India: introducing VAT compliance with more fines
India will introduce a new range of fines to help improve the weak compliance record of many firms, following a recent increase in the number of Indian VAT audits. From 12 September 2013, India announcing an increased fine regime, including: Late
See MoreIndia: CBDT issues rules for application of GAAR
The government of India has allotted a General Anti Avoidance Rule (GAAR) in order to combat tax avoidance. The GAAR which was originally introduced in the 2012/13 budget will be effective from 1 April 2016. The Rules are applicable for tax years
See MoreJapan: Convention and protocol on Mutual Administrative Assistance in Tax Matters enters into force
The multilateral Convention on Mutual Administrative Assistance in Tax Matters, as amended by the 2010 protocol on 1st October 2013 which entered into force in respect of Japan. The Convention and the amending protocol generally apply from 1
See MoreChina: Tax breaks for solar manufacturers
Recently the Finance Ministry of China has announced that it intends to offer tax breaks to solar manufacturers since the industry is struggling to recover from both oversupply and diminished export demand. A short statement was posted on-line on
See MoreChina: Scope for 50% tax deduction on R&D expenses
The Ministry of Finance of China on 30 September 2013, released a circular which expands the criteria for enterprises to be eligible to claim the extra 50 percent tax deduction on expenses incurred from research and development. The super tax
See MoreChina: Clarifies VAT exempt services rules
Following the launch of the Chinese VAT pilot in 2012, the Chinese tax authorities released detailed guidance on September 2013 on the rules around the exemptions for VAT on export services. The services covered by the exemptions include transport
See MoreCanada-Malaysia Tax Treaty Signed
Canada and Malaysia has signed a declaration of intent on October 7, 2013 to conclude a new tax agreement that will deduct tax obstacles and inspire to increase trade and investment. The new agreement will include provisions consistent with the
See MoreAustralia: Under carbon tax emissions would Rise
The Ministry of Environment of Australia has said that the Australia’s projected emissions for the period from 2010 to 2020 would go up from 560m to 637m tones under the carbon tax. The Minister’s argument is that the carbon tax would damage
See MoreAustralia: Start date to offshore banking unit reforms delayed
The Government of Australia has delayed the start date (1 October) for the reforms to the offshore banking unit (OBU) regime. In the 2013 budget, the Australian government reported the proposition to change some OBU provisions to address existing
See MoreUkraine: Cabinet Authorizes Signing of Double Tax Agreement with Sri Lanka
Ukraine’s Cabinet of Ministers approved on 18 September 2013 the signing of a draft agreement for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital with Sri Lanka. They have authorized
See MoreDTA between New Zealand and Japan Boosts Trade
The New Zealand Revenue Minister has exchanged diplomatic notes for tax treaty with Japan for reduces taxobstruction to the cross-border trade and investment. This reconsidered agreement will help the tax authorities recognize and prevent tax
See MoreIsrael-Online Advance Tax Ruling Requests
The Tax Authority of Israel has recently announced that it has adopted a trick to improve services and reduce bureaucracy for tax advisers by launching a new service which will allow accountants, lawyers and tax practitioners to apply online for
See MoreChina: New rules on entry, exit of foreign individuals
In China, with respect to the administration of the entry and exit of foreign individuals new rules and processes are to be applied. The new ordinance (“Ordinance on the Administration of Entry and Exit of Foreign Individuals in China.”) is
See MoreChina: Resident certificate procedure for tax arrangement with Hong Kong
There was an announcement by the State Administration of Taxation (SAT) of China. And it was announced that the tax authority of Mainland China can determine tax resident status of a business or entities operating in Hong Kong. In certain
See MoreChina: Exemptions from VAT for exported services
Recently China’s State Administration of Taxation issued guidance on the rules for value added tax (VAT) exemptions for exported services. The guidance provided by Announcement 52 of 13 September 2013, implements the VAT exemptions for exported
See MoreAustralia: Profit shifting through the artificial loading of debt
Two key issues have emerged for taxpayers, with the arrival of an Australian Treasury Paper, addressing profit shifting through the artificial loading of debt in Australia. Effective from 1 July 2014, the safe harbour for debt has been diminished
See MoreThailand Scraps Luxury-Goods Tax
The government of Thailand had announced to eliminate import duties on luxury watches, clothes and cosmetics. Accordingly by the end of the year the duty on some luxury goods will be cut from 30% to
See MoreThailand raised alcohol excise taxes
In Thailand the excise taxes on liquor, beer and wine will increase by 7 -15% effective on 4 September 2013. The price will be higher particularly for
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