Asia-Pacific
Asia-Pacific
Americas
India releases guide for financial institutions on FATCA and CRS
India’s income tax department has released a detailed guide for financial institutions to assist with the implementation of FATCA and the common reporting standard for the automatic exchange of information. The 30-page guide, issued August 31, covers the types of institutions that must report, the types . . .
Asia-Pacific
OECD tax official asks Australian legislators to hold off on unilateral tax measures
The OECD’s Pascal Saint-Amans sought to allay Australian lawmakers’ fears that the OECD will fail in its mission to curb tax avoidance through its base erosion and profit (BEPS) plan during an Australian senate hearing, as the senators weighed whether they should support immediate unilateral tax measures to protect . . .
Asia-Pacific
Delhi High Court rejects tax department’s approach to marketing intangibles
Delhi High Court in a March 16 decision said it disagreed with the Indian tax department’s method of analyzing the transfer pricing aspects of payments made by Indian subsidiaries for advertisement, marketing, and sale promotion (AMP). The Court also concluded. . .
Asia-Pacific
China’s SAT issues guidance on application of GAAR to indirect transfers of assets
The Chinese government has released guidance on the application of its general antiabuse rule (GAAR) to indirect transfers of Chinese assets, the State Administration of Taxation (SAT) announced February 6. The guidance seeks to . . .
Americas
India/US transfer pricing deal anticipated
The India expects to sign an agreement with the US on Sunday that sets out a framework to resolve mutual agreement procedure disputes concerning the appropriate markup to apply to related-party transactions, and hopes to sign similar agreements with the UK, France, and other European nations, writes Jayshree P. Upadhyay of Business Standard in a January 24 article, quoting an unnamed tax official. See, Business Standard.
Asia-Pacific
UAE and Luxembourg sign protocol to amend tax treaty
UAE and Luxembourg on October 26 signed a protocol to amend the countries’ 2005 agreement on the avoidance of double taxation and prevention of fiscal evasion on income and capital. Release.
Asia-Pacific
Hong Kong signs TIEAs with Denmark, the Faroes, Greenland, Iceland, Norway, and Sweden
Hong Kong signed tax information exchange agreements with six jurisdictions on August 22: Denmark, the Faroe Islands, Greenland, Iceland, Norway, and Sweden, according to . . .
Africa
Singapore and Seychelles sign double tax agreement, full text available
Government representatives of Singapore and Seychelles, on July 9, signed an Agreement for the Avoidance of Double Taxation in New York. Under the agreement, the withholding tax on dividends is reduced to 12 percent and the withholding tax on royalties is reduced to eight percent. The agreement also provides for the exchange of tax information. Agreement, Press release.
Americas
Japan and British Virgin Islands sign tax information exchange agreement; English text available
Japan and the British Virgin Islands, on June 18, signed an agreement to exchange tax information. Press Release, Agreement in English (35KB)
Asia-Pacific
Singapore and Russia revise tax agreement, text available
Singapore and Russia have signed a protocol amending to their tax treaty . . .
Asia-Pacific
Hong Kong ratcheting up TP scrutiny of service fee payments to related companies – KPMG
“The Hong Kong Inland Revenue Department (IRD) has investigated service fee payments by taxpayers to their overseas head office or affiliated companies before. The difference now is the IRD expects explicit transfer pricing (TP) support,” writes KPMG in a July 31 tax alert. See: KPMG
Americas
EU tax haven blacklist disputed by OECD and listed countries
OECD tax officials have expressed dissatisfaction with a blacklist of 30 tax havens prepared by the European Commission, as have several countries on the list . . .
Asia-Pacific
Revised Singapore-Thailand tax treaty lowers withholding tax rates
ngapore and Thailand signed a new tax treaty June 11, agreeing to lower the withholding tax rates . . .
Asia-Pacific
Malaysia offers tax incentives to MNEs
Malaysia’s Ministry of International Trade and Industry on April 6 issued guidelines for setting up a Malaysian Principal Hub, which offers tax incentives such as low tax rates and customs-free imports to MNEs that create high paying jobs and meet other criteria, writes PwC in an April 6 alert. See, PwC.
Asia-Pacific
Protocol enhancing Hong Kong/Vietnam information exchange enters in force
The second protocol to the agreement between Hong Kong and Vietnam for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has entered into force, Hong Kong’s Inland Revue Department (IRD) announced February 23. The protocol came into . . .
Asia-Pacific
China SAT outlines tax guidance for nonresident transportation businesses
China’s General Office of the State Administration of Taxation (SAT) highlighted recently issued tax guidance, “Interim Measures for the Tax Management of Non-resident Enterprises Engaged in International Transportation Business,” in a Sept 15 English-language news release. . .
Asia-Pacific
Delhi High Court clarifies Indian law on indirect transfers of assets
The Delhi High Court, in DIT v. Copal Research Mauritius Limited, et al., has concluded that gain arising from a sale between nonresidents of shares in an overseas company is not taxable in India unless the company derives at least 50 percent of its value from assets situated in India. Absent meeting . . .
Asia-Pacific
Singapore-Liechtenstein tax treaty enters into force, text available
An agreement for the avoidance of double taxation between Singapore and Liechtenstein, signed June 27, entered into force on July 25. The treaty provides for exchange of tax information on request, and lowers withholding taxes on dividends to zero, on interest to 12 percent, and on royalties to eight percent. Treaty
Asia-Pacific
Jaitley takes over as India’s Finance Minister; new Laws Minister says retrospective tax laws should be avoided
Corporate lawyer, Shri Arun Jaitley, took over as India’s new Finance Minister on on May 27, stating that his priorities are to “tackle inflation, boost economic growth, and follow the path of fiscal consolidation.” India’s new Minister of laws, telecom, and IT, Ravi Shankar Prasad, also . . .
Asia-Pacific
Microsoft hit with another Indian transfer pricing notice – Financial Express
Microsoft and the Indian tax authority are again fighting over transfer pricing profit margins, with Microsoft claiming that its Indian unit earned 16.4% profit in FY10, and the government claiming that a 61.5% profit is appropriate, according to report by Santosh Tiwari of The Financial Express.
Asia-Pacific
India presents 2014-15 Interim Budget
India’s Finance Minister presented the Interim Budget for 2014-15 to Parliament on February 17. For analysis, see EY
Asia-Pacific
China announces signing of tax arrangement with Taiwan
China’s State Administration of Taxation on November 3 announced the August 25 signing of a tax arrangement between China and Taiwan . . .
Asia-Pacific
India notifies rules for FATCA and common reporting standard
The Indian Government on August 7 notified rules enabling information reporting under FATCA and the common reporting . . .
Asia-Pacific
Australian government introduces legislation exempting foreign funds from tax on Australian source gains
The Australian government on May 27 introduced into Parliament legislation enhancing the Australian Investment Manager Regime, providing some widely-held foreign funds and funds that use an Australian fund manager with a exemption from tax on Australian source income and gain, writes Deloitte in a May 28 tax alert. See, Deloitte.
Asia-Pacific
Australian tax office lists international business events and risks that receive extra scrutiny
The Australian Tax Office’s (ATO) tax compliance efforts targeting international business and public groups focuses on specific tax risks, such as losses and profit shifting, and on specific events in the business life cycle, such as private equity investments and mergers and acquisitions, the agency said in a March 2. . .
Asia-Pacific
Asia-Pacific
Japan and Hong Kong exchange notes on information exchange
Japan and Hong Kong on December 10 exchanged notes confirming the understanding that information concerning additional taxes will be exchanged, Japan’s Ministry of Finance has announced. The additional taxes are the Japanese inheritance tax, gift tax, consumption tax; and any similar taxes later imposed. See, Japan Ministry of Finance release.
Asia-Pacific
India CBDT relaxes rules for new software businesses set up in special economic zone
India’s Central Board of Direct Taxes on October 8 announced in Circular 14/2014 that a new software or IT service unit established by a taxpayer in the special economic zone will qualify for the section 10A/10AA profit-linked deduction as long no more than 50 percent the new unit’s manpower was transferred from the taxpayer’s existing business. The previous threshold was 20 percent. See, India Income Tax Department.
Asia-Pacific
Global internet companies to pay income tax and VAT in Israel
Israel’s tax authority will soon publish a circular clarifying that internet companies must pay VAT and income tax in Israel, according to a June 15 report by the Matzav Network, reporting on comments made by Tax Authority director, Moshe Asher. See, Matzav Network.
Asia-Pacific
Australia’s multinational corporation tax avoidance bill receives royal assent
Australia’s Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015 received Royal Assent on December 11, giving effect to measures announced . . .
Asia-Pacific
Australia releases results of consultation on public reporting of large company tax information
The Australian Taxation Office (ATO) on September 8 published the results of a consultation on rules implementing a new law that requires the ATO to publicly disclose tax information of companies that have income of $100 million or more and . . .
Asia-Pacific
Australia preparing to introduce BEPS anti-hybrid law
The Australian government, on July 14, published the terms of reference for a Board of Taxation consultation on implementing anti-hybrid rules developed. . .
Asia-Pacific
India releases rules allowing for rollback of APAs
India’s Finance Ministry has released long-awaited regulations permitting rollback of an advance pricing agreement’s (APA) method of determining arm’s length prices to earlier tax years, though quick action is required to take advantage of the rules for existing applications and agreements. The provisions. . .
Asia-Pacific
Indian tax officials support proposals to address tax dispute backlog
Indian tax officials support several recommendations designed to reduce the large number of tax disputes in the Indian court system proposed by the Tax Administration and Reform Commission (TARC), according to a TARC report released February 20. The report, entitled “Recommendations, Feedback & Way Forward,” accompanies the release of the TARC’s fourth and final report, putting into one document hundreds of recommendations made in . . .
Asia-Pacific
India to create new dispute resolution panels for transfer pricing
India is working on establishing new dedicated transfer pricing dispute resolution panels which, unlike other tax units, will not need to meet revenue targets, a tax official said December 17, according to a report by the Economic Times. For more, see Economic Times.
Asia-Pacific
Japan and Qatar to begin tax treaty negotiations
Japan’s Ministry of Finance announced on December 5 that it will begin negotiations with Qatar for a tax agreement between the counties. The first round of negotiations will begin December 8, in Tokyo. Release.
Asia-Pacific
Bombay High Court publishes decision in Shell India share undervaluation case
The Bombay High Court has released its decision in Shell India Markets Pvt. Ltd. vs. Union of India on its website. In the November 18 tax case, the court ruled in favor of an Indian subsidiary of Royal Dutch Shell . . .
Asia-Pacific
Philippines Joining OECD Committee on Fiscal Affairs to work on BEPS
The Philippines will join the OECD Committee on Fiscal Affairs to work on a global response to base erosion and profit shifting (BEPS) beginning January 2015, the Philippines Department of Finance announced November 14. The Philippines will use its position to present developing country perspectives and shape strategies, tools, and other outputs to curb BEPS. See, Philippines release.
