In a bid to ease the availability of financial information regarding local businesses, Singapore’s Accounting and Corporate Regulatory Authority (ACRA) has initiated improvements to its current XBRL (eXtensible Business Reporting Language) system by offering greater user-friendliness for businesses and other users. ACRA believes that the new improvements will go a long way for investors’ confidence in Singapore, as it promotes greater corporate governance as well as transparency in Singapore’s business environment. The new interactive format allows data to be easily obtainable and quoted for analysis. This reflects the Singapore government’s unwavering commitment to welcome firms and businesses and promote company formation in Singapore, through various means such as improving the ease of doing business and increasing corporate transparency. Further information can be found in this BizDaily article.

Beijing is expected to roll out stimulus measures to boost domestic growth, as retail sales, industrial manufacturing and fixed-asset investment numbers are beginning to see a slowdown. The Chinese central bank lowered banks’ compulsory reserve ratio by 0.5%, allowing local Chinese banks to maintain a lower reserve balance and offer more credit for lending. However, Interbank lending has also fallen, maintaining a lower reserve ratio even without the central bank’s rate adjustment. This raises the question of whether China’s measures are actually having an impact, and what paths China can take to boost growth numbers. More information can be found at the China Daily.

Europeans are starting to show their discontent as more countries are voting new anti-austerity politicians to the forefront of the Euro crisis. Following the French and Greek elections, initial austerity plans have been thrown back into discussions as the new governments seek to negotiate a better deal that would appease their voters. According to IOL News, since the 2008 crisis began, 8 governments have been replaced over their austerity programs, and in 6 of these countries, voters were the main driving force for the change. Today, more uncertainty looms as Greece is highly expected to drop out of the Eurozone following the government’s impasse at forming a coalition.

One particular campaign promise, which the President elect had made, is drawing widespread attention across financial circles: a new 75% tax on top earners (annual income of Euros 1m+ euros (approximately USD$1.3m). But rather than benefitting France, could this put off potential investors and high income professionals from wanting to live and work in France? There is the potential that this could lead to an exodus of talented working professionals and business owners to other tax-friendly countries. The BBC has coverage of the election and the new parties policies.

An article by the Guardian has shed some light on how efforts to fight tax evasion are progressing. It provides an update of the offshore banking sector, after numerous bilateral tax treaties that countries signed with offshore centres in the last couple of years. Contrary to most expectations, the OECD’s bid to control monetary flow to tax havens may not have succeeded, as data from the Bank of International Settlements (BIS) show that offshore tax centres held USD$2.7 trillion (£1.7 trillion) in 2011, similar to the numbers in 2007, however it illustrates that growth has been halted.

Some experts believe this is due to weakly worded tax treaties between jurisdictions that only allow authorities to scrutinise accounts when sufficient evidence of tax evasion is presented. This is understandable as the majority of entrepreneurs & investors who use offshore banking do use legitimate strategies with low-tax jurisdictions as part of their investments and banking operations.

Furthermore, data shows that deposits are simply shifting from one offshore centre that is more compliant to tax treaties to others that are less compliant. Bank deposits in Jersey fell USD$110 billion over four years, as the island signed 15 tax treaties with other countries, while Cyprus, which signed only two tax-treaties to meet OECD criteria, saw a rise of 60%. This shows that offshore bank accounts and offshore companies are still popular and viable options for corporate bodies to keep their financial assets.

Over in the US, President Obama is planning to introduce a new five-point “to do” list for lawmakers that entails job creation and business cost-saving ideas to turn around the country’s dwindling employment rate. A business tax cut that provides a 20% credit for companies who move operations back to the United States is an attractive lure; as well as a 10% income tax credit to SME’s that increase their employee head count.

This shows that setting up a company in the United States could provide business owners and entrepreneurs with attractive tax breaks that can lower the overall costs of their business operations.

Over in Europe, the European Central Bank (ECB) has plans to hold back on funds to cash-strapped governments as it believes the political resolve to rein in deficits is showing signs of trouble. A growing number of European countries are baulking at the austerity measures the ECB demands, with massive protests in Greece, Italy and Spain. This poses problems to the European countries who are facing a looming recession, as fiscal prudence at this point in time would only lead to a prolonged and severe recession period. Some want to consider the previous agreements for cost-cutting between the ECB and struggling European countries to include growth measures as part of the deal this time.

Singapore’s Ministry of Manpower’s Research and Statistics Department has released new data, showing that Singapore’s jobless rate has risen to 2.1% in March despite of a fall in the number of layoffs early in the year. This is attributed to fewer jobs being created in the first quarter, with around 27,400 jobs added as compared to 28,300 new jobs in the first quarter of 2011. Approximately 3,250 workers were laid off in the first quarter of 2012, coming largely from the service and manufacturing industries. However, the Monetary Authority of Singapore (MAS) expects an economic growth of 1%-3% for 2012, assuring investors that Singapore company registration is still a safe bet.

UK housing prices have risen for a second straight month, even though its demand fails to keep up with rising supply, Bloomberg reports. April home values showed a rise of 0.1%, on top of a 0.2% rise in March. Experts believe this is fueled by concessions buyers stand to gain from a tax holiday on some homes, however, prices are expected to fall over the global economic uncertainty and the outlook of euro zone economies.

In an attempt to drive up the nation’s GDP, Spain intends to raise indirect taxes on sales of cigarettes and alcohol, potentially boosting 2013’s tax revenue by 8 billion euros. This follows data revealing that Spain’s unemployment rate rose to an 18-year high of 24.4 percent in the first quarter of 2012, which sparked talks that Spain might be on the verge of an economic recession. Indirect taxes are believed to have the least impact on growth, which makes it somewhat safe for the government to raise in order to bolster Spain’s budget deficit. This would allow Spain to maintain its labour competitiveness as the tax burden is shifted to affect consumerism instead.

One major draw about having a corporate bank account would be that it provides the appearance of business professionalism. Holding a corporate account can allow clients to be aware that they are dealing with a legitimate company. This boosts clients’ confidence when they transact with a company that is affiliated to prominent and trustworthy banks, such as Standard Chartered, HSBC, OCBC etc.

Another advantage of international banking is convenience. More information about international, or offshore banking, can be found on Healy Consultants website or send us an email with your specific questions.

In an attempt to crush underground lending, China is planning to allow unlicensed lending institutions to be registered as private lenders and organized rural banks. After China imposed reforms aimed at tackling inflation and to avoid a property bubble, many small- and medium-sized enterprises (SMEs) in China are stuck in a credit crunch as local banks are unwilling to issue new loans. As such, many have turned to private sources of funding, where the high interest rates levied has led to several companies going bust. When the new plans are rolled out and tested in Wenzhou, SMEs would be able to obtain loans much more easily and at reasonable rates to keep their businesses going, which would boost China’s economy in the long run. Read more on businessinsider.com

Austria and Switzerland have signed a new deal to tax secret Swiss accounts that assist Austrian businesses and individuals avoid paying taxes. Following Britain and France, Austria inked the tax agreement that comes into force at the start of 2013, allowing Austria to impose taxes ranging from 15 percent to 38 percent on these accounts, depending on the size of the deposit. This is estimated to net 1 billion Euros for Austria over coming years, and at the same time, would allow Switzerland to preserve its secrecy laws.

The Jakarta Post reports that Foreign Direct Investment (FDI) into Indonesia rose by 30 percent to Rp 51.5 trillion (US$5.7 billion) in the first quarter of 2012. The number of Japanese and South Korean companies doing business in Indonesia has risen substantially, contributing $600 million and $500 million as FDI respectively. This can be attributed to the boost in investor confidence in Indonesia’s economy, as well as attractive prospects Indonesian company registration provides.

Over in Singapore, inflation levels have accelerated sharply, led by a surge in vehicle and housing prices. The country’s Consumer Price Index (CPI) rose 5.2 percent in March from a year earlier. This is largely attributed to the 9.1 percent rise in housing prices, and an 8.6 percent rise in transport costs. Prices of the certificate of entitlement (COE), a document that allows holders to own a car, rose by 40 percent since the start of the year, dragging overall vehicle prices higher. Analysts believe that this inflation is the result Singapore’s domestic policies, as the government had actively sought to curb the number of cars on the road, as well as imposed new regulations to control home purchases recently. Investing in Singapore is still attracting foreign business owners who see Singapore as an excellent location for operating a business in the Asia region.