Category Taxation In Asia

Global Business Confidence is Improving

December 15, 2009 Taxation in ChinaTaxation in IndiaTaxation in UKTaxation in USA

Freefall Friday: $84b - worst day in 21 yearsThe world is still suffering from an economic slump, but confidence and business outlook across the globe is beginning to see a marked improvement.

According to research by international law firm Eversheds, published on December 14th, there is a resurgence in business confidence and future outlook across key global economic centres, and the Eastern markets are showing the most significant improvements. The report engaged 600 senior executives to show the effect of the economic downturn and its results on their confidence in London, New York, Shanghai, Mumbai and the United Arab Emirates (UAE).

The study reports that executives in Shanghai, UAE and Mumbai have highest levels of confidence for the next 12 months, though all respondents believe that New York will continue to be the most signi...

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India’s Tax Take Increases

December 4, 2009 Taxation in India

The ManIndia’s Central Board of Direct Taxes (CBDT) announced on December 2nd that their net direct tax collections for the first eight month of the current fiscal year had risen by 3.71%, compared to the same period in the previous year.

In what the Indian Income Tax Department (ITD) labeled as “impressive growth,” the CBDT reported net tax collections of INR1,838 billion for the April up to November period, from INR1,776 billion in the equivalent period in the previous fiscal year. PIT collection, which includes Fringe Benefit Tax, Security Transaction Tax and Banking Cash Transaction Tax, totaled INR703 billion, compared to the previous year’s INR672 billion, making a rise of 4.53%. Corporate Taxes collected for the period increased by 3.17%, from INR1,097 billion to INR1,132 billion...

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Auto Purchase Tax Cut to Continue into 2010

December 2, 2009 Taxation in China

Chinese Policewoman directing traffic at junctionWith booming car sales in the last months, experts and Chinese officials are confident that the country’s automobile sales tax cuts will continue next year.

Although there is no official confirmation of any future moves, in his last interview Chang Xiaocun, head of China’s Commerce Ministry’s department of market system development, was quite confident that the Government is interested in extending the auto purchase tax cut program. Additionally to his words, some experts believe that the tax cut program could even be extended to more types of passenger cars.

The auto purchase tax cut program was started by the Government of the People’s Republic of China on January 20th, 2009, and reduced auto sales tax by 50% on cars with engine capacities below 1.6L...

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India Releases Good and Service Tax Proposal

November 11, 2009 Taxation in India  No comments

The outlines of India’s Good and Service Tax (GST) plans are starting to emerge, with the first discussion paper on the idea being released on November 11th.

The initial details concerning the structure of India’s upcoming GST implementation have been released by the Empowered Group of State Finance Minister. Though the paper is not a complete account of every aspect of the new GST system, it is the first comprehensive discussion to both its format and implementation.

The group has stated that the new GST system will have two components: Central GST and State GST, both of which will be levied concurrently. Further, there will be two rates set for the GST: a lower rate for items that are deemed necessary, and a standard rate for those that are considered to be general goods...

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EU and South Korea Initial FTA

October 17, 2009 International Tax CooperationTaxation in EUTaxation in South Korea  No comments

The European Union (EU) and South Korea have initialed a Free Trade Agreement (FTA).

After a series of negotiations and two legal review meetings in July and September, the FTA between South Korea and the EU came to be initialed on the 15th of October. The FTA document was signed by Catherine Ashton, EU Trade Commissioner, and Kim Jong-hoon, South Korean Trade Minister, in a ceremony in Brussels.

The Free Trade Agreement is heralded as one of the most important agreements of its kind to be signed by the EU. Virtually all tariffs charged on the approximate €65 billion worth of trade between EU and South Korea will be eliminated within seven years of the official signing of the document. Estimates have placed the value of the agreement at €19 billion.

Remarking on the signing of the trea...

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