Every week, KPMG member firms around the world publish updates on developments in their country. In Weekly Tax Matters we’ll highlight a selection that may be of interest to our readers. The complete collection of TaxNewsFlash can be found here.
Vietnam - Changes have been made to the rules governing representative offices and branches of foreign entities.
India – A recent tax case held that when interest has not been paid to the payee, there is no liability to withhold tax.
Indonesia - The rate of withholding tax with respect to interest income from deposits or savings has been reduced.
Azerbaijan – Recent tax changes include tax exemptions for investors and entrepreneurs.
New Zealand - The tax authorities have released a discussion document on implementing the automatic exchange of information (AEOI) regime, which would include the exchange of all private taxpayer rulings and unilateral transfer pricing rulings in effect as of 2014.
India – A recent transfer pricing case concerned the functional comparability of a taxpayer’s business segments.
The US tax authorities have released their final regulations relating to provisions that require ‘domestic entities’ to report their foreign financial assets. In addition, Australia is expected to pass their common reporting standard (CRS) legislation soon and it will apply from 1 July 2017 (not 1 January 2017 as originally expected).
The Organisation for Economic Cooperation and Development (OECD) has announced a proposal for broadening participation in the base erosion and profit shifting (BEPS) project. The proposal will be presented to the Finance Ministers of the G20 countries at a 26-27 February 2016 meeting.