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

Asia Pacific & MENASA

International Tax Newsletter

Asia Pacific & MENASA regions

May 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 May and 31 May 2018.

 

Australia China  Hong Kong (SAR)
India Indonesia Myanmar
New Zealand Taiwan Thailand
Turkey    



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

Australia

Tax legislation approved and regulatory update

GST - 1 July 2018

A GST withholding obligation will be imposed on purchaser of certain residential premises, including certain vacant land.

Read more.

 

Hybrid mismatch arrangements - 24 May 2018

The Government introduced the Tax Laws Amendment Bill 2018 and accompanying Explanatory Memorandum which addresses hybrid mismatch arrangements and interposed entity financing transactions through low or no tax jurisdictions.

Read more.

 

Payroll tax -1 May 2018

An exemption from payroll tax was introduced in the 2018-19 Northern Territory (NT) budget for wages paid by employers in NT from 1 May 2018.

Read more.

 

Various tax areas - 3 May 2018

KPMG in Australia discusses the ATO's Tax Risk Management and Governance Review Guide.

Read more.

 

Proposed legislation

Federal budget - 8 May 2018

This report provides insights and analysis into the Australia's 2018–2019 Federal Budget’s major implications for Australian business, industries and sectors.

Read more.

 

Surcharge duty - 10 May 2018

In the State budget, Western Australia announced that the rate of the surcharge would be 7 percent. These foreign purchaser duty surcharges are now imposed by all States except Tasmania, although the scope and rates vary.

Read more.

 

Thin capitalization - 15 May 2018

KPMG in Australia discusses how the proposed changes to thin capitalization rules in the Federal Budget may affect inward and outward tax consolidated groups.

Read more.

China

Tax legislation approved and regulatory update

Imports tariffs - 22 May 2018

The Customs Tariff Commission of the State Council issued the Announcement on the Reduction of Import Tariffs on Automotive Vehicles and Parts, which reduces vehicle tariff rate of 135 tariff codes (25 percent) and that of 4 tariff codes (20 percent) respectively to 15 percent; and reduces auto parts tariff rates of 8 percent, 10 percent, 15 percent and 20 percent respectively for a total of 79 tariff codes to 6 percent.

Read more.

 

Other

Trade  - 3 May 2018

The representatives of China and the U.S. exchanged views on topics including expanding U.S. exports to China, bilateral trade in services, two-way investment, protection of intellectual property, resolution on tariff and non-tariff measures, and reached certain consensus in some areas.

Read more.

Hong Kong (SAR)

Proposed legislation

Tax incentives / R&D - 2 May 2018

The Inland Revenue Bill 2018 was introduced into the Legislative Council. This bill provides enhanced tax deductions for certain expenses incurred in relation to research and development activities.

Read more.

India

Administrative and case law

Inland ports - 10 May 2018

The Supreme Court of India held that “inland container depots” are “inland ports,” and that the taxpayer was eligible for a benefit under section 80-IA of the Income-tax Act, 1961 on profits earned from inland container depots. The case is: CIT v. Container Corporation of India Ltd.

Read more.

 

Various tax areas - May 2018

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

  •  lessee equalization charge as deduction
  • redemption of stock appreciation rights not taxable
  • lump-sum allowance paid an employee without proof of accommodation expenses
  • waiver of loan as capital asset not taxable as business income
  • reassessment proceedings cannot be on basis of change of opinion
  • expenditure excluded from “export turnover” also excluded from “total turnover”.

Read more.

 

Various tax areas - May 2018

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

  • taxability of gift of shares to “sister concern” under family realignment
  • provident fund accumulation for members of Employees’ Provident Funds Scheme
  • deduction for R&D facility
  • taxability of payments made under technical support and crew-lease agreements. 
  • Indian company with franchise rights of U.S. company not an agency PE.

Read more.

 

Various tax areas - May 2018

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

  • determining when legislative changes apply retroactively
  • determining what triggers the 10-year period for specific tax benefits
  • Payments for marketing and distribution rights held taxable royalty
  • charges under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

Read more.

Indonesia

Tax legislation approved and regulatory update

Tax holiday program - 23 May 2018

The Government, through Ministry of Finance, issued a revised regulation concerning its Tax Holiday Program.

Read more.

Myanmar

Tax legislation approved and regulatory update

Foreign investments - 14 May 2018

A notification was issued on 9 May 2018 by the Ministry of Commerce and Trade (“MoC”), under which the MoC will allow 100% foreign owed or joint venture companies to undertake wholesale as well as retail businesses in Myanmar.

Read more.

New Zealand

Proposed legislation

Budget - 17 May 2018

New Zealand’s first budget under the new Labour-New Zealand first coalition government was scheduled for 17 May 2018.

Read more.

 

GST - 3 May 2018

New Zealand’s government announced its intention to impose goods and services tax on “low-value” imported goods by implementing an Australian-style offshore supplier registration model.

Read more.

Taiwan

Administrative and case law

Corporate income tax - 8 May 2018

The Ministry of Finance issued a tax ruling with respect to the new method for calculating Taiwan-sourced income derived by foreign business entities engaging in importing, storage, manufacturing, and delivery of goods to domestic and foreign customers.

Read more.

Thailand

Tax legislation approved and regulatory update

Various tax areas - 10 May 2018

The Emergency Decree on Digital Assets Business 2561 was issued aiming to control the Digital Assets Businesses.

Read more.

 

Tax compliance  - 31 May 2018

Government fees for corporate registration and other corporate matters have been substantially reduced.

Read more.

 

Proposed legislation

WHT - May 2018

The Cabinet approved the draft amendment of the Thai Revenue Code to include the definition of “Digital Assets” and to propose a 15 percent WHT on income derived from such Digital Assets.

Read more.

Turkey

Tax legislation approved and regulatory update

VAT / Tax compliance - 2 May 2018

The tax administration in Turkey has created a website that includes a “test” for determining whether the foreign e-service provider must register for VAT purposes.

Read more.

 

Tax amnesty law - 18 May 2018

A “tax amnesty” law, effective 18 May 2018, allows for certain penalty relief on the repatriation of capital and certain receivables.

Read more.

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