Category Taxation In Asia

Malaysian GST Delayed Again

October 14, 2010 Taxation in Malaysia

An Evening at Kuala LumpurThe Malaysian Government has once again delayed replacing the country’s current sales tax with a new Goods and Service Tax system, which could have raised a reported MYR 8.8 billion (approx. USD 2.84 billion) annually.

On October 13th the Malaysian Government issued a statement saying that it has decided to indefinitely delay the implementation of its controversial Goods and Services Tax (GST). The tax was originally mooted in 2007, and was aimed at lessening the country’s heavily reliance on revenues drawn from the state-owned oil company Petronas. It was theoretically intended to kickoff a series of tax overhauls and simplifications, which would have potentially drawn a greater number of foreign investors into the country.

The Malaysian Finance Ministry indicated that the Government...

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Vietnam Will Tighten Transfer Pricing Investigations

September 16, 2010 Taxation in Vietnam

Notre Dame Cathedral, Ho Chi Minh City, VietnamVietnam will soon boost its investigations into transfer pricing practices of local businesses, in order to decrease the occurrence of tax evasion and spurn national tax revenues.

The tax authorities of two of Vietnam’s primary business centers are launching pilot programs of increased investigations into the transfer pricing behavior of local units of international businesses. According to Nguyen Van Mo, deputy head of the tax department in Hanoi, and Le Thi Thu Huong, deputy head of the Ho Chi Minh City tax authority, the two departments will begin more intense scrutiny of companies which potentially could be allocating their profits overseas to avoid tax liabilities in Vietnam.

According to previously released statements by tax authorities, nearly 40 percent of companies registered in...

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India to Ease Transfer Pricing Rules

September 14, 2010 Taxation in India

Happy Independence Day!Indian units of foreign companies could soon benefit from eased regulations surrounding the scrutiny and compliance issues of transfer pricing in their annual tax returns.

New “safe harbor rules” could soon be instated in India, allowing tax authorities to accept the transfer pricing returns of local units of foreign companies without scrutiny. The announcement was made on September 13th by S S N Moorthy, Chairman of the Indian Central Board of Direct Taxes (CBDT).

Currently local subsidiaries of foreign firms are required to clear their transfer pricing returns with the Income Tax Department before filing their annual tax obligations...

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Japan’s Prime Minister Spurs Tax Cut Decision

September 10, 2010 Taxation in Japan

Angel Gurría, OECD Secretary-General, Official Visit to Tokyo, JapanJapan’s comparatively large corporate tax rate could soon edge towards levels seen in other developed economies if the Prime Minister’s economic acceleration and job creation plans are enacted.

On September 9th Prime Minister Naoto Kan instructed the Japanese Cabinet to make a decision on the possibility of cutting the national corporate tax rate cut by the end of the year. He also instructed a panel at the Tax Commission to begin a new investigations into tax system rebalances which could be used to fund the rate drop.

Currently the country’s effective corporate tax rate exceeds 40 percent, compared to an average of 26.3 percent across the countries of the Organization of Economic Cooperation and Development (OECD). Both the Ministry of Economy, Trade and Industry and the Prime Mini...

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China Weighs Up Large-Scale Reforms

August 26, 2010 Taxation in China

Chinese Embassy SealIndications have arisen that China could soon take steps towards introducing numerous changes to its taxation system, including reforms to Value Added Tax, Resource Taxes, Personal and Corporate Income Taxes, along with property taxes.

The Chinese Government is giving consideration to changes in almost every aspect of the national tax system, in order to improve the overall efficiency of the economy and revamp tax revenue streams. The intention was revealed in a statement by Xu Lin, director of the Department of Fiscal and Financial Affairs, on August 24th.

According to Xu Lin, the Department of Fiscal and Financial Affairs is investigating the feasibility of carrying out reforms which will make property taxes a stable and primary component of local Government bodies’ annual revenues...

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