International Tax Newsletter - Asia Pacific & MENASA | KPMG | BE
International Tax Newsletter - Asia Pacific & MENASA

Asia Pacific & MENASA

International Tax Newsletter

Asia Pacific & MENASA regions

February 2018

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Asia Pacific and MENASA regions between 1 February and 28 February 2018.

 

Asia Pacific Australia China
Hong Kong India Korea
Pakistan Papua New Guinea Philippines
Singapore Taiwan Thailand



For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.

To contact the International Tax Team email internationaltax@kpmg.com.

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International Tax Newsletter - Asia Pacific & MENASA

Asia Pacific

Tax legislation approved and regulatory update

Various tax areas - January 2018

A summary of tax developments of interest to financial institutions in the Asia Pacific region includes updates from Australia, China, Hong Kong, India, Indonesia and Korea.

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Australia

Proposed legislation

Diverted profits tax - 7 February 2018

The Australian Taxation Office released the draft practical compliance guide for the diverted profits tax regime.

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GST - 1 July 2018

The Government introduced measures that will require purchasers of new residential premises and potential residential land to withhold up to 1/11th of the contract price and pay it to the Australian Taxation Office.

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Other

Various tax areas - 2017

KPMG in India has prepared a report that provides summary discussions of certain “key” direct tax and indirect tax developments during 2017.

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China

Tax legislation approved and regulatory update

Customs duty - 7 February 2018

The Customs Tariff Commission has published the Tariff Adjustment Plan 2018, based on which the tariffs on certain commodities will be adjusted.

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Proposed legislation

Customs - 1 February 2018

The General Administration of Customs issued an announcement regarding the implementation of the PRC Customs Provisional Administrative Measures on Advance Ruling.

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Hong Kong

Proposed legislation

Various tax areas - 28 February 2018

The Finance Secretary offered certain tax proposals in making the 2018-2019 budget speech, including measures to:

  • introduce a regional headquarters tax regime
  • extend the scope of the profits tax exemption on debt securities 
  • expand trade, investment, and tax treaty networks (to open up new markets)
  • reduce the salaries tax on individual taxpayers by 75 percent and broaden the salaries tax rate bands.

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India

Administrative and case law

Various tax areas -  9 February 2018

KPMG in India has prepared reports about the following tax developments:

  • no tax withholding on salary paid to non-resident employees, working outside India. The case is: Texas Instruments (India) Pvt. Ltd. 
  • FAQs on long-term capital gains tax
  • applicability of deemed dividend provisions. The case is: National Travel Services.

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Various tax areas - 15 February 2018

KPMG in India has prepared reports about the following tax developments:

  • tax withheld on sale of property. The case is: Shri Bhagwandas Nagla
  • new immigration services
  • prospective application of tax rule. The case is: Essar Teleholdings Ltd
  • assessment proceedings conducted electronically
  • taxability of capital gains under the India-Mauritius income tax treaty. 

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Various tax areas - 28 February 2018

KPMG in India has prepared reports about the following tax developments:

  • no loss carryforward when a change in shareholding, but no implications for unabsorbed depreciation. The case is: Credila Financial Services Private Ltd. 
  • income tax treaty’s rate of withholding tax takes priority over tax rate under income tax law. The case is: Danisco India Private Ltd. 
  • capital gains treatment of certain residential property and fixtures. The case is: Rajat B Mehta. 

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Korea

Tax legislation approved and regulatory update

Corporate income tax - 2 February 2018

A bill was passed including tax provisions to:

  • impose a maximum corporate income tax
  • increase the capital gains tax rate for major shareholders
  • strengthen the requirements for qualified merger and division transactions
  • revise the rules for limitations on loss carryforwards
  • amend the rules for interest expense deductions.

Read more

Pakistan

KPMG Publications

Company law - February 2018

KPMG in Pakistan issued a report on the differences between the repealed and the new company law.

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Papua New Guinea

Other

Tax compliance - 15 February 2018

KPMG in Papua New Guinea discusses the increasing focus by authorities on automatic penalties for the late lodgment of statutory compliance returns.

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Philippines

Tax legislation approved and regulatory update

Individual income tax - 6 February 2018

Employees of regional headquarters and regional operating headquarters of multinational companies and who were enjoying preferential tax treatment prior to 2018 are now subject to regular income tax rates.

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Singapore

Tax legislation approved and regulatory update

GST - 21 February 2018

The Inland Revenue Authority of Singapore issued an updated guide to clarify the terms “directly in connection with” and “directly benefit” with respect to the GST.

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Proposed legislation

Budget 2018 - 19 February 2018

The Finance Minister delivered a budget for 2018 that includes tax-related measures. They include:

  • corporate income tax rebate enhancement and extension
  • reduced thresholds for start-up tax exemption schemes
  • enhanced tax deduction for qualifying intellectual property licensing costs or registration costs
  • increased tax deduction for staff costs and consumables incurred with respect to qualifying research and development costs.

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Taiwan

Tax legislation approved and regulatory update

Corporate income tax / Individual taxation - January 2018

The legislature approved the provisions to reform Taiwan’s income tax law. The measures would:

  • adjust the tax rate structure of the individual income tax, the corporate income tax, and the surtax on undistributed earnings
  • ease the income tax burden on wage earners and mid- and low-income earners.

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Thailand

Tax legislation approved and regulatory update

Individual taxation - 31 March 2018

The filing deadline for the 2017 individual income tax return is 31 March 2018.

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Proposed legislation

Property rights - 9 January 2018

The Thai Cabinet approved, in principle, the Bill on Sub-Ing-Sithi, which governs a new type of real property right called ‘Sub-Ing-Sithi’. This is an alternative legal right to use real property in a new form in addition to the ownership and leasehold rights.

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