If you have problems viewing this email, please click here.

Best viewed with Internet Explorer 6.0<?XML:NAMESPACE PREFIX = O />


04 August 2006		Issue 02/2006

Tan, Chan & Partners & D&I Corporate Services Pte Ltd hereby wishes all valued clients a Happy National Day!
Dear Valued Clients,
In this second edition of our e-Newsletter, we have included the highlights of Singapore's Budget 2006 by our Prime Minister, Mr Lee Hsien Loong, delivered in the Parliament on 17 February 2006. We are also pleased to inform you that our corporate secretarial Department, D&I Corporate Services Pte Ltd are providing a new service for the Incorporation of The Seychelles (Offshore) company for tax planning purpose. NOTE: Please also take note of the recent changes in the ACRA -Abolishes Par Value (Norminal Value) For Shares And Authorised Capital - Section 62B(8). There is no longer the concept of authorised capital. A company can issue more shares if the required approval or authorization under the Act has been obtained. Kindly email our Peggy Wai at svc@dni-secretarial.com if your Company is required to submit the above updates with the ACRA. You may also refer to our first e-newsletter Issue 01/2006 dated 12 January 2006 for changes in companies act & tax for reference.

ACRA has informed that it will not operational on Saturdays with effect from 28 January 2006 and ACRA officers will not be on duty with effect from 28 January 2006. Abolishes Par Value ( Nominal Value) For Shares And Authorised Capital - Section 62B(8) Notification Of Share Capital - Share premium And Capital Redemption Reservces - Section 62B(7) For details information, please logon to www.acra.gov.sg Note: Please email Ms Peggy Wai: svc@dni-secretarial.com, if your company required to submit the above update with ACRA records A NEW Malaysia-Singapore Double Tax Relief. The new agreement will take effect from 1 January 2007. Reduction in personal income taxes: Personal tax reduced to 20% in YA 2007 Loss Carry-Back System From YA2006, losses of up to $100,000 incurred by the company in the current year can be carried back for one year. Note: We are able to assist companies in claiming back certain amount of the tax paid in the previous YA, if the companies fulfill the requirements stipulated by IRAS. There will be a nominal fee charged for the tax services. Income Tax Section 44 Statement From 1 Jan 2008: All companies in <?XML:NAMESPACE PREFIX = ST1 />Singapore remaining on the imputation system would move to the one-tier system. Imputation system will cease to exist; All dividends payable by companies in Singapore would be exempt from tax in the hands of shareholders; All corporate shareholders receiving dividends paid by companies in Singapore can onward pay the dividends to their shareholders with no restriction on the shareholding and number of tiers for which such dividends can be flowed through; All companies in Singapore are not required to maintain Section 44 accounts; All section 44 charge not utilised by 31^st December 2007 would not be available for set-off against any tax assessed on or after 1^st January 2008; and All tax discharged after 31^st December 2007 (net of any tax due to the Comptroller of Income Tax) may be refunded to companies at the point of tax discharge without the need to refer to companies’ section 44 balances as at 31 December 2002. Note: We are able to assist companies in claiming back the balance tax credit from IRAS before 31 December 2007, if the companies fulfill the requirements stipulated by IRAS. There will be a nominal fee charged for the tax services. Two new changes in CPF Scheme that will take effect on 1 July 2006 Transfer excess Medisave account contributions to special or retirement instead of ordinary account Restrictions on use of CPF savings for multiple property purchases Phasing out of non-residential properties scheme Increase in CPF minimum sum, Medisave minimum sum and Medisave contribution saving More details can be found at http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_13June2006.htm	Accounting firms seen as reluctant to audit charity organizations.Extracted: The Straits Times, Monday, June 26, 2006 In an effort to boost entrepreneurship, government sets aside $3.9 billion over 5 years grants and loans to small local companies to expand. Grants are 35% higher than previous 5 years and loans are 60% more to help Small Medium Enterprises (SMEs) genertae more income. Extracted: TODAY, Tuesday, March 07, 2006 Funding for SMEs Over the last couple of years, many financial institutions, both local and foreign, have set up dedicated units to serve the needs of SMEs and to develop new financing tools that suit their requirements. The efforts of Government agencies and the Action Community for Entrepreneurship (ACE) Action Crucible for Financing – a private and public sector initiative aimed at improving SME’s access to financing , have contributed to raise the awareness of the importance of SMEs and improving the infrastructure to help SMEs obtain financing through many fixed channels. Extracted: TODAY, Wednesday, July 19, 2006 Financing options available – Local Enterprise Finance Scheme(LEFS) - SPRING Loan Insurance Scheme (LIS) - SPRING SME ACCESS loan, managed by DBS – SPRING Business Instalment Loan – Standard Chartered Bank Credit Biz – Maybank Business Term Loan – OCBC UOB SME Cash – UOB While there are many avenues for SMEs to seek financing on their own, working with Government agencies still has its benefits. Some SMEs found that testimonials or referrals by the Government helped lend credibility to their business plans. One-stop business info hub for SMEs TO MEET entrepreneurs' long-standing requests for a dedicated information hub, the government has created a web portal specially for small and medium-sized enterprises (SMEs) at http://www.business.gov.sg. A chinese version of the website is available at www.scci.org.sg/enterpriseone. It is launched on 22 February 2006 by Deputy Prime Minister Wong Kan Seng, the new portal is easy to navigate and written in simple language. The user- friendly portals includes step-by-step guides on how to apply for Government financing schemes and market statics gathered from 25 agencies so tha business spend less time searching for information. Extracted: TODAY, Thursday, February 23, 2006 Budget 2006 Highlights The Prime Minister and Minister for Finance, Mr Lee Hsien Loong, deliver the FY2006 Budget Statement in Parliament on Friday, 17 February 2006 at 3.45 p.m. You may download the Budget Highlights Financial Year 2006/2007. Our clients in shipping and logistics industries will enjoy more benefits from Approved International Shipping incentive (AIS). With effect from 2007, qualifying shipping companies may apply for a third AIS incentive period of 10 years. To lighten the burden on businesses, the record-keeping period in 17 statutes, including the ITA, the Companies Act, the LLPs Act, the GST Act, the Charities Act, will generally be reduced from 7 years to 5 years. Other incentives and schemes mentioned in Budget 2006 that our clients may take advantages are: Foreign-Sourced Income Exemption (FSIE) Transfer Pricing Guidelines Industrial Building Allowances (IBAs) Zero-GST Warehouses Reminders for clients For PLCs: Please let us know the expected date you could finalise the accounts and ready for the audit as jobs are pre-assigned in advance. Ensure that you have all documents ready to avoid any delay in the audit work. A list of information needed can be found in our website at http://www.tanchan-cpa.com/download.htm (under For Auditing of company, association, firm, society and enterprise, Schedules required for Audit and Tax Purposes) Audit is to examine accounts with schedules provided. Income tax Form C is due for submission by 31st July the following year after its YE. If ECI is submitted electronically within 3 months from the YE date, there will be an auto extension of time until 31st December to file your Income Tax Return. Do inform us once you know your chargeable income. 'NIL' is required for making losses. FRS 39 Adoption And Income Tax Implications As discussed in our previous E-letter, the scope of FRS 39 applies to all types of financial instruments. At year end, the company should assess if there is objective evidence that impairment has occurred for its financial assets. This issue focuses on FRS 39 implementation for receivables in view of our clients’ uncertainty on this issue, and FRS 39’s income tax implications.FRS 39 And Income Tax Implications.htm We value feedback and welcome any enquiries. You can reach us at Office Tel:+65 6533 7393 - Partner: Tan Chin Ren(Ext.129) - Customer Service Division: Eileen (Ext.101) - Corporate Secretarial Division: Peggy(Ext.115) - Tax Enquires : Ace (Ext.121) / Dewi (Ext.112) - Email : info@tanchan-cpa.com - Address: 2 Havelock Road #04-08 Apollo Centre Singapore 059763

Disclaimer: This email is intended for the use of the addressee. If you are not the intended recipient of this message, kindly notify us at info@tanchan-cpa.com. While all reasonable care has been taken in the preparation of information contained in this newsletter, Tan, Chan & Partners takes no responsibility for any action (s) taken on the basis of information contained herein or for any errors or omissions in that information.