The 2017 Autumn edition of the Asia Tax Bulletin looks at the latest tax developments over the past three months in the Far East of Asia including India.
The State Council of the PRC announced new measures to encourage foreign investments, and the tax authorities issued a new decree on tax incentives for high and new technology enterprises, while Taiwan issued proposals for a new tax reform, and Hong Kong issued a consultation report on measures to counter tax avoidance. It looks more and more that Hong Kong is stepping up its actions against international tax avoidance. India saw an interesting High Court case about the general anti avoidance rules, which may give a hint how the newly effective GAAR provisions will be applied in practise.
The new GST Law took effect on 1 July 2017, and you will read more about this new tax in this edition of the Asia Tax Bulletin. Indonesia amended its conditions for tax treaty application which have introduced new criteria which foreign companies have to satisfy in order to enjoy the reduced Indonesian withholding tax rates. Also, Indonesia amended its CFC provisions, which have widened the scope of situations for Indonesian persons investing abroad being subject to Indonesian taxation on the income of the foreign company/ies they control. Korea is proposing new tax provisions as a result of the OECD’s BEPS reports. Malaysia clarified the tax position of Malaysian REITs. Thailand proposes to introduce new tax provisions on e-commerce transactions, and Vietnam issued a new transfer pricing circular.