New Zealand Budget Released

May 20, 2010 Taxation in New Zealand

BeehiveThe New Zealand Government has released its 2010 Budget. The announcement outlines various changes to the taxation system, putting to rest months of media speculations surrounding New Zealand’s tax future.

On May 20th the New Zealand Government revealed its national budget for the year 2010. The latest budget aims to reduce the impact of last year’s recession while introducing a range of fiscal stimulus measures and providing a solid base with which the Government can maintain control of the nation’s economy.

The Budget announcement revealed a number of significant alterations to New Zealand’s tax system. As expected by most economists, the Government has confirmed that the Goods and Service Tax (GST) rate will be raised to 15 percent from the current rate of 12.5 percent.

The incre...

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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...

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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...

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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...

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US Budget Adjusted Tax Freedom Day on May 17

May 14, 2010 Taxation in USA

HOW MUCH MONEY DOES OBAMA THINK IS TOO MUCH?According to new data publicized by the US Tax Foundation, Tax Freedom Day (TFD) will fall on May 17th in the US, if calculations take into account the scale of the country’s currently low tax collections and extensive Government budget deficit.

On May 13th the US Tax Foundation, an independent body aiming to educate taxpayers on national taxation matters, issued a statement drawing attention to the US Federal Budget deficit and its effect on the date of the TFD. Kail Padgitt, the author of the annual Tax Freedom Day Report, explained the amended TFD date, saying, “…if current taxes had to cover the deficit this year… Americans would be working until Monday, May 17, 2010, before earning enough money to pay for government.”

In 2010 the un-adjusted TFD fell on April 9th, and was cele...

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