As real estate funds increasingly turn towards Asia as an investment location, local tax authorities are increasingly focusing on how these investments are taxed. The many regions, regulations and authorities complicate the increasingly difficult task of structuring a fund to achieve a tax efficient outcome and achieve returns that are in line with investor expectations. This newsletter updates readers on developments affecting the structuring of real estate funds in the region, with a particular focus on the impact of changes on the tax efficiency of commonly used investment structures.
Featured in this edition are:
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Singapore: Providing tax certainty on disposal gains from equity investments |
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2012 Singapore Budget: Enhancement of designated investment and specified income lists |
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India: Enactment of Finance Act, 2012 |
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Notification of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 |
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Australia: Ongoing Managed Investment Trusts (MIT) reforms |
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Foreign superannuation funds and the MIT regime |
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Business Tax Working Group (BTWG) and proposed reduction to Australian company tax rate |
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China: Tax treaty beneficial ownership clarifications issued |
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Korea: Revised Korea-Switzerland DTA takes effect |
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National Tax Service (NTS)rejects refunding capital gains tax of Lone Star Fund |
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Malaysia: Malaysian 2013 Budget - establishment of the tax framework for Business Trusts |
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Revision in Real Property Gains Tax (RPGT) rates |
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New Zealand: Simplifying compliance requirements for certain non-resident investors in PIEs |
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Lease inducement payments to be taxable |