Malaysia: Penalty for failure to furnish country-by-country report (CbCR)
The Finance Act 2016, which was gazetted on 16 January 2017, introduced penalty provision for failure to furnish country-by-country report. A new Section 112A of the Income Tax Act 1967 is introduced to address the implications on person who fails
See MoreMalaysia: Corporate tax proposals under the finance act 2016
The Finance Act 2016, which was gazetted on 16 January 2017, introduces new corporate tax proposals to the Malaysian Income Tax Act (MITA). The highlighted area of the proposals is as given below; Special classes of income are subject to withholding
See MoreIndia: Approves amendment in modified special incentive package Scheme
On 18 January 2017, the Indian Union Cabinet has given its approval for amendment in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivize investments in Electronic Sector and moving towards the goal of ‘Net Zero imports’
See MoreMalaysia: IRBM issues rules on automatic exchange of financial account information
Inland Revenue Board of Malaysia (IRBM) issued rules on automatic exchange of financial account information on 23 December 2016. The several legislations were introduced on that date including the Income Tax (Multilateral Competent Authority
See MorePakistan: Introduces an incentive scheme for industrial and trade sectors under no question on source of investment
The government has agreed on a new incentive scheme for industrial and trade sectors under which tax authorities will not question the source of investment, industry sources said on 22 January 2017. Sources in Federal Board of Revenue (FBR) also
See MoreVietnam approves protocol to a treaty between India and Vietnam
On 17 January 2017, through a press release published by the Vietnamese government, Vietnam has approved the amending protocol to a treaty between India and Vietnam. The treaty (India-Vietnam) was signed on 3 September 2016 for the avoidance of
See MoreIndia: Loss making company couldn’t be excluded from comparable list if it satisfies comparability analysis
The Ahmedabad Bench of Income-tax Appellate Tribunal in case of: Erhardt+Leimer (India) Private Limited v. ACIT (ITA Nos. 3298/Ahd/2011 & 2880/Ahd/2012) held that consistent loss-making companies cannot be rejected as comparable unless the
See MoreIndia: Foreign tax credit allowed on the basis of gross receipts
The Ahmedabad Bench of the Income-tax Tribunal (the Tribunal) in the case of Elitecore Technologies Private Limited, held that the Foreign Tax Credit (FTC) is eligible on ‘income’ and not on ‘gross receipts’. However, based on unusual facts
See MoreMalaysia: Finance Act 2017 enacted
The Finance Bill 2016 was enacted as Finance Act 2017 on 16 January 2017. The enacted Finance Act 2017 reduces the corporate tax for the year of assessment 2017 and 2018. The reduced tax rate will be between 1 and 4 percentage points for companies
See MoreDTA between Poland and Taiwan ratified
The Income Tax Agreement of 2016 between Poland and Taiwan has been ratified through Law No. 2244 by Poland on 15th December 2016 and published in the Official Journal on 29th December 2016.This treaty applies for avoiding double
See MoreJapan and Austria: Agreement in principle on tax arbitration
The Governments of Japan and Austria have agreed in principle to amend their double taxation avoidance agreement to further promote trade and investment between the two countries. The new agreement would enable arbitration under the mutual agreement
See MoreSingapore: Detailed guidance on MAP for DTAs
The Inland Revenue Authority of Singapore introduced new guidance on the mutual agreement procedure (MAP) on 12 January 2017. The guidance has provided detail procedures for the MAP. According to new guidance, the MAP will be available to those
See MoreChina declares tax exemption for oil and gas industry
On 29 December 2016, the Ministry of Finance together with the General Administration of Customs and the State Administration of Taxation published two notices concerning imports of goods and equipment. According to this notice, imports of goods and
See MoreDTA between Japan and Latvia signed
The governments of Japan and Latvia signed their first tax treaty in Tokyo on 18 January 2017. The treaty will come into force when the two countries have ratified the provisions and notified each other of the completion of procedures. According to
See MoreCzech Republic: DTA with Korea Republic authorizes
The government of the Czech Republic on 16 January 2017, authorized the negotiation of a new Income Tax Treaty with the Republic of Korea. When signed, in force and effective, the new treaty will replace the existing Income Tax Treaty (signed in
See MoreProtocol to a treaty between India and Kuwait signed
The Kuwaiti Ministry of Finance on 15 January 2017, signed a protocol with India amending the agreement between the two countries to avoid double taxation on income and to prevent tax evasion. The protocol amends the types of Kuwaiti taxes in
See MoreIran: DTA between Iran and Slovak Republic ratified
The Income Tax Treaty of 2016 between Slovak Republic and Iran has been ratified on 3rd January 2017 by the president of Iran for avoiding double
See MoreIndonesia revises TP documentation requirements
The transfer pricing (TP) documentation rules has been revised by Indonesian tax authority to match global standards and curb practices of tax avoidance. Head of the international department at the finance ministry's tax office, Mr John Hutagaol
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