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APAC Tax Matters - March 2012 - EY - China

APAC Tax Matters - March 2012

Australia   China
  • Proposed changes to transfer pricing laws and increased scrutiny by the Australian Tax Office (ATO)
  • ATO details its views on source and fiscally transparent entities for inbound investors
  • Government unveils plans to abolish tax free allowances for foreign nationals
  • Final element of Investment Manager Regime announced
  • Announcement of long-awaited changes to tax consolidation laws
  • New VAT rules in China: the Shanghai VAT Pilot
Hong Kong   India
  • Hong Kong faces peer pressure to sign standalone agreements on exchange of information
  • Rulings on payments on computer software characterized as royalties
  • Transfer of shares of a foreign company that indirectly held Indian assets not taxable in India.
Japan   Korea
  • Highlights of the earthquake recovery law and enactment of the 2011 Japan Tax reform proposals
  • New tax treaties signed with Netherlands and Switzerland
  • Creation of new middle corporate income tax bracket
  • Introduction of new highest individual income tax rate
  • Introduction of new documentation requirement for the application of tax treaties
  • Cancellation of exempt status  for interest income accrued on foreign currency denominated bonds issued in Korea
  • Creation of legal framework for correlative adjustments of national tax and customs duty for import transactions
Malaysia   New Zealand
  • Provisions of 2012 Budget now in effect
  • Proposed reduction in time period for tax audit
  • Tax schemes and aggressive tax planning
  • New Zealand / Hong Kong DTA in force
Singapore   Taiwan
  • Enhancement of the Productivity and Innovation Credit scheme
  • Enhancement of the merger and acquisition scheme
  • Enhancement of double tax deduction for internationalization scheme
  • Tax certainty of capital gains treatment on disposal of equity investments and vessels
  • Promoting the financial, shipping and aviation sectors
  • GST changes
  • Disallowance of interest in debt push down arrangements
  • Taiwan-Switzerland tax treaty enters into force
Thailand   Vietnam
  • Tax relief measures for BOI-promoted companies affected by flooding
  • Entitlement to VAT credit where enterprise is in breach of Enterprises and Investment Laws 
  • Invoice guidelines on real estate deals 
  • Conditions for application of VAT rate of 0%
  • CIT deferral and reduction in 2011
  • Recollection of import duties on imported raw materials
  • Re-export of fixed assets imported to form fixed assets 
  • More severe penalty on unlawful quotation of goods and services in foreign currency or gold  
  • Law on Non-Agricultural Land Use Tax and the Law on Environmental Tax came into effect on 1 January 2012

Inside March 2012 edition

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