Under Section 13 9 of the Income Tax Act, tax exemption will be granted when all of the following three conditions are met :. To enjoy the tax exemption, you have to provide the following information in your Income Tax Return Form C :. To meet this condition, the specified foreign income received in Singapore must have been subject to tax in the foreign country from which the income is received. The Comptroller will regard the "subject to tax" condition as met if the income is exempt from tax in the foreign jurisdiction due to tax incentive s granted for substantive business activities carried out in that jurisdiction.
Dividend is considered to be sourced in the jurisdiction where the dividend-paying company is tax resident in.
Where the dividend-paying company is a tax resident in Singapore, dividend is considered sourced in Singapore. Conversely, a dividend is foreign-sourced dividend if it is paid by a non-Singapore tax resident company. Foreign-sourced dividend may be paid by a company listed on the stock exchange in one jurisdiction for example Hong Kong but tax resident in another jurisdiction for example Bermuda.
Hence, it cannot be presumed that the jurisdiction of listing of the dividend-paying company is where the dividend is sourced. As such, where a dividend-paying company is incorporated outside the jurisdiction where it is listed, the Comptroller may treat the dividends as not sourced in the jurisdiction of listing unless there are facts to show otherwise.
You can provide the following documents to substantiate that the underlying tax has been paid on the income out of which the foreign-sourced dividend is paid:. This must be supported by evidence such as description in the consolidated accounts or any official publication showing the principal activities of the foreign dividend-paying company to be such as opposed to the Group. The consolidated accounts of the foreign dividend-paying company and its group companies for the financial period ending in the year prior to the year the dividend is received in Singapore must show a positive current year tax excluding deferred expense.
IRAS will also accept the following documents showing that the income of the foreign dividend-paying company has been subject to tax or that it is enjoying tax incentive on its substantive business activities :. IRAS may review and modify the use of the alternative documents should there be any cases of abuse. Skip to content. As of , the top three were deemed by one "research-based policy analysis and commentary from leading economists" as China, India and Israel. The main driver for offshoring development work has been the greater availability of developers at a lower cost than in the home country.
However, the rise in offshore development has taken place in parallel with an increased awareness of the importance of usability, and the user experience, in software. Outsourced development poses special problems for development, i. This problem is exacerbated if the development is offshore. Further complications arise from cultural differences, which apply even if the development is carried out by an in-house offshore team.
Historically offshore development concentrated on back office functions but, as offshoring has grown, a wider range of applications have been developed. Offshore suppliers have had to respond to the commercial pressures arising from usability issues by building up their usability expertise.
Indeed, this problem has presented an attractive opportunity to some suppliers to move up market and offer higher value services. Maximizing the economic value of an offshore software development asset critically depends on understanding how best to use the available forms of legal regulations to protect intellectual rights. If the vendor cannot be trusted to protect trade secrets, then the risks of an offshoring software development may outweigh its potential benefits.
Hence, it is critical to review the intellectual property policy of the potential offshoring supplier. The intellectual property protection policy of an offshore software development company must be reflected in these crucial documents: General Agreement; Non-Disclosure Agreement; Employee Confidentiality Contract. Ownership of intellectual property by the outsourcing company, despite outside development, was the goal.
To defend against tax-motivated cost-shifting, the US government passed regulations in to make outsourcing research harder. A "The Future of Outsourcing" report began with "The future of outsourcing is digital. There is more complexity than before, especially when the outside company may be an integrator. Forbes considers the USA election "the most disruptive change agent for the outsourcing industry,"  especially renewed "invest in America" goals.
Furthermore, there are growing legally required data protections, whose obligations and implementation details must be understood by both sides. This includes dealing with customer rights. Focusing on software quality metrics is a good way to maintain track of how well a project is performing.
Globalization and complex supply chains , along with greater physical distance between higher management and the production-floor employees often requires a change in management methodologies, as inspection and feedback may not be as direct and frequent as in internal processes.
This often requires the assimilation of new communication methods such as voice over IP , instant messaging , and Issue tracking systems, new time management methods such as time tracking software , and new cost- and schedule-assessment tools such as cost estimation software. The term Transition methodology  . In the area of call center outsourcing, especially when combined with offshoring,  agents may speak with different linguistic features such as accents , word use and phraseology, which may impede comprehension. In , Nobel laureate Oliver E.
Williamson wrote that the governance structure is the "framework within which the integrity of a transaction is decided. Reduced security, sometimes related to lower loyalty  may occur, even when "outsourced" staff change their legal status but not their desk. While security and compliance issues are supposed to be addressed through the contract between the client and the suppliers, fraud cases have been reported.
Citibank did not find out about the problem until the American customers noticed discrepancies with their accounts and notified the bank. A number of outsourcings and offshorings that were deemed failures    led to reversals   signaled by use of terms such as Insourcing and reshoring.
The New York Times reported in that IBM "plans to hire 25, more workers in the United States over the next four years," overlapping India-based Infosys 's "10, workers in the United States over the next two years. Among problems encountered were supply-and-demand induced raises in salaries and lost benefits of similar-time-zone. Other issues were differences in language and culture.
According to a Deloitte Consulting survey, a quarter of the companies which had outsourced tasks reversed their strategy. Public opinion in the US and other Western powers opposing outsourcing was particularly strengthened by the drastic increase in unemployment as a result of the — financial crisis. From to , the US experienced a net loss of , jobs due to outsourcing, primarily in the computers and electronics sector. Public disenchantment with outsourcing has not only stirred political responses, as seen in the US presidential campaigns , but it has also made companies more reluctant to outsource or offshore jobs.
A counterswing depicted by a Deloitte survey suggested that companies are no longer reluctant to outsource. Insourcing is the process of reversing an outsourcing, possibly using help from those not currently part of the inhouse staff. Outsourcing has gone through many iterations and reinventions, and some outsourcing contracts have been partially or fully reversed. Often the reason is to maintain control of critical production or competencies, and insourcing is used to reduce costs of taxes, labor and transportation.
Regional insourcing , a related term, is when a company assigns work to a subsidiary that is within the same country.
This differs from onshoring and reshoring : these may be either inside or outside the company. Regional insourcing is a process in which a company establishes satellite locations for specific entities of their business, making use of advantages one state may have over another   This concept focuses on the delegating or reassigning of procedures, functions, or jobs from production within a business in one location to another internal entity that specializes in that operation.
This allows companies to streamline production, boost competency, and increase their bottom line.
This competitive strategy applies the classical argument of Adam Smith , which posits that two nations would benefit more from one another by trading the goods that they are more proficient at manufacturing. To those who are concerned that nations may be losing a net number of jobs due to outsourcing, some  point out that insourcing also occurs. A study  in the United States, the United Kingdom, and many other industrialized countries more jobs are insourced than outsourced. The New York Times disagreed, and wrote that free trade with low-wage countries is win-lose for many employees who find their jobs offshored or with stagnating wages.
The impact of offshore outsourcing, according to two estimates published by The Economist showed unequal effect during the period studied to , ranging from , to as high as , jobs lost per year. In , a group of manufacturers started the Reshoring Initiative, focusing on bringing manufacturing jobs for American companies back to the country.
Eleven years later in , the United States recovered 10, of those offshored positions; this marked the highest net gain in 20 years. The fluctuation of prefixes and names give rise to many more "cross-breeds" of insourcing. For example, "offshore insourcing" is "when companies set up their own " captive " process centers overseas, sometimes called a Captive Service,  taking advantage of their cheaper surroundings while maintaining control of their back-office work and business processes.
A series of articles in Atlantic Magazine     highlighted a turning of the tide for parts of the USA's manufacturing industry. From the standpoint of labor, outsourcing may represent a new threat, contributing to worker insecurity, and is reflective of the general process of globalization and economic polarization. Western governments may attempt to compensate workers affected by outsourcing through various forms of legislation.
In Europe, the Acquired Rights Directive attempts to address the issue. The Directive is implemented differently in different nations. In the United States, the Trade Adjustment Assistance Act is meant to provide compensation for workers directly affected by international trade agreements. Whether or not these policies provide the security and fair compensation they promise is debatable. A main feature of outsourcing influencing policy-making is the unpredictability it generates regarding the future of any particular sector or skill-group. The uncertainty of future conditions influences governance approaches to different aspects of long-term policies.
A governance that attempts adapting to the changing environment will facilitate growth and a stable transition to new economic structures  until the economic structures become detrimental to the social, political and cultural structures. Automation increases output and allows for reduced cost per item.
High quality example sentences with “sourced out” in context from reliable sources - Ludwig is the linguistic search engine that helps you to write better in. Define outsource. outsource synonyms, outsource pronunciation, outsource translation, English dictionary definition of outsource. tr.v. out·sourced, out·sourc· ing.
When these changes are not well synronized, unemployment or underemployment is a likely result. When transportation costs remain unchanged, the negative effect may be permanent;  jobs in protected sectors may no longer exist. There was also an increase in patenting and research and development expenditures. Outsourcing results from an internationalization of labor markets as more tasks become tradable. According to leading economist Greg Mankiw, the labour market functions under the same forces as the market of goods, with the underlying implication that the greater the number of tasks available to being moved, the better for efficiency under the gains from trade.
With technological progress, more tasks can be offshored at different stages of the overall corporate process. The tradeoffs are not always balanced, and a viewer of the situation said "the total number of jobs realized in the United States from insourcing is far less than those lost through outsourcing. As Mexico competes with China over Canadian and American markets, its national Commission for Environmental Cooperation has not been active in enacting or enforcing regulations to prevent environmental damage from increasingly industrialized Export Processing Zones.
Similarly, since the signing of NAFTA, heavy industries have increasingly moved to the US which has a comparative advantage due to its abundant presence of capital and well-developed technology. A further example of environmental de-regulation with the objective of protecting trade incentives have been the numerous exemptions to carbon taxes in European countries during the s. Although outsourcing can influence environmental de-regulatory trends, the added cost of preventing pollution does not majorly determine trade flows or industrialization.
Adidas , for example, plans producing highly customized shoes with 3D printers in the U. Outsourcing has contributed to further levelling of global inequalities as it has led to general trends of industrialization in the Global South and deindustrialization in the Global North. Not all manufacturing should return to the U.
Just as the U. Localization, the process of manufacturing products for the local market, is an approach to keeping some manufacturing offshore and bringing some of it back. Besides the cost savings of manufacturing closer to the market, the lead time for adapting to changes in the market is faster. The rise in industrial efficiency which characterized development in developed countries has occurred as a result of labor-saving technological improvements. Although these improvements do not directly reduce employment levels but rather increase output per unit of work, they can indirectly diminish the amount of labor required for fixed levels of output.
It has been suggested that "workers require more education and different skills, working with software rather than drill presses"  rather than rely on limited growth labor requirements for non-tradable services. Protection of some data involved in outsourcing, such as about patients HIPAA is one of the few federal protections. The political debate centered on outsourcing's consequences for the domestic U.
Democratic U. While labor advocates claim union busting as one possible cause of outsourcing,  another claim is high corporate income tax rate in the U. Some counterclaim that the actual taxes paid by US corporations may be considerably lower than "official" rates due to the use of tax loopholes, tax havens, and "gaming the system". Sarbanes-Oxley has also been cited as a factor. In Europe, nearshore outsourcing nearsourcing relationships are between clients in larger European economies and various providers in smaller European nations.
The attraction is lower-cost skilled labor forces, and a less stringent regulatory environment, but crucially they allow for more day to day physical oversight. They also have strong cultural ties to the major economic centers in Europe. Rights acquired by employees with the former employer are to be safeguarded when they, together with the undertaking in which they are employed, are transferred to another employer, i.
In principle, employees may benefit from the protection offered by the directive. Many Western European firms have been transferring tech projects eastward. The outsourcing services market continued to flourish in Central and Eastern European during — In Poland alone, during , despite a global economic downturn, approximately 10, jobs were created in business process outsourcing BPO.
The law will apply if at least one party of suppliers, clients, labors reside in Japan, and if the labors are the integral part of the chain of command by the client company, or the supplier. Victims can lodge a criminal complaint against the CEO of the suppliers and clients. Countries that have been the focus of outsourcing include India,  and the Philippines for American and European companies, and China and Vietnam for Japanese companies.
The former refers to employees. Both refer to out-of-country but relatively nearby locations. Nearshoring is having business processes , especially information technology processes, in a nearby country, often sharing a border with the target country. Cultural alignment with the business is often more readily achieved through near-sourcing due to there being similarities between the cultures in which the business is located and in which services are sub-contracted, including for example proficiency with the language used in that culture. Constraints imposed by time zones can complicate communication; near-sourcing offers a solution.
Nearshoring is a derivative of the business term offshoring.