Category Taxation In Asia

Asian Economies Warned of Capital Spikes

May 19, 2010 Taxation in ChinaTaxation in Hong KongTaxation in IndiaTaxation in PhilippinesTaxation in SingaporeTaxation in South KoreaTaxation in ThailandTaxation in Vietnam

Independence Monument - Phnom Penh, CambodiaGovernments of emerging Asian economies have been warned to be ready for sudden increases in investment capital inflows, and prepare appropriate policy responses.

On May 18th the Asian Development Bank (ADB) released its annual Asian Capital Markets Monitor report, which investigates the performance and outlooks for the equity, bond and currency markets in emerging economies. According to the report, several factors have cumulatively increased the risk of Asian economies facing sudden high levels of investment capitals, leading potential destabilization of currency and financial markets.

Amidst worries of a continued national debt crisis in Greece and the Euro-zone, international investors have been paying greater attention to Asian economies...

Read More

China and Hong Kong Cooperate on Transfer Pricing

May 18, 2010 Taxation in ChinaTaxation in Hong Kong

Hong KongThe Hong Kong Inland Revenue Department (IRD) and the State Administration of Taxation (SAT) of the People’s Republic of China recently held a public conference, where both administrations demonstrated a commitment to collaborating on issues surrounding transfer pricing (TP) and associated taxation matters. The conference was intended to provide insights into both administrations’ legislative perspectives and increase certainty surrounding transfer pricing and tax avoidance issues for cross-border business.

At the conference the IRD emphasized its acceptance and attempts to closely follow the Organization for Economic Cooperation and Development’s (OECD) Transfer Pricing Guidelines for assessing and reviewing clients’ TP arrangements and methods...

Read More

Bond Taxation Changes in Vietnam

May 17, 2010 Taxation in Vietnam

Government Guest HouseThe legislation governing taxation of interest earned on bonds and certificates of deposit (CD) held by foreign investors carrying out business in Vietnam have changed, resulting in a greatly increased tax burden.

The Government of Vietnam recently released Circular 64, a new piece of legislation taking effect on June 7th and altering the tax treatment of the interest earned on bonds and CD held by overseas investors. Under the new regulations, interest earned will be subject to a 10 percent level of taxation. The new rate of interest will be calculated and paid after the sale or transfer of the bond. Previously, the tax liability was calculated as 0.1 percent of the cumulative total of interest earned and the instrument’s face value.

According to Do Thu Ha, a tax partner of KPMG Vietnam...

Read More

Tax Revenues Fall in Hong Kong

May 4, 2010 Taxation in Hong Kong

Honk-KongAt a recent press conference the Commissioner of Inland Revenue of Hong Kong revealed that tax revenues in the special administrative region of the People’s Republic of China fell by 6 percent during the 2009-2010 financial year.

On May 3rd Chu Yam-Yuen, Commissioner of Inland Revenue Department of Hong Kong, held a press conference publicizing the 2009-2010 financial year tax revenue results. In total, HKD 179.1 billion (approx. USD 23.07 billion) was collected, compared to HKD 190.53 billion (approx. 24.5 billion) in the 2008-09 financial year. Corporate tax revenues were reported to have fallen by 26 percent, to HKD 76.6 billion (approx. USD 9.7 billion). Conversely, personal tax revenues and property tax revenues rose by 6 percent and 79 percent respectively...

Read More

IMF Identifies ASEAN Economic Challenges

April 27, 2010 International Tax CooperationTaxation in ChinaTaxation in SingaporeTaxation in ThailandTaxation in Vietnam

ASEAN London CommitteeIn a recent speech given by the Deputy Managing Director of the International Monetary Fund (IMF) to the Finance Ministers of the Association of Southeast Asian Nations (ASEAN), the key economic and fiscal issues, that the IMF perceives as currently facing ASEAN nations, were revealed.

On April 26th the IMF published a previously unreleased transcript of a speech given by Naoyuki Shinohara, Deputy Managing Director of the IMF, at the 14th ASEAN Finance Ministers’ Meeting, held on April 8th 2010 in Nha Trang, Vietnam. The speech focused on the key economic challenges the IMF perceives as facing ASEAN member nations...

Read More