Avoiding rounding pitfalls in payment systems

Key Updates: Service Tax on Financial Services (Guide v2 – RMCD, 24 Oct 2025) The Royal Malaysian Customs Department has released an updated Financial Services Guide (Version 2) clarifying the scope, exemptions, and transitional rules for service tax under Group H (Financial Services). Highlights include: 1. Foreign currency exchange and remittance services by non-regulated financial service providers are now taxable. 2. Merchant acquiring services are specifically listed as taxable, though their interaction with “basic banking services” still requires clarification. 3. Registration threshold increased to RM 1 million. 4. Clearer guidance on services provided without charge, B2B exemptions, and matters outside Malaysia. 5. Detailed examples on basic banking services, insurance commissions, and retrocession/re-takaful arrangements. 6. Alignment with the latest Service Tax Policies (STP 1/2025 Amendment No. 3) and e-invoicing requirements. The guide aims to provide greater certainty for the financial services industry ahead of Phase 1 (1 July 2025) and Phase 2 (1 Oct 2025) implementation. Read the full Deloitte Indirect Tax Alert for detailed analysis and implications for banks, insurers, fund managers, and other FSPs. If you would like to discuss further, please reach out to any of us. Happy to have a chat! Senthuran Elalingam Larry James Sta Maria

The IRS is providing penalty relief during the first three quarters of 2026 for banks and money transfer companies (so called “remittance transfer providers”) that fail to deposit a new 1% federal remittance transfer tax on international money transfers. Beginning Jan. 1, 2026, remittance transfer providers are required to collect the remittance transfer tax from certain senders, make semimonthly deposits and file quarterly returns with the IRS. The first semimonthly deposit is due Jan. 29, 2026. The remittance tax will apply to certain transfers when the sender makes the transaction with cash, a money order or a cashier’s check. For more information from the IRS: https://bit.ly/4q2uOjU

After years of leniency during the pandemic, Inland Revenue is taking a tougher stance on unpaid tax. With total tax debt climbing to around $9 billion, the agency has begun issuing tens of thousands of notices warning that funds could be deducted directly from bank accounts to recover overdue payments. The focus is on individuals and businesses that have ignored reminders or failed to make arrangements. Enhanced data matching technology and upgrades to the MyIR system now allow Inland Revenue to track funds more effectively. While enforcement measures may sound severe, the department’s preference remains to work with taxpayers through instalment plans and early engagement rather than resorting to direct deductions. If you’re behind on payments, don’t wait to be contacted. Check your MyIR account, update your details, and speak to Inland Revenue or your accountant today to avoid penalties and unexpected deductions. Read more in our latest blog: https://lnkd.in/gh8y_eQE #InlandRevenue #TaxDebt #TaxTips #MyIR #NewZealandTax

𝗖𝗼𝗺𝗽��𝗶𝗮𝗻𝗰𝗲 & 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐚𝐧𝐝 𝐓𝐃𝐒: CBDT notified Amendment in Double Taxation Avoidance Agreements (DTAA) with Belgium from June 2025 to Curb Tax Evasion - Notification No. 156/2025  ✅ The Central Board of Direct Taxes (CBDT) notified the enforcement of a Protocol amending the 1993 India–Belgium Double Taxation Avoidance Agreement (DTAA). ✅ The Protocol was originally signed on March 9, 2017, in New Delhi. It officially came into force on June 26, 2025, after both countries completed their internal legal formalities. ✅ The amendment’s primary objective is to curb tax evasion and strengthen exchange of information provisions. ✅ It updates the DTAA to align with international standards under the OECD Base Erosion and Profit Shifting (BEPS) initiatives. ✅ The updated protocol enhances transparency and cooperation in tax matters between India and Belgium. ✅ Effective from the date of entry into force, it applies to income earned and taxes levied as per the revised agreement. 𝐂𝐥𝐢𝐜𝐤 𝐡𝐞𝐫𝐞 𝐭𝐨 𝐯𝐢𝐞𝐰 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐍𝐨𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: https://lnkd.in/gTpigFfi 𝐅𝐄𝐌𝐀 / 𝐑𝐁𝐈 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬: ✅ RBI issued the Repurchase Transactions (Repo) Directions, 2025, effective from November 11, 2025. ✅These Directions cover repo transactions done on recognized stock exchanges, electronic trading platforms (ETP), and over-the-counter (OTC) trades. ✅The Directions provide procedures for execution and settlement, requiring compliance with exchanges and SEBI rules for exchange-traded repos. ✅The Directions now include municipal debt securities as eligible collateral, expanding the range of securities that can be used for repo transactions. Settlement must typically occur on T+0 or T+1 basis (same or next business day) on a Delivery vs Payment (DvP) basis. ✅These norms do not apply to repos under RBI’s Liquidity Adjustment Facility (LAF) or Marginal Standing Facility (MSF), which have their own frameworks. ✅Participants must follow reporting and documentation norms, including timely trade reporting and use of standard agreements. 𝐂𝐥𝐢𝐜𝐤 𝐡𝐞𝐫𝐞 𝐭𝐨 𝐯𝐢𝐞𝐰 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐍𝐨𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: https://lnkd.in/gjFMfU2G 🌟 Sign up for your free session now — we’ll guide you step-by-step once you submit the short form! 𝐂𝐥𝐢𝐜𝐤 𝐡𝐞𝐫𝐞: https://lnkd.in/g2wwYiCM #IncomeTax #TDS #TaxExemption #IncomeTaxAct #FinanceUpdates #RegulatoryUpdates #ComplianceNews #GovernmentNotification #SEBI #SEBIRegulations #SecuritiesMarket #CertificationRegulations #CPEPrograms #InvestorEducation #PublicConsultation #FinancialSector #StakeholderEngagement

4. Risks 1.   Risk of Non-Declaration: The biggest risk is failing to declare foreign income under the assumption that "Turkey won't see it." The Revenue Administration (GIB) has the capacity to track your foreign account activity through international data sharing agreements (CRS, FATCA). Penalties for non-declared income include: o   Penalty: A tax loss penalty (often 100% or more of the evaded tax amount). o   Late Payment Interest: High-interest rates on the unpaid tax. o   Criminal Charges: Can even lead to imprisonment in severe cases. 2.   Exchange Rate Risk: You must convert your foreign currency income into Turkish Lira for tax declaration at the exchange rate announced by the Central Bank for that period. Fluctuations in exchange rates can affect your tax burden. 3.   Confusion Over Tax Status: If you do not carefully track the number of days you spend in Turkey, you might unintentionally become a full taxpayer and obligated to declare your worldwide income. 4.   VAT (Value Added Tax) Complexity: The VAT treatment for services or goods you provide abroad is complex. The "reverse charge" mechanism often applies, making these transactions exempt from Turkish VAT, but this can vary depending on the specific case. 5. Advantages 1.   Foreign Currency Earnings: Earning income in a foreign currency can help preserve your purchasing power, especially during periods when the Turkish Lira depreciates. 2.   Market Diversification: You can diversify your income sources without relying solely on a single country's economy. 3.   Tax Planning Opportunity: Staying within the legal framework (e.g., correctly deducting expenses, utilizing exemptions) allows you to optimize your tax burden. 4.   Investment in Turkey: You can bring your foreign currency earnings into Turkey to invest and contribute to the local economy. Final Recommendation: If you are a full taxpayer earning regular income from abroad, working with a tax professional from the outset is the smartest investment to protect yourself from penalties and utilize legal tax advantages in the long run.

Headline: CBDT notifies 1% & 3% ALP tolerance for AY 2025–26 — practical read for tax teams The Central Board of Direct Taxes has issued a notification (AY 2025–26) providing a tolerance range for the difference between the arm’s-length price (ALP) and the actual transaction price — 1% for “wholesale trading” and 3% in other cases. Where the variation (measured as |ALP − actual price| ÷ actual price) falls within these thresholds, the actual price will be deemed the ALP for AY 2025–26. Key points for practitioners: • Wholesale trading enjoys the tighter 1% band — but both tests must be met: (a) purchase cost of finished goods ≥ 80% of total cost of trading activities; and (b) average monthly closing inventory ≤ 10% of sales. This is aimed at low-margin, high-turnover trading models. • 3% band applies to all other transactions — a meaningful cushion for commercial pricing differences that are minor in percentage terms. • The notification is helpful in reducing routine disputes where pricing differences are marginal — yet it’s not a substitute for rigorous transfer pricing studies. Revenue authorities will still look closely at transactions outside the tolerance, or where other red flags exist (intangible value transfers, improper comparability, or aggressive allocation of functions/risks). Action points: • Immediately re-run TP calculations for AY 2025–26, measure the variation % and document outcomes. • Revisit APAs and open disputes — this tolerance may materially change settlement prospects. • Ensure finance and commercial teams understand how pricing, purchase cost and inventory policies affect the “wholesale trading” tests. This is a welcome pragmatic step that can reduce low-value disputes and administrative burden — but it also increases the premium on contemporaneous documentation and commercial transparency. If you’d like, I can share a short worksheet (formula + example rows) you can use to test your intercompany transactions against the 1% / 3% thresholds for AY 2025–26. #TransferPricing #CBDT #TaxStrategy #TPCompliance #InternationalTax

One-third of tax filers declare zero income to FBR A stark revelation has emerged from Pakistan’s ongoing tax collection drive: a full third of all citizens who have filed returns—around 1.7 million people—have declared no taxable income whatsoever. This flood of ‘nil’ returns, from a total of 5.5 million submissions, presents a critical challenge to the Federal Board of Revenue. Ironically, the FBR has identified nearly one million return filers who have declared less income in their returns for the current fiscal year compared to the last. This has raised alarm within the organisation, which is now preparing major plans to conduct audits to detect tax evasion. We have found 977,000 filed returns where the declared income was shown as less than in the last fiscal year. Certain exporters are showing losses in their returns. The FBR has decided to dispatch tax notices to them after the deadline of October 31, requesting them to revise their returns or the law will take its course.

Going through the Business Standard article: Good to see progress on enabling 💡 ITC refunds for capital goods under Inverted Duty Structure, a much-needed relief for businesses! A bit disappointing though that similar refunds for input services may still take longer. ⏳ #GST #InvertedDutyStructure #InputTaxCredit #TaxReforms #EaseOfDoingBusiness #businessstandard

🔔 Reminder: 2023 Summary Information Table (SIT) Deadline Approaching Cyprus entities with related-party transactions are reminded that the Summary Information Table (SIT) for tax year 2023 must be submitted by 30 November 2025 via the Tax for All (TFA) portal. 📌 This is a mandatory filing for entities meeting the criteria, and non-compliance can result in penalties (e.g. €500 for failure to submit). The Cyprus Tax Department has issued a helpful FAQ: https://lnkd.in/dRTD_x2h ✅ Key Reminders: - The 2023 SIT must be filed together with the 2023 corporate income tax return (Form T.D.4). - If your entity is required to prepare a Transfer Pricing Local File, please ensure this is finalised before the SIT deadline. The information reported in the SIT must be consistent with the TP documentation and the selected transfer pricing methodology. ‼️Plan ahead: If you have not already started reviewing your related-party transactions or assessing whether you meet the TP thresholds, now is the time to act.  #CyprusTax #SIT #TransferPricing #TaxCompliance #CorporateTax

💡 Refund under Inverted Duty Structure (IDS) — GST’s Cash Flow Lifeline 🔁 Let’s be honest — GST 2.0 simplified the tax rates… but the refund mechanism under Inverted Duty Structure (IDS) is where the real game begins. Because when you pay 18% GST on inputs but charge only 5% on outputs, your Input Tax Credit (ITC) gets blocked — and your cash flow starts choking. That’s where the IDS refund becomes your oxygen supply. 💸 ⚙️ How Refund under IDS Works (Simplified) 1️⃣ Eligibility — Section 54(3) of CGST Act Refund allowed when: Input tax rate > Output tax rate (not nil/exempt); and ITC accumulation is due to this rate difference. 2️⃣ Scope — Only Input Goods, Not Services or Capital Goods According to VKC Footsteps (SC, 2021), refund is limited to input goods — no refunds for ITC on input services or capital goods. 3️⃣ Timelines — Within 2 Years ⏰ Form RFD-01 to be filed within 2 years from the GSTR-3B due date of that period. 4️⃣ New in GST 2.0 — Provisional & Automatic Refunds 💻 90% provisional refund for IDS & zero-rated supplies AI-based auto-verification for faster credit release No more refund queues — liquidity just got digital wings! 🚀 For manufacturers and exporters battling liquidity gaps, timely IDS refunds are the bridge between compliance and survival. #GST #InvertedDutyStructure #RefundUnderIDS #GST2point0