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International Tax Newsletter - Asia Pacific & MENASA

Asia Pacific & MENASA

International Tax Newsletter

International Tax - Asia Pacific and MENASA, July 2019

This e-newsletter gives you an overview of international tax developments being reported globally by KPMG member firms in the Asia Pacific & MENASA Regions between 1 July and 31 July 2019.

Australia Japan Thailand
China New Zealand UAE
India   Vietnam


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
Proposed legislation  Director penalty regime July 2019

A bill that would extend the “director penalty” regime, which lapsed when the federal election was called earlier this year, was re-introduced in the House of Representatives.

Administrative and case law Thin capitalization  17 July 2019

The Australian Taxation Office finalised another ruling affecting cross-border finance confirming the ATO’s views on what types of costs are debt deductions that are subject to the thin capitalisation calculations.

Administrative and case law R&D 25 July 2019

The Full Federal Court in a case concerning research and development activities—allowed an appeal filed by the taxpayer and remitted the case back to the Administrative Appeals Tribunal.

Administrative and case law Mineral royalty July 2019

The Northern Territory Supreme Court held that “three heads of expenditure” incurred in relation to mining activities were deductible for the purposes of calculating mineral royalty liability. The case is: Groote Eylandt Mining Company Pty Ltd. V. Secretary for Mineral Royalties

China

Tax legislation approved and regulatory update Individual income tax  July 2019

The Department of Finance of Guangdong Province and the Guangdong Provincial tax authority jointly issued guidance related to an individual income tax subsidy available for certain individuals working in the “Greater Bay Area.”  

India

Tax legislation approved and regulatory update
GST 
27 July 2019

India’s Goods and Services Tax council on announced a reduction in the GST rate for electric vehicles.

Proposed legislation  Union Budget July 2019

The Union Budget 2019 includes certain tax measures.

Administrative and case law Various tax areas  July 2019

KMG in India has prepared reports about the following tax developments:

  • central action plan
  • short-term capital gain, non-resident’s sale of units of equity-oriented mutual funds not taxable under treaty with UAE:
  • residential status of Indian citizen who migrated to foreign country
  • tax refund pursuant to section 143(1)
  • due date to claim input tax credit

 

Administrative and case law Various tax areas  July 2019

KMG in India has prepared reports about the following tax developments:

  • plan for amalgamation, no exemption from filing revised income tax return: Permanent establishment defined; “any 12-month period” under India-UK income tax treaty
  • protocol amending income tax treaty with China
  • clarification of treatment of goods removed from India for “sale on approval basis” in an export business:
  • clarification of information technology-enabled services
  • finance legislation passed.

 

     

KMG in India has prepared reports about the following tax developments:

  • Kerala “flood cess” FAQs
  • Adjudicating authority must consider taxpayer’s claim of not being a dealer
  • Tax amnesty in Maharashtra
  • Claiming “most favored nation” benefit under India-Spain tax treaty
  • Interest and power subsidies, under minimum alternate tax.

 

Japan

Administrative and case law  Export controls  July 2019

Japan’s Ministry of Economy Trade and Industry issued a notice advising the trade community of more stringent procedures with regard to certain controlled items and their relevant technologies destined for South Korea.

Treaties Double tax treaty   17 July 2019

The U.S. Senate approved Protocols amending the existing income tax treaties with Switzerland, Luxembourg, and Japan.

Treaties Economic partnership agreement July 2019

Representatives of the government of Japan and the European Union agreed to a process that is intended to address concerns about the implementation of the economic partnership agreement between Japan and the EU. 

New Zealand

Proposed legislation  Digital services tax   July 2019

The government released a discussion document with regard to proposals for a digital services tax.

Thailand

Tax legislation approved and regulatory update  Income tax for mutual funds      20 August 2019

Under recent legislative changes, mutual funds will be subject to income tax at a rate of 15% on a fund’s gross income, with an effective date of 20 August 2019.

Tax legislation approved and regulatory update Foreign business license July 2019 

A ministerial regulation expands the exemptions for the requirement for a foreign business license for certain foreign entities providing services to related companies.

Tax legislation approved and regulatory update Customs 30 April 2020

The Thai customs authorities announced that a customs voluntary disclosure program has been extended to 30 April 2020.

UAE

Tax legislation approved and regulatory update Economic substance July 2019

New regulations provide economic substance rules for UAE companies.

Vietnam

Tax legislation approved and regulatory update Digital economy  June 2019 

The National Assembly of Vietnam passed a new tax administration law—one that may affect many non-resident enterprises selling goods and services into Vietnam via digital and e-commerce business models.

Tax legislation approved and regulatory update Digital economy  June 2019 

A new digital economy law will also affect the banks and the financial sector because it will be the duty of banks and the financial sector to identify transactions subject to tax and to collect the tax.

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