The Spring edition of our quarterly Asia Tax Bulletin features important developments in Southeast Asia, China, Taiwan, Japan, Korea and India.
In China, real property investors and financial institutions should note that the business tax will be withdrawn and fully replaced by the VAT by June, and special rules have been issued for B2C ecommerce transactions. Hong Kong, India and Singapore issued their government’s budgets with various tax changes. Singapore has extended the tax exemption on qualifying gains on the sale of shares by a Singapore company, and various tax incentives have also been refined.
Hong Kong is proposing to relax the rules to claim tax deductions for purchases of IP rights. India issued guidance on the tax position of carrying out EPC/turnkey contracts in the country. Korea announced that country-by-country reporting will commence in 2017.