Skip to main content

Advertisement

Advertisement

Help financial institutions by defraying costs of compliance

The report “FIs must establish tax residency status of account holders: Iras” (Jan 7) makes clear the robust compliance regime in place that makes Singapore an international financial hub. This translates into compliance costs for financial institutions here.

Follow TODAY on WhatsApp
Woon Wee Min

The report “FIs must establish tax residency status of account holders: Iras” (Jan 7) makes clear the robust compliance regime in place that makes Singapore an international financial hub. This translates into compliance costs for financial institutions here.

It might be worthwhile for the authorities to consider introducing measures to defray these costs, which have a real impact on these institutions’ profit margins, especially in these challenging times.

Such a move would further incentivise adherence to high degrees of compliance with various regulations.

Take, for example, the Foreign Account Tax Compliance Act. Financial institutions here have had to comply with its return filing requirements since the intergovernmental agreement between Singapore and the US was signed in December 2014.

Cost-defraying measures may also create or save jobs, and could enhance Singapore’s status as a business-friendly and forward-looking financial hub.

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.