KPMG in Saudi Arabia is hosting a seminar on taxation of US individuals and the impact of Foreign Accounts Tax Compliance Act (FATCA) at the Marriott Hotel in Riyadh on May 26. Under US tax law, US citizens and US permanent residents (green card holders) are required to file US… – Continue reading
Global business The European Union outlined its strategy to create a digital single market. The thrust of the proposals include establishing standard rules for buying goods online, pruning cross-border regulations on telecoms and reducing the tax burden on businesses. But the plan also calls for a “comprehensive assessment” of whether… – Continue reading
JAKARTA: Indonesia is considering cutting its corporate tax rate to as low as 17.5 per cent from 25 per cent to attract more investment from companies that are operating in the region, a tax ministry official said on Monday. Indonesia, which posted the weakest economic growth since 2009 in the… – Continue reading
A mixed bag of topics for this week’s edition of Lifelines: ‘Gaijin card’ deadline looms First up are the new residence cards, which have replaced the old alien registration cards (aka gaijin cards) for foreign residents. If you are still using your old card, be aware that the deadline for… – Continue reading
The government should stop looking for more borrowed money and take immediate steps for resource mobilisation to overcome fiscal deficit Taxation is a lot like sheep shearing. As long as you shear a sheep, it will continue to produce a new crop of wool but you can skin the animal… – Continue reading
ISLAMABAD: As authorities struggle to increase tax collection, the state is considering a proposal that could see a levy of 10% tax on profit made on foreign remittances placed in savings accounts. The proposal comes as the government suspects that the amount sent through remittances could be black money being… – Continue reading
You’re just over a month to prepare for the provision of the first Russian banks reporting FATCA. In the future, Russia will reach the full exchange of information with the United States, who also contribute to the development of the domestic economy. By June 29, the Russian banks will be… – Continue reading
It may be time for another letter from Tom Cotton. Cotton, the Republican senator from Arkansas, had been in office only a few weeks back in March when he got 46 senators to sign on to an open letter to the leadership of Iran. The letter pointed out that agreements… – Continue reading
New Delhi: Market regulator Securities and Exchange Board of India (Sebi) has asked bourses to take immediate action against entities involved in misuse of stock exchange system for tax evasion, Parliament was told Friday. Preliminary enquiries conducted by the regulator in the recent past, inter alia, indicate that certain persons/companies… – Continue reading
The Income and Capital Tax Treaty between Ireland and Thailand entered into force on 11 March 2015 and will enter into effect on 1 January 2016. The Treaty was signed on 4 November 2013. In accordance with the treaty, the following withholding taxes will apply: Dividends: 10%. Interest: • 0%… – Continue reading
Global giant Standard Chartered Bank has been allowed by regulator Sebi to offer advisory services on regulated offshore products like stocks, bonds and mutual funds in markets outside India. “… SCB can advise on regulated offshore securities and investment products, which are in the nature of marketable securities issued by… – Continue reading
The BSE Sensex dropped over 750 points in intraday trade on Wednesday, its biggest fall since January 6 this year, when the Sensex had plunged over 900 points on global triggers. The Nifty is now firmly below the 200 day moving average, and there’s a big chance that it will… – Continue reading
VietNamNet Bridge – How to deal with transfer pricing – whether to view it as an inevitable part of foreign direct investment (FDI) or take drastic measures to stop it – remains a controversial matter among Vietnamese. METRO Cash & Carry Vietnam (MCC) will have to pay VND507 billion (US$23.8… – Continue reading
Majlis Al-Shura held a regular session today under the chairmanship of vice speaker of the council Dr. Mohammed bin Amin Jafri. The council approved a draft agreement between the Government of the Kingdom and the Government of the Kyrgyz Republic on avoidance of double taxation and prevention of tax evasion… – Continue reading
The nation’s anti-corruption campaign and drive to track down economic fugitives and corrupt officials may help banks crack down on money laundering, analysts said. Banks have been updating watchlists for suspected money-laundering activities and heightening scrutiny of transactions and accounts. But they may be challenged by new forms of money… – Continue reading
The total “development finance” loss – counting both revenues and reinvested earnings – is estimated in the range of $250 to $300 billion. This prevents developing countries from stopping the outflow of money, which thus bleeds them of essential resources The financial crisis of 2008 had an interesting collateral benefit… – Continue reading
Hong Kong’s Financial Services Development Council (FSDC) has released a report setting out recommendations on policies, including tax measures, to help Hong Kong capitalize on the increasing number of Chinese enterprises looking to invest and expand overseas. Introducing the report, “Chinese Enterprises ‘Going Global’: Opportunities and Hong Kong’s Policy Responses,”… – Continue reading
Nedbank Private Wealth is an international private bank headquartered in the Isle of Man, a self-governing British Crown dependency. The bank has been growing its presence in the Middle East since January 2011 through a representative office established in Dubai and licensed by the UAE Central Bank. “Our presence in… – Continue reading
According to the 2014 annual report of the Finance Ministry’s Financial Crimes Investigation Board (MASAK), there has been an alarming increase in reported suspicious transactions. From 2013 reported suspicious transactions have increased by 42.6 percent, and 2.5 times in the past four years to 36,483 in 2014. 85 percent of… – Continue reading
Arun Jaitley said that the governments of Switzerland, the UK and Spain have not provided details of any black money accounts, reports the Financial Express. The governments of Switzerland, the United Kingdom and Spain have not provided details of any black money accounts, Finance Minister Arun Jaitley said today. “No… – Continue reading
The Senate enquiry into corporate tax avoidance has been successful in disclosing some difficult-to-find information about corporate groups as well as the Australian Taxation Office. Out of it has come news of an important detection tool developed by the tax office to identify corporate groups for investigation. The detection tool… – Continue reading
HSBC’s pre-tax profits rose 4 per cent to a better-than-expected $7.06bn (£4.66bn) in the three months ending 31 March HSBC chief executive Stuart Gulliver admitted that the company’s Swiss banking scandal has hit morale across the group even as profits beat City forecasts during the first quarter of the year…. – Continue reading
Shayne Nelson, Chief Executive Officer of Emirates NBD, muses how corporate governance, risk and compliance have changed beyond recognition since he first came to the region. Shayne Nelson has seen a lot of change in his extensive banking career, which has spanned several continents. With roles including Chairman of Standard… – Continue reading
The United Arab Emirates and Romania signed a new Income Tax Treaty on 5 May 2015. Once the new treaty enters into force and becomes effective, it will replace the existing one of 1993. Further details will be reported once the new treaty text becomes available.
NEW DELHI: Ahead of Prime Minister Narendra Modi’s visit to South Korea this month, the Cabinet today approved revising the double tax avoidance pact with Seoul to provide tax stability and facilitate flow of investment and technology between the countries. The Cabinet headed by the Prime Minister gave its approval… – Continue reading
The Financial Supervisory Commission (FSC, 金管會) said it is updating regulations on bank mergers for an announcement by the end of May. FSC Chairman William Tseng (曾銘宗) said the commission is studying bank merger regulations that could facilitate the formation of large-scale institutions that compete better in the Asia-Pacific region…. – Continue reading
UK funds invested in India could face demands for tax from which they thought they were exempt. Minimum alternate tax (MAT), a tax on the book profit of a company, has been in existence in India in its current form since 2001 and is levied at 18.5 per cent. Because… – Continue reading
The Central Board of Direct Taxes [CBDT] on 26th March 2015 issued a Circular no. 4/2015 wherein they have clarified that while interpreting the provisions of Section 9(1)(i) of the Income Tax Act, 1961 [herein after referred to as ‘Act’] read with Explanation 5 inserted to the said section by… – Continue reading
In retrospect, HSBC’s decision in 1993 to abandon Hong Kong for London’s Canary Wharf was one of modern history’s worst business moves. It seemed perfectly wise at the time, just four years ahead of Hong Kong’s return to China and amid the early stages of Europe’s common currency boom. When… – Continue reading
Saudi Arabia’s capital markets regulator said on Monday it has finalised rules ahead of the opening up of its $550 billion (Dh2 trillion) equity markets — equal to the size of Russia — for foreigners, reports Gulf News. Institutional investors with US$5 billion of assets under management will be allowed… – Continue reading
By Saeed Azhar SINGAPORE, May 5 (Reuters) – Singapore banks, which have enlarged their China credit exposure in recent years, were hit by a drop in billions of dollars of China trade financing deals as mainland borrowing conditions became easier while offshore interest rates grew more expensive. The premium of… – Continue reading
In what may come as a relief to foreign portfolio investors (FPIs), the Bombay High Court has issued a stay on the tax department’s order seeking minimum alternate tax (MAT) from Aberdeen Global Emerging Markets. In what may come as a relief to foreign portfolio investors (FPIs), the Bombay High… – Continue reading
“Book Loss” and not “operating loss” a relevant indicator for determining persistent loss – Mumbai Tribunal Ruling in the case of Sumitomo Chemical India Private Limited Transfer pricing aims at establishing the arm’s length price of the controlled transactions using the most appropriate method. The success of transfer pricing lies… – Continue reading
As discussed in our previous legal update The Tax Man Cometh: Not Only Long Awaited “Safe Harbor”, Notice No.7 is set to present a different income tax regime for non-tax resident enterprises (“Non-TRE”). In addition to the long awaited “Safe Harbor”, it is worth-noting that Notice No.7 has introduced new… – Continue reading
Dubai – The Ministry of Finance (MoF) recently signed a MoU with Ras Al Khaimah Investment Authority (RAKIA). This MoUhas been signed to ensure the implementation of international standards of transparency in the exchange of information for tax purposes, as per Organisation for Economic Cooperation and Development (OECD) regulations and… – Continue reading
VietNamNet Bridge – Metro Cash & Carry Vietnam, the German invested retailer, which repeatedly reported losses over the last 12 years in Vietnam, has engaged in transfer pricing to evade tax, according to the General Department of Taxation (GDT). It has asked the big retailer to reduce the reported loss… – Continue reading
Part Seven in our series comparing ASEAN business costs with China Singapore is the de facto financial and services hub for ASEAN, and as a city state with such a remit it is more pertinent to compare the dynamics of Singapore with Hong Kong rather than China as a whole…. – Continue reading
No investor in the world believes that India is a tax haven and the large tax demands on Cairn and FIIs have rattled investors and must be resolved quickly, said Patricia Hewitt, head of the UK India Business Council backed by the British government. With industry sentiment about the Modi… – Continue reading
The Standing Committee’s recommendation comes after the finance minister announced in the Budget that DTC would not be pursued as most provisions of the code have been incorporated in the existing Act. Even as finance minister Arun Jaitley scrapped the proposed direct taxes code (DTC) in Budget 2015-16, the standing… – Continue reading
Thailand is expected to introduce new transfer pricing (TP) laws in the near future, which will apply to all companies in the Kingdom with related-party transactions. At a recent Deloitte seminar on “Thailand TP Developments”, with participation from senior officials from the Revenue Department, we shared some valuable insights on… – Continue reading
The CBDT has constituted a high- level committee to secure confidential tax data, obtained under mutual exchange with US authorities, as part of India’s compliance measures for signing the much awaited Foreign Account Tax Compliance Act (FATCA). The seven-member panel will be headed by the Member (Income Tax) of the… – Continue reading
Mauritius and Singapore are both examples of countries with Double Taxation Avoidance Agreements (DTAAs) with India, meaning dividends from corporations that are paid out to shareholders are not taxed further, having already been taxed at the corporate level. This legislation has meant that such countries have been used to “round-trip”… – Continue reading
A federal judge demanded to know more about HSBC Holdings Plc’s compliance with its trade sanctions and anti-money-laundering deal with the U.S. after a monitor said the bank was “too slow” to mend its ways. U.S. District Judge John Gleeson in Brooklyn, New York, ordered the government to file a… – Continue reading
Indonesia is introducing a tax amnesty this month to boost revenues as slowing economic growth puts pressure on the government to increase spending, Finance Minister Bambang Brodjonegoro said. The amnesty will last until the end of the year and allows citizens to avoid penalties if they pay five years of… – Continue reading
The Tax Foundation released its inaugural “International Tax Competitiveness Index” (ITCI) on September 15th, 2014. The United States was ranked an abysmal 32nd out of the 34 OECD member countries for the year 2014. (See accompanying Table 1.) The European welfare states such as Norway, Sweden and Denmark, with their… – Continue reading
With a new candidate seemingly entering the race for president each week, national attention is understandably focused on American politics. But while Americans spare little mind for the goings-on of international organizations, their activities not only have significant impact around the world, but could also play a role in the… – Continue reading
NEW DELHI:Money makes the mare go, and it seems to have gone. From 2012 through 2014, overseas investment by Indians grew by an astonishing 700 per cent in the British Virgin Islands, a favourite tax haven for biz pashas with big bucks. After Narendra Modi — whose war was to… – Continue reading
Morgan Stanley veteran and former managing director Sridhar Sivaram told NDTV that the government’s decision to levy the contentious minimum alternative tax (MAT) retrospectively on foreign institutional investors (FII) for capital gains made during previous years, poses a hindrance to foreign fund flow into the country. “It’s very tough to… – Continue reading
Monrovia – Chinese Businessman, Shun Feng, held on charges of tax evasion, economic sabotage and smuggling by the West Point Magisterial Court was Friday cleared of the charges, but warned by the court not to repeat the act. The five-year penalty that follows the crimes was also dropped by the… – Continue reading
Money makes the mare go, and it seems to have gone. From 2012 through 2014, overseas investment by Indians grew by an astonishing 700 per cent in the British Virgin Islands, a favourite tax haven for the biz pashas with the big bucks. Inexplicable, after Narendra Modi—whose war was to… – Continue reading
