Kok Weng SAM

I thought I'd share this article incase anyone in my network had missed it. Recently, Institute of Singapore Chartered Accountants (ISCA) released a Whitepaper with some interesting findings. One of which was that AI can bring forth "positive disruption". Many people are aware of the increasing role given to AI within the accounting sector, and I personally do not think that this is necessarily a bad thing: on the contrary, I think that AI can be used in a number of positive ways in our industry. What are your thoughts? Let me know in the comments below.

6

1 Comment

The Monetary Authority of Singapore (MAS) has issued much awaited details on the #taxincentiveschemes for #funds (S13O/U/D) that will apply to all existing awards and new applications with effect from 1 January 2025. The MAS has considered the industry feedback and carefully calibrated the refined conditions to ensure the substance requirements in Singapore, while continuing to support the growth of #fund and #assetmanagement sector in Singapore. Key updates: 1. The tax incentive schemes, associated GST and WHT benefits are extended until 31 Dec 2029. These are available for the life of the fund. 2. Introduction of new Section 13OA scheme for Singapore limited partnerships. Economic conditions apply similar to S13O at the level of the limited partnership (and not on a look-through basis). 3. Where a fund structure (comprising feeders and / or SPVs) is approved under a consolidated S13U, the minimum size and minimum spending condition does not multiply based on each entity and is calculated only once as a single fund structure. This is a welcome change. 4. Introduction of “close-end fund” tax treatment option (voluntary irrevocable opt-in) available to existing awards and new application that provides flexibility on meeting the minimum size and minimum spending condition in a calibrated manner recognizing a gradual drop in the AUM and expenditure towards the end of the fund life. 5. The minimum size requirement will be tested based on the AUM invested in qualifying investments at the end of each FY for both S13O/U (instead of NAV). While the threshold for S13U remains at SGD50m, there is an introduction of SGD5m threshold for S13O. Funds with specified strategies have the flexibility to meet the requirements based on committed capital basis. 6. The minimum spending condition for both S13O/OA and S13U are brought at level playing based on operating expenses paid to contracting parties in Singapore and calculated based on tiered-approach relative to the AUM. Further, similar to S13U, S13O application may be filed after making investments. 7. In order to ensure suitable level of economic substance, the minimum Investment Professionals (IPs) requirement will be 3 IPs for S13U, 2 for S13O and 1 for S13D. 8. The MAS has provided for grace periods to allow the fund managers to adjust and comply with the new requirements. 9. The other conditions for S13D and managed accounts remain substantially the same. Reach out to your EY contact for a further discussion and keep a look out for our upcoming tax update session. Amy Ang Stephen Bruce Neha Shah Tammy Tan Stuart Cioccarelli Sophie Lindsay Brian Thung Armin Choksey Swee Yen Yeoh Venetia Lau Viang Wing Wong Nandini Navale Rowena Ferareza Mercy Joseph

83

#connectingthedots With the surge of initiatives to unlock value, efficiency with better control & transparency - many may wonder if Tax Corporate Governance (TCG) is just flavor of the month ? TCG is here to stay, setting the building blocks for better governance & two way communication between companies & LHDN (Lembaga Hasil Dalam Negeri). Here’s some food for thought, 1) to build relationships on #trust there needs to be open lines of communication 2) high levels of comfort to share stems from confidence in accurate & readily available #data 3) #sustainable actions stem from a strong ecosystem to support the requirements and output needed All of these form the backbone of the TCG framework & programme as well as other #compliancerisk requirements. #killingtwobirdswithonestone Check out our blog where Jennifer Shalini Peter & I delve into trends & the necessary components for #cooperativecompliance

12

The Singapore Ministry of Finance invited feedback on the draft Multinational Enterprise (Minimum Tax) Bill and the subsidiary legislation to implement Pillar 2. It has released responses to the key feedback. Few highlights: 1. The QDMTT computation will need to be done based on the local financial accounting standard and not the Ultimate Parent’s financial accounting standard. 2. A branch registered in Singapore can be appointed as the designated local GloBE Information Return filing entity and designated local QDMTT filing entity. https://lnkd.in/gKsr6fNG

57

The 7th edition of the Singapore TP Guidelines introduces several welcome relaxations and concessions. For me, it signifies that TP compliance has reached a certain maturity and awareness. However, it remains clear to me that upstream fundamentals of commercially rational models and strong governance to maintain a high level of compliance is critical and will continue to be a big focus. See our summary here.

51

Singapore is a key centre for family offices and external asset managers (EAMs), due in part to key regulatory changes like 2020’s Variable Capital Companies (VCCs) and the Monetary Authority’s increase of minimum criteria for single family offices in 2022 to ensure genuine commitment. An interesting interview with Jolene Tan, co-founder of SingAlliance and president of the Association of Independent Wealth Managers Singapore. She explores why family offices may consider a shift away from banks to EAMs as they may offer more personalised, independent, and digitally enhanced wealth management. #familyoffice #assetmanagement #Singapore

29

Curious about how auditors conclude on audit opinions when subsidiary(ies) aren't consolidated? Various scenarios can lead to different audit opinions, from unqualified to disclaimer. What are your experiences or thoughts on how these decisions impact financial reporting?

6

1 Comment

Identifying climate risks and opportunities is a crucial first step in preparing for ASRS reporting and getting your business ready for assurance. #ESGaudit #ESGassurance #sustainabilityassurance

8

The APAC M&A market was down in Q1 2024, recording a 38% YoY decline in deal value and 21% in drop in deal volume. But executives are looking at M&A more positively than at the start of the year, with both acquisition and divestiture intentions being upgraded since our last CEO survey in January. In APAC specifically, 54% of respondents are looking at M&A initiatives in the next 12 months, and the main driver is to aquire technology, new production capabilities or innovative startups. Read more to learn more how CEOs juggle transformation priorities in 2024 and how M&A can be central to that transformation agenda. #Transactions #M&A #Strategy #Transformation #EYP https://lnkd.in/gRM8Anbd

2

#connectingthedots ⭐️ Looking fwd to the weekend 😊 However one of the highlights this week was ☕️ #LWAS - the after party, I really enjoyed our coffee time & chat 💬 looking fwd to more banter. Thanks Adelina Z. | Florence Tan (missed you) | Sandreanna & Sherien Loo What’s #LWAS? At PwC Malaysia, we take turns hosting lunch/ Lepak (means to “hang out”) with a stranger to facilitate sharing of ideas 💡, hobbies, different perspectives - more importantly for like minded folks to get together, make new friends whilst having banter over lunch 🥗 Thanks to all that showed up for my sharing On how I balance work & life 💪🏻 🌸 💻 PLAY - PAUSE - REPEAT Here’s an outline of what has been helpful for me 😊 1) ▶️ PLAY - for days spent in & out with your office / work family, it’s important to build trusted relationships, How’ver … 2) ⏸️ PAUSE - equally important to establish a balance that works for you with activities, folks outside the office. From travel to movies to coffee or tinkering in a studio - look for something to help you level set & keep grounded … and 3) 🔁 REPEAT - work some of these activities / time outs into your routine (if not weekly then monthly) Have a good Wkend everyone 🌸 #connectedteams #PwCMY #PwCproud

33

Gain insight and see an update and run down of the excellent work of the IESBA board hereunder: ✅ The Board’s standard-setting projects;  ✅ Global adoption and implementation status;  ✅ Outreach efforts; and  ✅ Collaboration with key stakeholders.

9

What’s the overwhelming top priority for board directors in 2024? While talent, investment and tech strategy are all very important considerations, in APAC, economic conditions take first place. Discover the path forward for board action amid a rapidly changing landscape in the latest EY Asia-Pacific Board priorities: https://go.ey.com/3Qn4zo0 #BoardMatters #BetterWorkingWorld

1

Maximising value in #infrastructure deals demands three key elements – a strategic approach, identifying opportunities in corporate #carve-outs and bold #investments in core-plus sectors. Discover how to leverage these in the Australian M&A Outlook: Infrastructure Insights: https://pwc.to/4b9cpZZ #PwCDealsAU #Deals #MergersandAcquisitions #TransacttoTransform #ValueCreation

76

The recently introduced Section 10L in Singapore alters the treatment of gains from foreign assets. Effective from January 2024, these gains will become taxable under certain conditions, which will have implications for multinational corporations and the investment fund sector. In this update, our experts outline what you need to know to stay compliant and strategically navigate these changes. https://okt.to/bUWIg9 #TaxLegislation #Singapore #MultinationalCorporations

32

1 Comment