Category Taxation In Asia

Thailand to Tax Digital Businesses

June 26, 2018 Taxation in Thailand

digital taxes in thailandBANGKOK – Tax authorities in Thailand are modernizing their systems to try and tax online businesses.

The director-general of the Revenue Department of Thailand, Ekniti Nitithanprapas, has announced that the government is now looking at establishing new regulations which would require foreign online business to report any transactions that they have in Thailand.

Thailand, like many other nations around the world, is growing increasingly concerned with the advent of large digital businesses which make profits from Thai taxpayers, but do not pay any taxes in return.

In an effort to clamp down on these non-paying businesses, Thai authorities have already introduced new legislation which requires payment of VAT by businesses making more than TBH 1.8 million per year.

However, the tax author...

Read More

Alcohol in Abu Dhabi No Longer Tax Free

June 14, 2018 Taxation in UAE

alcohol tax in Abu DhabiABU DHABI – Alcohol will no longer be tax-free in Abu Dhabi, and the licenses needed to buy it will soon also carry their own cost.

From June 15th Abu Dhabi will be enacting a new tax on alcohol sales on stores, along with a fee for the grant of a license to purchase alcohol.

The rate of tax on the sale of alcohol will be set at 30 percent, matching the rate already set in place in Dubai.

The tax is intended to be levied on sales from stores, however, there is not yet confirmation of whether the tax will apply to alcohol sold in bars or restaurants.

Local media has reported that some retailers are offering discounts in order to encourage consumers to stock up on alcohol prior to the implementation of the tax.

The tax will be accompanied by a new fee for a license to purchase alcohol, wh...

Read More

Pakistan Ordered to Drop Mobile Charge Taxes

June 12, 2018 Taxation in Pakistan

Mobile charge PakistanISLAMABAD – Mobile top-ups may go untaxed in Pakistan, if only temporarily.

On June 11th the Supreme Court of Pakistan ordered that all tax withheld from the sale of mobile phone recharge and top-up cards be stopped, at least temporarily.

The judges remarked that currently, the sale of mobile charge cards carries too heavy a tax burden, as approximately 42 percent of the value of a PKR 100 charge card actually ends up as taxes.

Approximately 19.5 percent of the total tax load is made up of Federal Excise Duties, another 12.5 percent goes towards Withholding Tax, and another 10 percent becomes service and maintenance charges.

The judges ordered that a new comprehensive taxation plan be devised for mobile charge cards, in lieu of the current system.

Phone companies and tax authorities hav...

Read More

Israel Enacts Surprise Tax Hike on Luxury Electric Cars

June 11, 2018 Taxation in Israel

TeslaTEL AVIV – Consumers buying luxury electric cars in Israel have received an unwelcome surprise in the form of a tax hike.

Over the weekend the Minister of Finance of Israel Moshe Kahlon announced that an order has been signed to hike the taxes imposed on the sale of luxury-level electric vehicles sold in the country.

Previously, electric cars bought in Israel would face a purchase tax of 20 percent, while hybrid vehicles would face a tax rate of 30 percent.

However, following the new order, the rate of purchase tax on both vehicles types will rise to 34 percent and 44 percent for electric and hybrid vehicles, respectively, for vehicles with prices exceeding ILS 300 000.

It is believed that high-end electric vehicles made up nearly half of all sales of electric cars and hybrid cars over t...

Read More

Bangladesh Hikes Rice Import Taxes

June 8, 2018 Taxation in Bangladesh

Rice in BangladeshDHAKA – The rice industry in Bangladesh is recovering, and the government is aiming to protect it with heavy import taxes.

Bangladesh will impose a tax of 28 percent on all rice imports coming into the country, a move which is aimed at protecting local production.

The total tax of 28 percent will be made up of 25 percent in customs duties and an extra 3 percent in regulatory duties.

In 2017 the rate of rice imports was much lower, as it was cut to a total of only 2 percent.

The fluctuations in the rate of tax for rice imports is based on the production capability and pricing of rice in Bangladesh at that time.

Last year’s tax cut was caused by a steep increase in the price of rice produced in Bangladesh due to heavy flooding which destroyed crops.

Comparatively, this year’s increase...

Read More