Page 38 - SG_English HandBook

Rules of Conduct

4.7 Disciplinary Actions
• When Independent Distributors violate this Business Handbook, the Company’s business strategy, any contracts with the
Company, the Company’s business policy, the Company’s announcements, publicity or communication, Multi-level Marketing
and Pyramid Selling (Prohibition) Act (Cap.190), Multi-level Marketing and Pyramid Selling (Excluded Schemes and
Arrangements) Order, Consumer Protection (Fair Trading) Act (Cap. 52A), Consumer Protection (Fair Trading) (Cancellation of
Contracts) Regulations 2009 or other relevant laws and regulations, depending on the severity of the violation in the individual
case, the Company may take one or more of the following actions against the violating Independent Distributors:
1. Terminate the distributorship of the Independent Distributors;
2. The Independent Distributors are not allowed to join the Company perpetually;
3. Partial or full suspension of rights of the Independent Distributors;
4. Suspension of distribution, forfeiture, recovery of commissions and other benefits;
5. Cancel the pin title;
6. Other sanctions deemed appropriate by the Company.
• Even if there contain other rules for sanctions in this Business Handbook, the Company must still make appropriate sanctions
in accordance with this section.
4.8 Tax Regulations

4.8.1 Tax Return Filing
• According to the provisions of the Income Tax Act (Cap 134), before statutory tax declaration, the Independent Distributors must
declare and pay their individual consolidated income tax (individual Independent Distributors) or business entity income tax
(business entity Independent Distributors) on the commissions earned and benefit in kind in the previous year.
• When commissions are generated for foreigners residing locally in various countries, taxes must be withheld in accordance with
the applicable laws.
• According to Section 65B (3) of the Income Tax Act (Cap 134), Company is required to electronically submit the information on
the commission earned including but not limited to commission, incentivized programs, gifts, product vouchers and other
similar rewards received by the Independent Distributor to the Inland Revenue Authority of Singapore (IRAS).

4.8.2 Tax Submission for Independent Distributors Conducting Business through a Business Entity
• Where Independent Distributors operate their business through a business entity, invoices must be issued and pay the business
entity’s income tax in accordance with the law.
• The business entity is encouraged to seek professional advice and assistance for information regarding its personal tax
obligations. The Company shall not in any event be responsible for any of the business entity’s tax obligations.

4.9 Right to Amend
• In response to changes in market structure, laws and regulations, or other needs, the Company may amend this Business
Handbook, any documents provided by the Company to the Independent Distributors, the Company’s policies and systems, and
related procedures. Except for text additions and deletions without changing the original meaning or where the changes are
made only to the sequence of the clauses, the revisions may be notified to the Independent Distributors by the Company via
words, writing, telephone calls, text messages, emails, faxes, e-newsletter, announcements on the Company’s official website or
any other means that are sufficient to make the same known to the Independent Distributors. Independent Distributors agree
to and comply with the foregoing amendment by signing the Independent Distributorship Agreement.
• For all litigation procedures arising from this contract, the Supreme Court and/or State Court shall be the court of first instance,
but parties shall first attempt to amicably resolve all disputes by way of mediation.
• This Business Handbook is available in both Chinese and English. If there are any differences between the Chinese and English
versions, the English version will prevail.
• The Company reserves the right to amend the contents stipulated in this Business Handbook.

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