Asia Pacific & MENASA International Tax Newsletter
Asia Pacific & MENASA regions
June 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 June and 30 June 2018.
| Asia Pacific | Australia | Cambodia |
| China | Hong Kong (SAR) | India |
| Japan | Myanmar | Pakistan |
| Thailand |
For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.
To contact the International Tax Team email internationaltax@kpmg.com.
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Asia Pacific
Other
General tax update for financial institutions - June 2018
A summary of tax developments of interest to financial institutions in the Asia Pacific region from the second quarter of 2018 includes updates from Australia, China, Hong Kong, India, Indonesia and Korea.
Australia
Tax legislation approved and regulatory update
Budget - 18 June 2018
KPMG in Australia discusses the recently launched ACT 2018-19 budget.
State budget - 12 June 2018
The Queensland Treasurer, Jackie Trad, delivered the 2018-19 Queensland State Budget.
State budget - 14 June 2018
The Tasmanian Treasurer, Peter Gutwein, delivered the 2018-19 Tasmanian State Budget. Focused on “building for the future and taking Tasmania to the next level”, the Tasmanian Government has allocated a record AUD 2.6 billion in funding for new job creating infrastructure initiatives over a four year period.
Tax residency - 27 June 2018
KPMG in Australia reviews the ATO's Taxation Ruling TR 2018/5 in regards to when a foreign-incorporated entity may be an Australian tax resident.
Proposed legislation
Various tax areas - 30 June 2018
The Government has released for consultation an Exposure Draft of the Treasury Laws Amendment (2018 Measures No. 5) Bill 2018: AMIT Technical Amendments, more commonly referred to as the “AMIT Fix-up Bill”.
Administrative and case law
Superannuation - 6 June 2018
KPMG in Australia discusses the proposed 12 month amnesty for employers who make voluntary SGC disclosures.
Cambodia
Treaties
Double tax treaties - June 2018
The Ministry of Economy and Finance issued guidance on the implementation of the Double Taxation Agreements with Singapore, China, Brunei Darussalam and Thailand.
China
Tax legislation approved and regulatory update
Tax incentives - June 2018
In recent years the Chinese government has progressively replaced administrative pre-approvals, for various tax treatments and regulatory licenses, with recordal requirements.
Proposed legislation
Individual income tax - 19 June 2018
The Ministry of Finance of the PRC, outlined the proposed amendments to the PRC Individual income tax law.
Administrative and case law
Customs duties - 1 July 2018
The government of China has formally announced a customs duty (tariff) reduction under which “most favored nation” (MFN) rates would be reduced for almost 1,500 “8-digits items.
Hong Kong (SAR)
Tax legislation approved and regulatory update
Corporate income tax - June 2018
There have been various accounting changes which have significant tax implications on how certain items are accounted for and potentially taxed.
Open Ended Fund Companies regime - 30 July 2018
The government gazetted the Securities and Futures (Open-ended Fund Companies) Rules and the Securities and Futures (Open-ended Fund Companies) (Fees) Regulations.
Others
Equity based compensation - June 2018
A look at how the increase in new-economy companies in Hong Kong is changing equity-based compensation.
India
Administrative and case law
Various tax areas - June 2018
KPMG in India has prepared reports on the following tax developments:
- amount received for providing training services not “fees for technical services” under treaty with the Netherlands
- foreign investment reporting, single master form
- share premium received from foreign holding companies not income chargeable to tax.
Various tax areas - June 2018
KPMG in India has prepared reports on the following tax developments:
- tax treatment of payments foreign company received for global reservations, other services
- issuance of “fresh” equity shares not a transfer of capital asset, and not taxable
- foreign non-profit’s receipts not taxable in India.
Various tax areas - June 2018
KPMG in India has prepared reports on the following tax developments:
- payments for content delivery solutions do not create permanent establishment
- loan-related fees paid to non-resident under India-France income tax treaty
- marketing business process outsourcing services not taxable as fees for technical services
- discounted cash flow method, tax treatment of share transfers.
Various tax areas - June 2018
KPMG in India has prepared reports on the following tax developments:
- India-United States income tax treaty benefits apply without tax residency certificate
- Indian subsidiary not permanent establishment under India-Saudi Arabia income tax treaty.
Japan
Treaties
Trade agreement - 13 June 2018
Japan’s Diet passed a bill for ratification of a “comprehensive progressive agreement” for the Trans-Pacific Partnership trade agreement.
Myanmar
Tax legislation approved and regulatory update
Withholding tax - 1 July 2018
The notification 47/2018 was issued on 18 June 2018 to make some significant changes to the withholding tax system that take effect from 1 July 2018.
Pakistan
Tax legislation approved and regulatory update
Various tax areas - 5 June 2018
Tax law amendments proposed by Finance Bill, 2018, have been enacted as Finance Act 2018.
Thailand
Proposed legislation
Currency conversion methods - 6 June 2018
The Thai Revenue Department released draft amendments to the Thai Revenue Code to introduce alternative currency conversion methods and a new functional currency approach.
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