs. [MORE]
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SINGAPORE GOVERNMENT ASSISTANCE SCHEME UPDATE |
S$25M for SMEs to adopt infocomm technology
To help small, medium enterprises (SMEs) invest in infocomm technology, the S$25 million iSPRINT scheme has been launched.
All SMEs registered or incorporated in Singapore can apply as long as the project uses infocomm technology to improve business operations, raise productivity, or increase revenue/value-add for the business. [MORE]
S$250M to improve construction productivity
The construction industry will soon get a S$250 million shot in the arm to adopt new technology and upgrade its workers' capabilities to improve productivity: [MORE]
Funding assistance for SMEs venturing into new markets
IE Singapore has unveiled a new 5-year plan to help Singapore businesses to venture overseas.
A new S$10 million programme starting in April called SME Market Access Programme (MAP) will provide up to 50% subsidy on third-party costs such as fees for product listing, finding distributors and partners, drafting legal documents, and conducting clinical trials. [MORE]
Government extends business grant
A government grant to help businesses better cater to families has been extended for three more years.
The Ministry of Community Development, Youth and Sports has set aside another $2 million for the Businesses for Families Grant, said the Business for Families Council (BFC). [MORE]
Extra support for SMEs to increase productivity
Small and medium enterprises (SMEs) will soon benefit from more targeted programmes by the Government to help them increase their productivity.
The Workforce Development Agency (WDA) will be providing SMEs more funding support for productivity-related courses and will work with SPRING Singapore to develop productivity-related training programmes. These include customised workshops and diagnostic tools to help SMEs implement productivity measures. Details are expected in May. [MORE]
More than 100,000 employers received $460 million from the first extended payment of Jobs Credit
More than 100,000 employers, who employ about 1.4 million local workers, received another $460 million as the first extended payment of the Jobs Credit on 31 March 2010.
Eligible employers have received a notification letter by 24 March 2010 from the Inland Revenue Authority of Singapore (IRAS), informing them of the amount of Jobs Credit they will receive in the first extended payment. [MORE]
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EVENTS |
Past Events
Becoming a Singapore Permanent Resident: What you need to consider
The Iyer Practice & Professional Investment Advisory Services Pte Ltd
11 Mar 2010
Mr Shanker Iyer presented on what you need to consider when deciding whether or not to become a Singapore Permanent Resident.
Singapore Budget 2010
Singapore International Chamber of Commerce (SICC) & The Iyer Practice
9 Mar 2010
Mr Shanker Iyer discussed the Tax Changes announced in Budget 2010 and their implications and impact on various sectors.
Please click here for presentation slides
The Tax Essentials and Outlook 2010 Seminar
The Institute of Chartered Accountants in England & Wales (ICAEW)
4 Feb 2010
Mr Shanker Iyer was invited to speak on a panel discussion focusing on the impact on profitability.
Upcoming Events
The Iyer Practice & ACCA
Singapore Tax Update Post Budget
29 July 2010
The Iyer Practice & iPac Financial Planning Singapore Pte Ltd
Becoming a Singapore Permanent Resident
18 August 2010
For more information, please click here.
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SINGAPORE PUBLIC HOLIDAYS - REMAINDER OF 2010 |
2010
- Labour Day - 1 May 2010, Saturday
- Vesak Day - 28 May 2010, Friday
- National Day - 9 August 2010, Monday
- Hari Raya Puasa - 10 September 2010, Friday
- Deepavali - 5 November 2010, Friday **
- Hari Raya Haji - 17 November 2010, Wednesday
- Christmas Day - 25 December 2010, Saturday
** The date for Deepavali, 5 November 2010, needs to be checked against the Indian Almanac when it is available. Should there be a change in date; the Ministry of Manpower will issue a press release to announce the change.
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REMINDERS FOR YOUR DIARY... |
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Important Dates
Deadline for Annual General Meeting and filing of AR
- Annual General Meeting to be held by 30 June 2010 for FYE 31 December 2009 and AR to be filed by 31 July 2010.
Companies unable to meet the AGM deadline are generally able to apply for an extension of time prior to their financial year end to the Accounting and Corporate Regulatory Authority to hold the Annual General Meeting.
The application fees for extension of time range from S$50 to S150 (S$50 for 1 month, S$100 for 2 months and S$150 for 3 months)
- 30 November 2010 – Deadline for filing tax returns for the Year of Assessment 2010. No extensions available.
- 31 December 2010 - Annual General Meeting Deadline for companies with a 30 June year end
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“THE IYER PRACTICE NEWSLETTER” is issued exclusively by Shanker Iyer & Co for the information of clients and associates and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions. Materials published
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of Shanker Iyer & Co
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