Japan Tax Reform The 2013 Tax Reform Proposal contains a number of tax incentives to stimulate domestic investment and to increase employment by corporations. In addition, existing R&D incentives and employment promotion incentives are enhanced by relaxing requirements and increasing the associated tax benefits. Page 1
China Roundup Circular 59 provides changes to the policies for direct investment in China including replacing some approval requirements with new registration requirements. Circular 53 clarifies the rights and obligations of foreigners who become permanent residents. Page 2
India India’s High Court ruled that the indirect transfer of shares in an Indian Company was not subject to capital gains taxation in India. The provisions of the France – India DTAA were reviewed to assist in determining the scope of the Indian Income Tax act to tax the indirect transfer. Page 3
Indonesian Tax Incentives The tax incentives offered to business in Indonesia range from outright tax holidays for up to 10 years for certain “pioneer industries” to a reduction in duty import rates. Page 5
Hong Kong – Double Tax Agreement Hong Kong entered into a new comprehensive double taxation agreement with Canada. The new agreement will help cross-border investors better assess their potential tax liabilities and boost economic and trade ties between the two jurisdictions. Page 8
TABLE OF CONTENTS
China China Roundup:Changes to Direct Investment Procedures Announced – Tax Obligations of Foreign Permanent Residents, page 1
Hong Kong Hong Kong: New Comprehensive Double Tax Agreement with Canada, page 8
India India’s High Court Rules on Taxation of Indirect Transfer: Impact of Double Taxation Avoidance Agreement Reviewed, page 3
Indonesia Indonesia’s Incentives Include Tax Holidays, Import Duty Savings and Accelerated Deductions, page 5
Japan 2013 Tax Reform in Japan: Proposed Incentives Target Domestic Investment & Corporate Employment, page 1
