October 18, 2024
October 4, 2024
Kreston Global firm, Brighture, shares its expertise in its latest newsletter covering financial news and updates from China.
September 9, 2024
September 2, 2024
August 21, 2024
In Australia, Mersen Oceania has operated for over 65 years, with Financial Controller Slobodan Brzica, who has 25 years of experience, overseeing the financial operations. Mersen, a global leader in electrical power and advanced materials, has been serving high-tech industries for over 130 years.
When Mersen Oceania sought to appoint a new external auditor, they needed a partner who understood their complex business, provided expert auditing services, and offered value for money. The transition to a new auditing partner was critical, as it had to ensure continuity and compliance with the strict reporting deadlines set by Mersen’s global headquarters.
Bentleys Victoria was selected as the new auditing partner due to its robust auditing expertise. Bentleys Victoria developed a detailed project plan that focused on conducting a comprehensive audit while adhering to the necessary reporting deadlines, incorporating technology to streamline the audit process and established clear timelines to meet all global reporting requirements efficiently. From the outset, Bentleys Victoria demonstrated a deep understanding of Mersen Oceania’s operations and their approach provided valuable insights and recommendations that were well-received by Mersen’s Board of Directors. Slobodan Brzica commented: “Impressive. The team is dynamic and we are pleased with the recommendations and suggested actions.”
A key factor in the success of this partnership has been the continuity of Bentleys Victoria’ team, which has allowed for the retention and sharing of critical knowledge. This consistency ensures that even as team members change, the quality of the audit remains consistently high, supported by a strong technical foundation and an intimate knowledge of Mersen Oceania’s business. Bentleys Victoria successfully met the tight global reporting deadlines, completing the audit within two months. Their efficient and effective service delivery continues to support Mersen Oceania’s commitment to innovation and excellence.
Slobodan Brzica concluded: “The transition was impressive and their understanding of our business was evident from the start. They are a team of real professionals and switched on.”
If you are interested in doing business in Australia, please get in touch.
Dung Hoang Nguyen has over 22 years of experience in advisory, audit, appraisal, and M&A. He trained with Deloitte and KPMG before joining Kreston (VN) in 2008, becoming a partner in 2010. Dung is passionate about business growth and understands business life cycles from creation to exit. He advises numerous large national and international clients, leveraging his extensive experience. Dung has been a member of the Vietnam Association of Certified Public Accountants since 2007, the Chartered Institute of Management Accountants since 2015, and the Hanoi Bar Association since 2016.
August 2, 2024
Vietnam’s business environment is becoming increasingly open and supportive. Since 2014, the government has focused on improving the business climate through consistent reforms.
However, doing business in Vietnam comes with challenges. “Corruption and bureaucracy remain significant hurdles,” says Dung Nguyen Hoang, Partner at Kreston VN. Legal uncertainties and weak enforcement of Intellectual Property Rights (IPR) also pose difficulties. Additionally, businesses face issues with inadequate infrastructure, skill shortages, and language barriers, often needing interpreters and translators.
Vietnamese exporters face specific challenges in accessing international markets. Dung highlights several issues: “Market development, intellectual property protection, financial constraints, competitive pricing, and language and cultural differences are major concerns.” Other challenges include compliance with market access regulations, logistics, quality standards, and trade barriers.
Access to growth finance is another obstacle for Vietnam’s companies. “The banking loan market is the primary source of credit, but over 50% of businesses struggle to secure funding,” says Dung. Many companies do not meet the credit requirements of commercial banks and lack long-term credit relationships.
Despite these challenges, the Vietnamese government’s ongoing reforms are creating a more favourable business environment. Addressing the existing issues will be key to ensuring sustained economic growth and greater international integration.
If you would like to speak to an expert in Vietnam, please get in touch.
Marek Lehocky is the CEO and Founder of Kreston Proworks, a business consulting firm in Japan. Born in Slovakia, Marek has studied and worked in Slovakia, the United States, and Japan, gaining extensive experience in management consulting and large-scale project management. He has been involved in start-ups, mergers and acquisitions, and privatisation projects, including major ones in Eastern Europe. Marek is dedicated to enhancing business support services for companies in Japan, Hawaii, the US, and Asia, leveraging his expertise to help businesses succeed in diverse markets.
July 31, 2024
Japan’s results in the interpreneur report set them aside from most countries. Understanding the culture is key to doing business there effectively. We explore some of the more surprising results of the report with Marek Lehocky, CEO and Representative Director of Kreston Proworks Japan, and utilise his experience in doing business in the country to gain a deeper understanding of the results.
Only 59% of Japanese SMEs expect an increase in overseas expansion within the next year, a figure significantly lower than the global average of 86%. Preferred expansion regions include neighbouring markets in South Asia (38%) and North Asia (30%), with North America (28%) and Western Europe (18%) also on the radar.
Lehocky explains that “Compared to regional peers, Japan is showing greater caution towards global expansion and growth patterns, likely tied to domestic labour and economic pressures.”
The path to international success can be fraught with challenges. Japanese SMEs cite finding local partners (30%), understanding complex compliance requirements (30%), and adapting logistics (29%) as their biggest hurdles. These obstacles highlight the critical need for local expertise.
Lehocky stresses the importance of collaboration with local partners, stating, ” For those entering into the Japanese market, this report highlights the importance of working with a local inbound specialised partner who can bridge the regulatory, cultural and commercial forces to ensure a productive entry into a dynamic market.”
The survey reveals interesting divergences between Japanese entrepreneurs and their global peers:
Despite these cautious perspectives, Lehocky identifies clear opportunities: “For those that have expanded internationally or are looking to enter Japan, the benefits are evident. Japan offers strong market growth opportunities and several competitive advantages for businesses operating in the region.”
If you would like to speak with an expert, please contact one of our firms in Japan.
July 30, 2024
Australia’s ‘fair share’ tax reform hits multinationals after Australia’s tax system has a major shake-up. Australia’s tax system is going through much-needed reform. Critics say it simply cannot deal with multinational trade, increasing global competition for investment, the internet and the digital economy. It has also been criticised for being unfair, and one of the first areas that the government has focused on is multinational taxation.
On 27 March 2024, Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023 completed its passage through Federal Parliament. This Bill contains the amendments to introduce a new thin capitalisation regime that will apply to most companies for income years commencing on or after 1 July 2023. It will officially become law when the Bill receives Royal Assent.
The Bill aims to strengthen Australia’s thin capitalisation rules to combat what the government considers to be excessive debt deductions eroding the domestic tax base. It will limit the amount of debt used to fund Australian operations or investments and disallow debt deductions when debt used to fund Australian assets exceeds certain limits. It applies to most multinational businesses operating in Australia with at least AUS$ 2 million in debt deductions.
The Bill will affect Australian entities investing overseas and their associate entities; foreign entities investing in Australia; Australian entities with certain overseas operations and their associate entities; Australian entities that are foreign controlled; and foreign entities with operations or investments in Australia.
Delays to the bill have meant that the new tax regime has been enacted only months prior to the income year to which it applies. Companies with a 30 June year-end had less than eight weeks to restructure their debt arrangements.
Regardless of year-end, this will create a lot of work for clients. Organisations will now have an obligation to trace and document the use of all related party loans to assess whether they are used for ineligible debt creation purposes. It may be worth restructuring debt, such as using working capital for ineligible debt creation purposes.
Clients will also need to satisfy their auditor that their interest expense does not give rise to a permanent tax difference. All companies need to take tax advice and at a minimum build a new thin capitalisation model, as 2024 tax return forms will require disclosure of the thin capitalisation method chosen and applied.
It cannot be underestimated how complex and challenging it will be to apply the new rules to such a wide variety of companies. It is going to require consultation with technical accounting and banking experts, and for some, the road to compliance will be a bumpy one. Some organisations may find themselves in a situation where genuine commercial arrangements result in debt deduction denials. Any uncertainty in tax positions that may require disclosures in financial accounts will have to be actioned as soon as possible.
The Bill requires the government to undertake a review of the thin capitalisation amendments to commence no later than 1 February 2026. This will provide an opportunity to assess the impact of these changes, including whether the amendments have had any effect on Australia’s ability to attract foreign investment.
Australia is considered a very attractive option for foreign direct investment (FDI) by many companies across the globe, with a high ranking on the FDI confidence index in 2024, according to Statista. Foreign economies had a total of $4.7 trillion invested in Australia at the end of 2023.
While mining and energy still attract the lion’s share of investment, the technology sector is booming. Treasurer Jim Chalmers has said he wants to see tech companies pay their fair share of tax, and a recent tax victory over royalties will have major implications.
The Federal Court of Australia on November 30, 2023, ruled in favour of the Australian Taxation Office in a dispute with PepsiCo. The ATO argued that certain portions of the payments made in relation to bottling agreements were royalties and so were subject to royalty withholding tax. It was also ruled that diverted profits tax would apply.
This is the first time a court has considered Australia’s diverted profits tax since its introduction in 2017. Multinationals will now come under increased scrutiny of embedded royalties that arise from intellectual property use and there may be possible changes to tax treaty interpretation.
It is clear that both indigenous and foreign multinationals will have to be rigorous in their reporting and will need a lot of outside help to ensure they do not fall foul of the new tax regime. If the Australian government wants to make large corporations the villain, companies have to make sure their reporting is as transparent as possible.
If you would like to speak to one of our experts in Sydney or Melbourne, please get in touch.
July 11, 2024
Kreston Global and Kreston VN successfully hosted the Asia Pacific Conference 2024 from July 4-6 in the vibrant city of Hanoi, Vietnam. The event united Kreston colleagues from across the Asia Pacific region and beyond to foster relationships and share insights into new ways of working and client collaboration.
The conference kicked off on the evening of 4 July with a welcome dinner. Attendees gathered at the JW Marriott Hanoi, setting the stage for a warm and convivial atmosphere. This initial gathering allowed participants to reconnect and network in a relaxed setting.
The main business program commenced on 5 July, starting with welcome remarks and an overview of Kreston VN from Dung Nguyen Hoang, Managing Partner. The morning sessions included a “How to Do Business in Vietnam” presentation by Nhung Chu, Partner at Kreston VN, featuring case studies and an engaging Q&A session. This was followed by keynote speaker Lim Chor Ghee, INED (Chairman, Kucingko Berhad Cofounder, IMM Group/Be Better Foundation), who offered thought-provoking insights into the region’s business landscape and economic drivers of trade.
The conference continued with a strategic update from Liza Robbins, Chief Executive of Kreston Global. New firms, Kreston Thailand and Helmi Talib, were then introduced to the network. Following presentations on conflict checks and regional client management, the conference then broke for lunch. After the break the Asia Pacific regional committee, chaired by Kamal Thakkar, Kreston Stanley & Williamson, shared an overview of their plans, with speakers Ganesh Ramaswamy, Helen Rivero from Kreston Proworks and Vineet Rathi from Kreston OPR. The day concluded with a group discussion and feedback session, allowing attendees to voice their ideas and suggestions.
The final day, 6 July, featured focused breakout sessions for Audit (hosted by Kamal Thakkar, Kreston Stanley & Williamson) and Tax (hosted by Mark Taylor, Chair of the Global Tax Group) groups, providing a platform for specialised discussions and knowledge exchange. Closing remarks (from NAMES) summarised the key takeaways from the conference.
The conference concluded with a tour of Hanoi, allowing attendees to explore the city’s rich history and culture. This further strengthened the bonds formed over the past few days. A wonderful time was had by all with many follow ups and great connections having occurred.
Kreston Global members can access the conference photo album and presentations by clicking here, and see the upcoming events Kreston Global events by clicking here.
June 17, 2024
Kreston Global firm, Brighture, shares its expertise in its latest newsletter covering financial news and updates from China.
Experienced Managing Director with a strong background in business development, strategy, and leadership. A licensed Certified Auditor and Accountant and Registered Court Expert with expertise in economics and finance. Extensive board and committee membership, including the Supervisory Board of Unicredit bank Serbia and AmCham Tax and Finance Board. Published author in reputable business publications. Holds a Master’s degree in Quantitative Finance and a Bachelor’s degree in Economics. Fluent in Serbian and English with limited working proficiency in Spanish. Committed to driving growth, delivering results, and fostering strategic alliances. Jelena holds qualifications from the East China University of Science and Technology and the University of Belgrade, Faculty of Economics and Business.
June 4, 2024
The Serbia-China Free Trade Agreement (FTA) signed on October 17, 2023, represents a significant milestone for the two nations and in the broader context of international politics, particularly the dynamics between Europe and China. This agreement is noteworthy for several reasons:
This FTA is the first of its kind between China and a Central Eastern European country, positioning Serbia as a pioneer in this new phase of economic relations with China. It marks a departure from China’s previous European FTAs with nations like Switzerland, Iceland, and Georgia, extending its reach into a region where such agreements have been absent.
The agreement promises to enhance trade and cooperation across automotive, technology, agriculture, and commodities sectors. In 2022, bilateral trade between China and Serbia was valued at approximately $3.55 billion, with Serbia exporting mainly ores, slag and ash, copper, and electrical equipment to China. Conversely, China’s exports to Serbia included machinery, electronic equipment, and vehicles. This FTA aims to further increase this trade volume by eliminating tariffs on a significant portion of goods, creating opportunities for both countries.
Serbia’s active participation in China’s Belt and Road Initiative (BRI) signifies a deepening of strategic ties. China has been heavily involved in infrastructure projects in Serbia, including the construction of highways and power plants, reflecting a growing economic partnership under the BRI framework.
The FTA represents a notable divergence from the path Serbia has been expected to follow in its pursuit of EU membership. The European Union, which has been cautious in its trade dealings with China and does not have an FTA with Beijing, may view this agreement as a significant deviation from Serbia’s expected alignment with EU policies and standards.
The slow pace of Serbia’s EU accession negotiations has created a void, which China appears eager to fill. This FTA can be seen as Serbia seeking to diversify its economic alliances and reduce its dependence on European markets, in response to the protracted EU integration process.
This development poses a challenge for the EU, highlighting the need for a nuanced approach towards aspirant countries and their international agreements. The EU may need to address the implications of China’s increasing economic presence in regions traditionally under EU influence, especially among countries awaiting EU membership.
In summary, the Serbia-China FTA is a landmark development, highlighting shifts in global trade dynamics and the evolving relationship between Europe and China. It reflects Serbia’s strategic navigation of international relations amidst delayed EU accession and China’s expanding influence in regions critical to European interests.
If you would like to speak to one of our specialists in Serbia, please get in touch.
May 8, 2024
Our new member firm, Helmi Talib LLP, recently shared the news that the firm’s Managing Partner, Mr. Helmi Talib, has been elected as one of the council members of the Institute of Singapore Chartered Accountants (ISCA).
Institute of Singapore Chartered Accountants (ISCA) is the national accountancy body of Singapore that sets the professional standards and guidelines for accountants in the country. ISCA provides training, accreditation, and membership services for its members, including chartered accountants and fellow chartered accountants in Singapore.
Mr. Helmi Talib is thrilled to join the ISCA council and is eager to play a significant role in enhancing the institute’s profile and fostering positive change for accountants in Singapore and beyond.
Helmi Talib comments, ‘I would like to take this opportunity to extend my heartfelt thank you to all of you who believed in my vision to serve. To my team at Helmi Talib LLP along with my friends, network, and connections, I stand humbled and honored of your unwavering support that brought me to this role.’
Institute of Singapore Chartered Accountants (ISCA) comments, ‘We are heartened by the support from all our members, and special thanks to all our Council Members who are volunteering their valuable time.’
For more information on doing business in Singapore, click here: Doing business in Singapore – Kreston Global
April 15, 2024
Kreston Global has today welcomed Singapore firm, Helmi Talib LLP, to the Kreston Global network.
Established in 1992, Helmi Talib offers eight key service areas: Audit and Assurance, Tax Compliance and Advisory, Business Process Outsourcing, Liquidation and Receivership, Internal Audit, Payroll, Transaction, and Corporate Secretarial Services. For more than three decades, Helmi Talib has provided services to a wide range of clientele, the majority of which are subsidiaries of multinational organizations, and privately owned entrepreneurial businesses, under diverse sectors ranging from investment holdings, financial institutions, charities, and information technology to name a few.
The Firm was named by Singapore Business Review as one of Singapore’s top 30 accounting firms. Continuing to grow, the Firm today is led by five audit partners and five non-assurance directors supported by close to 80 staff.
Over the next few months, Helmi Talib Group will rebrand as Kreston Helmi Talib.
The addition of Kreston Helmi Talib to Kreston Global’s network further strengthens its Asia Pacific region, which consists of 45 member firms across 22 countries providing a range of financial, audit and accounting, taxation, and other advisory services to large and mid-sized businesses requiring inbound and outbound growth support and set up.
Liza Robbins, Chief Executive of Kreston Global, said:
“I’m delighted to welcome Kreston Helmi Talib to our network. Singapore serves as a major hub for our member firms in and beyond Asia, offering a dynamic business landscape which attracts our core market of companies with entrepreneurial organisations with a growth mindset. Kreston Helmi Talib’s extensive experience and client range make them both a natural fit for and a great asset to our network
Helmi Talib, Managing Partner at Kreston Helmi Talib said:
“The Kreston network has a great reputation for servicing entrepreneurial international businesses around the world, so joining the network is an exciting milestone in our professional journey. Given our extensive international client portfolio, Singapore being one of the world’s major hubs for inbound investment, we can see enormous potential in our collaboration with Kreston and the network’s excellent member firms across the globe.”
April 11, 2024
Please visit the Kreston NNC Vietnam Tax guide page for advice on setting up businesses in Vietnam.
