News Asia
China Plans Shanghai Free Trade Zone To Feature 15% Income Tax Rate
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August 8th, 2019
The Chinese State Council set out a new reform plan for the Shanghai Pilot Free Trade Zone (FTZ), which may also indicate the direction of future nationwide reform efforts. Prior to this, the Shanghai FTZ reform efforts were set out in a general plan in 2017 including puts forward some innovative measures, inter alia, in relation to: (i) cross-border services and trade management; (ii) free trade port areas; (iii) financial services supporting the “Belt and Road” initiative; and (iv) offshore tax structuring.
India’s Budget 2019-20: Expanding Lower Corporate Rate, Increasing Tax Rate For Higher Earners
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July 9th, 2019
India's Union Budget for 2019-20 was presented to Parliament, proposing changes to the tax laws starting 1 April 2019. This Finance Bill follows the interim budget announcement in February 2019 which was made ahead of the recent national elections.
Taiwan Releases Guidance On The Application Of The Beneficial Owner To Be Aligned With OECD Approach
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July 2nd, 2019
Taiwan’s Ministry of Finance (MOF) released guidance to clarify the application of the term “beneficial owner” (BO) for tax treaty purposes. The Guidance aims to provide greater clarity for taxpayers as it specifies the situations where BO status will be granted or denied and aligns Taiwan’s position with the OECD Model Tax Convention Commentary, MOF practices and approaches taken by other countries.
Indonesia Proposed Amendments to Special Economic Zones Regime and Tax Cuts for Certain Sectors
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June 26th, 2019
Jakarta - Finance Minister of Indonesia, Sri Mulyani Indrawati, provides information to the media crew about the Government's plan to cut taxes in certain industrial sectors to attract investment.
Lowering Corporate Income Tax .
India - Government Tax Update
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June 6th, 2019
Herewith we provide you with the latest tax updates of the Indian Government:
Amendment in form no. 15H in notification no. 41/2019
India Publishes Notification On CbC Exchange Agreement With The U.S.
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April 30th, 2019
India published Notification No. 37/2019 from the Department of Revenue in an extraordinary version of the Official Gazette.
India and US Filling
Indian Court Strucks Down Tax The Incentive Plan for Tax Appeal Orders
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April 25th, 2019
In Chamber of Tax Consultants v. Central Board of Direct Taxes, W.P. No. 3343-18/P.I.L. No. 144-18, released April 23, the High Court of Bombay declared invalid an incentive scheme that awarded additional performance credits to commissioners of income tax (appeals) for “quality appellate orders.”
Background .
China Establishes Multilateral Tax Cooperation Mechanism Under The Belt And Road Initiative Tax Administration
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April 23rd, 2019
China has launched the Belt and Road Initiative (BRI) Tax Administration Cooperation Mechanism, intended to facilitate cross-border trade and investment along BRI routes by helping resolve tax disputes, increasing transparency, streamlining compliance, digitizing filing and building a growth-friendly tax environment which fully respects the sovereignty, territorial integrity, and tax laws of each participating jurisdiction.
BRITACOM .
Chinese Ministry Of Finance Introduces Tax Breaks For Innovative Companies Depository Receipts
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April 19th, 2019
China's Ministry of Finance announced the launch of a pilot program providing new tax incentives to support China innovative-driven strategy, which includes incentives for investments in Chinese Depository Receipts (CDRs) issued by innovative Chinese enterprises. CDRs are similar to American Depositary Receipts (ADRs), which are negotiable securities that represent shares of a foreign company.
Malaysian Parliament Approves Bill To Impose Service Tax On Digital Services
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April 10th, 2019
The Malaysian government approved the Service Tax (Amendment) Bill 2019, which provides for the taxation of digital services. The service tax applies to foreign service provider making supplies to Malaysian consumers (B2C) which starts from 1 January 2020.
Japan’s Parliament Passes 2019 Tax Reform Bill
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April 5th, 2019
Japan's National Diet (parliament) reportedly approved the legislation for the government's tax reform proposals for 2019. The amendments with regard to corporate taxation encompass transfer pricing, earning stripping rule, and Controlled Foreign Corporation (CFC) rules.
Indonesia Cracks Down On Digital Transactions By Issuing Rules Governing Taxation of E-Commerce
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January 18th, 2019
The Indonesias government has issued regulations requiring small to medium-size online businesses to pay tax at a rate of 0.5 npercent of sales, while larger e-commerce companies need to pay a higher corporate income tax rate of 25 percent.
South Korea Boosts Its Economic Growth By Adopting BEPS Measures And Incentivizing Certain Sector
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January 14th, 2019
South Korea in its press release will reportedly implement the tax reform to boost the economic growth by implementing the Base Erosion and Profit Shifting (BEPS) measures and incentivizing certain business sector.
The Favorable Incentives .
Japan’s 2019 Tax Reform Proposal Updates Transfer Pricing Rule
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December 20th, 2018
Japan’s coalition leading parties released the 2019 tax reform proposal. The proposal includes some important items following the base erosion profit shifting (BEPS) plans recommendations to counter multinational tax avoidance.
Taiwan Updates List Of Jurisdiction For CbC Exchange
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December 6th, 2018
The Taiwanese Ministry of Finance issued a notice on an updated reference list of Jurisdictions with which Taiwan is able to exchange Country-by-Country (CbC) reports effectively in accordance with existing in force agreements. The announcement followed by another declaration on exchange information agreement, in which Japan and Taiwan agreed to automatically exchange the Financial Account Information (CRS) in Tax Matters and of Country-by-Country Reports.
India and China Amend Double Taxation Avoidance Agreement (DTAA)
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November 27th, 2018
The Government of the Republic of India and the Government of the People's Republic of China have amended the Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, by signing a Protocol on 26 November 2018. The official protocol has not been published yet, but according to the Indian Ministry of Finance, the amendment includes the adoption of the latest standard on EOI and minimum standard on BEPS project.
Hong Kong Published Advance Tax Ruling Case No. 65
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October 4th, 2018
The Hong Kong Inland Revenue Department released Advance Ruling Case No. 65 to deal with tax treatment of assets, liabilities and losses in business combination.
China Expands The Scope Of Withholding Tax Relief On Dividends Of Foreign Investors Used For Direct Investment
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October 2nd, 2018
Chinese State Administration of Taxation (SAT) issued a circular (Circular Cai Shui [2018] No. 102) on 29 September 2018. This circular is retroactively applicable to dividends, bonuses and other equity investment gains received by foreign investors on or after 1 January 2018 and the Circular Cai Shui [2017] No.
China Increases Super Deduction For R&D Activities To 175%
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September 25th, 2018
The Chinese Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology issued a circular (Cai Shui [2018] No. 99) about the super deduction for research and development activities (R&D).
India Approves Exemption To Interest Income On Specified Off-Shore Rupee Denominated Bonds
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September 18th, 2018
The Indian Ministry of Finance issued the new incentive measure that interest payable by an Indian company or a business trust to a non-resident, including a foreign company, in respect of rupee denominated bond issued outside India during the period from September 17, 2018 to March 31, 2019 shall be exempt from tax.
Background .

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