Category Taxation In Asia

South Korea Eyes Robot Tax

August 9, 2017 Taxation in South Korea

Robot taxSEOUL – The government of South Korea could be the first one in the world to implement a “robot tax”.

The government of South Korea is mulling extending a tax break available for businesses investing in automation technology, but reducing the rate of the deduction.

Currently, any business in South Korea which invests in industrial automation technology is eligible to receive a corporate tax deduction of 3 percent to 7 percent, with the exact rate varying based on the scope and size of the business in question.

The policy is currently scheduled to end this year.

However, the government is now mulling the potential implications of extending the program out until the end of 2019, but reducing the rate of the deduction by 2 percent
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Some experts have dubbed the potential move as a “robot t...

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Panama Papers Scare Pakistan’s PMs into Compliance

July 28, 2017 Taxation in Pakistan

Pakistan taxISLAMABAD – MPs in Pakistan have started to report their full incomes and pay their full tax obligations, with some MPs reporting a 3 900 percent spike in payments.

Parliamentarians in Pakistan are owning up to the extent of their personal incomes and declaring levels which are closer to the truth in the new Parliamentarian Tax Directory released earlier this week.

The Parliamentarian Tax Directory is a recent initiative aimed at encouraging PMs to declare and pay their full tax obligations.

It is believed that the cause of the spike in tax payments is a combination of the efforts made by the government to encourage tax compliance and the after-effects of the infamous Panama Papers scandal.

It is thought the increasing likelihood of illicit tax behaviour coming to light has scared some p...

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Kuwait Prepares Tax on Unhealthy Goods

July 17, 2017 Taxation in Kuwait

Consumption tax KuwaitKUWAIT – Kuwait will soon and that taxes on unhealthy products in an effort to raise taxes while reducing its reliance on oil revenues.

It has been reported by local news sources in Kuwait that the national Ministry of Finance has prepared a new bill for the implementation of new taxes on the sale of tobacco, soft drinks, and energy drinks.

The new tax falls in line with the taxes agreed upon for such products by the members of the Gulf Cooperation Council.

The new tax will be applied to the sale of tobacco and energy drinks at a rate of 100 percent, while the rate applied to soft drinks will be set at 50 percent.

The original tax scheme agreed-upon by the members of the Gulf Cooperation Council also called for a 100 percent tax on alcoholic beverages and pork, however, these products a...

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Hong Kong Drops EV Tax Break, Tesla Sales Stop

July 11, 2017 Taxation in Hong Kong

Teslas in Hong KongHONG KONG – Sales of Teslas in Hing Kong have stopped, as a recent tax change has nearly doubled the price of the car.

New information indicates that the sale of electric vehicles in Hong Kong came to a grinding halt after the government dropped tax incentives for buying the environmentally-friendly cars.

The tax liability on purchasing a new car in Hong Kong can sometimes be as high as the value of the car itself.

The government had previously offered to drop the new-car tax on electric vehicles entirely, leading to Teslas becoming one of the most popular among consumers.

However, in an effort to crack down on increasing traffic congestion, the government has capped the tax break on Teslas at a maximum of HKD 97 500.

The announcement by the government that the tax break would be dropped ...

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Without a Tax Overhaul, Pakistan Cannot Meet Tax Targets

July 3, 2017 Taxation in Pakistan

Pakistan taxISLAMABAD – Pakistan has yet again failed to meet its targets for tax collections, a shortcoming that has led to renewed outcry from across the country.

Over the weekend members of the business community of Pakistan and a number of parliamentarians in opposition parties cried out for the government to thoroughly re-examine its tax policies, following another round of disappointing tax collections.

Over the previous financial year, the Federal Board of Revenue collected PKR 3 392 billion, however, the target for collections for the year was PKR 3 621 billion.

The shortfall of PKR 229 billion did not go unnoticed by the opposition Pakistan People’s Party or the business community, which claims that the government is not doing enough to meets its revenue targets or to grow tax revenues each ...

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