News

Budget 2008

Salient features:
Dividend
A single- tier company income tax on the Company’s profit is a final tax and dividends distributed to shareholders will be exempted from tax. Under this single-tier income tax system, companies having no Section 108 credit on Jan 1, 2008, will automatically be allowed to move to this system. However, Companies which have Section 108 credit balance will be given an option to elect for this system or continue with the full imputation systems until Dec 31, 2013.

PCAOB
The budget 2008, has decided to establish a Public Companies Accounting Oversight Board (PCAOB) to provide independent oversight of auditors. The PCAOB’s role is to provide an independent oversight of the auditing and accounting of public listed companies. With this mechanism in place, auditors will need to ensure that their work can hold up to scrutiny and meet quality standards, which in turn should enhance the quality and reliability of audited financial information disclosed to stakeholders. This is aimed at boosting both local and foreign investors’ confidence in our market.