Category Taxation In Asia

Hong Kong Banks Divulge Client Data

September 15, 2018 Taxation in Hong Kong

Hong KongHONG KONG – The majority of Hong Kong financial institutions have divulged detailed data about their international clients for an international data swap.

New media reports in Hong Kong indicate that approximately 1 700 financial institutions have submitted details about their clients for international information exchanges.

The information exchanges are part of the mandatory international program called the Automatic Exchange of Financial Account Information in Tax Matters (AEOI).

The AEOI initiative has participating members in 149 countries around the world, and involves the annual exchange of information about individuals with financial accounts held in jurisdictions other than their main jurisdiction.

The exchanged information includes balances, pay-outs, dividends, and other data wh...

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Alipay Allows Tourist Tax Refunds

August 23, 2018 Taxation in ChinaTaxation in South Korea

Alipay tax refundSEOUL – Alipay, the world’s largest mobile payment network, is now leading the way for mobile tax refunds for tourists.

In a press release earlier this week, the mobile payment network announced that it is launching the first digital tax refund service in the world.

The new service will be open to tourists from China who have made purchases while visiting South Korea for tourism purposes.

With the new system, tourists using the Alipay system can skip the customary visit to the tax-refund kiosk and counter.

All that users will need to do is scan their passport at a specified location prior to departure.

At any point within 90 days of eligible purchases being made, the tourist can scan their tax refund receipts into the Alipay app, and the tax refund will be credited to them directly and ...

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Have Babies or Pay Tax, Says China

August 21, 2018 Taxation in China

fertility taxes in ChinaSHANGHAI – China could soon tax people for not having enough babies.

Hu Jiye, a finance professor at China University of Political Science and Law, is calling for the government to use taxes to encourage couples in the country to have more children.

The first of the two proposed taxes is a tax on the incomes of dual incomes couple with no children.

The professor claims that couples like these will end up consuming social resources, as they do not have kids to take care of them in their old age.

The collected taxes would offset the financial burden that the couples may eventually place on the government in the form of health care and social welfare.

Further, Hi Kiye called for the implementation of a fertility fund.

If enacted, the fund would see a tax paid by couples, with the collecte...

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Wealthiest Hong Kong Investors Skip Property Tax

August 17, 2018 Taxation in Hong Kong

Hong Kong housingHONG KONG – Shell companies are helping Hong Kong’s wealthiest people pay less to purchase houses and property.

Hong Kong has some of the most expensive property and housing in the world, and recent media reports are indicating that some wealthy investors and buyers are managing to bypass the taxes aimed at reducing house prices.

Under the standard rules applicable for most locals, property purchases carry with them a stamp duty of 15 per cent, or an even higher 30 per cent duty of the purchaser is not a local.

However, some wealthy locals have been reducing the applicable rate of stamp duty to as low as 0.2 per cent.

The reduced rate applies if the property in question is held in a company, and the buyer purchases the company and not the underlying asset.

Share sales are eligible for ...

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India’s Solar Industry Needs Clarity

August 6, 2018 Taxation in India

Solar power in IndiaNEW DELHI – The solar industry in India is crying out for clarity on what GST rate applies to them.

Last week the Solar Power Developers Association (SPDA) of India petitioned the government to clear up the current legislative ambiguity regarding the taxation of equipment used in the generation of solar energy.

Currently, there is a concessional GST rate of 5 percent applied to the sale of solar power generating systems in India.

However, the term solar power generating systems is not defined anywhere in the legislature of India, meaning that while the concessionary rate exists, there is no clear understanding on what it applies to.

Advocates for the solar industry claim that many projects and initiatives were launched and operated on the premise of a 5 percent rate of GST, and that an...

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