Asia Pacific & MENASA
International Tax Newsletter
Asia Pacific & MENASA regions
January 2018
This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Asia Pacific and MENASA regions between 1 January and 31 January 2018.
| Asia Pacific | Australia | China |
| Hong Kong | India | Oman |
| Philippines | Singapore | Taiwan |
| Thailand | Turkey |
To contact the International Tax Team email internationaltax@kpmg.com.
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Asia Pacific
Treaties
Agreement for Trans-Pacific Partnership - March 2018
Eleven countries have reached agreement on the final Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Australia
Proposed legislation
Deductible gift recipient - 5 December 2018
The Federal Government announced reforms relating to the administration and conduct standards for organizations with Deductible Gift Recipient (DGR) status.
China
Tax legislation approved and regulatory update
Customs duties - December 2017
KPMG in China has prepared a report highlighting the custom policy updates for December 2017.
Tax incentives / Withholding tax - January 2018
Guidance has been issued by several government ministries to encourage overseas investors to expand investments in China. Profits derived by a foreign investor from resident companies in China will be entitled to a tax deferral incentive and temporally will not trigger withholding tax, provided that the profits are reinvested in “encouraged projects” and that other conditions are met.
Administrative and case law
Advance rulings - 1 February 2018
The General Administration of Customs issued interim administrative measures on advance rulings that are effective 1 February 2018.
Hong Kong
Tax legislation approved and regulatory update
Corporate income tax - 1 April 2018
A new two-tiered profits tax rate regime was introduced in Hong Kong. The key objective of the profits tax bill is to maintain a competitive taxation system to promote economic development while maintaining a simple and low tax rate regime.
India
Administrative and case law
Permanent establishment - January 2018
The Mumbai Bench of the Income-tax Appellate Tribunal held that the UAE-based taxpayer did not have a service permanent establishment in India under terms of the India-UAE income tax treaty because the period (days) of working by the taxpayer’s employees was less than nine months. The case is: Booz & Company (ME) FZ-LLC.
Various tax areas - January 2018
KPMG in India has prepared a summary of recent tax developments, including:
- relaxed” minimum alternative tax provisions for companies undergoing corporate insolvency
- annual franchise fees are deductible revenue expenditures. The case is: Knight Riders Sports Private Limited.
- Foreign direct investment policy
- Ex-gratia for settling industrial dispute. The case is: Vishnu Mohan T. Nair.
- Omitted section deemed omitted from inception. The case is: Texport Overseas Private Limited.
Various tax areas - January 2018
KPMG in India has prepared a summary of recent tax developments, including:
- capital gains on indirect transfer of shares not taxable. The case is: GEA Refrigeration Technologies GmbH.
- payment for offshore supply of equipment. The case is: Michelin Tamil Nadu Tyres Pvt Ltd.
- space for rendering services constitutes permanent establishment. The case is: Production Resource Group.
- revenue recognition, real estate developer. The case is: Vastukar Township Pvt. Ltd.
Other
Various tax areas - 2017
KPMG in India has prepared a report that provides summary discussions of certain “key” direct tax and indirect tax developments during 2017.
Oman
Proposed legislation
Corporate income tax / WHT - 2018
With tax law amendments made in February 2017, no further significant amendments are anticipated to the corporate tax regime for 2018. It is expected that regulations will be issued to implement and clarify the recent amendments to the tax law—specifically concerning uncertainties in application of withholding taxes on payments such as service fees, interest, and dividends.
Philippines
Administrative and case law
Stamp tax - 25 January 2018
The Bureau of Internal Revenue issued a tax advisory instructing all users of the “electronic documentary stamp tax” (eDST) system to adopt the constructive stamping procedures for DST transactions in early 2018 and pending adjustment of the new DST rates.
Singapore
KPMG publications
Various tax areas - January 2018
KPMG in Singapore has prepared a pre-budget 2018 report which examines how should policy makers enhance Singapore’s growth strategy for the digital economy and the various types of support that companies require for future growth.
Taiwan
Tax legislation approved and regulatory update
Corporate income tax - January 2018
The Ministry of Finance released rules for the income tax treatment of revenue received by foreign e-services providers. The income tax regime focuses on the revenue derived by foreign e-services providers from e-services provided to onshore Taiwan customers.
Thailand
Proposed legislation
VAT - 9 February 2018
The Thai Revenue Department released a second draft of proposed tax legislative amendments that would, if enacted, affect foreign e-commerce operators in the Thai market.
Administrative and case law
Immigration - 2018
By mid-January 2018, the Government of Thailand will launch a “Smart Visa” scheme which grants 4 years permission to investors and highly skilled professionals working within 10 specialized fields.
Treaties
Double tax treaty - 1 January 2018
An income tax treaty between Thailand and Cambodia, signed in September 2017, has entered into force and is effective as of 1 January 2018.
Turkey
Tax legislation approved and regulatory update
Custom duties - 28 February 2018
The rules for certificates of origin for goods imported into Turkey from the European Union have been simplified.
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