If you are seeking to maximise your taxes or expand your business aboard, we can help you with that by providing a substantial tax planning strategy.
We will help you minimise your tax liabilities in Singapore by optimising your current tax structure, including tax health check, identifying and mitigating tax inefficiencies and leaks, eliminating the risk of double taxation and more.
We can assist you in getting back any money you might have been unknowingly giving to the government by maximising the tax concessions, cash repatriation an incentives system.
Our tax team will advise businesses that are making significant transactions or arranging to expand to other markets in Asia by providing tax guidance on executing them tax-efficiently.
Our tax team will keep you up to date with the Singapore tax rules and regulations. Our corporate tax services include:
If your business is related in importing or exporting products, we can provide you with a transfer pricing guide. This report will help you identify transfer pricing rules and the direction of pricing your goods and services, and also a comparison of other transactions made in the market.
Tax authorities all around the world are focusing on transfer pricing to ensure that goods and services flowing across borders are priced appropriately. The worldwide BEPS (Base Erosion and Profit shifting) collaboration amongst 135 countries brings transfer pricing into sharp focus.
Hong Kong adopts the internationally agreed arm’s length principle for the determination of prices for transactions between related parties. The arm’s length principle is the international standard to guide transfer pricing. It requires the related party to make a transaction under comparable conditions and circumstances as a transaction with an independent party.
Hong Kong has a series of regulations which require Hong Kong companies to prepare transfer pricing documentation unless they are exempt. The exemptions are for companies that satisfy either Test A or Test B:
If the company is not exempt, it must prepare the following documentation as stipulated by OECD:
Tax authorities all around the world are focusing on transfer pricing to ensure that goods and services flowing across borders are priced appropriately. The worldwide BEPS (Base Erosion and Profit shifting) collaboration amongst 135 countries brings transfer pricing into sharp focus.
Indonesia adopts the internationally agreed arm’s length principle for the determination of prices for transactions between related parties. The arm’s length principle is the international standard to guide transfer pricing. It requires the relevant party to make a transaction under comparable conditions and circumstances as a transaction with an independent party.
Indonesia has a series of regulations which require Indonesian companies to prepare transfer pricing documentation if they fall in the following categories:
If a company satisfies one or more of the above tests, it must prepare the following documentation as stipulated by OECD:
*An Indonesian resident subsidiary may not be required to prepare and submit the full CbCR to Indonesian tax authority as long as the parent or constituent entity submits it on their country. Indonesia can obtain the CbCR from such country using the exchange of information mechanism. If this is the case, the Indonesian entity will only require submitting a one-page CbCR notification.
The master file and local file must be available for inspection by the tax authorities within four months of the end of the fiscal year. The country by country reports must be available within 12 months.
Indonesia’s tax treaties also incorporate provisions that guard against treaty abuse and provide for the exchange of information upon request in line with the internationally agreed standard.
Where your company is involved in the import/export of goods and services, our tax professionals can provide you with a transfer pricing report which will analyse the correct method of pricing your goods and services and include a comparability analysis with other similar transactions in the market.
Our service includes the preparation of an Advance Pricing Agreement (APA) to be agreed with the Indonesian Director General of Tax (DGT) under their transfer pricing policies. The process involves meeting with the DGT to discuss the APA in advance, which we can facilitate. Concluding an APA provides certainty in pricing goods and services that flow cross border.
When a company opens a bank account, the bank will require the company to make a statement as to the company’s status under either CRS or FATCA. A CRS statement will be required from any entity whose beneficial owners are no U.S. citizens. A FATCA statement will be required where any beneficial owners are U.S. citizens. The classification process is far from straightforward, with the bank’s how-to guides stretching to 20 pages or more. An Acclime professional can assist with the correct classification for your company.
The Common Reporting Standard (CRS) is an information standard for the Automatic Exchange Of Information (AEOI) regarding bank accounts on a global level, between tax authorities. It was developed by the Organisation for Economic Co-operation and Development (OECD) in 2014 to combat tax evasion.
The Foreign Account Tax Compliance Act (FATCA) generally requires financial institutions (FI) and certain other non-financial entities that are foreign to the U.S. to report on assets held by their U.S. account holders or be subject to withholding on withholdable payments.
There are three categories of classification of companies under CRS. The category will determine whether a bank is required to report the existence of the account to the Indonesian Director General of Tax (DGT), who would then share the information with the tax authority where the beneficial owner is tax resident.
If the company is not exempt, it must prepare the following documentation as stipulated by OECD:
Depending on your entity’s classification, and where it’s resident for tax purposes, it may be a Reportable Person. That means details of the account will be reportable to the tax authority in Indonesia. That authority will then send your details to the tax authority where your entity or controlling person(s) is/are tax resident.
Financial institution – Not reportable
Active NFI – The entity is a reportable entity unless it falls in one of the exemptions (e.g. government-owned, regularly traded on an exchange, charity)
Passive NFI – The entity is a reportable entity, as is the controlling person(s) of the Passive NFI
If reporting is required, the person’s name, tax ID number and account balance must be reported as well as any dividends, interest or sales proceeds from financial assets that have been paid into the account during the year.
As the classification process is quite complicated and there are penalties for getting it wrong, it is advisable to have professional advice regarding the classification of your company. Acclime’s tax experts will be able to assist and advise you as to the correct classification of your company.
Although the definitions under FATCA and CRS are similar, there are differences which could cause your company to have a different FATCA classification from its CRS classification.
Indonesia has signed an Inter-Governmental Agreement (IGA) with the U.S. as regards FATCA, so banks in Indonesia need to comply with the reporting obligations.
FATCA has three categories of company:
The reporting obligations are similar to CRS for the above entity classifications, with the form that needs to be completed differing based on the classification, and in many cases sub-classification of the entity.
The classification process is quite complex, and there are penalties for getting it wrong, it is advisable to have professional advice regarding the classification of your company. Our tax experts will be able to assist and advise you as to the correct classification of your company.
We will help you identify your tax reliefs and deductions. Our personal tax services include:
An audit is only mandatory if: