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.
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.