frontiers in tax - April 2015

frontiers in tax - April 2015

The April 2015 edition of frontiers in tax features the latest key issues for financial services including BEPS, the global move towards tax transparency in the Asia-Pacific region, VAT reform in China and the topic of R&D tax incentives in Asia-Pacific.

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Our latest edition of frontiers in tax examines the new trends and developments that are transforming the financial services sector.

In this issue, we take a closer look at the developments reflecting a number of key  trends including:

The BEPS Action Plan is intended to enable tax authorities to determine that profits are taxed where economic activities generating those profits are performed and where value is created. However, while this principle certainly presents challenges when applied to manufacturing or trading activities, it may be even less straightforward in the case of financial services. This article explores the impact of BEPS on the financial services industry. 

In October 2014, at the Berlin meeting of the Global Forum, 51 jurisdictions signed a multilateral competent authority agreement to automatically exchange information. Despite the strengths of their commitments in principle, there is a lot of work to do to meet these new standards. 

In 2012, the Chinese government embarked upon an ambitious staged reform program as part of its 12th Five Year Plan, designed to replace Business Tax (BT) with a Value Added Tax (VAT). The main sectors yet to transition to VAT are the financial and insurance services sector, and the real estate and construction sector. This article explores some of the specific issues that affecting these sectors in the in the transition.

Many countries in the Asia Pacific region offer tax incentives for R&D as a method to encourage local and foreign direct investment in technology. But the details vary from one jurisdiction to another; and it can be difficult to assess the potential tax savings in each. This article explores several key incentives and potential issues in the Asia Pacific region.

In summary, we describe how global financial services companies continue to have an increased need for a deeper understanding of both the regional and local contexts, and of the ever changing thinking of local fiscal authorities.

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