Australia: New rate for franking credits
The company tax rate for small business has been reduced to 27.5% for 2016-17 and the maximum franking credit of small business has decreased to 27.5% (previously 30%). This reduced rate applies to companies with an aggregated turnover of less than
See MoreHong Kong: New tax rules for aircraft leasing
The Government introduced in March this year tax concessions for the aircraft leasing industry to foster the proposed development of Hong Kong as an aircraft leasing centre. On March 10 2017, the Hong Kong government gazetted the Inland Revenue
See MoreMalaysia: IRBM proposes to impose 100% penalty for undeclared income and incorrect information
The Malaysian Inland Revenue Board (MIRB) published a media statement on 16 May 2017 regarding clarification of imposing 100% penalty for failure to declare income and correct information which will be implemented with effect from 1 January
See MoreIndia: Cabinet approves signing of MLI to implement tax treaty related BEPS measures
The Union cabinet on 17 May 2017, approved the signing by India of the Multilateral Instrument (MLI) to implement into bilateral tax treaties the tax treaty-related measures arising from the OECD / G20 BEPS Project to tackle base erosion and profit
See MoreIndia: Latest update on country-by-country reporting
India has recently included a country-by-country (CbC) reporting requirement in section 286 of the Indian Income-tax Act, 1961, with effect from the financial year 2016-2017. The first round of CbC reports, if applicable, must be submitted to the
See MoreAustralia: GST registration system for non-resident businesses
Non-resident businesses supplying services and digital products to Australian consumers and who meet the turnover threshold of A$75,000 will need to register for Australian GST by 1 July 2017. There are two ways non-resident businesses can register
See MoreSingapore: Cost-plus mark-up method for routine service provider companies
The Inland Revenue of Singapore has recently clarified its practice that allows service providers companies which provide "routine support services" to adopt the cost-plus mark-up method. The routine support services are such that service companies
See MoreUzbekistan signs Decree PP-2971 to ratify amending DTA protocol with Kazakhstan
The President of Uzbekistan, Mr. Shavkat Mirziyoyev signed a Decree PP-2971 on 18th of May 2017 for ratifying the amending protocol of Double Taxation Agreement (DTA) with
See MoreAustralia: Practical Compliance Guideline – cross-border related party financing arrangements and related transactions
On 16 May 2017, the Australian Tax Office (ATO) released a draft Practical Compliance Guideline that sets out the compliance approach for cross-border related party financing arrangements as defined in section 995-1 of the Income Tax Assessment
See MoreKorea: Country-by-Country reporting requirements and transfer pricing rules updated
The Tax Authority of Korea introduced new forms for country-by-country (CbC) reporting and for the advance notification for recognizing the company of a multinational group as the “reporting entity.” A Master file as well as a Local file will
See MoreSingapore: IRAS launches public consultation on draft GST guide on customer accounting for prescribed goods
The Inland Revenue Authority of Singapore (IRAS) is engaging in a public consultation on the draft Goods and Services Tax (GST) Guide on Customer Accounting for Prescribed Goods. According to the existing GST rules, a GST-registered supplier will
See MoreIndia: Section 14A is subject to dividend income tax regardless of dividend distribution tax (DDT) Payment
Section 14A of the Income Tax Act, 1961 (Act) provides for disallowance of expenditure incurred in relation to income which is not included in the total income of the assessee. The Supreme Court of India in the case of Godrej & Boyce
See MoreNegotiations for DTA between Japan and Iceland
The Government of Japan and the Government of the Republic of Iceland will initiate negotiations for a tax convention between the two countries. The first round of negotiations will take place on May 17 in Tokyo. Further details of this treaty will
See MoreJapan and Estonia have agreed on a DTA
On May 15, 2017, the Japanese Ministry of Finance announced that the Government of Japan and the Government of the Republic of Estonia have agreed in principle on the tax convention between Japan and the Republic of Estonia. This new agreement will
See MoreJapan and Denmark have agreed on a new DTA
On May 15, 2017, the Japanese Ministry of Finance announced that the two countries (Japan and Denmark) have agreed in principle on the new Convention replacing the convention between Japan and the Kingdom of Denmark for the avoidance of double
See MorePakistan: Companies Act 2017 passed by Senate
On 15 May 2017, the Senate approved the draft Companies Bill, 2017, replacing the Companies Ordinance 1984. The Bill aims to facilitate procedures for the country’s business sector and discourage fraud, money laundering and terror
See MoreAustralia: Draft Taxation Ruling TR 2017/D2 – Central Management and Control test of residency
The Australian Tax Office has now released a new draft ruling TR 2017/D2 and has withdrawn its preceding ruling TR 2004/15 on the tax residence of foreign incorporated companies. Following the decision in Bywater Investments Limited &
See MoreAustralia: Implementation of the OECD hybrid mismatch rules
The Government of Australia has committed to the implementation of Action Item 2 of the G20/OECD BEPS Action Plan, which recommends neutralizing the effects of hybrid mismatch arrangements that occur due to the different treatment of an entity or
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