APAC Tax Matters: 13th edition
Welcome to the thirteenth edition of APAC Tax Matters, your update on tax events throughout the Asia-Pacific region.
Rules on taxation of indirect transfer under India-France Double Taxation Avoidance Agreement
The Vodafone case dominates our roundup on India where we report on a decision by the High Court that gains similar to those arising in the Vodafone case were protected from tax in India. Also with reference to Vodafone, we report on the Indian Union Cabinet's approval that a non-binding conciliation process be initiated to resolve the Vodafone dispute.
Update on changes to thin capitalization rules
From New Zealand we report on key changes to the country's thin capitalization rules and unresolved technical issues in respect of the same, while from Australia we have news of a reduction in the main thin capitalization safe harbour ratio.
Amendments to Australia’s general anti-avoidance rule
Our coverage of Australia also includes concerns expressed over the long awaited amendment to Australia's general anti-avoidance rule and the increased reliance to be placed on taxpayers being able to establish that a transaction has not been entered into with the dominant purpose of obtaining a tax benefit.
Australian Taxation Office’s reporting of companies’ taxes
We round off our update from Australia with a report on the potential implications for taxpayers on the Australian Taxation Office’s requirement to make public details of the gross income and taxes paid by companies with annual income of AUD100 million or more.
Transfer pricing regulations and exchange of information in the Philippines
We also cover transfer pricing in our Philippines update where we report on regulations issued to enable the Commissioner of Inland Revenue to apply the arm's length principal.
From both the Philippines and Hong Kong, we cover developments in each jurisdiction as regards the hot topic of exchange of information, on a stand-alone basis with respect to Hong Kong, and in tax treaties concluded by the Philippines.
New tax incentives
As regards to new tax incentives, we report on initiatives announced in Singapore's 2013 Budget to attract multinationals, Taiwan's plan to establish "free economic pilot zones", Thailand's proposal to improve incentives for regional operating headquarter companies, Malaysia's Labuan International Commodity Trading Company program, and Japan's measures to boost domestic capital investment and expand tax credits for expenditure on research and development.
The new Korean withholding tax regime
Our update from Korea concerns the introduction of specific criteria to determine whether a foreign organization can be regarded as a foreign corporation and details of Korea's new withholding tax regime together with the forms that must be submitted to withholding agents in order for a foreign investor to benefit from a reduced rate of withholding under a treaty.
The launch of the Value-Added Tax Pilot Arrangements in China
China provides the indirect tax news for this edition where we report on the nationwide launch of the Value-Added Tax Pilot Arrangements for the transportation industry and certain modern service industries.
Download full report of APAC Tax Matters (pdf, 3.2mb).