R&D Incentives: Adding value across ASPAC R&D Incentives: Adding value across ASPAC

The emerging economic strength of the Asia Pacific region means that more companies are making it a priority to do business in the area and, in many cases, creating regional hubs. However, the diversity and complexity of the region poses many challenges and pitfalls for international businesses, especially the operation of the region’s various tax and regulatory systems.

KPMG Asia Pacific Tax Centre comprises tax professionals as well as a virtual network of specialists across a wide spectrum of KPMG’s tax services, including:

• International Tax
• Global Transfer Pricing Services
• Global Indirect Tax Services
• R&D Tax Incentives
• Value Chain Management
• Deal Advisory, Mergers & Acquisitions Tax
• Global Mobility Services
• Trade & Customs
• Global Compliance Management Service
• Legal Services

Leaders serving regionally headquartered multinational groups and key sector specialists are also a core part of the Asia Pacific Tax Centre.

The KPMG Asia Pacific Tax Centre’s network of tax professionals brings together a wealth of local and regional experience relevant to you and your business.

The Centre can help you cut through the tax complexity of operating and growing in this dynamic and diverse region, while identifying the opportunities for your tax function to add significant business value.

In addition to the work of our regional tax leaders, the Centre also supports member firm clients in the region by:

• providing central coordination and support for multi-national companies in the region
• the provision of regular updates on tax trends and developments through our regular newsletter, webinar series and publications
• bringing together KPMG member firms' leading specialists, skills and services to clients, skills and services to our clients across Asia Pacific
• organizing KPMG’s widely recognized Asia Pacific Tax Summit.

The pace of change with respect to R&D incentives in the ASPAC region is expected to continue as R&D incentives develop and mature. The schemes are broadly similar but unique to each country’s tax system. For example some countries offer distinctly different benefits for small and medium enterprises as compared to large companies; and R&D compliance protocols in ASPAC jurisdictions vary from ‘self-assessment’ to tax authority ‘audit’ prior to refund assurance. For a summary of ‘country by country’ Enhanced Tax Benefits by Jurisdiction please refer to chart below. If you would like a copy of our detailed 2020 ASPAC R&D incentives report, please contact Alan Garcia or your local KPMG specialist.

Accordingly, teams across our global R&D incentives footprint work with our international tax specialists to assist clients manage tax issues arising from:

• cross-border R&D arrangements
• transfer pricing
• intellectual property status and transfer
• withholding tax
• foreign tax credits
• duties and tariffs