Asia-Pacific
Asia-Pacific
Asia-Pacific
Israel signs Multilateral Convention on Mutual Administrative Assistance in Tax Matters
Israel became the 91st signatory of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters on November 24, the OECD . . .
Asia-Pacific
Thailand offers tax incentives to attract international business headquarters – KPMG
The Thai Board of Investment has upgraded its program of tax concessions to encourage businesses to establish their headquarters in Thailand, writes KPMG in a September 9 tax alert. See: KPMG
Asia-Pacific
Draft amendments to Korean transfer pricing documentation rules exclude CbC reporting – KPMG
Draft South Korean legislation would require taxpayers to submit a master file and a local file consistent with OECD rules, but not a country-by-country report, notes KPMG in an August 20 report. See: KPMG
Asia-Pacific
Notes on tax information exchange between Japan and Hong Kong enter into force
Notes exchanged between Japan and Hong Kong confirming the understanding that information concerning additional . . .
Americas
US and Vietnam sign tax treaty
The US and Vietnam signed a tax treaty on July 7, the US government has . . .
Asia-Pacific
Indonesia to cut tax rates to compete with Singapore
Indonesia intends to gradually lower its corporate tax rate from 25 percent to 17.8 or 17.5 percent to compete with Singapore, reports Bloomberg Business in a May 10 article, quoting Luhut Panjaitan, the president’s chief of staff. See, Indonesia to Cut Taxes to Near Singapore Level in Profits Battle – Bloomberg Business.
Americas
Singapore and Uruguay sign tax treaty
Singapore and Uruguay signed a tax treaty on January 15, Singapore’s Inland Revenue Authority has announced. The agreement clarifies . . .
Asia-Pacific
Indonesia considering suspension of tax treaties
Indonesia is conducting a review of all tax treaties with other nations to determine if they promote tax avoidance and is considering temporarily suspending them, Finance Minister Bambang Brodjonegoro told reporters November 21, according to mulitple reports by the Indonesian press. See, Katadata (in Indonesian), Merdeka (in Indonesian).
Asia-Pacific
Hong Kong signs its first bilateral APA
Hong Kong has entered into its first bilateral advance pricing agreement (APA), concluding an agreement with The Netherlands in June, writes EY. Hong Kong’s APA program became operational in March 2012. For more details, see EY (PDF 111 KB)
Asia-Pacific
Australia seeks stakeholder input on common reporting standard for automatic exchange of tax information
The Australian Treasury, on June 19, released a discussion draft on a common reporting standard for the automatic . . .
Asia-Pacific
Russian government approves tax treaty with Hong Kong
The Russian government has approved a draft tax treaty with Hong Kong, Russian news . . .
Africa
UK announces plans to begin tax treaty negotiations with several nations
In a paper released November 13, the UK’s HMRC has announced that it will begin tax treaty negotiations with Nepal, Romania, Trinidad, Tobago . . .
Asia-Pacific
About 80 multinationals likely affected by Australian antiavoidance law
The Australian Taxation Office (ATO) intends to enter into discussions with about 80 multinational enterprises expected to be affected by an antiavoidance law introduced into Parliament . . .
Asia-Pacific
China proposes sweeping changes to transfer pricing and antiavoidance rules – KPMG
A discussion draft released by China’s State Administration of Taxation on September 17 “is a highly significant document, clarifying the Chinese approach to TP investigations and analysis, introducing new TP methodologies, and significantly expanding TP documentation requirements,” writes KPMG. The new guidance also amends special and general antiavoidance rules. See: KPMG. More: Deloitte, DLA Piper, EY.
Asia-Pacific
Japan releases English-language forms and instructions for consumption tax on cross-border supply of digital services
Japan’s National Tax Agency has released English-language information, forms, and instructions to be used by foreign businesses subject to a new law that imposes consumption tax on the overseas supply of digital . . .
Americas
US signs Model 1 FATCA IGA with South Korea
The US Treasury Department has updated its FATCA website, reporting that South Korea has signed a Model 1 intergovernmental agreement (IGA) with the US as of June 10. The text of the agreement is available. See, FATCA IGA – South Korea.
Asia-Pacific
Switzerland and Oman sign new tax treaty
Switzerland and Oman on May 22 signed a double taxation agreement, Switzerland’s Federal Department of Finance has announced. The agreement sets the tax rate on dividends in the source country at 5 percent . . .
Asia-Pacific
Australia to adopt country-by-country reporting, releases drafts on MNE antiavoidance and GST for cross-border digital supplies
Australia will introduce transfer pricing documentation requirements for multinationals, including country-by-country reporting, consistent with guidance developed under the OECD/G20 base erosion and profit shifting (BEPS) plan, the government announced in 2015 budget papers released May 12. The government also released exposure drafts of legislation for a new targeted antiavoidance rule that is aimed at . . .
Asia-Pacific
China/Hong Kong protocol clarifies tax treatment of investment funds
China and Hong Kong tax officials on April 1 signed the fourth protocol to their tax arrangement, clarifying the conditions under which an investment fund would be qualified for Hong Kong resident status, Hong Kong’s Inland Revenue Department. . .
Asia-Pacific
Australian Tax Office says company may deduct interest on debt owed nonresident entity despite interposed entities
The Australian Taxation Office on March 19 ruled that a nonresident entity that invests indirectly in an Australian resident company through one or more interposed entities where the final leg in the chain is a debt interest . . .
Asia-Pacific
Japan’s ruling parties agree to tax reform
Japan’s ruling coalition on December 30 agreed to policies for a 2015 tax reform bill, which include a reduction in the corporate tax rate to 23.9% percent beginning April 1, restrictions on net operating losses, modifications to research and development tax credits, and limitations on the 95 percent participation exemption, writes EY in a January 7 report. For discussion, see EY.
Asia-Pacific
South Korean tax reform addresses excessive company cash reserves, financial derivatives, thin cap rules
South Korea’s parliament has passed a tax reform package which includes a new 10 percent tax on the excess cash reserves of large corporations, a new tax on capital gains from derivatives transactions, more stringent thin cap rules, and reporting requirements for cross-border related party . . .
Asia-Pacific
Indian court rules in favor of Shell in transfer pricing share undervaluation case
The Bombay High Court ruled in favor of an Indian subsidiary of Royal Dutch Shell in a November 18 tax case, striking another blow to the Indian tax department’s theory that the transfer or issuance of undervalued shares by an Indian company to an overseas related party should trigger a transfer pricing assessment . . .
UPDATE (11/27/2014): The Bombay High Court’s decision in Shell is now available: see, Shell India Markets Pvt. Ltd. vs. Union of India and ors
Asia-Pacific
Singapore MOF responds to consultation on income tax amendments
Singapore’s Ministry of Finance (MOF) on Sept. 24 released its response to pubic consultations on the draft Income Tax (Amendment) Bill 2014. The MOF said it would adopt 32 stakeholder suggestions, including widening the scope of the draft law’s antiavoidance provisions applicable to FATCA reporting obligations and changing aspects of the productivity and innovation credit scheme. See, release, annex.
Africa
Singapore and Rwanda sign tax treaty, text available
Singapore and Rwanda, on August 26, signed an agreement for the avoidance of double taxation. The agreement provides for a withholding tax rate of 7.5 percent on dividends and 10 percent on interest (zero in the case of a governmental institution), royalties, and professional fees. It also provides for the exchange of information for tax purposes. The agreement will enter into force after its ratification by both countries. Release, Singapore-Rwanda treaty
Asia-Pacific
India negotiating bilateral APAs with many nations
India is negotiating about 50 bilateral advance pricing agreements (APAs) with other . . .
Asia-Pacific
Asia-Pacific
Hong Kong bill lowers captive insurers’ tax
Hong Kong’s Legislative Council on March 19 passed Inland Revenue (Amendment) (No. 3) Bill 2013 to provide a tax concession for captive insurers to enjoy a 50 per cent reduction in the profits tax on their insurance business of offshore risks.
Asia-Pacific
Americas
US Senate Foreign Relations Committee approves eight long-pending tax treaties, Rand Paul not present for the vote
In a surprising development, the US Senate Committee on Foreign Relations on November 10 approved without amendment proposed income tax treaties with Chile, Hungary, and Poland; proposed tax protocols with Japan, Luxembourg, Spain, and Switzerland; and a proposed protocol amending the multilateral mutual administrative assistance treaty. . .
Asia-Pacific
Hong Kong to change legislative proposal on automatic exchange of tax information
The Hong Kong government on October 12 announced that, in response to its public consultation, it will make changes to a legislative proposal to implement the new international standard on automatic exchange of . . .
Europe
Guernsey and Korea sign TIEA
The government of Guernsey has announced that it signed a tax information . . .
Asia-Pacific
Asia-Pacific
Foreign funds challenge Indian MAT in court
Five foreign funds located in the US and UK have filed a writ peition in Bombay High Court challenging India’s demand for minimum alternative tax (MAT) on profits earned before April 1 from . . .
Asia-Pacific
India to apply principles of Vodafone transfer pricing ruling to all cases
The Indian government on January 29 explicitly instructed tax officials to apply the rational behind the Bombay High Court’s decision in Vodafone to all cases. Tax officials must follow the principle “that the premium on share issue was on account of a capital account . . .
Asia-Pacific
Singapore releases updated transfer pricing guidance
The Inland Revenue Authority of Singapore (IRAS) on January 6 released updated transfer pricing guidance in an e-Tax Guide, consolidating four previous e-Tax Guides into the document. The 102 page document discusses the application . . .
Asia-Pacific
China scrutinizing related-party royalties and service fees
China’s State Administration of Taxation has instructed tax bureaus across China to survey companies regarding service fees and royalties paid to related parties between 2004 and 2013, to report back to the SAT on their findings, and to initiate audits of companies that have made suspicious payments, KPMG writes in an August tax alert. For details, see, KPMG. See also, EY.
Asia-Pacific
Australia consults on draft rules allowing reduced withholding tax for foreign pension funds
Australia, on July 11, announced a consultation on proposed legislation designed to ensure that foreign pension funds
. . .
