Belgium – Saudi Arabia Double Tax Agreement initials
In accordance with an update from the Saudi tax authority on 29th December 2014, Saudi Arabia and Belgium has recently initialed a Double Tax Agreement (DTA) after the second round of negotiations towards a
See MoreJapan: Tax Reform Plan for 2015
The government of Japan outlined its Tax Reform Plan for 2015 on 30 December 2014. The main changes are summarized below: – The corporate income tax rate will be reduced from 34.62% (2014) to 32.11% (2015) and 31.33% (2016). – Exemption for
See MoreTaiwan: Income tax treaty with Austria enters into force
The Double Tax Agreement (DTA) between Taiwan and Austria entered into force on 20 December 2014. Most of the treaty articles are applied from 1 January 2015. The agreement was signed on 12 July 2014. Under the provisions of the treaty the
See MoreMalaysia: IRB Issues Public Ruling On Qualifying Plant And Machinery For Claiming Capital Allowances
The Inland Revenue Board of Malaysia (IRBM) released a public ruling (No.12/2014) on qualifying plant and machinery for claiming capital allowances on December 31, 2014. The objective of this Public Ruling (PR) is to explain whether an asset is a
See MoreCanada-Korea (Rep.) Free Trade Agreement enters into force
The Free Trade Agreement (FTA) between Canada and Korea (Rep.) has entered into force on 1st January 2015 and signed on 22nd September 2014. South Korea has automatically removed duties on 81.9% of tariff lines from 1st January
See MoreAzerbaijan: approves tax code amendments to introduce excise tax and to set new tax rates
The Parliament of Azerbaijan has approved amendments of tax code introducing excise tax on precious metals, and setting new tax rates for imported cars, imported yachts, and domestically produced alcohol and tobacco. As per legislation, excise on
See MoreMalaysia: IRB Issues Public Ruling On Small Asset Tax Allowance
The Inland Revenue Board of Malaysia (IRBM) has issued a new public ruling providing guidance on the 100 percent special allowance afforded to businesses for capital expenditure incurred on their purchase of small value assets. The objective of this
See MoreChina: Proposes FTA with Bangladesh
China has offered to sign an FTA with Bangladesh to boost trade between both countries and cut the trade gap. This offer was made at the bilateral talks between both countries at the Foreign Ministry. “China wants to begin negotiations on a
See MoreIndia: High Court decision that “royalty” income received under a contract prior to 1 April 1976 is exempt from tax
The High Court (HC) of Mumbai issued its decision on 8 August 2014, in the case of CIT v. Montedison S.p.A. of Italy (ITR 202 of 1993) that "royalty" income arising from contracts for supply of technical know-how prior to 1 April 1976 was exempt
See MoreIndia: Update on GST and management service fees
The Union Cabinet approved the Constitutional Amendment Bill on Goods and Services Tax (GST) on 17 December 2014 and this can be passed to parliament for consideration. The clearance of the Bill by the Cabinet was achieved by a compromise. It was
See MoreAustralia: Practice Statement PS LA 2014/2 released by the Australian Taxation Office
The Australian Taxation Office (ATO) released guidance on what the ATO expects taxpayers to prepare in order to comply with the transfer pricing laws and manage related risks on 17 December 2014. According to guidance 25% penalty applies and
See MoreIndonesia temporarily bans overseas travel by key tax debtors
The Ministry of Finance of Indonesia has banned overseas travel of key tax debtors with total debt amount of IDR3.32 trillion (USD268m) for a temporary period of six months. This step was taken to ensure effective tax administration and compliance.
See MoreChina issues Circular Caishui [2014] No. 59 to extend the current preferential corporate income tax treatment
China’s Ministry of Finance, the State Administration of Taxation, Ministry of Commerce, Ministry of Science and Technology and National Development and Reform Commission jointly issued Circular Cai Shui no 59 On 8 October 2014, has extended the
See MoreKorea signs new Double Taxation Agreement (DTA) with Brunei
The Republic of Korea signed a double taxation agreement (DTA) with Brunei on December 9, 2014. The appropriate legal ratification procedures will need to be completed before the agreement enters into
See MoreAustralia: Taxation Ruling 2014/8 introduces by the Australian Taxation Office (ATO)
Taxation Ruling 2014/8 gives outlines on what needs to be included in the documentation if the taxpayer is to meet the standard of a "reasonably arguable position" and avoid penalties, and sets out five key questions for preparation of
See MoreKorea: Unilateral APA program introduced
A simplified APA (Advance Pricing Agreement) program is to be introduced from 2015 for the conclusion of unilateral APAs by manufacturers, wholesalers, retailers or service providers with revenue under KRW 50 billion. Applicants will be able to
See MoreTIEA between Indonesia and Bermuda ratified by Indonesia
Indonesia has ratified its Tax Information Exchange Agreements (TIEA) with Bermuda and it was published in the official gazette on September 12,
See MoreJapan: Consumption Tax on nonresident providers of electronic services from 1 October 2015
Japan is moving forward with proposals to subject sales by non-resident providers of electronic services to consumers to the 8% Consumption Tax from 1 October 2015. The change comes as a result of pressure by local providers who are penalized by
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