Month: March 2025

Key Takeaways from the 2025 SG & HK Tax Budgets and Malaysia’s E-Invoicing Extension for Businesses

Key Takeaways from the 2025 SG & HK Tax Budgets and Malaysia’s E-Invoicing Extension for Businesses

boardroomsuperadmin
{{subject}}
 

BoardRoom’s Insights: Key Takeaways from the Latest Tax Budgets in Singapore & Hong Kong, and Malaysia’s E-Invoicing Extension for Businesses

Welcome to the latest edition of BoardRoom’s Asia Tax Insights. In this issue, we break down the key tax measures announced in the recent budgets for Singapore and Hong Kong, highlighting the crucial key changes businesses and individuals should be aware of.

Additionally, Malaysia’s Finance Minister II, Datuk Seri Amir Hamzah Azizan, has announced a 6-month extension for companies with annual turnovers below RM500,000 to comply with the upcoming e-invoicing requirements. Read on for the full details and what this means for your business.

 
 
 

Singapore

Recap of Singapore Budget 2025 Commentary 

The 2025 Budget, announced by Singapore’s Prime Minister and Minister of Finance, Mr Lawrence Wong, on 18 February 2025, introduces new tax measures that are aligned with the Forward Singapore agenda.

These measures encourage collaboration among businesses, individuals, and the government, to drive sustainable economic growth, whilst addressing current challenges and building a more inclusive, shared future.  

Read our report to discover more on:

  • Corporate Income Tax (CIT) rebate for new corporate listings and enhanced Concessionary Tax Rates (CTR) for fund manager listings
  • Tax deductions for payments under approved cost-sharing agreements for innovative activities
  • New CTR tiers under the Financial Sector Incentive (FSI) Scheme
  • Extensions of withholding tax exemptions for ship and container lease payments to non-resident lessors
  • GST remissions for Real Estate Investment Trusts (REITs) and Singapore-Listed Registered Business Trusts (RBTs)
  • Enhancements to the Personal Income Tax Rebate as part of the SG60 package, and more
     
 
 

Hong Kong

Summary of Hong Kong 2025-26 Budget

On 26 February 2025, Financial Secretary Paul Chan presented Hong Kong’s 2025-26 Budget, focusing on “Accelerating Development through Reform and Innovation". 

The budget outlines a fiscal consolidation plan to address a projected HK$87.2 billion deficit by 2028-29, and introduces tax measures to boost resilience, support new industries, and enhance competitiveness.

Our Hong Kong 2025-26 Budget Commentary analyses key tax measures such as:

  • Introducing Global Minimum Tax and expanding the tax treaty network
  • Enhancing additional profits tax relief and targeted incentives for maritime services, family offices and intellectual property transactions
  • Introducing one-off salaries tax relief
  • Reducing stamp duties and extending rates concessions for property-related transactions, and more
 
 
 

Malaysia

Companies in Malaysia Get a 6-Month E-Invoicing Extension

Malaysia’s Finance Minister II, Datuk Seri Amir Hamzah Azizan, has recently announced a 6-month extension for companies with annual revenue between RM150,000 and RM500,000 to comply with mandatory e-invoicing. The new deadline is set for 1 January 2026, providing over 240,000 companies additional time to prepare for the transition. 

Quick recap of e-invoicing implementation phases:

  • Phase 3 of e-invoicing implementation (for businesses with annual revenue exceeding RM500,000 and up to RM25 million) will start on 1 July 2025, following Phase 1 (for businesses with annual revenue exceeding RM100 million) and Phase 2 (for businesses with annual revenue exceeding RM25 million and up to RM100 million). Exemptions apply to businesses with annual revenue below RM150,000.
  • The new extension till 1 January 2026 addresses concerns about readiness of businesses with annual revenue below RM 500,001.
     
 
 

​​​​​​

 
 

Copyright © 2025 Boardroom Pte Ltd.
All rights reserved.

Our mailing address is: [email protected]

 

What do the new Corporate Service Provider Bill and Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill mean for your business?

What do the new Corporate Service Provider Bill and Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill mean for your business

What do the new Corporate Service Provider Bill and Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill mean for your business?

boardroomsuperadmin

The Corporate Service Provider (CSP) Bill and the Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill represent significant advancements in the regulatory regime governing the corporate service provider industry in Singapore. Passed on 2 July 2024 and slated to become law sometime later this year, they aim to ensure consistency in governance and transparency and to combat financial crimes such as money laundering and terrorism financing.

While these new regulations primarily target corporate service providers, they indirectly impact businesses that engage corporate service providers for such services. Companies must adapt as their corporate service providers implement higher standards to meet the new regulatory requirements.

In this article, we’ll explore the purposes of these Bills, what they mean for businesses, the important role of corporate service providers and why choosing a corporate service provider has now become even more critical.

Understanding the Corporate Service Provider Bill and Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill

The CSP Bill and CLLPMA Bill are legislative responses by the regulators to the increasing need for enhanced regulation of corporate service providers and raised corporate governance and compliance standards of companies.

In this article, we explore what these Bills set out to achieve.

Key Objectives of the Corporate Service Provider Bill include:

Mandatory licensing
All corporate service providers must register with the Accounting and Corporate Regulatory Authority (ACRA) as registered CSPs to operate legally. This will empower ACRA to take enforcement action against registered CSPs for breach of certain requirements.
Enhanced compliance standards
CSPs must adhere to stringent anti-money laundering (AML) and Know Your Customer (KYC) protocols and obligations.
Transparency and accountability
Disclosure requirements for nominee directors and nominee shareholders to ACRA, including assessments by registered CSPs, ensure companies uphold higher levels of transparency and regulatory compliance.

Non-compliance with the mandatory licensing requirements, KYC and CDD protocols, or disclosure obligations under these Bills may result in significant penalties. Violations may result in fines of up to S$100,000, loss of licences and potential criminal liability. These measures underscore the commitment of the regulators to raise compliance standards, accountability, and imposing a more stringent regulatory framework for CSPs.

How the CLLPMA Bill complements the CSP Bill:

The CLLPMA Bill mandates companies and limited liability partnerships (LLPs) to maintain a register of registrable controllers, a register of nominee directors and a register of nominee shareholders. in a bid to improve regulatory oversight to promote corporate transparency and deter illicit financial activities.

Both Bills represent significant strides in fortifying corporate service provider regulations and governance standards, aligning Singapore with global best practices.

How the CLLPMA Bill complements the CSP Bill

How will the Corporate Service Provider Bill and Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill impact your company?

The CSP Bill applies to corporate service providers, and businesses that depend on these providers for compliance and administrative support may feel its impact. Some of the implications may include:

Stricter Compliance Requirements

Corporate service providers now operate under stricter regulatory scrutiny, particularly regarding Know Your Customer (KYC) and Customer Due Diligence (CDD) protocols. CSPs are already required to verify their clients’ identities at the outset and maintain ongoing monitoring to detect any irregularities or risks. This amendment further ensures consistencies with the Financial Action Task Force (FATF) recommendations and requires registered CSPs comply with the requirements of the United Nations Act 2001.

Ngiam May Ling, Associate Director of Corporate Secretarial at BoardRoom Group, highlights the significance of these changes, noting that: “Corporate service providers now have to implement far more stringent KYC and CDD measures. It’s not just about checking boxes at the beginning of a client relationship anymore – we’re required to continually monitor clients to ensure compliance with changing regulations and never let our guard down.”

This enhanced vigilance is necessary for combating financial crimes like money laundering and ensuring that corporate service providers maintain the integrity of their services. For businesses working with CSPs, this means a need for greater transparency and accountability. It also underscores the importance of partnering with a corporate service provider with the expertise and systems to meet these evolving demands.

Increased scrutiny on Nominee Directors and Nominee Shareholders

Under the new Bills, nominee directors and nominee shareholders are subject to stricter oversight. Both roles must disclose their nominee status and the identities of their nominators to ACRA, if any. Corporate service providers are required to conduct thorough KYC checks on both nominee directors and nominee shareholders. Additionally, nominee directors must be registered with CSPs, who are responsible for assessing them to be ‘fit and proper’ and failure to do so will result in a hefty fine for CSPs. These key measures aim to enhance accountability and prevent the misuse of the nominee director and nominee shareholder roles for illicit activities.

Josephine Toh, Associate Director of Corporate Secretarial at BoardRoom Group explains the added responsibility, “The onus is now on us as corporate service providers to rigorously assess and verify that nominee directors meet the fit and proper criteria as set out in subsidiary legislation. This isn’t just a procedural step – it’s about ensuring that individuals in these roles are trustworthy, capable and fully compliant with the new regulations.”

These standards reinforce the requirement for corporate service providers to assess and ensure the nominee director’s professional background, integrity and suitability for the role.

Operational adjustments for companies

Businesses must streamline their internal processes to align with new compliance requirements. This includes maintaining accurate director and shareholder records, ensuring timely reporting and collaborating closely with corporate service providers on regulatory filings. By proactively adapting workflows and systems, companies can ensure seamless compliance and reduce the risk of delays or regulatory penalties.

Risk reduction

Partnering with a fully compliant corporate service provider helps businesses mitigate the risks related to regulatory scrutiny, financial penalties and reputational damage. Additionally, CSPs that maintain high transparency standards, such as proper disclosure of registrable controllers, nominee directors and nominee shareholders, help businesses reduce potential legal and regulatory issues and potentially avoid them altogether.

Enhanced stakeholder confidence

Stricter corporate service provider regulations drive increased accountability and transparency, which can help foster trust among investors, partners and other stakeholders. By ensuring higher governance standards, businesses can strengthen their reputation and build long-term confidence in their operations.

Why Corporate Secretaries Play an Integral Role

The role of corporate secretaries has shifted significantly in recent years, and the new Corporate Service Provider Bill further heightens their critical importance as well as elevate their professional standing. Traditionally seen as administrators, corporate secretaries are now poised to serve as key players in governance, compliance and risk management.

Critical corporate secretary functions include:

Maintaining registers
Corporate secretaries must manage the register of registrable controllers, register of nominee directors and register of nominee shareholders accurately and timeously.
Compliance support
Keeping companies informed about changing corporate service provider regulations and compliance obligations.
Corporate governance advisory
Providing expert guidance on governance frameworks to ensure compliance and adoption of best practices.

Even businesses with strong governance frameworks will need to adapt to meet the new standards. As May Ling explains, “At BoardRoom, we have always upheld exceptionally high standards when it comes to compliance and operations. We welcome the new Bills as they ensure all corporate service providers operate at the same level, creating a more consistent and trusted industry standard which will ultimately benefit everyone.”

At BoardRoom, corporate secretaries go beyond routine administration. With our professional human expertise and advanced technological systems, we ensure businesses remain compliant while navigating evolving corporate service provider standards.

Choosing a Corporate Service Provider that is right for your business

Choosing a Corporate Service Provider that is right for your business

The introduction of mandatory licensing and stricter compliance requirements makes choosing a corporate service provider a crucial decision for businesses. Companies must carefully assess their CSP to ensure regulatory compliance and operational efficiency.

Key criteria for choosing a corporate service provider include:

  1. Licensing and accreditation: Ensure the CSP is licensed by ACRA and meets all regulatory standards. May Ling advises, “The CSP should of course have a licence and companies should call for the licence to ensure that it is valid,” she adds.
  2. Proven track record: Partner with CSPs which have experience serving companies similar in size and industry. BoardRoom’s extensive history demonstrates reliability and expertise across sectors.
  3. Anti-money laundering and Know Your Customer processes: Choose a CSP with robust KYC and CDD processes in place to ensure compliance with regulatory standards and reduce the risk of penalties. A CSP with strong safeguards in these areas helps businesses avoid legal and financial risks.
  4. Compliance systems and technology: A modern CSP should leverage advanced systems to streamline compliance. Josephine notes, “At Boardroom, because we are backed by the latest technology, we have the ability to fulfil these requirements in a very efficient manner”.
  5. Professional expertise: Look for CSPs with experienced teams capable of guiding businesses through regulatory complexities.

BoardRoom stands out as a trusted choice, combining decades of experience, robust compliance systems and a highly skilled team to meet and exceed industry standards.

How can BoardRoom help you navigate the Bills?

The Corporate Service Provider Bill and Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill signal a new era for compliance and governance in Singapore. Businesses must adapt by partnering with reliable and well-equipped CSPs to meet these new standards.

With our proven expertise, advanced technology and professional team, BoardRoom is uniquely positioned to support businesses through this transition. From maintaining complex regulatory registers to providing corporate governance advisory services, BoardRoom can deliver tailored solutions that ensure compliance and enhance governance frameworks for long-term success.

Contact us today to discover how we can help your business understand the new corporate service provider regulations and their potential impact.

Contact BoardRoom for more information:

Ngiam May Ling

Ngiam May Ling

Associate Director of Corporate Secretarial

E: [email protected]

T: +65 6536 5355

Related Business Insights

Is Your Company Compliant with BURSA’s Critical Cyber Risk Guidelines?

Is Your Company Compliant with BURSA’s Critical Cyber Risk Guidelines?

boardroomsuperadmin
{{subject}}

Bursa Malaysia’s Guidance on Management of Cyber Risks was issued on 22 December 2022. It outlines essential steps for listed companies to take to strengthen cyber resilience. 

Some steps that the board can take include:

  • Taking active ownership of cyber risk management and ensuring clear accountability within senior management
  • Establishing a robust Cyber Risk Management framework, with clearly defined policies and procedures for prevention, detection, and recovery, is crucial for mitigating risks
  • Integrate regular testing of cyber framework, along with continuous learning from global incidents, into your organisation’s strategy
  • Establish an enterprise-wide cybersecurity awareness program—including random staff testing—to ensure readiness

As cyber threats evolve, the urgency for compliance is paramount. 

Read our full report now to learn more about:

  • Governance and management of Cyber Risk
  • Training, testing, and raising awareness in the organisation and,
  • Ensuring your company is aligned to Bursa’s requirements

Please feel free to contact us via email at [email protected] for any queries and clarifications.

Thank you.

                
Copyright © 2025, Boardroom Pte Ltd.
All rights reserved.
Our mailing address is: [email protected]

Singapore Budget 2025: Insights and commentary

Singapore Budget 2025 (SG60 Budget) Onward Together For A Better Future Tomorrow

Singapore Budget 2025: Insights and commentary

boardroomsuperadmin

We are pleased to share our insights on Singapore Budget 2025, unveiled by Prime Minister and Minister for Finance, Lawrence Wong, on 18 February 2025. Under the theme “Onward Together for a Better Future Tomorrow,” this Budget 2025 underscores the Forward Singapore agenda, fostering collaboration among businesses, individuals and the Singapore Government to bolster the nation’s resilience and competitiveness.

The tax measures and reliefs introduced aim to drive sustainable economic growth and shared future, addressing current challenges while laying the groundwork for a stronger, more inclusive future. These include:

Tax Measures for Corporate Taxpayers and Businesses:

  • Primary and Secondary Listings in Singapore: To promote Singapore’s equities market, the Singapore Government has introduced certain tax incentives, including a Corporate Income Tax (CIT) rebate for new corporate listings and enhanced Concessionary Tax Rates (CTR) for fund manager listings.
  • Business Tax Measures: Targeted business tax initiatives include tax deductions for payments under approved cost-sharing agreements for innovative activities, along with extensions of the CIT rebate and cash grants, aiming to stimulate business growth and innovation.
  • Tax Concessions for Specific Taxpayers and Industries: New CTR tiers under the Financial Sector Incentive (FSI) Scheme and the introduction of the Approved Shipping Financing Arrangement (ASFA) Award are designed to attract and retain key industry players.
  • Exemption of Withholding Tax and Remission of Indirect Tax: Extensions of withholding tax exemptions for ship and container lease payments to non-resident lessors, along with GST remissions for Real Estate Investment Trusts (REITs) and Singapore-Listed Registered Business Trusts (RBTs), aim to enhance Singapore’s attractiveness as an investment hub.

Tax Measures and Reliefs for Individual Taxpayers:

  • The Budget introduces enhancements to the Personal Income Tax Rebate as part of the SG60 package.

 

Download our commentary now to understand the implications of these updates or email our tax team at [email protected] if you need help on how to maximise your tax position with these latest announcements.

Download Singapore Budget 2025 Commentary

Related Business Insights