Asia Pacific & MENASA

Asia Pacific & MENASA regions

November 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 November and 30 November 2018.

Asia Pacific	Australia	Hong Kong (SAR)
India	Japan	Malaysia
Papua New Guinea	Saudi Arabia	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.

Asia Pacific

KPMG Publications

Various tax areas - October 2018

A summary of tax developments of interest to financial institutions in the Asia Pacific region from the third quarter of 2018.

Australia

Proposed legislation

Stamp tax - 6 November 2018

The New South Wales government announced plans to index the stamp tax (duty) brackets to the consumer price index for residential property transactions.

Petroleum resources rent tax - 2 November 2018

KPMG in Australia discusses the Federal Government’s proposed reforms to the Petroleum Resources Rent Tax regime and what it may mean for those companies operating in the oil and gas business.

Administrative and case law

Hybrid mismatch arrangements - 13 November 2018

KPMG in Australia discusses Practical Compliance Guideline: Part IVA of the Income Tax Assessment Act 1936 and restructures of hybrid mismatch arrangements.

Payroll tax - 21 November 2018

Identifying the tax implications for businesses that engage independent contractors is one of several issues under the microscope for tax authorities at both federal and state levels.

Tax Implications - 21 November 2018

KPMG’s Laszlo Peter, Julian Humphrey, Peter Xing and Siemen Hanssen explore the current and future tax implications for cryptocurrencies.

Hong Kong (SAR)

Tax legislation approved and regulatory update

Tax Deduction - 8 November 2018

New research and development (R&D) tax regime has been approved. Certain "minor" amendments were made to the R&D tax regime as originally proposed.

India

Administrative and case law

Goods & Services Tax (GST) - 7 November 2018

The tax authority in India issued guidance concerning the rules for withholding (or “deducting”) the goods and services tax (GST) at source.

KPMG publication

Tax Developments - November 2018

The KPMG member firm in India has prepared reports about the following tax developments:

Central VAT credit allowed on telecom towers, shelter, accessories
Withholding tax on shares under employee stock option
Value of goods supplied
Liquidation of shares under employee stock option taxed as capital gains
Salary received in India by non-resident for services outside India not taxable
Fees for technical services not taxable, income from source outside India.

Japan

KPMG publication

Taxation System - 20 October 2018

A general overview of the taxation system in Japan including the following topics:

Taxation of Companies
Taxation of Partnerships
Taxation of Individuals
International Tax
Indirect Tax
Other Taxes and Surcharges.

Malaysia

Tax legislation approved and regulatory update

Tax Policy - 5 November 2018

KPMG’s Merriden Varrall discusses Malaysia’s approach to tax policies following the election of former Prime Minister Mahathir Mohamed in May and the abolition of the unpopular goods and services tax (GST).

Proposed legislation

Budget - 2 November 2018

The 2019 Budget carries the theme “A Resurgent Malaysia, Dynamic Economy, A Prosperous Rakyat” which highlights the Government’s focus towards the Rakyat’s welfare and well-being while ensuring the country’s economic growth remains sustainable.

Papua New Guinea

Proposed legislation

Tax Provision - 16 November 2018

The 2019 budget proposes changes to tax rules concerning loss carryforwards, tax thresholds, and certain customs and excise rates.

Saudi Arabia

Treaties

Tax Treaties - 7 November 2018

The Kingdom of Saudi Arabia has signed the multilateral convention to implement tax treaty-related measures pursuant to the base erosion and profit shifting (BEPS) project of the Organisation for Economic Cooperation and Development (OECD).

Taiwan

Tax legislation approved and regulatory update

Income Tax - 14 November 2018

The government of the Czech Republic is taking steps for legislation that would correspond to an income tax treaty—such legislation being necessary because the Czech Republic does not recognize Taiwan as an independent state and thus cannot enter into an income tax treaty with Taiwan.

Thailand

Proposed legislation

Labor Protection Law - November 2018

The proposed amendments to the Labor Protection Act (“Draft Amendment”) has recently been approved, in principle, by the National Legislative Assembly (“NLA”).