China: Financial policies for Shanghai pilot free trade zone
The People’s Bank of China on 2 December issued opinions regarding financial support for the development of China (Shanghai) pilot free trade zone. The guidance has five areas of focus: Expansion of cross-border use of RMB; Acceleration of
See MoreNew Zealand’s tax developments in 2013
Tax and policy developments in New Zealand for the year of 2013 were: Distributed the OECD tax “action plan” in response to concerns around profit shifting by multinationals, launch of the legislation containing changes to the tax treatment of
See MoreGST in Malaysia supported by the IMF
It was reported on 19 December 2013 that the International Monetary Fund’s (IMF) Mission Chief for Malaysia said at the conclusion of discussions for the 2013 Article IV Consultation that he welcomes the country’s decision to introduce a Goods
See MoreHong Kong: Ensure Support for SMEs
In response to a question in the Legislative Council, Hong Kong’s Secretary for Commerce and Economic Development confirmed that the Government will arrange continued support for small and medium-sized enterprises (SMEs). The numbers of SMEs and
See MoreSwitzerland: Proposals on Multiple Tax Agreements has been Adopted
A number of double tax treaties proposal on tax information exchange has been adopted by the Swiss Federal Council. The Double tax agreements are with Australia, Hungary, and China, currently valid agreements, and containing administrative
See MoreProtocol to treaty between Belgium and Japan
For the entry into force of the Protocol amending the Double Taxation Agreement (DTA) between Japan and Belgium, mutual notification procedures were completed on 27 November 2013. The Protocol will enter into force on December 27, and in the case
See MoreNew Zealand: Legislation Brings Clarity to Tax Rules
The Government of New Zealand has been published an omnibus tax bill intended to bring significant clarity to the tax rules and make them easier for taxpayers to understand. The changes will restrict how much debt foreign investors are able to place
See MoreRatification of New Zealand-Canada Multilateral Tax Convention
The Multilateral Tax Convention will be entered into force from March 1, 2014 for New Zealand from March 1, 2014 and it qualifies signatories to exchange tax information, and New Zealand's Inland Revenue will be able to find assistance in collecting
See MoreVietnam – Transfer pricing audits based on risk profiles
Vietnam’s General Department of Taxation published transfer pricing audits on 18 December 2013, throughout a number of provinces, and selected some textile, garment, and footwear companies based on transfer pricing risk assessment profiles. The
See MoreHong Kong: Exchange of information for tax purposes
Hong Kong is broadly compliant in its implementation of the international standards of transparency and exchange of information for tax purposes, a review of OECD’s global forum was announced at its meeting in Jakarta on November 2013. However,
See MoreIndia: Clarifies conditions of service tax amnesty
The Indian Finance Ministry has wanted to clarify concerns over its Service Tax Voluntary Compliance Encouragement Scheme (VCES) by commenting on issues raised by industry representatives. The Finance Minister recently settled a series of
See MoreAgreement to avoid double taxation between China and Taiwan is under process
China and Taiwan expect to sign shortly the draft of an agreement to avoid double taxation. This follows a previous attempt at negotiating a double taxation agreement in 2009, based generally on the OECD Model. On that occasion the conclusion of a
See MoreJapan – Signing of the Protocol Amending Tax Convention with the United Kingdom
Japan and the United Kingdom Signing of the Protocol Amending Tax Convention with the United Kingdom on 17 December 2013 which amending the current income tax treaty between the two countries. Before it enters into force the Protocol must be
See MoreAustralia: ATO dispatched International Structuring, Profit Shifting field Program
The Australian Taxation Office (ATO) in accordance with current base erosion and profit shifting (BEPS) activities dispatched an “international structuring and profit shifting” (ISAPS) field review program. This is a decentralized national
See MoreTax treaty between India and United Kingdom – Indian decision on taxability of fees for technical services
The Indian Income Tax Appellate Tribunal (ITAT) issued its decision on 31 May 2013 in the case of Veeda Clinical Research Private Limited (ITA 1406/Ahd/2009) that the provision of market awareness and development in-house training services to an
See MoreVietnam: VAT regime is to be increased
The penalties for infringement of the Vietnamese VAT regime are to be increased. The new charges were published in Decree 129 which is summarized below: The changes include: • The new maximum fine for VAT reporting infringements is VND 200m. •
See MoreIndia: Determines guarantee rates on loans are arm’s length
The Mumbai Bench of the Income-tax Appellate Tribunal held that bank guarantee rates cannot be mechanically applied in determining the arm’s length price. The tribunal explained the difference between corporate guarantee and bank guarantee, and
See MoreJapan – Tax reform proposals for 2014
Recently, Governments of Japan agreed on “outline” of tax reform proposals for 2014. On 12 December 2013 among the tax measures in the tax reform plan affecting corporations are provisions that would: • Decrease the current corporate tax rate
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