• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/2/2013

Asia Pacific - Tax update for financial institutions (June 2013)  

July 2: KPMG’s report of tax developments in the Asia Pacific region for financial institutions includes descriptions of recent legislative, regulatory, and judicial developments, as follows:
  • Australia - Legislative developments; and taxation rulings and determinations
  • Hong Kong - Budget 2012-2013; new stamp duty measures proposed; new income tax treaty with Italy; and treaties entering into force
  • India - Taxability in one country not required for relief under tax treaty; transfer taxable as capital gains, not business income; tax rate under India-UAE tax treaty; applicability of tax treaty to a limited partnership in Germany is governed by the specific provisions of the relevant tax treaty and not by the OECD commentary
  • Japan - 2013 tax reform proposals
  • Korea - Lower ceiling limit on bad debt reserve of financial institutions; computing arm’s length price for credit guarantee transactions
  • Malaysia - Finance Act 2013; deferring implementation of the thin capitalisation rules; monetary and non-monetary incentive payments to agents, dealers or distributors; investment development authority’s guidelines
  • Mauritius - Enactment of the Finance Act 2012
  • New Zealand - Employee taxation issues; thin capitalisation changes proposed
  • Philippines - Transfer pricing guidelines; amendments to exclusions from single borrower’s loan limit and equity investment ceilings; amendment to regulations on single borrower’s limit
  • Singapore - Budget 2013
  • Taiwan - Proposed “controlled foreign corporation” rule and test of company residency
  • Vietnam - Updates on financial regime for credit institutions and foreign bank branches, and on debt classification and debt provisions for credit institutions and foreign bank branches; Vietnamese securities market open to foreign investors; regulating activities of lending, borrowing, purchase and sale among credit institutions and branches of foreign banks

Read the June 2013 report [PDF 830 KB] prepared by KPMG member firms: General tax update for financial institutions in Asia Pacific (June 2013)

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