Publication
Singapore: Competition law fact sheet
Overview of the main provisions of the Competition Act, and discussion of the enforcement regime and recent enforcement trends.
Environmental and health taxes, tax administration & FinTech
Global | Publication | February 2018
Content
Environmental and health taxes
Carbon Tax
The second draft Carbon Tax Bill was released during December 2017 and it is intended that the Bill will be enacted by end of 2018 with an effective implementation date of 1 January 2019.
Acid mine drainage levy
Government is considering a new levy to environmental damages and to make polluters pay for the cost of fund the treatment of acid mine water.
Health promotion levy
Sugar tax has long been on the radar for Government. The implementation date for the levy has been set as 1 April 2018.
Tax Administration
Official rate of interest
The Income Tax Act makes reference to the “official rate of interest”. Currently the official rate of interest is 7.75%. Given that the official rate of interest is currently lower than the prime rate of 10.25%, it is proposed that the official rate be adjusted to align it to the rates offered by commercial banks.
Electronic fiscal devices
In an effort to streamline its process, SARS proposes the utilisation of fiscal electronic devices which will assist the revenue authority with monitoring business transactions. Other administrative measures to be taken by SARS include the enhancement of the custom and excise system, with a particular focus on the tobacco industry.
Financial technology and cryptocurrencies
Financial technology
The increase in financial technologies (FinTech) has brought about significant changes in financial and business models internationally. The growth of FinTech brings many benefits but also creates a number of social issues such as increased retrenchments. The National Treasury, SARB, the Financial Services Board, and the Financial Intelligence Centre have been operating an Intergovernmental Working Group on Financial Technology and Innovation since 2016 to address these developments.
Cryptocurrencies
The budget speech confirmed that existing provisions and general principles of the current tax legislation apply to transactions undertaken using cryptocurrencies. However, there are certain administrative difficulties which arise due to the nature of this technology.
The income tax and VAT rules will be amended to cater for these peculiarities and to provide guidance and certainty to those taxpayers transacting in cryptocurrencies.
In addition, SARB is set to release another position paper in relation to cryptocurrencies which will shed light on future regulation and recognition of these now popular digital assets.
Recent publications
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Recent interest rate increases could trigger unexpected arbitrage liabilities for bond issuers
For many years, investment yields were so low that the arbitrage rules applicable to tax-exempt bonds were for the most part more theoretical than practical.
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Preparing for change: How businesses can thrive under the EU's AI Act
On February 2, 2024, the Belgian Presidency of the Council of the European Union confirmed that the Committee of Permanent Representatives had signed the Artificial Intelligence (AI) Regulation, referred to as the AI Act. Approval by the EU Parliament followed on 13 March 2024, and the AI Act is likely to appear in the EU’s Official Journal around May 2024. The AI Act aims to establish a stringent legal framework governing the development, marketing, and utilisation of artificial intelligence within the region, thereby marking a significant advancement in the regulation of this burgeoning domain.
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