FRS 115: Principal vs Agent Considerations
FRS 115 includes application guidance for an entity to determine whether it is a principal or an agent i.e. based on whether it controls the specified goods or services before the transaction (principal) or not (agent). Key Learning Point When a third party is...
FRS 115 Impact on Construction Companies and Property Developers
The accounting for construction contracts were guided by FRS 11 Construction Contracts. After 1 January 2018, the FRS 11 became superseded by FRS 115. Under FRS 115, construction contract is treated exactly the same as any other contract with customers. The FRS 115...
Second Reading on the Stamp Duties (Amendment) Bill 2018
On 10 September 2018, the Stamp Duties (Amendment) Bill 2018 was read for the second time by the Second Minister for Finance, Mr. Lawrence Wong at the Parliament. The amendments proposed are as follows: To provide for stamp duty to be levied on electronic records that...
Summary of Responses to Public Consultation on the draft Income Tax (Amendment) Bill 2018
On 10 September 2018, the Ministry of Finance has published the summary of responses to public consultation on the draft Income Tax (Amendment) Bill 2018, The Bill was tabled for its first reading at Parliament on 9 October 2018. The details on draft Bill proposed are...
Claiming GST on Expenses for Qualifying Funds
Qualifying funds may incur GST when the fund procures fund management service and other services from GST-registered businesses. All qualifying funds that are managed by a prescribed fund manager in Singapore are allowed to claim GST incurred on expenses at an annual...
Updated Withholding Tax forms and templates on the S45 Offline Date Entry
On 31 August 2018, the Inland Revenue Authority of Singapore (IRAS) has updated the following withholding tax forms and templates on the S45 Offline Data Entry (ODE) for payers who want to prepare multiple records offline and then submit in bulk, together with User...
The Cybersecurity Act 2018
On 31 August 2018, the Cybersecurity Act 2018 has came into operation of Parts 1 to 4, 6 and the First Schedule. This Act was passed by Parliament on 5 February 2018 and assented to by the President on 2 March 2018. It establishes a framework for the protection of...
ACRA’s AUDIT PRACTICE BULLETIN NO 1 OF 2018
On 28 August 2018, the Accounting and Corporate Regulatory Authority (ACRA) has issued its First Audit Practice Bulletin (APB) for 2018 that highlights the legislative requirements and provides guidance for auditors on the audit procedures and report on the revised...
BML v CIT [2018] SGCA 53 – Court of Appeal affirmed CIT’s decision to deny interest deduction arising from bond issue following a capital reduction
On 29 August 2018, the Court of Appeal (delivered by Tay Yong Kwang JA) has affirmed the Comptroller's decision to deny interest deduction to taxpayer paid on a bond issued to its shareholders in the course of a capital reduction. The deduction was originally...
Singapore and Gabon Sign Agreement for Avoidance of Double Taxation
On 28 August 2018, a comprehensive Agreement for the Avoidance of Double Taxation (DTA) was signed between the Singapore and Gabonese Republic. The DTA stipulates the taxing rights of both jurisdictions on all forms of income flows arising from cross-border business...