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

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

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

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

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.