In view of the NKF Saga in 2005, the government has since taken a widen approach on corporate governance and internal control elements for Charities & Voluntary Welfare Organizations. Since management councils are volunteer in the MCSTs organization, the principle should apply in order to maintain good governor practice standards. 

Under Section 60 of the Maintenance & Strata Management Act 2004(BMSMA), council members have a responsibility to declare any pecuniary interest, direct or indirect, before any meeting of the management council. This practice should apply to all estate manager and key staffs that who are directly involved in the managing of estate as direct employee or on behalf managing agent. You may also download the Conflict of Interest Disclosure Form for your reference.

Revision of Partial Tax Exemption And Corporate Tax Rate

As highlighted from the budget 2007 on 15 February 2007, there is a cut in tax rate from YA2008 to 18% and the increase in Partial Tax Exemption threshold from $100,000 to $300,000.

• 75% exemption of up to the first $10,000 of normal chargeable income (excluding Singapore franked dividend); and
• 50% exemption of up to the next $290,000 of normal chargeable income (excluding Singapore franked dividend)

With the above changes, the corporate tax structure will be as follows:

This tax change, which is applicable to MCST will take effect from YA2008. You may download a sample of the Tax Computation YA2008 specimen for your reference.

Review of Record-Keeping Periods

To lighten the burden, the record-keeping period w.e.f  01 January 2007 in

• Section 48 of the Building Maintenance & Strata Management Act from 7 to 5 years
• Regulation 13 of the Building Maintenance & Strata Management (Lift & Building) Regulations from 6 to 5years

Please be reminded that with effect from YA2007, all future Income Tax Returns (Form P1) should be duly completed, signed by the president, Hon Treasurer, Secretary or any other members of the Management Committee as stated in the Explanatory Notes under “WHO HAS TO COMPLETE AND SUBMIT THIS TAX RETURN”