Category Taxation In Asia

France Replaces Wealth Tax with Luxury Tax

October 9, 2017 Taxation in Japan

Tax on luxury yachtsPARIS – France will soon tax luxury goods and vehicles, as taxing them will not be detrimental to the economy.

Over the weekend the ruling political party of France indicated that in the near future it will propose the implementation of a tax on non-productive luxury items, such as gold, luxury yachts, and supercars.

The leading party campaigned on a promise of removing the long-standing wealth tax, which is levied on all French taxpayers with assets exceeding EUR 1.3 million in value.

The party leader, Emmanuel Macron, has come to be criticised as a “president of the rich”.

The party has now said that while the wealth tax will be dropped, it will be replaced with the tax on luxury items.

It is expected that the new tax will result in greater levels of tax revenues for the governme...

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Drinks and Smokes Targeted for Tax in UAE

October 2, 2017 Taxation in UAE

Drinks CansABU DHABI – Drinking energy drinks and smoking cigarettes is about to become more expensive in the UAE.

On October 1st the United Arab Emirates began collecting sin-taxes on selected products deemed to be harmful to human health, with the newly raised funds being used to plug the growing deficits seen by the government over recent years.

The new taxes have come to be called “sin taxes” and will be levied on the sale of cigarettes, tobacco, soft drinks, and energy drinks.

The rate of the tax has been set at 100 percent for the sale of energy drinks and tobacco, and a smaller rate of 50 percent of soft drinks.

The “sin tax” is the precursor for further taxes to be enacted in the near future, with a 5 percent VAT to be levied from January next year on selected goods.

The new taxes ...

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Hong Kong Hands Tax Breaks SMEs and Start-ups

August 19, 2017 Taxation in Hong Kong

Hong Kong business taxHONG KONG – Start-ups in Hong Kong will soon enjoy some tax reprieve, as the government looks to drop taxes for small business.

Late this week the Financial Secretary of Hong Kong Paul Chan Mo-po announced that the government was mulling a new tax measure to alleviate the tax burden faced by small and medium sized enterprises in the city.

The new system would be the first major reform in two decades to the taxation of business in the city.

Under the newly proposed rules, businesses in Hong Kong would see a tax rate of 10 percent on the first HKD 2 million earned each year.

The rate of taxation on any subsequent incomes would rise to the standard current rate of 16.5 percent.

It is expected that the decreased tax rate would result in a drop in the collection of tax revenues of approximate...

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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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