Category Taxation In Asia

India Expanding Gift Tax

October 1, 2009 Taxation in India  No comments

India’s Government is expanding its gift taxation laws to include a larger lists of items, not just cash.

According to India’s Central Board of Direct Taxes (CBDT), from the 1st of October, new tax rules will take effect mandating that any and all gifts received, valued at over Rs. 50,000, will be required to be declared and taxed by the receiver. Since the 1st of April 2006, cash gifts of Rs. 50,000 were subject to a tax liability, but the regulation has now been expanded to include land and buildings, shares and securities, jewellery, drawings, paintings, archaeological collections and other works of art . The value of the gift must be disclosed in the 2010-11 tax assessment year and the following years...

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South Korean Economy Witnessing Recovery

September 23, 2009 Taxation in South Korea  No comments

The Korean Government has announced an expected 3.9% increase in their tax collections for 2010.

According to statements made by the Korean Ministry of Strategy and Finance, on the 23rd of September, the country will see an extra KRW3.1 trillion tax receipts in 2010. The total tax take is projected to reach KRW171.1, approximately equivalent to US$143.1 billion.

The details of the increased tax receipt are expanded in the Korean government’s draft budget plan, which will be submitted to the National Assembly on October 1st. Income tax is expected to rise by 9.0% to KRW37.0 trillion. Value Added Tax (VAT) has a projected 5.0% rise to KRW48.7 trillion. Bucking this trend, corporate taxes are expected to experience a fall of 2.0% to KRW35...

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India Consider Corporate Tax Cuts

August 14, 2009 Taxation in India  No comments

The Indian Government has proposed lowering corporate tax rates, abolishing equity trading tax and funding it all by improving tax compliance.

In an effort to raise net tax collection, the Indian government is proposing further changes to their taxation system. Spearheading the new bout of changes is the idea of lowering corporate tax rates to 25% from their current 30%. This would be the lowest corporate tax rate ever seen in India. Proposals of abolishing taxation on equity trades had also been floated. The changes are being introduced for the sole purpose of spurning on the Indian economy.

The funding for these tax cuts will come from increased efforts to improve taxation compliance, especially in personal taxation...

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Indian Tax Revenue Grew

August 11, 2009 Tax HavensTaxation in India  No comments

India’s tax receipts for the April to July period grew 3.27% from the previous quarter.

According to statements released by India’s Central Board of Direct Taxes, the net direct tax take increased to Rs 739.90 billion. This figure is comprised from a 2.6% growth in the intake of corporate tax and a 4.3% rise in personal tax collection. In exact figures, corporate taxes rose from Rs 415.98 billion to Rs 426.85 billion, and personal tax collection reached Rs 312.79 billion from Rs 304.86 billion. Securities Transaction Tax also experienced a 3.5% increase in net collection, in comparison to the corresponding period of the last financial year.

While still positive, the collection is lower than expected by the Indian government...

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Tax Break for Indian Directors and Managing Directors

August 3, 2009 Taxation in India  No comments

The Central Board of Excise and Customs (CBEC) of India has released their stance on service tax for Directors’ and Managing Directors‘ remuneration, clarifying that commission paid is in most cases not liable for service tax.

The CBEC has clarified their position on the situation of “commission” based on company performance being paid to Directors and Managing Directors, in regards to service tax purposes. Doubts were raised as to the position due to many of India’s listed companies treating the payments made towards Directors as “salary”, while in the strict reading of the law they were “commission”.

It was stated by the CBEC in a publication that “Some companies make payments to Managing Director/Directors (whole-time or independent), terming the same as commissions...

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