Category: Asia

KMT to push cross-strait taxation pact in new legislative session

Taipei, Sept. 14 (CNA) The Kuomintang (KMT) government will be prioritizing passage of a cross-strait agreement on double taxation avoidance as well as bills on the budget, government restructuring and an all-volunteer military in the fall legislative session that opens Tuesday, Premier Mao Chi-kuo (毛治國) said Monday. Mao said the… – Continue reading

The Advantages of Enacting a Patent Box Regime

Many countries have enacted a patent box regime in order to spur innovation and create domestic manufacturing jobs. Simply stated, a patent box regime provides a lower tax rate on income from the exploitation of patented goods than for other income. Among the countries that have patent box regimes are… – Continue reading

Apple China Ordered To Pay $10 Million Fine For Tax Evasion

Apple’s CEO Tim Cook announced on Wednesday, Sept.9, that the famed brand’s revenue significantly increased in China by up to 75 percent in the past year. However, the country’s finance authorities cut the celebration short. China’s Ministry of Finance demanded Apple to pay 452 million yuan, a price equivalent to… – Continue reading

Vietnam-US double taxation avoidance will bring more gains than losses

With the agreement with the US, Vietnam has now signed the double taxation avoidance agreements with 70 out of 170 countries and territories with which Vietnam has trade and investment relations. Double taxation is considered a barrier to trade and investment. It discourages transnational investments while prompts individuals and businesses… – Continue reading

Government panel submits financial sector reforms report

A government committee on financial sector reforms has finalised a report, broadly outlining the amendments required in financial laws and taxation to make domestic sector more competitive in the international market. Sources in the know said the report was submitted on Tuesday by the Standing Council of Experts, which was… – Continue reading

Private banking: Singapore, Indonesia in private banking tug-of-war

Indonesians hold $300 billion in Singapore; controversial tax amnesty on the cards. Indonesia’s finance minister Bambang Brodjonegoro told Euromoney earlier this year that tax collection falls way short of targets and must improve to provide funding for infrastructure and other projects It doesn’t take much for Indonesia’s government officials to… – Continue reading

How captive IT offshore centers are driving IT innovation

Companies like Amazon, Tesco and Honeywell are looking to offshore IT subsidiaries to deliver digital transformation. New launches of captive centers offshore continued to increase in the first half of 2015, according to research from outsourcing consultancy Everest Group. Companies in the manufacturing, telecommunications and technology industries, in particular, expanded… – Continue reading

INDIA: FATCA GUIDANCE NOTES

India’s Ministry of Finance, Department of Revenue (Foreign Tax and Tax Research Division) on 31 August 2015 released guidance notes with respect to implementation of the reporting requirements under rules 114F to 114H of the Income tax rules. Rules 114F to 114H implement the intergovernmental agreement (IGA) between India and… – Continue reading

RBS sells corporate loan commitments portfolio

LONDON–Royal Bank of Scotland Group PLC (RBS.LN) has sold a portfolio of corporate-loan commitments related to its banking business in China for 498 million pounds ($755.1 million), as part of the bank’s strategy to focus mainly on U.K. and European customers. RBS said it has reached an agreement with China… – Continue reading

Underground Economics Korea’s Underground Economy Places 6th among OECD Member Countries

Policies are urgently needed for the legalization of the underground economy,” said Representative Oh Je-se of the New Politics Alliance for Democracy, who belongs to the Planning and Financial Committee of the National Assembly on Sept. 10. Rep. Oh added that Korea places sixth among OECD member countries in terms… – Continue reading

Agreement between Mainland China and Taiwan to avoid double taxation on income

On August 25, 2015, the People’s Republic of China and Taiwan signed an Agreement for the Avoidance of Double Taxation regarding Taxes on Income (“the DTA”), which will enter into force when the legal procedures have been completed. The DTA’s highlights: 1. Permanent establishment (“PE”) specifications The DTA establishes a… – Continue reading

Venezuelan President’s Visit to China Indicative of Growing Sino-Latin American Trade and Opportunities

On September 1, Venezuelan President Nicolas Maduro arrived to Beijing in an effort to strengthen economic ties between Venezuela and China. In his second visit this year, the Venezuelan President signed a number of deals that will strengthen cooperation in new areas beyond the current focus on the oil industry…. – Continue reading

The Case For A Territorial Tax Regime For Curaçao

Recently the Curaçao Minister of Justice, Mr. Nelson Navarro, approved the so-called Investor’s Permit to accommodate bonafide high net worth persons and entrepreneurs who seek admission to Curaçao. The purpose of the Investor’s Permit is for the investor to provide real economic benefit to Curaçao by increasing employment opportunities and… – Continue reading

Sebi asks market entities to follow I-T Department norms for FATCA

NEW DELHI: To ensure compliance with FATCA — the new US law to check offshore tax evasion — regulator Sebi today asked all market intermediaries to follow reporting requirements prescribed by Income Tax Department in this regard. Under Foreign Account Tax Compliance Act (FATCA), foreign financial institutions that fail to… – Continue reading

Malaysia Resolving International Tax Disputes

Introduction Shaped three decades ago by the then Prime Minister, Tun Dr. Mahathir bin Mohamad, Vision 2020 outlined Malaysia’s goals in becoming a fully developed nation. With the country’s move towards achieving this ‘Malaysian dream’, more Malaysian companies are venturing and investing outside of Malaysia. The increase in trade transactions… – Continue reading

Editorial: Financed from India

Given how China is trying to internationalise its currency, including getting more countries to settle trade in local currencies, it is not surprising that Indian policy-makers are looking at how to increase the rupee’s international acceptability. While that will have to wait till the Indian economy acquires China’s heft, a… – Continue reading

The Implications for International Tax Planning From the Looming Fiscal Crisis

The international financial sector faces a perilous future. Major challenges loom over an uncertain global economy, while a decidedly negative political climate poses an existential threat to the offshore financial community. With each passing year, thanks to demographic changes and poorly designed fiscal policies, politicians from high-tax nations will be… – Continue reading

Govt panel for tax changes

Suggests ending STT on equity derivatives, stamp duty on index ones; also for rupee’s internationalisation, other changes A government-appointed panel has recommended abolition of the securities transaction tax (STT) in equity derivatives. The standing council on international competitiveness of the Indian financial sector also suggested doing away with the stamp… – Continue reading

Vice Custodian of the Two Holy Mosques chairs the Cabinet session 3 Jeddah

The Cabinet, then discussed a number of domestic issues and, in this regard, expressed thanks to and appreciation of the competent security agencies and Saudi Customs for their following-up, monitoring and preventing drug smuggling attempts into the Kingdom and the arrest of those involved in the smuggling and their recipients,… – Continue reading

Indonesia and the Netherlands sign Protocol to amend existing Tax Treaty

On July 30, 2015, the Netherlands and Indonesia signed a protocol (the “Protocol”) amending an agreement between the Government of the Kingdom of the Netherlands and the Government of the Republic of Indonesia for the avoidance of double taxation and the prevention of fiscal evasion, originally signed on January 29,… – Continue reading

IRS Gets Tax Data From India As Black Money Hunt Hits Americans Too

Indian Prime Minister Narendra Modi promised to bring home millions of dollars of illicit money stashed abroad. Indians call undisclosed money ‘black money,’ and how much there is remains unclear. But it isn’t just billions. It could be hundreds of billions to more than $1 trillion. It isn’t merely offshore… – Continue reading

Transfer pricing remains thorny issue for international trade

Multinational companies are facing far more expansive and complex audits by tax authorities fighting over the same pot of profits as budget deficits continue to increase, reports BD Live. An inevitable outcome of efforts globally to prevent tax bases from erosion is double taxation and increased disputes over adjusted assessments… – Continue reading

Guernsey: What Guernsey Can Offer Chinese HNWIs’

In September 2014, the Hurun Research Institute published its annual listing of the richest people in China. It showed that IT tycoon Ma Yun had increased his personal fortune during the last year by 500% to $25 billion and in doing so, had climbed to first position on the list…. – Continue reading

RI to adopt financial data exchange globally

The government is looking to adopt a global standard on exchange of financial information in 2017 in the hope of addressing the country’s tax revenue issues, according to a Cabinet minister. Finance Minister Bambang Brodjonegoro said the move would enable the government to collect financial data on accounts belonging to… – Continue reading

Managing the transfer pricing of intangibles in the oil and gas sector

Intangible assets in the oil and gas industry have become incredibly valuable. Taxpayers need to understand how to manage compliance to mitigate their transfer pricing risks What do recent Western economic sanctions against Russia; the US’ growing energy independence; and ultra-deepwater oil and gas (O&G) discoveries off the coast of… – Continue reading

Undisclosed foreign bank accounts: CBDT issues guidelines for compounding of offences

NEW DELHI: The Central Board of Direct Taxes (CBDT) has issued guidelines for compounding of offences under Income Tax Act, 1961/Wealth Tax Act, 1957, in cases of persons holding undisclosed foreign bank accounts/assets. The CBDT on Friday issued directions to all field formations, including principal chief commissioners, chief commissioners and… – Continue reading

Taxpayers facing double taxation due to different provincial laws: KTBA

KARACHI: The provincial finance ministries have been urged to resolve their differences on rights of taxability among themselves, as taxpayers are facing double taxation on services on the basis of origin and destination. In communications sent on Monday to ministers of finance of Sindh, Punjab, Khyber-Pakhtunkhwa and Balochistan, the Karachi… – Continue reading

New Swiss Banking Norms May Not Help India’s Hunt for Black Money

Switzerland will allow stolen data acquired through official means to form the basis for a request for assistance but will help India only for post-2011 bank accounts, that too as long as Swiss courts don’t interfere Geneva: Switzerland’s proposed changes on treating stolen information have generated much optimism in India… – Continue reading

Implementation Of The Multilateral Competent Authority Agreement And Foreign Account Tax Compliance Act

SEBI on August 26, 2015 released a notification on the captioned head. It informed the intermediaries that India has joined The Multilateral Competent Authority Agreement (MCCA). Further on July 09, 2015, the Governments of India and United States of America signed an agreement to improve international tax compliance and to… – Continue reading

G20 finance communique: Long on reassurance, light on policy

G20 Finance Ministers and Central Bank Governors released their third communique of 2015 over the weekend. Their rhetoric is notable for the calm statement of positive reassurance on the macroeconomic environment, although the direct policy commitments appear to be light on. In the communique, Ministers and Governors recognised the significant… – Continue reading

Indian Competent Authority Akhilesh Ranjan On BEPS

At the 69th IFA Congress in Basel, Taxsutra’s Arun Giri, accompanied by well known tax expert Mukesh Bhutani, interviewed India’s Competent Authority Akhilesh Ranjan. Mr. Ranjan is leading the country’s charge on BEPS, and offers candid views on various issues including confidentiality of information, possibility of a BEPS outcome that… – Continue reading

Firms told to prepare for FATCA implementation

THE BUREAU of Internal Revenue (BIR) has advised Philippine financial institutions to start preparing for the implementation of a United States law requiring the reporting of bank accounts held by American taxpayers locally. In an advisory, the BIR said the start of reporting will not yet take place at the… – Continue reading

Political courage needed on tackling inequality

Government must make good on its vows, says Jamie Livingstone In less than two weeks, leaders from 193 states will meet at the United Nations in New York to formally adopt, in effect, a new plan to fight extreme poverty, tackle inequality and end hunger. The Sustainable Development Goals (SDGs)… – Continue reading

Phuket Expat Finance: QROPS – Back to Basics

PHUKET: In 2005 the EU Commission proposed a directive that laid the foundations for a radical change in the portability of an individual’s pension. British, Dutch and Irish nationals were given the flexibility to move certain private pensions to the jurisdiction of their choice, rather than leave it in their… – Continue reading

Iran, Iraq sign three major economic agreements

Tehran, Sept 6, IRNA – Economy Minister Ali Tayyebnia and visiting Iraqi Finance Minister Hoshyar Zebari, in a meeting on Sunday, signed three strategic economic agreements. The three agreements were about customs cooperation, avoiding double taxation and encouraging joint investments. Tayyebnia said that Iran-Iraq trade, including other cooperation such as… – Continue reading