It gives me pleasure to present to you the summer edition of our quarterly Asia Tax Bulletin. It contains a host of changes and developments, including China’s retaliatory tariff increases in response to the US measures, China’s clarification of the taxation of perpetual bonds and the issuance of certificates of residency. China has come out with some favourable personal income tax measures, and it has changed the social security rates. India has issued proposed rules for the attribution of income to permanent establishments and is inviting comments on these proposals.
One noteworthy point is Indonesia’s zero-rating of many services provided to Indonesia by businesses in Indonesia, which is a welcome move in making the country more competitive within the region. Japan has implemented its tax reform proposals announced previously and Malaysia has issued further changes to the Service Tax treatment of digital services. Singapore is following the example of the EU and has now announced that it will publish tax rulings issues to taxpayers.
Finally, Thailand has taken tax measures to stimulate the local economy and Vietnam has implemented its Administration Law, which will have an impact especially on e-com transactions and transfer pricing.