The pandemic has had its effect on business and this edition of the Bulletin is predominantly about tax incentives China, Indonesia, Japan, Malaysia, the Philippines and Vietnam have all introduced to stimulate their economies. We have also seen countries take measures to ensure related-party transactions comply with the arm’s-length principle, either by regulating documentation requirements (Hong Kong, Philippines) or by adjusting the range within which a transaction is considered to be at arm’s length (Vietnam). Singapore has announced tougher measures against GST and income tax avoidance by introducing a 50% surcharge on transfer-pricing adjustments. 

Indonesia’s tax reform (the Omnibus Law) took effect in November and introduced tax exemptions for qualifying offshore salary income and certain investment income provided it is reinvested in the country. Finally, Vietnam’s tax department issued a circular prescribing interest to be imputed on certain interest-free loans.