Monthly Archives December 2017

Foreign Firms to Get Chinese Tax Breaks

December 30, 2017 Taxation in China

China taxBEIJING – China hopes to attract more foreign investors into the country by using a series of tax breaks.

The government of China is offering up tax breaks for foreign companies in exchange for re-investing profits into their local operations.

Under the new rules, any foreign business which meets the pre-set criteria and re-invests in profits in China will be eligible to be exempt from paying provisional withholding income tax on the re-invested profits.

The prerequisites include keeping the investments in industries favored by the government, and ensuring that the re-investments flow directly to the target entity and not through some intermediary arrangement.

The government hopes that by encouraging the re-investment of profits into China many companies can be convinced to boost techno...

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Reduce Car Taxes, Reduce Road Crashes

December 21, 2017 Taxation in Australia

car taxCANBERRA – If Australia dropped its car import tax, the national road toll would drop.

New research released by the Australian Automobile Association (AAA) has indicated that dropping taxes on car imports in the country will lead to a reduced road roll and will save healthcare expenditure.

Australia currently has an unusually old car fleet for a developed country, and the state and technology of the cars result in a disproportionately high road toll.

The average age of a passenger vehicle in the country is 9.8 years, while light commercial vehicles are an even older 10.4 years.

If the age of the fleet was reduced by even 1 year, road crashes would be reduced by 5.4 percent, and lead savings of 3.3 billion in healthcare costs over the coming 20 years.

The reduction in the age of the car ...

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Italy Halves Web Tax Proposal

December 20, 2017 Taxation in Italy

Italian web taxROME – Italy is persevering with its plan to impose a web tax, although the rate of the tax has been dropped.

On December 19th the lower house of Italy amended the country’s 2018 budget bill, lowering the rate of the proposed “web tax”.

Italy had previously proposed that a new tax is introduced on internet transactions, levied at a rate of 6 percent of the value of the transaction.

The rate has now been dropped to 3 percent.

The new tax will be levied on the sale of “intangible digital products” namely services such as online advertising and sponsored links.

The measures are expected to hit a number of internet giants, such as Google and Facebook, which see a significant portion of their incomes coming from advertising.

The tax will not apply to all sales, and will only be pai...

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Luxury Car Tax Bites Australians

December 19, 2017 Taxation in Australia

Luxury Car TaxCANBERRA – Australia’s appetite for luxury cars is proving to be a financial windfall for the government.

Information contained in the Mid-Year Economic and Fiscal Outlook released by the government of Australia has shown that the amount of tax revenue collected from the sale of luxury automobiles is rising beyond expectation.

All cars sold by a registered dealer in Australia are liable for a Luxury Car Tax if their sale price is above AUD64 132, or AUD 75 526 in the case of cars with a fuel efficiency exceeding 7L/100km.

The tax is levied at a rate of 33 percent on the portion of the price which exceeds the applicable threshold.

In the current financial year the tax is expected to lead to revenues of approximately AUD 680 million, a level which is nearly AUD 30 million higher than was ...

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Japan Sets Out on Tax Reform

December 15, 2017 Taxation in Japan

Japanese taxTOKYO – Japan will hikes taxes for some, while pushing big businesses to boost wages.

The government of Japan has approved a sweeping set of tax reform measures aimed at boosting tax revenues, while also increasing inflation in the country.

Japan has faced deflation for a significant period of time, and, further, an ageing population means that the country is expecting to feel the economic cost of a rising welfare bill in the near future.

As a means countering the unwanted effects of deflation and welfare costs, the government hopes to encourage large businesses to increase wages, in turn boosting consumer spending.

Under the scope of the tax reform, the rate of corporate income tax in Japan would fall from 30 percent to 20 percent for businesses which stop hoarding cash in order to dra...

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