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International Tax Newsletter - Asia Pacific & MENASA

Asia Pacific & MENASA International Tax Newsletter

Asia Pacific & MENASA regions

October 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 October and 31 October 2018.

 

Australia Bahrain Bangladesh
China Egypt Hong Kong (SAR)
India Indonesia Iraq
Macau Myanmar New Zealand
Oman Qatar Saudi Arabia
Sri Lanka Taiwan Thailand



For a full summary of global tax developments, visit kpmg.com/TaxNewsFlash.

To contact the International Tax Team email internationaltax@kpmg.com.

To register for the International Tax webcasts, click here.

International Tax Newsletter - Asia Pacific & MENASA

Hot topic

Australia - ATO finalises Diverted Profits Tax guidance

The Australian Taxation Office (ATO) has finalised its guidance on the Diverted Profits Tax (DPT) with the release of both the DPT Practical Compliance Guideline (PCG 2018/5) and Law Companion Ruling (LCR 2018/6).

Read more.

Australia

Proposed legislation

Corporate income tax - 11 October

The prime minister announced that the government will be fast-tracking the tax rate reduction for companies with a turnover of less than AUD 50 million.

Read more.

 

Proposed legislation

GST - 1 October 2018

The prime minister announced plans for legislation to make GST reforms.

Read more.

 

Other

Corporate income tax / Digital economy - 4 October 2018

A discussion paper released by the Australian Treasury considers whether and how the corporate tax rules might need to evolve to address digitalised business models.

Read more.

 

Administrative and case law

Tax treaties - 12 October 2018

The Full Federal Court handed down its decision in Satyam Computer Services Limited v Commissioner of Taxation.

Read more.

 

Treaties

Multilateral instrument - 1 January 2019

Australia has ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting — the “multilateral instrument”.

Read more.

Bahrain

Tax legislation approved and regulatory update

VAT  - 1 January 2019

Measures implementing a VAT system in Bahrain will be effective 1 January 2019. This reflects the kingdom’s commitment to a unified agreement for a VAT regime.

Read more.

Bangladesh

Tax legislation approved and regulatory update

Permanent establishment / WHT  - October 2018

KPMG in Bangladesh summarizes the tax updates in the Finance Act 2018 regarding the definition of permanent establishment and indirect relation to share transfer, reduced or nil withholding tax certificate, as well as the definition of “taxed dividend”.

Read more.

China

Tax legislation approved and regulatory update

Individual income tax - 9 October 2018

At the end of August this year, the government in the People’s Republic of China passed a number of major reforms to individual income tax law.

Read more.

 

Proposed legislation

Individual income tax - 20 October 2018

The Ministry of Finance and State Administration of Taxation released draft rules for implementing individual income tax measures, including provisions relating to the administration of itemized deductions.

Read more.

Egypt

Tax legislation approved and regulatory update

Tax amnesty/WHT - October 2018

KPMG in Egypt provides an overview of significant changes to Egypt’s tax laws, including:

  • tax amnesty for delay penalties and additional tax, and amending rules concerning settlement of tax disputes
  • new withholding tax rates.

Read more.

Hong Kong (SAR)

Proposed legislation

Tax incentives  - 10 October 2018

Chief Executive delivered her second policy address, which sets out the Hong Kong (SAR) government’s policies over the coming years. Key tax measures include:

  • introducing tax concession measures to attract more ship leasing companies to set up operations and expand their businesses in Hong Kong;
  • providing tax reliefs to promote the development of marine insurance and the underwriting of specialty risks in Hong Kong.

Read more.

 

India

Administrative and case law

Various tax areas - October 2018

KPMG in India has prepared reports on the following tax developments:

  • external "commercial borrowings” policy for oil companies 
  • securities transaction tax 
  • medicines supplied by hospital pharmacy to out-patients is taxable 
  • solar equipment falls under composite supply 
  • merger rejected, potential revenue loss cited

Read more.

Various tax areas - October 2018

KPMG in India has prepared reports on the following tax developments:

  • time limit for claiming input tax credit:
  • disallowance of expenditure not applicable under India-Mauritius tax treaty
  • complimentary tickets subject to GST
  • stay application

Read more.

Indonesia

Tax legislation approved and regulatory update

Tax refunds - 8 October 2018

The Ministry of Finance has issued a regulation regarding Procedures for Preliminary Refunds of Tax Overpayments.

Read more.

Iraq

Tax legislation approved and regulatory update

Tax compliance - October 2018

KPMG in Iraq summarizes developments regarding obligations of retaining the accounting books related to tax payers’ business in their working place or any other place in Iraq, compliance requirements of the general commission for taxes with regards to payroll, corporate, and withholding taxes.

Read more.

Macau (SAR)

Proposed legislation

Tax transparency - 1 January 2021

The government of Macau (SAR) has proposed repealing the existing offshore company regime as part of Macau’s commitment in joining the OECD’s inclusive framework to combat cross-border tax evasion and promote tax transparency.

Read more.

Myanmar

Tax legislation approved and regulatory update

Company law - 1 August 2018

The New Myanmar Companies Law (“the Law”) entered into force and the Myanmar Companies Act (1914) was repealed.

Read more.

New Zealand

Proposed legislation

GST - 19 October 2018

More details on the proposed collection of goods and services tax on “low-value” imported goods have been released.

Read more.

Oman

Tax legislation approved and regulatory update

VAT / WHT - October 2018

KPMG in Oman summarizes developments regarding excise tax, VAT and WHT.

Read more.

Qatar

Tax legislation approved and regulatory update

Country-by-country reporting / VAT - October 2018

KPMG in Qatar provides an overview of Country-by-country reporting, Common Reporting Standards and updates on VAT implementation.

Read more.

WHT - 14 October 2018

The Ministry of Finance issued a circular that reiterates and serves as a reminder of the withholding tax requirements in Qatar under provisions of the income tax law and pursuant to prior guidance.

Read more.

 

Proposed legislation

VAT - 9 October 2018

Under the Gulf Cooperation Council’s framework, Qatar is expected to introduce a VAT regime in 2019, with the standard VAT rate to be 5 percent.

Read more.

 

Saudi Arabia

Treaties

Multilateral instrument - October 2018

Saudi Arabia signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.

Read more.

Sri Lanka

Proposed legislation

Finance Bill - October 2018

KPMG in Sri Lanka summarizes developments regarding the Finance Bill for 2018 which was presented in the Parliament recently and this includes Budget Proposals of 2018 in addition to the Budget Proposals for 2016 and 2017.

Read more.

Taiwan

Tax legislation approved and regulatory update

Company law - 24 October 2018

Revisions to the law governing companies in Taiwan were passed by the Legislative Yuan earlier this year.

Read more.

Thailand

Tax legislation approved and regulatory update

Rental property - 11 September 2018

An order was issued to eliminate the differences between the recognition of revenue and expenses from rental property for accounting and tax purposes, for both the lessor and the lessee of the property.

Read more.

 

Proposed legislation

Tax incentives - October 2018

The Thai Revenue Department has announced suspending tax incentive regimes previously provided for the Regional Operating Headquarters (“ROH”), International Headquarters (“IHQ”) and International Trade Center (“ITC”). To replace the ROH and IHQ regimes, the Thai government will introduce a new scheme called International Business Centre.

Read more.

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