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.
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).
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.
Proposed legislation
GST - 1 October 2018
The prime minister announced plans for legislation to make GST reforms.
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.
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.
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”.
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.
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”.
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.
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.
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.
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.
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
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
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.
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.
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.
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.
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.
Oman
Tax legislation approved and regulatory update
VAT / WHT - October 2018
KPMG in Oman summarizes developments regarding excise tax, VAT and WHT.
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.
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.
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.
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.
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.
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.
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.
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.
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