Category Taxation In Asia

Oman Doubles Down on Cigarette Taxes

February 12, 2018 Taxation in Oman

Cigarette taxesMUSCAT – Oman is using cigarette taxes as a main point in their plan to fight non-communicable diseases.

Over the weekend the government of Oman launched their new National Policy and Multi-Sectoral Plan on Prevention and Control of Non-Communicable Diseases, which includes hefty hikes to the rates of tax levied on the sale of tobacco.

The rate of tax on the sale of cigarettes will now be doubled, in an effort to curb the rate of smoking in the country, and, subsequently, the occurrences of smoking-related illness.

The rate of tax on cigarettes was OMR 0.4, which was set in 2016, following 17 years of unwavering tax levels.

It is estimated that approximately 14 percent of men in Oman smoke, while the rate of smoking among women is approximately 0.5 percent.

Along with the tax hike, the...

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India Comes After Bitcoin Investors

February 8, 2018 Taxation in India

bitcoin taxNEW DELHI – India’s government is taking steps to ensure that investors in Bitcoin and other cryptocurrency do not shirk their tax obligations.

In a news release issued on February 6th it was disclosed that the Direct Tax Department of India has sent out over 100 000 letters to national taxpayers who may have made an income from trading cryptocurrency without declaring it for the purpose of taxation.

It was stated that many taxpayers who have invested in cryptocurrencies do not know how to properly file their incomes on the coins, and that there may not be enough clarity regarding the tax treatment of the currency.

The government and tax departments of India are yet to issue any official guidelines on the tax treatment of such investments.

The government is establishing a committee which...

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S.Korea Launches Tax on Cryto Exchanges

January 23, 2018 Taxation in South Korea

Cryptocurrency tax South KoreaSEOUL – Cryptocurrency exchanges in South Korea are about to feel a tax sting, as the government steps up to control the country’s rampant coin market.

Earlier this week the government of South Korea announced that cryptocurrency exchanges in the country will have to pay income taxes, and, also, that the income taxes will apply retroactively to previous profits.

Cryptocurrency exchanges will face a 22 percent tax on corporate profits and an additional 2.2 percent local income tax.

However, the tax will only apply if the exchange saw an annual income exceeding KRW 20 billion.

The taxes will not only apply to future profits but also to those profits garnered over the last year.

The corporate income tax will need to be paid by March this year, while the local income tax will be due in April...

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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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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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