Our Managing Director, Boon Tan, has been appointed as one of the Board of Directors of the Australian Chamber of Commerce (AustCham) Singapore.

This milestone reflects his ongoing commitment to strengthening Australia-Singapore business ties and supporting the community across the region. As a board director, he will contribute valuable insights and help foster business relationships between Australia and Singapore.

We are looking forward to the positive impact that our Managing Director, Boon Tan will bring to the AustCham community.

^{AustCham Singapore Board Members}

Our Managing Director, Boon Tan together with Ziyan Chong, Kenneth Kwek, Melissa Laurie and Raj Mannar will be part of Aust Cham Singapore’s Business Briefing Series – “From Down Under to Little Red Dot: Tips for AU Businesses Expanding to SG” on June 26, 2025 (3:30 pm – 5:30 pm SGT) for a dynamic panel discussion.

If you are an Aussie who wants to expand your business in Singapore, join us as we discuss the following:

• Tax Talk – How Singapore’s tax system compares to Australia’s, including income tax and GST.
• Hiring Local Talent – Key rules, obligations, and common pitfalls when building a team in Singapore.
• Banking Without Borders – How small businesses can open a Singapore bank account (even from overseas).
• Relocation Essentials – Your options for moving to Singapore with your business – plus what this means for your spouse and family.

Don’t miss this opportunity to hear directly from our experts to give you insights, strategies and practical guidance as you expand your business in Singapore with confidence.

Register now and get an early access to our brand-new publication – “Expanding To Singapore: A Guide For Foreign Businesses”.

Registration closes on Monday, 23 June, 5:00PM. If you are having issues registering, please contact events@austcham.org.sg

Andrea Solonge, has been announced as the recipient of the coveted 12th Heath Ledger Scholarship.

Established in 2009 in memory of award-winning actor Heath Ledger, the scholarship is globally regarded as the hottest barometer and platform for the best acting talent coming out of Australia. Known for his generosity and support of fellow actors, the scholarship carries on Heath’s legacy by offering a life-changing education and career development program.

CST is a proud sponsor of the 2024 Heath Ledger Scholarship. Marcus Shimotsu and Jurate Gulbinas, from our US based team, attended the event where the recipient was announced. 

Part of the prize package that Andrea will receive includes US/Australian tax advice and tax return preparation services by our CST tax team. 

“We are delighted to sponsor the Heath Ledger Scholarship,” said John Marcarian, Founder of CST, “and we are looking forward to working with Andrea as she embarks on her new journey in Hollywood.”

CST is an international tax and accounting firm that manages the Australian and USA tax obligations of Australians living between the USA and Australia.

In a podcast episode of Barely Legal in Web 3, hosted by Jamilia Grier, Boon Tan, the managing director of CST Tax Advisors, and Chris Holland from Holland & Marie discussed the crypto tax issues and challenges in the Web3 space.

In this episode, our tax experts discussed how to successfully launch token offerings and how the crypto tax system works in Singapore. Gain valuable insights as they delve into the tax issues facing crypto businesses to avoid common pitfalls.

You may also listen to the podcast on Spotify.

Here is a link to the podcast transcript.

Boon Tan, Managing Director of CST in Singapore, recently joined Hemandra Tanapalan, Chief Executive Officer at Mstige Holdings, to discuss the intricate world of Web3. Together they unpack the tax implications of trading NFTs, investment strategies, and the vibrant community dynamics within the space.

In this podcast, Boon delves into topics such as DAOs, GameFI, and opportunities for additional income in Web3. Learn how to manage crypto and NFT profit taxes while navigating the evolving landscape of decentralized finance.

Listen to the podcast on Spotify.

To get the podcast transcript, click this link.

Our Managing Director in Singapore, Boon Tan, will be participating in Singapore Global Network’s “Relocation to Singapore” webinar.

The webinar is designed for foreigners relocating to Singapore, including job seekers, trailing spouses, and students.

Boon will be joined by Ms Marina Lopes, who has been residing in Singapore with her family since 2021. Boon and Marina will guide you through the process to ensure you embark on your Singaporean adventure with confidence.  

Hear from the personal experiences of those who have made the move, on various topics such as housing, transportation, children’s education, navigating work culture, social norms, and career options for trailing spouses.   

Whether you’re in the initial stages of planning or have already made the decision to relocate, we aim to assist you in assimilating seamlessly to our beautiful island, Singapore!  

Event sign up page: https://community.singaporeglobalnetwork.gov.sg/events/4585

The Chancellor Rishi Sunak presented his second Budget on Wednesday 3 March 2021. Against the backdrop of COVID and a 10% contraction in the economy, he set out a three step plan to ‘…protect the jobs and livelihoods of the British people’.

The Budget introduced a new super deduction for capital investment, an announcement on the creation of freeports, further support for skills and a focus on job protection and creation – all of which advance the Government’s ‘levelling up’ agenda.

Our summary focuses on the tax measures which may affect you, your family and your business. To help you decipher what was said we have included our own comments. If you have any questions please contact us for advice.

Download UK Budget 2021 Summary

Current Government rules and guidance around quarantine and travel restrictions could lead to an individual staying longer in the UK than originally intended – leading to an adverse impact on their tax residence status as a result of the day counting tests under the UK’s statutory residence test (SRT).

Planned changes to the SRT to allow for the COVID-19 situation have now been enacted into UK tax legislation which will alleviate many (but not all) situations that international workers now find themselves in.

Broadly, the amendments mean that days spent in the UK will not count towards certain elements of the day count tests where:

• The day falls within the period 1 March 2020 to 1 June 2020.
• The individual is in the UK as a medical/healthcare professional for purposes connected with the detection, treatment or prevention of coronavirus disease, or for purposes connected with the development or production of medicinal products (including vaccines), devices, equipment or facilities related to the detection, treatment of prevention of coronavirus disease; and
• In the tax year under review (being either 2019/20 or 2020/21) the individual is resident outside the UK.

Unfortunately, this does not provide much comfort for those working outside the medical or research professions.

However, the existing tests provide that where up to 60 days are spent in the UK for ‘exceptional circumstances’ these are disregarded for the purposes of the tests.

Exceptional Circumstances

Under HMRC Guidance (not legislation) there is existing limited relief for situations where days are spent in the UK and the circumstances are considered ‘exceptional’. The SRT consists of a number of days counting tests for specific situations (derived from long standing case law) and HMRC’s detailed guidance outlines which of these specific SRT day-counting tests allow relief for days of ‘exceptional circumstances’. Currently, the relief is not available for a number of the tests. The guidance also explains what circumstances might be considered as ‘exceptional’.

Where relief is available, currently, there is a general limit of 60 days of relief allowed for any circumstance that qualifies as ‘exceptional’. HMRC have confirmed this limit will continue to apply in COVID-19 related cases.

COVID-19 – ‘Exceptional’?

COVID-19 guidance published by HMRC on 19 March confirms that where an individual remains in the UK, this will fall within the ‘exceptional circumstances’ definition where this is due to being:

• Quarantined or advised by a health professional or public health guidance to self-isolate in the UK as a result of the virus.
• Advised by official government not to travel from the UK as a result of the virus.
• Unable to leave the UK as a result of the closure of international borders.
• Asked by your employer to return to the UK temporarily as a result of the virus.

One of the key characteristics of a successful business is its ability to move with the times – by innovating and developing new product lines, features and improved processes. 

The Government actively encourages this ‘path to success’ with a valuable tax break –Research & Development (R&D) Tax Relief.  

Many businesses don’t take advantage of these great tax breaks because:  

• They don’t realise it exists.
• It sounds like it might be complicated.
• They don’t understand how to take advantage of it.

It can mean you get tax credits or cash back, and it can make the ongoing, or even earlier development of your product line really worthwhile!  

What qualifies for R&D?

If your company is innovating and you’re staying one step ahead of the competition, the chances are you’re undertaking qualifying R&D work without realising it – whatever sector you are in, R&D tax relief doesn’t only apply to the scientific sector!

In fact, any sector could qualify for R&D relief. You’ll need, of course, to demonstrate that the project improved knowledge in your field, which could be food technology, engineering, metalwork, the IT sector or even retail. It is not overly difficult, just demonstrate a new or improved process or product has been created that improves overall knowledge in that field.

We can lead you through the process.

What’s in it for my company?

In blunt terms it means you can effectively deduct 230% of relevant costs from your profits, more than double what you paid out!  

The R&D SME regime is a tax relief scheme introduced by the Government back in 2000 to help innovative businesses, like yours, progress.  It takes all allowable expenditure incurred during the R&D project and allows you to gross it up by 130%. The typical benefits are either a reduction in tax payable or a repayment of tax already paid by the company.  

What expenditure qualifies?

The range of qualifying expenditure is quite broad and includes a range of recognisable costs, including: 

• Materials
• Staff costs
• Subcontracts costs
• Include apportionments of overheads that were relevant to the R&D project. 

With such a wide scope, the tax break is really beneficial. 

Loss-making Company?

The good news is loss-making companies also benefit under this scheme.  Although they are not paying tax, they can opt for a cash payment of 14.5% of the losses made.  This can be a valuable cash injection.  Alternatively, you can carry the loss forward to offset against company profits in the future and save tax at the main corporation tax rate (19% currently).   

Good News – it is not too late to claim!

Don’t worry if you’ve undertaken R&D in previous years and think you’re way too late to benefit – claims can be made up to two years after the end of the accounting period in which the project was undertaken.

Find out more about R&D tax breaks

If you would like to know more about how your company can access this valuable tax break, contact the Tax Team at CST Tax for a discovery chat over a coffee.

Disclaimer
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication

It’s not often that we get the chance to write about a great tax incentive from HMRC on company cars – like never!

For years, employees with a company car have been hammered for tax alongside their employers. 

This is about to change in the pursuit of going green.

Following a 3-year delay from consultation (2017) to implementation, HMRC are due to radically overhaul their Benefit in Kind (BiK) rates for electric vehicles from April 2020.

Recognising that company purchases equate to approximately half of all new car sales, the Government have decided that amending the BiK rates will incentivise drivers of company cars and businesses who offer them, to adopt low emission vehicles.

Let’s assume:

• that you are a higher rate taxpayer (40% in the 2019/20 tax year)  
• you would like to drive a BMW i3 94AH (0 g/km of CO2 emissions)
• with a list price of £34,075

How to save the most tax

The way for you to save most tax is for the company to buy the electric vehicle. 

This is because under the new government incentive the company will get 100% corporation tax relief on the purchase price of the car.

It does mean spending to save, but using the BMW above this would mean a corporation tax saving of 19%*£34,075 = £6,474.

When you purchase the car will determine when you benefit from the tax saving, it’s a deduction from your next corporation tax bill so it all depends on when your company year-end is, and when your next tax payment is due.

If you are a March 2020 year-end, your next tax payment is due 1^st January 2021, so if you buy the car before 31^st March 2020 the benefit is realised in January 2021. If you don’t buy it until April 2021 then you must wait until January 2022!

What if cash flow doesn’t allow the company to buy the car?

There are several lease options available that would still allow you to drive your electric vehicle. You don’t get the 100% tax relief in the same way as if you bought it, but it’s not all bad news.

If you take a lease where you don’t own the car at the end, then your monthly lease instalments are accounted for as expenses, thus reducing your profit and therefore your tax bill. You also get half the VAT back on the instalment amounts. 

What does it mean for the individual? 

This is where HMRC are really making the changes that you or your employees can benefit from.

From April 2020 they are reducing the Benefit in Kind rate to 0% where the vehicle has 0g/kg emissions, this is compared to a rate of 16% in the 19/20 tax year.

That is a huge change and, in our scenario, would result in a £181.73 tax saving – each month!

In the 2019/20 tax year, the tax on the BiK would be:

BIK Value – £34,075 (list price) x 16% (g/kg rate for the year) = £5,452

Tax due – £5,452 x 40% (income tax rate) = £2,180.80 per year (£181.73 per month)

In contrast, when the new rates are implemented in 2020/21, the tax on the BiK will now be:

BIK Value – £34,075 (list price) x 0% (0g/kg rate for the year) = £0.

Tax due on a BIK value of 0 = £0!!

Are there any more benefits to the company?

In addition to the corporation tax savings if you buy or lease the car there are National Insurance savings on the BiK too.

Companies pay employers National Insurance at a current rate of 13.8% on the car’s BiK value. This means 13.8% multiplied by the BiK amount, which in this case is £0, therefore the associated National Insurance is also £0. 

What to do next

If the above has tempted you and you are interested to know more about Benefits in Kind, whether you are an employee with a company car or a business that offers company cars to its staff, please get in touch.

If you’re not quite convinced and want to look at some options that might convince you, then have a look at the links below:

Jaguar – https://www.jaguar.co.uk/jaguar-range/i-pace/models/index.html

Tesla – https://www.tesla.com/en_gb

BMW – https://www.bmw.co.uk/en/all-models/bmw-i.html

Volkswagen – https://www.volkswagen.co.uk/electric/ev-cars/new-electric-cars

Other brands are available!

The small print

At the time of writing, the Revenue has published the rates for the 2021/22 and 2022/23 tax year where you will see the rates increase by 1% each year.

Currently we are unaware of how the rates will change going forward which is the only uncertainty around what is otherwise a fantastic way for employers and employees to save a lot of money whilst retaining the same benefit as before.

There are HMRC limits on the total value of assets that can receive tax relief in single tax years, so if you’re thinking about buying a fleet we should definitely have a conversation before you do!

Disclaimer
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication