South Korea reported the highest daily number of new coronavirus cases in 49 days on Wednesday, as one of the country’s largest e-commerce companies battled an outbreak linked to a now-shuttered logistics centre.
The Korea Centres for Disease Control and Prevention (KCDC) reported 40 new cases as of midnight on Tuesday, bringing the country’s tally to 11,265. A day earlier the country recorded 19 new cases.
So far, at least 36 cases have been linked to an outbreak at the logistics centre operated by SoftBank-backed e-commerce firm Coupang Corp in Bucheon, west of Seoul, the KCDC said. It was not immediately clear how many of the cases were reported in the last 24 hours.
About 3,600 people at the centre are being tested. The company said it closed the centre on Monday and began the strongest disinfection measures recommended by authorities.
Coupang benefited from the contactless shopping trend driven by Covid-19 in South Korea, with orders surging for groceries and other products. The logistics centre opened in early March and is in charge of deliveries to western Seoul, a spokeswoman said.
The first case related to the centre was diagnosed on Saturday, and is suspected to be connected with a Seoul nightclub outbreak earlier this month.
Health officials warned that cases linked to the centre could rise.
“We are very nervous about community infections and we are keeping a close eye on the situation,” vice health minister Kim Kang-lip said at a briefing.
Kim said authorities suspect the logistics centre did not comply with “basic” quarantine principles, adding that an investigation is under way.
A spokeswoman for Coupang however said the centre went through daily disinfection and all employees wore masks and gloves and had temperatures checked.
Despite the spike in new cases, more than 2 million children returned to class on Wednesday, the latest in a phased opening of schools.
“What we are worried about now is that when kids go to school, they’re naturally physically close to their friends and they have to eat together so they may be infected with coronavirus,” said Chan Woong-jeon, the father of a Grade 2 pupil who returned to Seryun Elementary School in Seoul on Wednesday.
Tips for SMEs to cope
- Adapt your business model. Make changes that are future-proof to the new normal
- Make sure you have an online presence
- Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
- Open communication with customers to see how they are coping and be flexible about extending terms, etc
Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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