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International Tax Newsletter - Asia Pacific & MENASA

Asia Pacific & MENASA

International Tax Newsletter

International Tax Asia Pacific and MENASA – February 2019

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Europe and Africa Regions between 1 February 2019 and 28 February 2019.

Australia Indonesia Myanmar Philippines UAE
China Jordan New Zealand Qatar  
India Korea Oman Singapore  

 

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

Australia

  Tax area concerned Relevant date Description of measures and publication link
Tax legislation approved and regulatory update Aviation reforms February 2019

KPMG in Australia explores new aviation reforms that could have a significant impact on Australian exporters.

Administrative and case law CFC  February 2019

KPMG in Australia discusses the concept of “sufficient influence” within the CFC Rules which was tested in court.

Administrative and case law Customs February 2019

KPMG in Australia discusses the Full Federal Court decision on the customs treatment of vitamins and weight loss supplements marketed as chewable gummies.

Administrative and case law Foreign income tax offset February 2019

The recent decision in Burton v Commissioner of Taxation has seen the Federal Court find in favour of the ATO when interpreting the foreign income tax offset provisions as they relate to capital gains.

Administrative and case law Tax residence  February 2019

The full bench of the Federal Court of Australia has published its decision in Harding v Commissioner of Taxation.

Other  Thin capitalisation February 2019

KPMG in Australia explores in more detail the worldwide gearing ratio under Australia’s thin capitalisation rules.

  • Read more

China

Other Economic substance  February 2019 

Chinese enterprises and individuals investing overseas, as well as foreign businesses with operations in China, need to consider measures in certain jurisdictions intended to address concerns about taxation and economic substance requirements.

India

Tax legislation approved and regulatory update GST 1 February 2019

The Central Board of Indirect Taxes and Customs issued guidance in order to implement provisions of the Central Goods and Services Tax (Amendment) Act, 2018 and Integrated Goods and Services Tax (Amendment) Act, 2018.

Proposed legislation Calamity cess 31 January 2019

The state budget for Kerala includes a proposal for a “flood cess” that would apply for a two-year period.

Proposed legislation Interim union budget  1 February 2019

The Finance Minister presented the “interim union budget 2019.”

Administrative and case law Various tax areas  February 2019

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

  • input tax credit denial, implications for price increase
  • health insurance for employees’ parents, not a supply of services
  • tax sparing credit under India-Thailand income tax treaty. 

 

Administrative and case law Various tax areas  February 2019

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

  • pre-fabricated structure not eligible for input tax credit, since immovable property
  • amnesty program, resolving pre-GST liabilities in Maharashtra state
  • Form C and products used in manufacturing process
  • when do goods clear customs vs. when are they subject to sales tax.

 

Administrative and case law Various tax areas  February 2019

KPMG in India has prepared reports on the following tax developments

  • 100% deduction allowed after substantial expansion
  • encouraging investment in startups
  • transfer of shares in company vs. sale of assets.

 

Indonesia

Tax legislation approved and regulatory update Digital economy  1 April 2019

A regulation concerning the taxation of e-commerce transactions is effective 1 April 2019. The regulation applies to all e-commerce transactions including transactions made by online retailers or through social media or made as classified advertisements or daily deals.

Jordan

Tax legislation approved and regulatory update Corporate tax / Individual tax rates 2019

KPMG in Jordan prepared a summary of corporate tax and individual tax rates effective in 2019.

Korea

Tax legislation approved and regulatory update  Various tax areas  February 2019 

The Ministry of the Economy and Finance announced 21 amendments to the "enforcement decrees" for implementing changes to the tax law as passed by the National Assembly in December 2018.

Myanmar

Tax legislation approved and regulatory update Regulatory update  February 2019 

The Central Bank of Myanmar issued two directives concerning equity investments into local banks and foreign currency for payments.

New Zealand

Proposed legislation  Tax Working Group February 2019 

KPMG in New Zealand highlights Tax Working Group’s key recommendations and relevant design features.

Oman

Tax legislation approved and regulatory update Various tax areas     10 February 2019

Ministerial Decision published recently includes provisions that supplement and clarify the application of certain provisions under Oman’s tax law.

Philippines

Philippines Tax amnesty February 2019

President Rodrigo Roa Duterte signed into law the Tax Amnesty Act, providing for the settlement of estate tax obligations, and the settlement of tax delinquencies, through an amnesty program.

Qatar

Proposed legislation  VAT February 2019


A VAT regime in Qatar is expected to be effective beginning from 1 January 2020, with VAT being broadly imposed at a rate of 5%.

  • Read more

Singapore

Tax legislation approved and regulatory update Grants  14 February 2019

A new grant program for enterprises seeking to raise capital through the Singapore equity market will be launched.

Treaties  Multilateral instrument December 2018

Singapore deposited with the OECD its instrument of ratification of the multilateral instrument (MLI) addressing base erosion and profit shifting (BEPS) by allowing jurisdictions to amend their tax treaties to include tax treaty-related BEPS recommendations.

Publications  Budget 2019 February 2019

The KPMG Budget 2019 publication provides a synopsis and captures our perspectives on Budget 2019, covering key initiatives as well as implications for businesses and individuals in Singapore.

UAE

Tax legislation approved and regulatory update Budget  February 2019

KPMG in UAE shares insights on Dubai’s 2019 fiscal budget, as well as other key developments in the UAE.

Treaties  Double tax treaty  6 February 2019

The Saudi Arabian Cabinet approved an agreement between the governments of the Kingdom of Saudi Arabia and the United Arab Emirates. The aim is to avoid double taxation in respect to income and capital, and to prevent tax evasion.

  • Read more

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