Japan – Corporate income tax rate reduction effective April 2014
Following the enactment of Japan’s 2014 tax reform a decrease of the effective corporate income tax rate is in force from April 2014. The fall in the effective tax rate is a result of the repeal of the special reconstruction surtax. This surtax
See MoreChinese exporters gain VAT refund
The Chinese State Administration of Taxation (SAT) has given more time to exporters to make an application for a VAT refund. Enterprises that export goods from China may apply for permission to make input tax reclaims to obtain a VAT refund. An
See MoreAustralia: Draft ATO guidance on new transfer pricing rules
New draft tax Rulings and draft Practice Statements outline the Australian Tax Office’s approach to transfer pricing and the standards that are required from taxpayers. Businesses need to urgently consider these publications in order to manage tax
See MoreTreaty between Iraq and Philippines authorization for signature by Iraq
On 22 April 2014, Iraq authorized the Minister of Finance to commence negotiations for the conclusion of a double tax treaty with the
See MoreSwitzerland – Pakistan DTA Negotiation
According to some media reports, Pakistan is looking to revise the double taxation agreement (DTA) with Switzerland. The current double tax agreement between the two countries was signed on 19 July 2005 and entered into force in 2008. No further
See MoreSingapore Sees More Taxpayers Filing Earlier
According to the Inland Revenue Authority of Singapore (IRAS) a greater number of taxpayers have filed their tax returns early this year. Statistics issued by the IRAS show that 75 percent of taxpayers managed to submit their returns by April 1,
See MoreJapanese Panel Looks For Gradual Corporate Tax Cuts
There has for some time been concern in Japan that the relatively high effective corporate tax rate is making the country less competitive. There has therefore been pressure for the rate to be lowered to a level more in line with those of other
See MoreChinese Tax Break Compliance for Small Businesses
On April 8, 2014, China’s State Administration of Taxation (SAT) published the details of simplified arrangements for micro and small enterprises that are looking to gain access to additional tax reductions made available by the Ministry of
See MoreSingapore – Employer contributions to overseas pension funds
The Inland Revenue Authority of Singapore (IRAS) has issued information on its website explaining amended rules relating to the concessionary tax exemption available for contributions by employers to certain pension schemes. The exemption relates to
See MoreKorea – Free trade agreement signed with Australia
A free trade agreement (FTA) was signed on 8 April 2014 by representatives of the governments of South Korea and Australia. The agreement is designed to boost trade between the two countries and strengthen economic ties
See MoreJapan and US Hold Talks On TPP
Talks were held between Japan and the US on 9 and 10 April 2014 to consider the remaining issues relating to the terms of the planned Trans-Pacific Partnership (TPP) trade agreement. The main problems between the US and Japan concern Japan’s
See MoreIndia: Hyderabad Tribunal rules on transfer pricing aspects of corporate guarantee
The Hyderabad Income Tax Appellate Tribunal (ITAT) has issued a ruling that concerns certain transfer pricing issues from a corporate guarantee issued to a bank by associated enterprises of a borrower. The case is Four Soft Pvt Lrd. The case
See MoreHong Kong – Urged To Retain Prudent Fiscal Policies
The IMF has expressed support for the work of Hong Kong’s Working Group on Long-Term Fiscal Planning, which is looking at the fiscal strategy in the long term. The Group is investigating the question of balancing government revenues and spending
See MoreChina ‘Open-Minded’ on Trans-Pacific Partnership
The Chinese Premier has declared that China remains open towards the Trans-Pacific Partnership (TPP) trade negotiations that are currently being conducted under the leadership of the US, although there had been suggestions previously that China
See MoreChina: Shanghai and Hong Kong Agree Financial Services Co-operation
The fourth Hong Kong-Shanghai Financial Co-operation Working Meeting brought together representatives of governments, stock exchanges and financial regulators to discuss issues surrounding financial services and products. Representatives from
See MoreVietnam – VAT export and invoice changes
Some changes have been made to Vietnam’s VAT regime in respect of VAT invoices and the VAT on exports. The aim of the changes is to require adequate documentation to be maintained in respect of the transaction, including proof of export. There
See MoreNew Zealand’s opposition party welcomes the launch of FTA talks with the EU
In New Zealand an opposition party has welcomed the launch of free trade talks with the EU but has called on the Government to address tax barriers to domestic economic activity. Reacting to NZ-EU FTA negotiations, the leader of the opposition ACT
See MoreMalaysia – Steep Penalties in GST Bill
Malaysia is to introduce a new Goods and Services Tax (GST) Act to replace a draft Act originally put forward in 2009. The new Act will contain harsh penalties for taxpayers who fail to comply with its provisions. The GST rates and structure are not
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