Category Taxation In Asia

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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Bahrain Taxes Vape Liquids Like Cigarettes

July 26, 2018 Taxation in BahrainTaxation in Qatar

Vape liquid taxMANAMA – Despite the fact that vape liquids do not contain tobacco, the government of Bahrain is taxing them at the same rate as cigarettes.

Public outcry is rising in Bahrain over the government’s recent decision to enact a 100 percent levy on the sale of vape liquids.

On July 12th the government of Bahrain announced, with no forewarning, that it will classify vape liquids as a tobacco product.

All tobacco products in Bahrain carry a levy of 100 percent of its retails price.

Currently, there are an estimated 50 retailers in Bahrain who actively sell vape liquids and juices, and these retailers import an estimated 40 000 bottles of liquids into the country each year.

Retailers of vaping products are arguing that the liquids should not be taxed as tobacco products, as the liquids do no...

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S.Korea Hands Tax Breaks to Tech Startups

July 19, 2018 Taxation in South Korea

tax breaks on r&dSEOUL – South Korea is extending tax breaks to innovative startups doing research and development.

On July 18th the government of South Korea indicated that it will soon enact new tax breaks for businesses which make investments into research and development of new technologies.

So far 157 specific technologies across 11 operational areas have been defined as “new-growth technology” which will fall under the scope of the tax break.

Under current rules for tax breaks for R&D, companies are eligible for tax reductions if they allocate at an amount which is equivalent to 5 percent of the previous year’s sales to research and development, with at least 10 percent of the amount dedicated to new growth technology.

However, it has been suggested that the rules may be amended for this yea...

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Japan to Automate Cryptocurrency Tax Returns

July 17, 2018 Taxation in Japan

Crypto-tax in JapanTOKYO – Japan is simplifying tax filing for cypto-traders, meaning only those making significant profits will be filing returns.

The National Tax Agency of Japan has disclosed its revised rules and systems for declaring profits from cryptocurrency transactions, unveiling a system which automates away a lot of the complexity of calculating the tax obligations.

The tax authority is now working on the implementation of an automated process which would automate the process of calculating the tax obligations arising from trades of cryptocurrencies made by Japanese taxpayers.

Previously traders were required to calculate the profits earned from cryptocurrency by comparing the value of the coin at the time of purchase against the value at the time of sale, and also compare that against what in...

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Japanese Tax Revenues At a 26 Year High

July 5, 2018 Taxation in Japan

Japanese tax revenuesTOKYO – Japan’s government has seen an incredible rise in tax revenues, with more funds coming in than any year in the last quarter of a century.

The government of Japan has announced that its tax collections for the 2017 fiscal year were the highest in the last 26 years.

The total amount of tax collected was approximately JPY 58.79 trillion (approximately USD 532 billion).

The total amount collected exceeded the government’s own projections by approximately JPY 1.1 trillion.

The revenue rise can be attributed primarily to rises in a 7.2 percent rise in income taxes, a 16.1 percent rise in corporate tax revenues, and a 1.7 percent increase in the collection of consumption taxes.

In addition to the higher-than-expected tax revenues, the government’s own sending was also below forecast ...

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