Bhatia & Bhatia
August 16, 2022
August 16, 2022
July 19, 2022
Kreston firm, Brighture, shares its expertise in its latest newsletter covering financial news and updates from China.
June 28, 2022
Since the arrival of Crypto assets and ever-growing technology, investors face Cryptocurrency challenges as it has become much more dangerous with the lack of regulations and laws in place to reduce scams and crypto crime. Kreston Global member Ganesh Ramaswamy of K Rangamani and Associates LLP explains the impact this has had on Asia in Financial Regulation International.
May 11, 2022
Ganesh Ramaswamy of K Rangamani and Associates LLP explores some of the current challenges faced by cryptocurrency investors in China and India in Financial Regulation International.
The article looks at why investments in cryptocurrencies have become so risky in these jurisdictions, what is being done about the issue and the legal remedies available to investors in China and India. Ganesh also gives practical advice on keeping investments safe.
Read more here (subscription needed).
May 6, 2022
At COP 26, held in November 2021, one of the primary decisions was to reduce the global carbon footprint, by phasing out the usage of fossil fuels and increasing the usage of renewable energy. India made commitments at this meeting, including achieving Carbon Neutrality by 2070. The GOI has already issued guidelines for the large corporates (top 1000 companies by market capitalisation) to prepare Business Responsibility and Sustainability reports, effective from the current financial year, 2022-23.
Kreston SNR Advisors have positioned themselves as experts within their sector, promoting awareness of ESG and advising corporates regarding its framework—including policy formulation, implementation and reporting.
In the last year, Kreston SNR has been associated with many programs related to the environment, including International Climate Summit 2021 (New Delhi, Sept 2021) as a knowledge partner. Over 35,000 people participated in the summit, part of which were nine technical sessions by eminent speakers, including a few Nobel laureates. Along with many ministries under the GOI that partnered with the summit, Norway also showed its support as the country partner.
Kreston SNR Advisors has an advisory board with distinguished scientist Dr JP Gupta, as the Chairman, and other experts as members and are in the process of building a strong team with relevant experience to ensure the delivery of quality services.

Wee Kwang is a Chartered Accountant of Singapore, a Certified Internal Auditor with the Institute of Internal Auditors and a Certified Sustainability Reporting Specialist with the Institute of Certified Sustainability Practitioners.
He has more than 20 years of experience in auditing and assurance and was involved with implementing the Sarbanes-Oxley framework for American-related corporations during his three-year secondment in London with a Big 4 accounting firm. He has also undertaken and led engagements in internal audit, enterprise risk management and sustainability reporting for companies listed on the Singapore Exchange and Growth Enterprise Market board of the Stock Exchange of Hong Kong as well as charitable organisations. He has spoken on various platforms on the topic of sustainability reporting.
He was treasurer of Yuhua Citizen’s Consultative Committee from 2013 to 2019. He holds a Bachelor of Accountancy from NTU.
April 22, 2022
Koh Wee Kwang, partner at Kreston ACA PAC recently shared his views with the International Accounting Bulletin in the world survey. He was asked to comment on accountancy firms’ transparency to environmental, social and governance plans to prove their sustainability on the planet and society. His thoughts are that auditors could be in an advanced position with clients as they will be able to influence the boards with their ESG strategy. Read the full article below.
April 6, 2022
The US-based software company provides secure and convenient digital identity services for their clients’ customers, employees and partners. Ping Identity Corporation (Ping) was founded in 2002 and has offices across the globe, including India, Canada, the UK, France, Australia and Japan. Its many high-profile clients encompass 60% of the Fortune 100.
Ping acquired a software development company in India and decided to outsource the accounting, tax, GST, payroll and AP functions. The company was looking for an outsourcing partner with the right experience, skills and infrastructure.
Kreston Global’s Indian member firm, Kreston Rangamani, was chosen thanks to its global reach across various sectors and its streamlined, high quality service.
Kat McBride, Senior Accounting Manager at Ping, said:
“Kreston Rangamani is a powerful partner enabling us to perform our local operations seamlessly. They are experienced, intelligent, and strong advocates for our business. Simply put, we would not be as successful without them.”
Ananth Narayanan, Director at Kreston Rangamani, says:
“By evaluating the requirements and expectations of our clients, we provide a customised pricing structure, where the client pays for exactly what was used. Quality and time-to-market are the major attributes that make us a preferred outsourcing partner.”
Meera Murali, Operations Manager at Kreston Rangamani, added:
“We have been with Ping for the last four years and have built a strong relationship with their management team. Our team was able to sync with the Ping team quickly and were able to transition all the tasks smoothly within a short time span. The big advantage that we have is that our team quickly adapted to working according to Ping’s processes.”
April 5, 2022
The technology company was founded in 1997 by a professor and three doctorate students – and now operates in 28 countries worldwide. U-blox creates wireless semiconductors and modules for consumer, automotive and industrial markets, and chips and equipment for global navigation satellite systems.
As part of its international expansion, u-blox established an operation in India and wanted to outsource its cash flow management, payroll processing, financial statement preparation, tax processing and e-accounting services. The management team was seeking a skilled team of accounting professionals who could provide customised accounting solutions by using the latest versions of accounting tools at an affordable pricing structure.
U-blox chose Kreston Global’s Indian member firm Kreston Rangamani for outsourcing its functions, because Kreston Rangamani had the best infrastructure to provide quality outsourcing services. That was seven years ago, and the relationship continues today.
Carine Loo, Finance Manager for u-blox Asia Pacific, said:
“Kreston Rangamani’s team is very professional and knowledgeable. On several occasions, they have gone the extra mile to support us by providing professional advice on matters which are outside their scope of work. We appreciate their service and look forward to our continued cooperation.”
Rema Muraleedharan, Team Lead at Kreston Rangamani, commented:
“Our strengths have always been to serve our outsourcing clients across various time zones and have the ability to deliver results within a quick turnaround time.”
Shalini Singh, Manager at Kreston Rangamani, added: “We understood how the u-blox business worked, precisely analysed their requirements and that helped us provide highly customized solutions. We made use of some of the latest and updated versions of the best outsourcing tools and technologies to provide the best services to u-blox.”
If you would like support with the expansion of your tech business, please contact us using the form below.
March 7, 2022
Kreston Global condemns the war in Ukraine and the violation of international law. We are deeply troubled at the terrible impact on innocent people in Ukraine, Russia and Eastern Europe, and we stand by all people suffering from oppression anywhere in the world. We very much hope for a quick and peaceful resolution to this tragic situation.
We can confirm that Kreston Global does not have any member firms operating in Russia. Our member firm in Ukraine – Kreston Ukraine – has understandably been impacted by the current situation, and we are doing everything we can to support their team during this difficult time.
Accounting firms play a critical role in ensuring relevant economic measures and sanctions are applied effectively. To do so, our firms are encouraged to use resources available from professional bodies and government departments in their respective jurisdictions and to seek guidance from Kreston Global. As trusted advisors, our member firms will continue to support clients as they manage the significant disruption that these changes will bring.
Kreston Global firms from around the network have been in touch with offers of support. Kreston Ukraine has set up a fund to support its employees at this time. If you are a member and would like to offer support, please contact us here.
February 8, 2022
February 2, 2022
Kreston global mobility expert, Ian Miles, talks us through the benefits of using a global network to relocate businesses and employees overseas.
Global mobility is the movement of individuals around the globe moving from one country to another, usually, but not always, for work.
Our offering is to help to efficiently move employees and businesses to new countries by offering the necessary and relevant tax advice before, while and following living in a new country. A good global mobility strategy should cover tax, visas and immigration, payroll and benefits and relocation services.
A smooth transition benefits the business and the individual moving, whether it is the CEO of a company or an employee. Understanding the culture, local employment laws, working visas and settling in families, if needed, minimises the risk of the relocation failing
The HR department is often involved and can offer assistance to an employee or CEO looking to relocate, however, tax and legal advice is specialist and dependent on the locality. Businesses can choose to source multiple services or use a network that can coordinate everything with one point of contact.
Kreston Global works with two partners to deliver specialist global mobility services.
At each country location is a hub, with a contact from each of the three partners who, together, offer a complete global mobility service. The members of the hub are one person whose business is to physically move people around the world, another member finds housing for the Expat, another finds schools for the Expat’s children, another moves their pet, a wealth manager and so on. The Expat will also need tax advice to help understand the tax laws in the country that they are going to and how the rules of their new country interact with their home country or vice versa if they return home in later years.
Expatland has created a travel planner checklist from their wealth of experience of working with clients around the world, highlighting tasks you should do before, during and after relocation. Follow the link to their website here to use their useful relocation planner tool, download the checklist and research the support we can offer you in each location.
Kreston Global offers tax advice as part of the partnership, which can both advise individuals on the tax aspects of what it means for them to move country and also advise globally mobile entrepreneurs about how to set up a business venture in a new country.
All of our member firms that offer global mobility services are listed here. This list is expanding all the time. You may contact the member firm in the country you wish to expand into, or the country where you reside. Please email us here
This month saw two new members added to the Kreston Global Mobility network. Kreston Egypt and McLean Delmo Bentleys in Australia.
The two new members are now both group leaders in their e-teams, Kreston Egypt now specialising in individuals moving in or out of Cairo and McLean Delmo Bentleys now responsible for the same in Melbourne.
The two firms are working with our two global mobility partners; Expatland, who co-ordinate the e-teams all around the world, offering one-stop service, organising everything from expatriate tax to finding a school, for their clients. and Harmony Relocation, a global relocation expert.
If you are moving abroad or looking to move staff overseas, the Kreston Global mobility network can offer tax advice and co-ordinate all other services, from organising a visa to moving your house contents to another country.
Learn more about our network and how we can help you and your employees move country.
January 14, 2022
December 17, 2021
Kreston firm, Brighture, share their expertise in their latest newsletter covering financial news and updates from China.
December 15, 2021
Kreston Global tax expert, Nam Nguyen from Kreston NNC in Ho Chi Minh City, recently shared his experience of working with foreign investors in Vietnam with STEP Journal and how personal tax planning and understanding tax residence can save clients money.
What is the issue?
Vietnam taxes residents on worldwide income and non-residents on Vietnam-sourced
income, regardless of where they get paid.
What does it mean for me?
Tax rates for tax residents are comparatively high, with a 35 per cent top marginal rate and few tax reliefs.
What can I take away?
Personal tax planning is essential when advising clients considering working or doing business in Vietnam.
December 7, 2021
Kreston Global member Ganesh Ramaswamy of K Rangamani and Associates LLP was invited to share his views with Law360 on BEPS 2 and the impact it would have on SMEs. Ganesh offers excellent advice, discussing options that SMEs who carry out cross-border business should consider, from evaluating their operational structures from a tax perspective to their reporting processes and any costs involved from the new tax initiative.
Read the full article here.
October 28, 2021
McGregor Bailey, a chartered accounting firm based in Auckland, has joined Expatland Global Network as one of the group leaders in the Auckland E-Team.
McGregor Bailey is a member of Kreston Global, a global network of independent accounting firms headquartered in London.
McGregor Bailey will oversee the accounting needs of expat clients moving to Auckland and to other cities in New Zealand. Founded in 1948, McGregor Bailey provides businesses with tax and accounting services from inception through to growth and eventual exit.
The Expatland Global Network consists of E-Teams of multi-disciplinary service providers in popular expat cities around the world. Operating at a city level, they have essential local knowledge and insight and are a great resource for expats on the move.
John Marcarian, Founder of the Expatland Global Network, says, “having McGregor Bailey join the Expatland Global Network strengthens our presence in Auckland We are very pleased to have them join our network.”
For Cameron McGregor, Principal of McGregor Bailey, a partnership with Expatland Global Network is a strategic move for any company expanding its services to capture the expat market. Cameron adds, “joining the Expatland Global Network enables our firm to provide our clients with international connectivity. We’re very excited of the opportunities that the network provides.”
‘Expatland’ origins
Expatland began as a book, written in 2015 by John Marcarian, as a result of his personal expat journey. It later evolved into a global community committed in helping expats plan their move overseas.
E-Teams around the globe
The Expatland Global Network was launched by John in 2018. It is expanding rapidly and has established E-Teams in 32 cities including London, Sydney, Singapore, Amsterdam, Melbourne, Budapest, Hong Kong, and Toronto. With best-in-practice members recognising the importance of this service, many more will follow.
If you are interested in being part of Expatland Global Network or a business interested in being an E-Team member, you can get in touch with Expatland: http://www.expatland.com/contact/
October 4, 2021
By Nam Nguyen, Kreston NNC, Vietnam
This week VN Express International reports that the Asian Development Bank has reduced its forecast of Vietnam’s GDP growth in 2021 to 3.8%. The World Bank has reduced it to 4.8% but forecasted a 6.5% growth next year, while the country targets a growth of 3.5-4%, after a 2.9% growth last year. The government in Vietnam has made announcements to allow resumption of most activities in Covid-hit cities and provinces from 1 October 2021, including Ho Chi Minh City, the commercial hub of Vietnam.
While Covid is still lingering in Vietnam and many other countries, proper cashflow management is important to affected businesses. International investors may be looking at different scenarios. Some may consider funding its Vietnam subsidiary to help it cope with cashflow difficulties. Others may consider scenarios such as mobilising idle working capital or retained earning from their Vietnam subsidiary to help their business elsewhere, suspension of the Vietnam subsidiary’s business, or even an exit option etc. While it is hoped that investors do not have to consider the last two scenarios, this article helps readers to familiarise themselves with the regulatory requirements and tax implications all mentioned scenarios.
Funding a Vietnam subsidiary
A foreign investor may fund its Vietnam subsidiary by increasing the charter capital (i.e. equity), providing a loan capital (i.e. debt), or simply providing a grant, or allowing a debt waiver. Increasing the charter capital requires pre-approval by the licensing authority and it is appropriate if the increased capital will stay in Vietnam indefinitely. There will be no tax implication or benefit.
Providing loan capital to a Vietnam subsidiary by way of a shareholder’s loan offers flexibility and tax efficiency. A shareholder’s loan may be capitalised to become an addition to the charter capital at any time. A foreign loan does not require the licensing authority’s pre-approval unless the loan will cause the Vietnam subsidiary’s total investment capital (i.e. equity plus debts) to exceed the licensed total investment capital. A foreign loan requires pre-approval by the State Bank of Vietnam (SBV) if the loan period exceeds 12 months. However, a short-term loan (i.e. up to 12 months) does not require SBV’s pre-approval unless the loan period is extended beyond 12 months. A foreign shareholder’s loan may be repaid at any time, and hence, it may be used as a tool for future fund repatriation.
A lending foreign shareholder may charge an interest expense on the loan. The interest rate may be up to 150% of the local prime interest rate (subject to the usual rules on thin capitalisation, related party transactions, and transfer pricing). The interest payable to the lending shareholder by the Vietnam subsidiary will be subject to a 5% interest withholding tax but the interest expense will be tax deductible to the Vietnam subsidiary. For example, assuming that the Vietnam subsidiary is making taxable profits and is paying corporate income tax at the standard tax rate of 20%, then for every dollar of interest that the Vietnam subsidiary pays its oversea lending shareholder, it will pay 5 cents of interest withholding tax and get 15 cents of tax deduction benefit (i.e. 20% – 5%). In fact, this is one of the attractive features of Vietnam’s tax system that international investors may not be aware of.
What if the Vietnam subsidiary is not making any taxable profits to utilise the interest expense tax deduction? Such interest expense may be accounted for as part of the accumulated tax losses, which may be carried forward up to 5 years from the loss-making year.
A grant or debt waiver will trigger corporate income tax liability to the Vietnam subsidiary as they will be considered as the subsidiary’s taxable income. There will be no VAT implication unless the grant or the debt waiver is exchanged for goods or services to be supplied by the Vietnam subsidiary.
Other scenarios
Other scenarios include (i) the sale of the Vietnam business, (ii) the reduction of its charter capital, or (ii) business suspension. Both scenarios (i) and (ii) requires pre-approval by the licensing authority. Scenario (i) may trigger tax on capital gain. Scenarios (ii) and (iii) have no tax implication. The regulatory compliance paperwork process for scenario (i) is simpler and less time-consuming than scenario (ii). Scenario (iii) is simplest and requires only a written notice to the licensing and tax authorities. A company may apply for suspension or early resumption of business at any time. Previously, a company was allowed to apply for business suspension only twice. However, the current regulation no longer limits the number of times that a company may apply for business suspension. If a company has tax incentives (e.g. tax holiday or a 50% tax reduction period), then the unutilised tax incentives may be preserved only if the business is suspended during its pre-operating period.
Employees’ statutory redundancy payment may be another important consideration for companies with a large workforce. The labour law requires that if an employee is made redundant, the employer must pay a redundancy payment at the minimum of 2-month salary or one-month salary for every year of service to employees who have been employed for at least one year.
For a related guide on methods of repatriation of fund from Vietnam, please click here to view. The author can be contacted at [email protected]
September 27, 2021
Nam Nguyen, Kreston NNC, Vietnam
The recently introduced taxation of e-commerce in Vietnam has triggered a series of issues. Beside those mentioned in the last two articles on this topic, below are others.
The key trigger is permanent establishment (“PE” i.e., taxable presence in Vietnam). As mentioned in the last two articles on this topic, digital presence may be deemed by tax authorities in Vietnam as physical presence for taxation purposes, especially for e-commerce businesses. Otherwise, it would defeat the purpose of e-commerce taxation, as Vietnam has effective tax treaties with around 80 countries, and many companies doing business in Vietnam are from these countries.
If PE is triggered, it means that foreign companies that have transactions in Vietnam may not be able to rely on a tax treaty to protect the business profits derived through a PE in Vietnam from Vietnamese taxation. Where a tax treaty applies, the PE definition of the relevant tax treaty will prevail. However, when a dispute with the tax authority in Vietnam over PE issues arises, it is often like an uphill battle for taxpayers. Where a tax treaty is not available, a foreign company doing business in Vietnam is even more vulnerable to Vietnam’s taxation if a PE arises, as PE is broadly defined under Vietnam’s domestic tax law. It includes (amongst other things) “an agent delivering goods or services in Vietnam on behalf of its overseas principal.”
When PE is triggered, the business profits of a foreign company are not protected from Vietnamese taxation, and there may also be the following potential tax implications.
1. Potential VAT implication
For example, a foreign company makes consumer products such as mobile phones or fashion apparel in Vietnam through an export-manufacturing arrangement with a manufacturer in Vietnam, and the company also sells its products online directly to Vietnamese consumers through its website or other e-commerce platforms. Normally, the export-manufacturing fees charged by the local manufacturer enjoy 0% VAT for export-manufacturing services, so the foreign company does not suffer a 10% VAT which would otherwise be charged by a service provider in Vietnam.
However, according to Vietnam’s current VAT regulation, if the services are rendered under a contract between a Vietnamese service provider and PE in Vietnam of a foreign company, then the 0% VAT rate will only apply if the services are performed outside of Vietnam. In export-manufacturing, the services are obviously performed in Vietnam, so the manufacturing fees will be taxable at 10% VAT, if the foreign company is found to have a PE in Vietnam.
2. Potential foreign contractor tax implication
Another example is where a service is provided by a foreign contractor, to a Vietnamese customer, and it is performed outside Vietnam (known as offshore service). Such service may be exempt from the foreign contractor withholding tax (including 5% VAT and 5% corporate income tax), if it is “consumed” outside Vietnam, and if the foreign contractor does not have a PE in Vietnam. As an illustration, a foreign company provides conventional (i.e., offline rather than online) advertising or marketing services to a Vietnamese customer, to promote made-in-Vietnam products (whether they are made by a foreign owned company or a local company) in international markets, and the services are performed outside Vietnam. These services are exempt from the foreign contractor withholding tax. However, if they are provided as online services then they will be taxable, and so will it be the case if the foreign contractor has a PE in Vietnam.
3. Potential personal income tax implication
For business visitors to Vietnam who spend less than the aggregate of 183 days in Vietnam in a tax year, they are considered as non-residents, and they may apply for tax protection under a tax treaty. Most tax treaties with Vietnam provide that if the person’s remuneration is not borne by a PE in Vietnam then the person’s employment income will not be taxable in Vietnam.
However, in the case scenario (1) above, if the foreign company has a Representative Office in Vietnam which employs (just pays for the cost of) a non-resident expatriate executive (e.g., a regional procurement manager) who frequently visits Vietnam to conclude contracts with the company’s contract manufacturers. The Representative Office itself does not constitute a PE in Vietnam under Vietnam’s current tax regulation. However, if the company is found to have a PE, either under the case scenario (1) above because of its e-commerce activities in Vietnam, or because of certain activities undertaken by the Representative Office or by the non-resident executive, then the person may not be protected by the relevant tax treaty.
A foreign company may be found to have a PE in Vietnam in different ways and it may have more than one PEs in Vietnam. Vietnam’s current tax legislation is silent as to whether if a business is found to have a PE in Vietnam, then above tax treatments will only apply to the transactions associated with such a PE, or they will apply to all transactions. So, the risk of the latter exists, even if a transaction is not associated with the PE.
4. Potentially higher tax implication to PEs
Normally, if a PE is found then only the business profits derived from such a PE (if any) is taxable in Vietnam. However, under the current tax administration rules, Vietnam taxes the business profits of a foreign company that are derived through a PE in Vietnam primarily through the withholding tax regime, whereby a PE’s tax liability is based the contract value (i.e., revenue), instead of profits. For example, a PE is taxed at 1% corporate income tax and 1% VAT on of its trading revenue, or 5% corporate come tax and 5% VAT on its service revenue etc.
However, the foreign contractor tax regulation allows a foreign contractor to select the option of paying corporate income tax at 20% of profits (i.e., revenue – expenses), subject to successful tax registration as if the PE were an ordinary registered business in Vietnam. It means that the tax office may attempt to tax a PE at 20% corporate income tax on profits, instead of at a lower rate (1% or 5%) on the revenue. In this case, the tax on the business profits derived through the PE may be higher than 20% of the real business profits, because chances are that the foreign company may not be able to substantiate all its overseas expenditures (e.g., administration or management expenses) allocated to the PE for tax deductions. Vietnam has very strict rules on expense substantiation for tax deductions, and the tax regulation limits a foreign company’s allocation of management expenses to its PE in Vietnam by prorating the total global management expenses of the foreign company at the ratio of the revenue of the PE in Vietnam over the global revenue (including revenue of all PEs in all countries).
However, the tax regulation also states that no tax deduction is permissible where a PE in Vietnam does not maintain adequate bookkeeping according to Vietnamese accounting standards, which may be the case for a foreign company that is found to have a PE in Vietnam by accident.
Therefore, international businesses that intend to further penetrate Vietnam’s market through e-commerce should be mindful of the higher PE risk, and the above potential additional tax implications.
If you have missed the last two articles on this topic and would like to read them, you may click here to view the first article and click here to view the second article. The author can be contacted at [email protected].