ACCOUNTING STANDARDS

& TAXATION (CONTD)

A GLIMPSE OF ASIA

ACCOUNTING STANDARDS
& TAXATION
SINGAPORE
MALAYSIA
PAKISTAN

INDIA
JAPAN

SINGAPORE
CAPITAL:
Singapore
CURRENCY:
Singapore Dollar (SGD)
AREA:
718.3 sq. km.
POPULATION:
5,469,700 (as of 2014 est.)

ACCOUNTING STANDARDS
IN SINGAPORE
In 2002, the Singapore government created the
Council on Corporate Disclosure and Governance
(CCDG) to replace the (then) Institute of Certified
Public Accountants of Singapore as the accounting
standard setter for all companies incorporated in
Singapore.

The CCDG was replaced by the Accounting

Standards Council (ASC) as of November 1, 2007.

ACCOUNTING STANDARDS
IN SINGAPORE
The ASC was established by the Accounting
Standards Act, passed in Parliament on August 27,
2007.
In addition to prescribing accounting standards for
companies, the ASC will also prescribe accounting
standards for charities, co-operative societies, and
societies.

ACCOUNTING STANDARDS
IN SINGAPORE
The Singapore Government believes that 'creation of
the ASC is a positive step towards ensuring
consistency in accounting standards, facilitating
comparison of financial statements between
different entities and enhancing the credibility and
transparency of financial reporting'.

The ASC is responsible only for the formulation and

promulgation of accounting standards.

ACCOUNTING STANDARDS
IN SINGAPORE
The monitoring and enforcement of compliance
with accounting standards remains the prerogative
of the respective regulators:
Accounting and Corporate Regulatory Authority
(ACRA) for companies;
Commissioner of Charities for charities;
Registrar of Co-operative societies for cooperative societies; and
Registrar of Societies for societies.

ACCOUNTING STANDARDS
IN SINGAPORE
As of November 2008, ASC has issued a set of
accounting standards and interpretations that are
almost identical to the current set of International
Financial Reporting Standards (IFRS), though some
differences between Singapore Financial Reporting
Standards and IFRSs remain, including the
following:
Under the Singapore FRS 16 Property, Plant and
Equipment, one-off revaluations of such assets
that took place between 1984 and 1996 are
permitted without requiring ongoing use of the
revaluation model

ACCOUNTING STANDARDS
IN SINGAPORE
Singapore FRS 17 removes the words in
paragraph 14 and 15 of IAS 17, which indicates
that land normally has an indefinite economic
life and, if title is not expected to pass to the
lessee by the end of the lease term, the lessee
does not receive substantially all of the risks and
rewards incident to ownership.
Some differences exist in the requirements to
present consolidated financial statements and in
accounting for associates and joint ventures as
compared to IAS 27, IAS 28, and IAS 31

ACCOUNTING STANDARDS
IN SINGAPORE
There are some differences in the effective
dates of the Singaporean equivalents of IFRS
2, IFRS 7
The following have not yet been adopted: IFRS
3 (revised 2008) Business Combinations
IAS 27 (revised 2008) Consolidated and Separate
Financial Statements
IAS 27 (revised 2008) Consolidated and Separate
Financial Statements (Cost of an investment in the
separate financial statements)
IFRIC 2 Members' Shares in Co-operative Entities
and Similar Instruments
IFRIC 15 Agreements for the Construction of Real
Estate

TAXATION IN SINGAPORE
Singapore follows a territorial basis of taxation. In
other words, companies and individuals are taxed
mainly on Singapore sourced income. Foreign
sourced income will be taxed when it is remitted or
deemed remitted into Singapore unless the income
was already subjected to taxes in a jurisdiction with
headline tax rates of at least 15%.
Singapore corporate tax rate is capped at 17%.
Singapore personal tax rates start at 0% and are
capped at 20% (above 320,000 SGD) for residents
and a flat rate of 15% for non-residents.

TAXATION IN SINGAPORE
To increase the resilience of taxes as a source of
government revenue, Goods and Services Tax (GST)
was introduced in 1994. The current GST rate is
7%.
Interest, royalties, rentals from movable properties,
management and technical fees, and directors fees
paid to non-residents (individuals or companies)
are subject to withholding tax in Singapore.
Singapore has no capital gains tax. Capital loss
expenses are correspondingly not allowed as
deductions.

TAXATION IN SINGAPORE
For personal taxes, the tax year is the normal
calendar year i.e. January 1 December 31. Deadline
for filing personal tax return is April 15. For
corporate taxes, a company is free to to decide on its
financial year. Deadline for filing corporate tax
return is November 30. Taxes are paid on a
preceding year basis.
Singapore has concluded more than 50 bilateral
comprehensive tax treaties to help Singapore
companies minimize their tax burden.

MALAYSIA
CAPITAL:
Kuala Lumpur
CURRENCY:
Ringgit (MYR)
AREA:
328,847 sq. km.
POPULATION:
30,707,000 (as of 2015 est.)

ACCOUNTING STANDARDS
IN MALAYSIA
Companies registered in Malaysia are required to
prepare statutory financial statements in
accordance with the approved accounting standards
issued by the Malaysian Accounting Standards
Board (MASB).

ACCOUNTING STANDARDS
IN MALAYSIA
MASB has three sets of approved accounting
standards, namely:
MASB approved accounting standards for entities
other than private entities Malaysian Financial
Reporting Standards (MFRSs)
MASB approved accounting standards for private
entities Private Entity Reporting Standards (PERSs)
to be withdrawn with effect from 1 January 2016
MASB approved accounting standards for private
entities Malaysian Private Entities Reporting
Standard (MPERS) effective for annual reporting
periods beginning on or after 1 January 2016.

ACCOUNTING STANDARDS
IN MALAYSIA
The MFRS Framework is to be applied by all entities
other than private entities for annual periods
beginning on or after 1 January 2012, with the
exception of entities that are within the scope:
MFRS 141 Agriculture (MFRS 141)
IC Interpretation 15 Agreements for Construction
of Real Estate (IC 15), together with parents,
significant investors and venturers of such
entities (called 'Transitioning Entities')

TAXATION IN MALAYSIA

TAXATION IN MALAYSIA

TAXATION IN MALAYSIA

PAKISTAN
CAPITAL:
Islamabad
CURRENCY:
Pakistani Rupee (PKR)
AREA:
803,940 sq. km.
POPULATION:
191,715,847 (as of 2015 est.)

ACCOUNTING STANDARDS
IN PAKISTAN
Under the Pakistani Companies Ordinance (1984),
the Securities and Exchange Commission of Pakistan
notifies the accounting standards that are applied by
entities in Pakistan.

Pakistan has adopted most but not all International

Financial Reporting Standards (IFRSs) for
mandatory application by listed companies, banks
and other financial institutions and Economically
Significant Entities (ESE), even when these are not
listed.

ACCOUNTING STANDARDS
IN PAKISTAN
IFRSs are usually adopted as issued by the
International Accounting Standards Board (IASB)
and generally include 'any further revisions thereof',
however, some differences are worth noting:
IFRS 1 was not adopted as Pakistan has not
adopted all IFRSs.
Application of the requirements of IFRIC 4 and
12 has been waived for all companies. (A
voluntary application is possible.)
IAS 39 is currently applied in the 2009 version of
the standard.

ACCOUNTING STANDARDS
IN PAKISTAN
IFRS 10, IFRS 11, and the revised versions of IAS
27 and IAS 28 have been adopted recently, but in
doing so their mandatory effective date was set
at 1 January 2015. (Earlier adoption is
encouraged.)
IFRS 12 and IFRS 13 have been adopted with an
effective date of 1 January 2015.
Adoption of IFRS 9 is currently under
consideration.
IFRS 14 and IFRS 15 have not yet been adopted.

ACCOUNTING STANDARDS
IN PAKISTAN
Standards relevant for financial institutions (IAS
39, IAS 40 , and IFRS 7) have not been adopted
for banks and other financial institutions
regulated by the State Bank of Pakistan (SBP).
The SBP has prescribed its own criteria for
recognition and measurement of financial
instruments for such financial entities. However,
adoption of IAS 40 for these companies is
currently under consideration by the SBP.

ACCOUNTING STANDARDS
IN PAKISTAN
For insurance entities there is specific guidance
for the measurement of some investments that
differs from IAS 39.
Power sector companies have been granted
some relieve from the requirements of IAS
21.These regard the capitalisation of exchange
losses and the fact that these companies nedd
not recognize embedded derivatives under IAS
39. (If they want to do, they can adopt the
requirements voluntarily.)

TAXATION IN PAKISTAN
Corporate income tax is 35%, the exception to this is
small companies, which are taxed at 25%.
The standard rate of sales tax is 16%. However, this
may vary in specified cases. Certain goods are
exempt from sales tax.
Personal tax rates differ between salaried taxpayers
and non-salaried taxpayers.
The top tax rate for salaried taxpayers is 20% while
the top tax rate for non-salaried taxpayers is 25%.

TAXATION IN PAKISTAN
There is no inheritance or gift tax in Pakistan.
There is a provincial tax levied on the value of
property, with the rates varying between provinces.
Professional tax is a provincial levy on trade,
professions, callings and employment generally
payable on the basis of paid-up capital. The rates
differ between provinces.
Other taxes such as customs duty, excise duty, stamp
duty, capital value tax, among others are levied.

INDIA
CAPITAL:
New Delhi
CURRENCY:
Indian Rupee (INR)
AREA:
3,287,590 sq. km.
POPULATION:
1,276,080,000 (as of 2015 est.)

ACCOUNTING STANDARDS
IN INDIA
Indian Accounting Standards (abbreviated as Ind
AS) are a set of accounting standards notified by
the Ministry of Corporate Affairs which are
converged with International Financial Reporting
Standards (IFRS).
These accounting standards are formulated by
Accounting Standards Board of Institute of
Chartered Accountants of India.

ACCOUNTING STANDARDS
IN INDIA
Now India will have two sets of accounting
standards viz. existing accounting standards under
Companies (Accounting Standard) Rules, 2006
and IFRS converged Indian Accounting
Standards(Ind AS).
The Ind AS are named and numbered in the same
way as the corresponding IFRS.

ACCOUNTING STANDARDS
IN INDIA
NACAS recommend these standards to the Ministry
of Corporate Affairs.
The Ministry of Corporate Affairs has to spell out the
accounting standards applicable for companies in
India.
As on date the Ministry of Corporate Affairs notified
39 Indian Accounting Standards(Ind AS).

ACCOUNTING STANDARDS
IN INDIA
This shall be applied to the companies of financial
year 2015-16 voluntarily and from 2016-17 on a
mandatory basis.
Based on the international consensus, the regulators
will separately notify the date of implementation of
AS Ind for the banks, insurance companies etc.
Standards for the computation of Tax would be
notified separately.

TAXATION IN INDIA
Generally, the income tax rate for individuals ranges
from 10 to 30% for income exceeding Rs. 250,000
In case of a resident senior citizen (who is 60 years
or more but less than 80 years), the income tax rate
is 10 to 30% for income exceeding Rs. 300,000
In case of a resident super senior citizen (who is 80
years or more), the income tax rate is from 20 to
30% for income exceeding Rs. 500,000.

TAXATION IN INDIA

30% tax is levied on partnership firms

A local authority is taxable at 30%
A domestic company is taxable at 30%
Cooperative societies are taxable at 10 to 30% for
income exceeding Rs. 10,000

JAPAN
CAPITAL:
Tokyo
CURRENCY:
Japanese Yen (JPY)
AREA:
377,944 sq. km.
POPULATION:
126,880,000 (as of 2015 est.)

ACCOUNTING STANDARDS
IN JAPAN
Japanese Accounting Standards ('Japanese GAAP')
are developed by the Accounting Standards Board of
Japan (ASBJ), which was established in 2001.
Under an agreement between the ASBJ and the
International Accounting Standards Board (IASB)
entered into in August 2007, known as the Tokyo
Agreement, the ASBJ had been working towards
converging the requirements of Japanese
Accounting Standards with International Financial
Reporting Standards (IFRSs).

ACCOUNTING STANDARDS
IN JAPAN
The achievements under the agreement were jointly
announced in June 2011 by the ASBJ and the IASB.
Japanese GAAP is not identical to IFRSs but have
been found to be equivalent to IFRSs as adopted by
the European Union (EU) by the EU since 2008.

REFERENCES
http://www.iasplus.com/en/jurisdictions/asia
http://www.guidemesingapore.com/taxation/topics/singapore-taxrates
http://www.pwc.com/en_MY/my/assets/publications/2015malaysian-tax-business-booklet.pdf
https://www.kpmg.com/Global/en/services/Tax/regional-taxcenters/asia-pacific-taxcentre/Documents/CountryProfiles/Pakistan.pdf
https://en.wikipedia.org/wiki/Indian_Accounting_Standards
http://business.mapsofindia.com/india-tax/income-tax.html

PREPARED BY:
Stephen Sonn M. Centeno
BSA V