Category: Exemptions

How to Apply for CIT Incentives in China

China offers a number of preferential corporate income tax (CIT) policies for businesses operating in the country. Businesses that qualify for these preferential policies can benefit from incentives like CIT rates lower than the standard 25 percent rate and other CIT exemptions and deductions. These preferential tax treatments, however, do… – Continue reading

Malaysia To Phase Out ‘Harmful’ Tax Regime

Malaysia has suspended its MSC Malaysia tax regime, pending changes to bring it into line with recommendations from the OECD’s Base Erosion and Profit Shifting initiative. Under the regime, domestic and foreign information and communication technology-related businesses can apply for “MSC Malaysia Status,” which allows them to benefit from tax… – Continue reading

PM asks authorities to probe tax evasion by FDI firms

Media reports have suggested the Government to build a more effective mechanism to tackle the problem that prolonged loss-making FDI enterprises have still enlarged investment and production. — Photo Viet Nam News HA NOI – Prime Minister Nguyen Xuan Phuc has assigned the Ministry of Finance (MOF) and General… – Continue reading

The use of UK holding companies in international group structures – tax considerations

From a commercial viewpoint it is important that the Holdco is located in a reputable jurisdiction when seeking to access international equity and debt capital markets. The choice of Holdco location will also be relevant in circumstances where private equity investment is envisaged or where a trade sale is planned…. – Continue reading

UK withholding tax on interest paid to non-residents

The UK does still have one significant disadvantage namely the 20% withholding tax imposed by UK domestic law on “yearly interest” that arises in the UK is paid to persons whose “usual place of abode” is outside the UK. The UK is normally regarded as an attractive location for the… – Continue reading

OECD Welcomes Dutch Efforts To Counter BEPS

The OECD has welcomed efforts by the Dutch Government to tackle base erosion and profit shifting but called for the overall tax regime to be simplified, including in area of value-added tax. In its latest Economic Report on the Netherlands, the OECD said that the Government is attempting to change… – Continue reading

Why Singapore is a Hub for Indian Businesses

India’s Prime Minister Narendra Modi made a three day official visit to Singapore late last month. The trip was his first since November 2015, and followed quick visits to Indonesia and Malaysia. The three-nation tour, touted to be part of India’s Act East Policy, laid clear emphasis on closer Southeast… – Continue reading

Update on Portugal’s Non-Habitual Residence Program

Concerned about the tax implications of buying property in Portugal? Good news! Foreigners who want to buy in Portugal and meet certain criteria may be exempt from paying tax on most forms of overseas income. Here’s how! In a bid to bounce back from the 2008 financial crisis, Portugal has… – Continue reading

Gov’t will ‘fight to ensure tax law is enacted as is’ — official

Cabinet will recommend delay in Parliament extraordinary session to allow more time for dialogue AMMAN — The government will use all its might to defend the income tax draft law as it is presented to the Lower House for approval, a government official said on Monday. “We will use all… – Continue reading

World Bank urges Uganda to improve taxation to finance development, sustain growth

KAMPALA, May 16 (Xinhua) — The World Bank in its new report has urged Uganda to improve its tax revenue if the east African country is to sustain economic growth. The Bank in its 11th Uganda Economic Update issued on Tuesday said while the economic growth has rebounded from 4.5… – Continue reading

New tax law aims to combat tax evasion, enhance collection — Hassan

Minister says gov’t ‘open’ to dialogue with all segments of society over new law AMMAN — The new amendments to Income Tax Law aim at serving taxpayers and “effectively” combating tax evasion, Deputy Prime Minister and Minister of State for Economic Affairs Jafar Hassan said on Tuesday. During a discussion… – Continue reading

Walmart-Flipkart deal: Buyout liable to tax in India; I-T Dept awaits formal pact

Some advantage could be there under Double-Tax Avoidance Agreement: experts MUMBAI, MAY 8 The $15-billion buyout of e-commerce player Flipkart by US retail giant Walmart is likely to attract capital gains tax under Indian laws, similar to the tax imposed on Vodafone, even though the entities are headquartered abroad. Some… – Continue reading

Tax outflows, debt cripples Malawi’s growth

Malawi is struggling to address loss of revenues due to smuggling of minerals, unregulated artisanal and small-scale mining activities, under declaration of taxable income and transfer mispricing by mining companies. Reserve Bank of Malawi statistics show that Malawi lost $980 million (MWK78 billion) between 2010 and 2017 due to foreign… – Continue reading

Spanish Tax Authority Set for Showdown Over Crypto Tax Evasion

The Agencia Estatal de Administración Tributaria (AEAT), more commonly known as the Agencia Tributaria, the tax agency of the Spanish government is set to take a hard-line stance on what it suspects to be tax evasion activities aided and abetted by cryptocurrencies. The move comes as yet another chapter in… – Continue reading

Ibcs Face ‘Much Damage’ Through Blacklisting Bill

THE Bahamas’ ‘blacklisting’ response threatens to “cause a lot of damage” to its IBC business and create “much less certainty” for the financial services industry, a top attorney is warning. Michael Paton, a former Bahamas Financial Services Board (BFSB) chairman, told Tribune Business that the proposed Multinational Entities Reporting Bill… – Continue reading

China’s Anti-tax Avoidance Rules

The general anti-avoidance rule was first introduced in China under the 2008 CIT Law. It empowers Chinese tax authorities to make reasonable adjustments where an enterprise implements an arrangement without reasonable business purposes in order to reduce its taxable income or profit. According to the CIT Law’s Implementation Guidelines, “an… – Continue reading

Puerto Rico markets its “Tax haven” to attract cryptocurrency investors

Puerto Rico’s Governor, Ricardo Rossello in a move to attract crypto investors and holders to live in its land made an open call to everybody to come and take advantage of the tax haven. Puerto Rico recently got devastated by hurricanes Maria and Irma and is trying to recover slowly… – Continue reading

Hong Kong BEPS Bill: New Transfer Pricing Regime to Regulate Documentation

On December 29, 2017, the Inland Revenue (Amendment) (No. 6) Bill 2017 (BEPS bill) was gazetted in Hong Kong. The BEPS bill introduces a transfer pricing regulatory regime and mandatory transfer pricing documentation requirement in Hong Kong as well as a variety of other anti-BEPS changes. The BEPS bill marks… – Continue reading

Govt to announce amnesty for undeclared foreign assets ahead of OECD’s treaty

KARACHI: Government on Saturday said it may roll out an amnesty to allow offshore bank account holders to declare their wealth against nominal tax rates ahead of the implementation of OECD’s treaty to exchange financial details with foreign countries in September. Miftah Ismail, adviser to the Prime Minister for finance,… – Continue reading

China to offer tax breaks to foreign companies after GOP tax bill

A 10% tax that China has slapped exclusively on foreign companies’ profits from equity investments will temporarily be waved if the earnings are plowed into government-targeted sectors, according to a statement issued Thursday by four central government ministries. The move will help retain foreign investment and stabilize cross-border capital flows,… – Continue reading

Duterte orders DOF to ensure TRAIN’s effective implementation

MANILA, Dec. 20 – President Duterte has instructed the Department of Finance (DOF) to ensure the effective implementation of the Tax Reform for Acceleration and Inclusion Act (TRAIN), and to immediately submit to Congress the Package Two of the Comprehensive Tax Reform Program (CTRP) in the early 2018, which aims… – Continue reading

Revenue receives just 11 tax scheme alerts in six years

Exemptions make the mandatory disclosure regime a joke, says MEP Matt Carthy The Revenue Commissioners have received just 11 reports of potentially abusive tax-avoidance schemes since Ireland made it mandatory in early 2011 for transactions giving “aggressive” tax advantages to be disclosed to authorities. The disclosure by Minister for Finance… – Continue reading

The consequences of scrapping tax exemptions on income earned outside SA

Economist Magnus Heystek says that government’s push towards scrapping tax exemptions for South Africans earning a salary in foreign country will encourage a tax revolt. South Africans have expressed a mix of concern and outrage over the past week, following the news that the government is seeking to scrap tax… – Continue reading

New Zealand Clarifies Common Reporting Standard Exemptions

New Zealand’s Inland Revenue has issued clarification around the types of account that will be exempt from reporting under the OECD’s Common Reporting Standard for the Automatic Exchange of Information. The authority said that the exempted accounts include Whai Rawa Unit Trust Fund member’s accounts, dormant accounts, and accounts under… – Continue reading

Sebi mulls ways to check fraudulent tax benefits via stocks

Regulator Sebi is mulling tightening its investigation and enforcement mechanism to check misuse of stock market platform for generating “bogus” long-term capital gains to launder black money. The markets watchdog has also come across cases wherein fraudulent tax benefits have been claimed through trades in some blue-chip stocks, as against… – Continue reading

Federal Budget 2017: Foreign home buyers hit by vacancy tax and restrictions

Foreign ownership of new developments will be restricted, there will be steeper charges applied to purchases, less favourable tax treatment and charges on those with empty properties, in a raft of measures in the federal budget aimed at taking the sting out of the housing market. One measure to be… – Continue reading

Chancellor slaps 25% charge on people who move pensions abroad to dodge UK tax bills

People still be able to shift pensions overseas tax-free if they and their pot are located in same country Stiff new penalty is aimed at those who retire to one country while parking their pension in an offshore tax haven The Chancellor is to slap a 25 per cent charge… – Continue reading

Tax evasion can lead to hefty fine, jail term under new Omani law

Muscat: Dodging taxes can lead to a jail term of up to three years and a maximum fine of OMR50,000 under tax law amendments published by the Ministry of Finance, as government begins its crack down on evaders. Out of the 300,000 companies registered by the Oman Chamber of Commerce… – Continue reading

Australia Legislates For Low Value Import GST Reforms

The Australian Government has introduced legislation to extend the goods and services tax (GST) to low value imports from July 1, 2017. The legislation, introduced on February 16, requires overseas vendors, electronic distribution platforms, and goods forwarders with an Australian turnover of AUD75,000 (USD57,528) or more to register for, collect,… – Continue reading

OECD Recommends Swedish Property Tax Reform

The OECD has recommended that Sweden rebalance its property tax system. In its latest Economic Survey for the country, the OECD said that Sweden’s favorable tax treatment of owner-occupied housing is regressive, benefiting relatively high-income households most and contributing to the high demand for housing. It said it also encourages… – Continue reading

Indonesia – Key Indonesian Law Considerations For International DCM Issues

Following Moody’s Investors Service affirmation of Indonesia’s sovereign credit rating at Baa3 with a stable outlook in January 2016, there has been renewed interest in the international bond market for Indonesian credits. This bulletin seeks to summarise the regulatory changes in Indonesia over the last 24 months as well as… – Continue reading

Taxing oil in economic zones is illegal

SMUGGLING of petroleum products has been rampant in the last couple of years. The value-added tax (VAT) and excise-tax exemptions of free-port and economic zones (FEZs) are being abused by enterprising individuals. To curtail this problem, the Bureau of Internal Revenue in 2012 required the payment of VAT and excise… – Continue reading

Treasury figures show capital gains concession dwarfs superannuation tax breaks

Main residence exemption costing budget $61.5bn, almost double the $33bn lost to super concessions The federal government’s tax breaks for home owner-occupiers are dwarfing tax breaks for superannuation. New figures show the capital gains tax concession on the family home is now worth $61.5bn, almost double the $33bn lost to… – Continue reading

Canada: New Principal Residence Exemption Rules

On October 3, 2016 the Federal Government proposed changes to the Income Tax Act (the “Act”) and administrative policies that will impact claiming the principal residence exemption. 1. All dispositions of principal residences must now be reported. Previously, the CRA did not require taxpayers to report the sale of a… – Continue reading

SECP seeks amnesty scheme for offshore company owners

ISLAMABAD – The Securities and Exchange Commission of Pakistan (SECP) has proposed the government to give one time amnesty scheme for the owners of offshore companies to declare their hidden assets by paying nominal tax. “I have asked the Finance Minister Ishaq Dar to give one opportunity to offshore companies… – Continue reading

From Israel to Canada: New Tax Treaty to Help Structure Investments

On December 21, 2016, the new Canada–Israel tax treaty entered into force. The new treaty was signed on September 21, 2016 in New York, and replaces the existing treaty that dates from 1975. For most purposes, the provisions of the new treaty took effect as of January 1, 2017. Overall,… – Continue reading

Cayman Islands: Cayman Islands AEOI Update – Second Tranche of CRS Regulations Released

The Cayman Islands Government issued the second tranche of the Common Reporting Standard (“CRS”) regulations at the end of December 2016. Updated Guidance Notes will be issued in Q1 2017 by the Cayman Islands Tax Information Authority (“TIA”) to assist with the implementation of the regulations. Furthermore, TIA stated in… – Continue reading

Italy: Italy Set To Introduce A Territorial System Of Taxation

Italy is considering a proposal to introduce a territorial system of taxation to attract high net worth individuals, including successful individuals in the sports, arts, and fashion and design sectors, who could be interested in moving to Italy to take part in these thriving sectors. The new measure is contained… – Continue reading

Vietnam Set to Update Transfer Pricing Thresholds from 2017

Vietnam’s Ministry of Finance released a draft circular on October 11th which, if passed, is set to become the largest change to transfer pricing (TP) regulation since the implementation of Circular 66/2010/TT-BTC in 2010 – which the draft updates. Touching on conditionality of TP exemption and thresholds for defining related… – Continue reading

Multinationals Dodged Bullet on ‘Earnings Stripping’ Rules

Many kinds of U.S. multinational companies, including S-corporations, REITS, and financial services companies apparently dodged a bullet last month when the U.S. Treasury Dept. issued its final, substantially revised rules aimed at curtailing “earnings stripping.” The revised regulation represents an attempt by Treasury to help “narrow the rule and avoid… – Continue reading