China: 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
See MoreJapan: Planning to relax the Corporate Tax Relief Measures
Japan’s Prime Minister has requested that his Government should take account of tax incentives for the corporate part along with relax the economic impact if he adopts to proceed with the consumption tax hike due in April next year. It is also
See MoreIndia: CBDT amends rules relating to furnishing information on payments to nonresidents
India’s Central Board of Direct Taxes (CBDT) allotted Notification No. 67/20131 on 2 September 2013, revising the existing Rule 37BB of the Income Tax Rules 1962 which recommends the system for furnishing information electronically by a person
See MoreDTA between Pakistan – Czech Republic
Pakistan’s Cabinet on August 29, 2013, approved the signing of a draft double tax agreement (DTA) with the Czech Republic. A draft agreement was originally initialled on 19 October 2012. No further details of the treaty are currently
See MoreNew Zealand: Taking Tough Stance on Tax Avoidance
A former businessman has been punished recently over a total of 87 tax-related charges, and the Inland Revenue Department of New Zealand has warned that it will continue with its “zero tolerance” approach to tax evasion. This approach to
See MoreFTA Between Indonesia-Pakistan Enters Into Effect
Indonesia and Pakistan signed a Preferential Trade Agreement (PTA) in February 2012. This agreement came into effect from September 1 following the signing of an additional Mutual Recognition Agreement (MRA). The agreement had previously been held
See MoreIndia: New Company Law enacted from 2014
The government of India enacted a new company law on 29 August 2013 which aims to make stronger the rights of shareholders and to increase corporate social responsibility. Companies will also be essential to improve the quality of their financial
See MoreChina: OECD publishes working paper on China’s tax policy
An OECD working paper titled “Tax policy and tax reform in the People’s Republic of China” was published on 9 September 2013. The paper makes a comparison between OECD tax policies and those in China and looks at the ratio of tax to GDP and
See MoreChina: Consumption tax on more luxury goods
China is considering broadening the scope of its consumption taxes to cover more luxury goods. This announcement comes as Chinese consumers are set to make up a third of luxury consumption globally by 2015, up from 27 percent in 2012. China already
See MoreAfghanistan – Pakistan DTA
Afghanistan and Pakistan agreed to launch negotiations towards a double taxation agreement (DTA) at meetings on August 25, 2013. No further details of the negotiations or likely provisions of any future agreement are currently
See MoreAustralia: Changes to unfair dismissal related thresholds
Changes to numerous employment related financial thresholds which are listed every year have been proclaimed by the Australian Government. These are applicable from first July 2013. Both the employer and employee will be required to enter into an
See MoreAustralia: Liabilities classification for Thin Capitalization
As a consequence of changes to Australia’s thin capitalization rules taxpayers may need to review their thin capitalization position. Now every entity must have to consider whether their liabilities are debt or non-debt and the effect on the
See MoreAustralia: Prepare for an Australian Taxation Office (ATO) review
Australia is increasingly giving attention to transfer pricing issues and has recently introduced changes in the law to align the transfer pricing rules more closely to the OECD Guidelines. Taxpayers need to be completely ready for an Australian
See MoreChina: Tax exemption for small and micro-sized enterprises
The Chinese Finance Ministry (MOF) and the State Administration of Taxation (SAT) have announced VAT and business tax exemptions for small-sized businesses on 29th July 2013 and the new measure has come into effect from 1st August 2013. This
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