KPMG - cutting through complexity

International Tax

Newsletter

 

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG firms in the Asia Pacific & MESA regions between 1 March and 31 March 2014.

Australia Hong Kong New Zealand Vietnam
Cambodia India Singapore  
China Israel Taiwan  

For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.

To contact the International Tax Team email internationaltax@kpmg.com.

  Tax area concerned Relevant date/case reference Description of measures and publication link
(Considerations in italic where necessary)
Australia
Tax legislation adopted and regulatory update Various tax areas March 2014 KPMG in Australia prepared reports on the following developments:
Tax tips for acquisitions in the resources sector
Closing loopholes or creating trouble for foreign multinationals
Off-market share buybacks
Options for amending tax assessment
Read more
KPMG in Australia prepared reports on the following developments:
BEPS and indirect tax
Depreciation changes—from 150 percent to 200 percent
Jockeying for a slice of the May Budget
ATO indicates thinking on employee reward trusts
Read more
KPMG in Australia prepared reports on the following developments:
Petroleum resource rent tax
Comparing Australia’s double tax agreements
New third-party data reporting regime
GST optimization
Read more
KPMG in Australia prepared reports on the following developments:
Super funds: tax treatment of payments to regulators and administrators
No risk, no reward – R&D tax offset eligibility
What is a financing arrangement?
Infrastructure – can we afford it?
Read more
Proposed legislation Transfer pricing March 2014 Australia’s current thin capitalization regime prevents excessive debt allocation to Australian multinational businesses by imposing safe harbour limits. With the government proposing to reduce the safe harbour gearing limits down from 75 percent to 60 percent, greater reliance on the arm’s length debt test is expected for those borderline cases that may breach safe harbour test under the changed law.
Read more
Most groups will already have commenced an accounting period under Australia’s new transfer pricing self-assessment regime. The new rules require a taxpayer to consider the substance and form of each transaction. While this could be considered at year-end, it is prudent to consider the position on a real-time basis if the aim is to have a “reasonably arguable position” to support a self-assessment position and mitigate potential penalties.
Read more
Other Country-by-country reporting March 2014 Australian taxpayers are already subject to extensive transfer pricing recordkeeping rules, following last year’s passage of Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013. What would be the effect of country-by-country reporting, as proposed in an initial draft template of the Organisation for Economic Cooperation and Development (OECD)?
Read more

Back to top

Cambodia
Tax legislation adopted and regulatory update Annual interest market rate 2013 Cambodia’s tax administration issued a “notification” in February 2014 establishing the “annual interest market rate” for loans in 2013.
Read more

Back to top

China
Tax legislation adopted and regulatory update Free trade zone March 2014 Enterprises registered under the Shanghai “pilot” free trade zone program must publicly release certain business information. Accordingly, these enterprises need to pay attention to the timeline and contents of annual reporting.
Read more
The People’s Bank of China (Shanghai headquarters) issued guidance concerning the expansion of RMB cross-border business in the Shanghai “pilot” free trade zone.
Read more

Back to top

Hong Kong
Tax legislation adopted and regulatory update Company law regime 3 March 2014 Newly effective law—the Companies Ordinance—in Hong Kong is designed to facilitate business by modernising the company law regime and enhancing regulation.
Read more
Profit tax on captive insurers business 2014-2015 Under new legislation in Hong Kong, “captive insurers” will benefit from a 50 percent reduction in the profits tax on their insurance business of offshore risks.
Read more
Tax compliance 2013/14 The Inland Revenue Department issued an interim administrative measure, announcing that it will accept profits tax returns for 2013/14 if assessable profits are computed on a “fair value” basis.
Read more

Back to top

India
Tax legislation adopted and regulatory update Various tax areas March 2014 KPMG in India prepared reports on the following developments:
Service tax on services received and consumed abroad
Interest rate on Employees’ Provident Fund Scheme
Amended rules concerning service tax credits and input service distributors
Read more
Administrative and case law Various tax areas March 2014 Case law has been published in India with respect to the following subjects:
Income from supply of telecommunications network equipment (including software) is taxable as business income under India-China tax treaty
Interest is payable on refund of excess tax withholding
Proportionate allotment of additional shares (stock dividend) is not income
Read more
Case law has been published in India with respect to the following subjects:
R&D expense claim allowed even though not originally claimed on tax return, but during assessment proceedings
Salary deposited in Indian bank account of a non-resident, who is employed outside India, not taxable in India
Read more
Transfer pricing March 2014 The Delhi bench of the Income-tax Appellate Tribunal held that a corporate guarantee issued by the taxpayer for the benefit of its related entities (and that did not involve any costs or have any bearing on profits) was not an “international transaction” for purposes of India’s transfer pricing rules.
Read more

Back to top

Israel
Tax legislation adopted and regulatory update Trusts March 2014 Israel’s tax authority in early March 2014 published guidance providing certain relief with respect to the taxation of Israeli resident beneficiary trusts.
Read more
Proposed legislation FATCA March 2014 The Bank of Israel published draft guidance for banking corporations to prepare for the implementation of the FATCA provisions, whether or not an intergovernmental agreement is signed with the United States before July 1, 2014.
Read more

Back to top

New Zealand
Tax legislation adopted and regulatory update Tax residence 1 April 2014 The Inland Revenue Department released long-awaited guidance—an “interpretation statement”—on tax residence, thus updating previously published guidance from June 1989.
Read more
Financial reporting requirements 1 April 2014 New Zealand’s government introduced a new minimum financial reporting framework for small to medium-sized companies.
Read more
Other BEPS March 2014 New Zealand taxpayers need be aware of the potential BEPS risks for their businesses and plan accordingly.
Read more

Back to top

Singapore
Proposed legislation Budget 2014 Following the Singapore’s 2014 budget statement (presented 21 February 2014), KPMG in Singapore has prepared an analysis of changes and initiatives in the 2014 budget.
Read more
Administrative and case law Capital gains Comptroller of Income Tax v. BBO (2014) MSTC 70-029 The Court of Appeal affirmed a decision of the High Court, finding that shares that an insurance company held in three other entities (i.e., core shares) were capital assets. Thus, the gain on disposal of these shares was capital and not subject to tax.
Read more

Back to top

Taiwan
Proposed legislation Various tax areas 1 January 2015 Taiwan’s Executive Yuan on 13 March 2014 passed draft amendments to the income tax law, VAT law, and business tax law, and with this action, the legislation is sent to the Legislative Yuan for its consideration.
Read more
March 2014 Taiwan’s Finance Minister recently discussed proposals to:
Increase the business tax rates on the banking and insurance industries
Reduce the imputation credit ratio on dividends
Increase the income tax rate of high-income earners
Extend the period to claim investment tax credit on R&D expenditures
Provide tax incentives to encourage enterprises to hire more employees
Read more

Back to top

Vietnam
Tax legislation adopted and regulatory update VAT March 2014 Guidance from the tax authorities in Vietnam addressed various VAT issues.
Read more

Back to top

 
kpmg.com/socialmedia
Twitter Linkedin Google+ Facebook
 
 
 
 
 
kpmg.com/app
Privacy | Legal

© 2014 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG name, logo and "cutting through complexity" are registered trademarks of KPMG International.

Designed by Evalueserve.
Publication Number: 131176