Hong Kong. Tax Alert. Hong Kong
|
|
- Darleen Greer
- 5 years ago
- Views:
Transcription
1 Hong Kong Tax Alert 10 December Issue No. 20 Hong Kong introduces a legislative bill for enhancing its attractiveness as a corporate treasury centre to multinational corporations The bill 1 seeks to remove an impediment to multinational corporations setting up a corporate treasury centre (CTC) in Hong Kong. The impediment is an asymmetrical tax treatment of the interest income and expense of a CTC. In addition, the bill also proposes to tax qualifying profits of a qualifying CTC at a concessionary tax rate of 8.25% (i.e., 50% of the normal corporate tax rate of 16.5%). The asymmetrical tax treatment stems from the fact that under the current tax rules, a CTC would not be able to claim a tax deduction for interest paid on money borrowed from a non-hong Kong associated corporation (which is not a financial institution), whilst its interest income from the on-lending would normally be chargeable to tax in Hong Kong. To put the taxability of certain interest and related income of a CTC beyond doubt, the bill also contains two deeming provisions. Under these provisions, relevant interest income and profits in respect of certain debt instruments derived by a CTC which carries on an intra-group financing business in Hong Kong would be deemed profits of the CTC chargeable to tax in Hong Kong. This alert explains the major provisions of the bill. 1 The bill referred to is Inland Revenue (Amendment) (No. 4) Bill 2015 and is downloadable from In addition to containing the proposed legislation for CTCs, the bill also contains proposals that seek to clarify the profits tax and stamp duty treatments in respect of regulatory capital securities issued by banks in compliance with Basel III capital adequacy requirements.
2 Rectifying the asymmetrical tax treatment Currently, under section 16(2)(c) of the Inland Revenue Ordinance (IRO), interest paid by a CTC to a lender which is not a financial institution would only be tax deductible if the interest received by the lender is subject to tax in Hong Kong. As such, a CTC would generally not be able to claim a tax deduction in Hong Kong for interest paid to its overseas group companies which do not carry on business in Hong Kong. However, interest income derived from the on-lending by a CTC to other group companies would normally be chargeable to tax in Hong Kong, regardless of where those other group companies are located or where the funds are made available to those group companies. This is a major impediment for multinational corporations when considering Hong Kong for locating their CTC operations. In order to attract multinational corporations to establish CTCs in Hong Kong (including facilitating the drive of Mainland enterprises to go global under the Belt-Road initiative), the Financial Secretary announced in his 2015/16 Budget that the Government would amend the IRO, foretelling the introduction of the bill. Major provisions of the bill Additional new deduction section for interest paid to overseas associated corporations Under a new section 16(2)(g) to be introduced into the IRO, any corporation which carries on in Hong Kong a business of borrowing of money from and lending of money to its associated corporations, can claim a tax deduction for interest paid to a non-hong Kong associated corporation provided that the following conditions are satisfied: I. The money is borrowed in the ordinary course of the said intra-group financing business of the corporation; I The lender is, in respect of the interest, subject to tax overseas which is similar to the profits tax of Hong Kong, at a rate not lower than the reference rate (i.e., 16.5% or 8.25% as applicable). For this purpose, the lender would be considered as being subject to tax overseas where the Commissioner of Inland Revenue (CIR) is satisfied that the relevant overseas tax has been or will be paid; and The lender s right to use and enjoy that interest is not constrained by a contractual or legal obligation to pass that interest to any other person (unless the obligation arises as a result of a transaction between the lender and a person other than the borrower dealing with each other at arm s length). However, claims for tax deductions of interest under the proposed section 16(2)(g) would be denied where: Interest flow-back restriction (a) arrangements are in place by which any sum of the relevant interest, whether directly or through any interposed person, is payable to a related person; and (b) the related person is, in respect of the sum, subject to profits tax in Hong Kong or a similar tax outside Hong Kong at a rate which is less than the reference rate. Utilization of tax losses restriction the main purpose or one of the main purposes of the borrowing of the money by the corporation is to utilize a loss in order to avoid, postpone or reduce any liability, whether of the corporation or another person, to profits tax in Hong Kong. Concessionary tax rate for qualifying profits of a qualifying CTC A qualifying CTC can elect to have its qualifying profits taxed at the concessionary tax rate of 8.25%. Such an election, once made, is irrevocable for so long as the corporation remains as a qualifying CTC. Where a CTC has made an election but failed to qualify as a qualifying CTC for a particular year, the CTC will be denied the concessionary tax rate for the subsequent year of assessment. This provision is to discourage a CTC from deliberately rendering itself not qualifying as a qualifying CTC. Such deliberate act may be contemplated when the CTC expects to incur losses for a year in respect of what would otherwise have been half-rate CTC operations such that the losses could be offset against other full-rate taxable profits of the CTC on a dollar-for-dollar basis. Otherwise, such losses would have to be scaled down by half when used to offset against other full-rate taxable profits of the CTC. Qualifying profits Assessable profits of a CTC derived from the following transactions would be qualifying profits: Money lent in the ordinary course of the CTC s intragroup financing business to a non-hong Kong associated corporation. A corporate treasury service 2 provided by the CTC to a non-hong Kong associated corporation. A corporate treasury transaction 2 entered into by the CTC on its own account that is related to the business of a non-hong Kong associated corporation. 2 Please refer to the Appendix to this alert for the types of services and transactions that qualify as corporate treasury service and corporate treasury transaction under the bill. 2
3 Furthermore, to qualify for the concessionary tax rate, any sum paid to the CTC for the above three types of qualifying transactions cannot be tax deductible to the payer in Hong Kong. The Government s rationale for the above restrictions is to guard against revenue loss in circumstances where qualifying profits derived by a qualifying CTC are subject to half-rate taxation but associated corporations in Hong Kong claim a full tax deduction for the corresponding payments. However, counterparties to corporate treasury transactions of the third type of qualifying transactions e.g., transactions in respect of derivative contracts entered into by CTCs are often financial institutions unrelated to the CTC. As such, whether the unrelated financial institutions concerned would be able to claim the payments to the CTCs as being tax deductible in Hong Kong should not affect the eligibility of the CTCs for the concessionary tax rate in respect of the transactions. Qualifying CTC To qualify as a qualifying CTC for a year of assessment, (i) the central management and control of the CTC concerned for that year has to be exercised in Hong Kong; and (ii) the activities that produce the qualifying profits in that year have to be either (a) carried out in Hong Kong by the CTC itself; or (b) arranged by the CTC to be carried out in Hong Kong. The above business substance in Hong Kong requirements are to ensure that the proposed tax incentive in the form of the concessionary tax rate would not be regarded as a harmful tax practice by the international community, in the context of the initiative spearheaded by the OECD and the G20 countries in addressing base erosion and profits shifting 3. In any case, the business substance in Hong Kong requirements would also be compatible with the desire of many CTCs to claim tax benefits under the expanding tax treaty network of Hong Kong. The bill also stipulates that, subject to certain safe harbor rules, a CTC would be a qualifying CTC only if, for a year of assessment in question, it is a standalone corporate entity dedicated to conduct one or more of the following corporate treasury activities and no others: Carrying on an intra-group financing business of borrowing money from and lending of money to its associated corporations; Providing a corporate treasury service; or Entering into a corporate treasury transaction. In determining whether a corporation has carried out any activity other than the above specified corporate treasury activities, the bill provides that only activities that generate income to the CTC are to be taken into account. Safe harbor rules A CTC not dedicated solely to one or more of the above specified corporate treasury activities, would nonetheless be regarded as a qualifying CTC under the following two safe harbor rules: 1. Both the aggregate amount of the corporate treasury profits (CTP) and the aggregate value of the corporate treasury assets (CTA) for the year of assessment in question are not less than 75% of the total amount of the profits and value of the assets of the CTC concerned. The 75% threshold can be determined by either (i) the CTP and CTA percentage of the subject year of assessment alone; or (ii) the average CTP and CTA percentage over three relevant years of assessment - i.e., the subject year of assessment and the two preceding years; or (iii) where the CTC concerned carries on business in Hong Kong for less than 2 consecutive years immediately before the subject year of assessment, the average CTP and CTA percentage over the subject year and the preceding year of assessment. 2. Where a CTC fails to qualify as a qualifying CTC on the above, the CTC concerned may nonetheless make an application to the CIR requesting the CIR to determine it as being a qualifying CTC. The CIR may make such a determination only if he is of the opinion that the CTC, not being a financial institution, would have qualified as a qualifying CTC in the ordinary course of business of the corporation concerned (i.e., something out of the ordinary had happened that made the corporation not qualifying). If the safe harbor rules are enacted in its current form, it is hoped that the tax administration would provide guidance on how the CTP and CTA percentages are to be determined. The guidance required includes whether the CTP refers to accounting or taxable profits and the method for determining the value of the assets under the CTA formula, e.g., historical cost or fair market value, particularly the apportionment method where the assets concerned are used for both CTC and non-ctc operations. 3 Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies that exploit the gaps and mismatches in tax rules of different jurisdictions so as to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in little or no overall corporate tax being paid. 3
4 Putting beyond doubt the taxability of relevant income of CTCs The bill proposes to add two new deeming sections in the form of 15(1)(ia) and (la) to the IRO. Under these two deeming sections, interest income and relevant profits in respect of certificates of deposit, bills of exchange and regulatory capital securities derived by a CTC from its business of intra-group financing business in Hong Kong would be deemed profits chargeable to tax in Hong Kong. This would be the case regardless that the provision of credit of the loans may be made outside Hong Kong and that the relevant contracts for disposal, redemption or presentation of the instruments concerned were effected outside Hong Kong. Effective dates The proposed interest deduction rules and concessionary tax rate for qualifying profits of a qualifying CTC will apply to sums payable, received or accrued on or after 1 April The proposed deeming provisions for the relevant interest income and profits of a CTC will only apply to sums received or accrued on or after the date on which the bill is enacted into law. Our views We welcome this legislative proposal which together with other existing advantages Hong Kong offers, including its proximity to mainland China, large offshore RMB pool, abundant supply of legal and financial professionals and efficient capital markets, would enhance Hong Kong s attractiveness as a CTC to multinational corporations. Subject to the two safe harbor rules, the bill adopts an entity-based approach to granting the concessionary tax rate. This can be considered a good first step but many existing CTCs may not be able to benefit from the incentive. Given the safe harbor rules contained in the bill, large corporations that now conduct CTC activities as part of their wider operations would need to consider whether they would be able to qualify under the rules. If not, such large corporations may need to weigh the benefit of the half-rate taxation of the relevant profits against any inconvenience or costs of spinning off the CTC operations into a separate legal entity. In terms of tax costs, one may need to consider whether such a spin-off would give enough substance to the spinoff entity or weaken the substance of the original large corporation for tax treaty benefits. This may be a concern given that the substance e.g., in terms of headcount and activities would now need to be spread over the two entities concerned. If the bill is enacted into law, the Government may at an appropriate later date need to consider the desirability of relaxing the 75% safe harbor rule so as to cover more CTC operations. Many of the provisions of the bill are complicated. Clients who have any questions on this legislative proposal can contact their tax executives. 4
5 Appendix Corporate treasury services mean the following services provided to an associated corporation: a) managing the cash and liquidity position, including cash forecasting or pooling, of the associated corporation and providing related advice; b) processing payments to the vendors or suppliers of the associated corporation; c) managing the associated corporation s relationships with financial institutions; d) providing corporate finance advisory service, including I. activities supporting the raising of capital, such as by way of debt or equity, by the associated corporation; and capital budgeting for the associated corporation; e) advising on the management of the investment of the funds of the associated corporation; f) managing investor relations regarding the investors in the debt or equity instruments issued by the associated corporation; g) providing service in relation to I. the provision of guarantees, performance bonds, standby letters of credit or other credit risk instruments to or on behalf of the associated corporation; or remittances to or on behalf of the associated corporation; h) providing advice or service in relation to the management of interest rate risk, foreign exchange risk, liquidity risk, credit risk, commodity risk or any other financial risk of the associated corporation; i) providing assistance in the merger or acquisition of a business by the associated corporation; j) providing advice or service in relation to the associated corporation s compliance with I. accounting standards; I internal treasury policies; or regulatory requirements in relation to treasury management; k) providing advice or service in relation to the operations of the treasury management system of the associated corporation; l) providing business planning and co-ordination, including economic or investment research and analysis, for the associated corporation in connection with any of the activities specified in paragraphs (a) to (k). Corporate treasury transactions mean the following transactions entered into on a CTC s own account and related to the business of an associated corporation: a) a transaction in relation to the provision of guarantees, performance bonds, standby letters of credit or other credit risk instruments in respect of the borrowing of money by the associated corporation; b) a transaction investing the funds of the corporation or the associated corporation in any of the following financial instruments for managing the cash and liquidity position of the corporation or the associated corporation I. deposits; I IV. certificates of deposit; bonds; notes; V. debentures; VI. V money-market funds; other financial instruments (except securities issued by a private company as defined by section 20ACA(2)); c) a transaction in respect of any of the following contracts that are entered into for the purpose of hedging interest rate risk, foreign exchange risk, liquidity risk, credit risk, commodity risk or any other financial risk of the associated corporation a. contracts for difference; b. foreign exchange contracts; c. forward or futures contracts; d. swap contracts; e. options contracts; f. a factoring or forfaiting transaction. d) a factoring or forfaiting transaction. 5
6 Financial Services Hong Kong office Ian McNeill Managing, Tax, Asia-Pacific Principal tax contact Florence Chan Business Tax Services Paul Ho Michael Stenske Napson Hon Sunny Liu International Tax Services James Badenach John Praides Adam Williams David Allgaier Aaron Lam Transfer Pricing Services Justin Kyte Jonathan Thompson Brandan Wing Peggy Lok Rohit Narula EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com Ernst & Young Tax Services Limited. All Rights Reserved. APAC No ED None. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com/china
Hong Kong introduces legislative bill for corporate treasury center incentives
11 December 2015 Global Tax Alert Hong Kong introduces legislative bill for corporate treasury center incentives EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts.
More information17 March Issue No. 6
Hong Kong Tax Alert 17 March 2017 2017 Issue No. 6 Hong Kong introduces legislative bill to attract offshore aircraft leasing and aircraft leasing management businesses to Hong Kong Last Friday, the Inland
More information7 November Issue No. 14
Hong Kong Tax Alert 7 November 2017 2017 Issue No. 14 The IRD clarifies how it will interpret and administer the concessionary tax regime for qualifying aircraft leasing activities On 27 October 2017,
More information3 March Issue No. 5
Hong Kong Tax Alert 3 March 2017 2017 Issue No. 5 Basel III compliant banking regulatory capital securities (RCSs) IRD states its interpretation of the tax treatment of RCSs Last week, the Inland Revenue
More information3 January Issue No. 1. Court-free amalgamation - utilization of pre-amalgamation tax losses subject to strict restrictions post amalgamation
Hong Kong Tax Alert 3 January 2017 2017 Issue No. 1 Court-free amalgamation - utilization of pre-amalgamation tax losses subject to strict restrictions post amalgamation A potentially contentious and complicated
More informationHong Kong Tax Alert. Legislative proposal to grant profits tax exemption to resident, privately-offered open-ended fund companies
Hong Kong Tax Alert 5 July 2017 2017 Issue No. 12 Legislative proposal to grant profits tax exemption to resident, privately-offered open-ended fund companies Last Wednesday, the Government introduced
More informationHong Kong Tax Alert. Hong Kong signs comprehensive double tax agreement with Romania. Who is covered by the CDTA. 27 November Issue No.
Hong Kong Tax Alert 27 November 2015 2015 Issue No. 19 Hong Kong signs comprehensive double tax agreement with Romania On 18 November 2015, Hong Kong signed a comprehensive avoidance of double taxation
More informationHong Kong Tax alert. Views of stakeholders sought on proposed automatic exchange of financial account information
4 May 2015 2015 Issue No. 8 Hong Kong Tax alert Views of stakeholders sought on proposed automatic exchange of financial account information As a responsible member of the international community, the
More information9 Jan Issue No. 2. Whether and when a debt can be considered bad for tax deduction purposes
Hong Kong Tax Alert 9 Jan 2018 2018 Issue No. 2 Whether and when a debt can be considered bad for tax deduction purposes A recent decision of the Court of First Instance (CFI) concerns the Commissioner
More informationHong Kong passes tax and transfer pricing legislation to counter Base Erosion and Profit Shifting
Hong Kong passes tax and transfer pricing legislation to counter Base Erosion and Profit Shifting Executive summary On 4 July 2018, the Inland Revenue (Amendment) (No. 6) Bill 2017 (the Amendment Bill
More informationSetting up a Corporate Treasury Center in Hong Kong
Setting up a Corporate Treasury Center in Why a Corporate Treasury Center? A growing number of multinational corporations (MNCs) are setting up Corporate Treasury Centers (CTCs) in Asia The size and scale
More informationDeloitte INED Series. Corporate Treasury Centre Presented by Davy Yun. 5 January 2017
Deloitte INED Series Corporate Treasury Centre Presented by Davy Yun 5 January 2017 Deloitte speaker Davy Yun Tax Partner, Deloitte China Tel: +852 28526538 Email: dyun@deloitte.com.hk 2017. For information,
More informationHong Kong Tax Alert. Hong Kong signs comprehensive double tax agreement with Latvia. 21 April Issue No. 7
Hong Kong Tax Alert 21 April 2016 2016 Issue No. 7 Hong Kong signs comprehensive double tax agreement with Latvia On 13 April 2016, Hong Kong signed a comprehensive avoidance of double taxation agreement
More informationHong Kong introduces tax and transfer pricing legislation to counter Base Erosion and Profit Shifting
5 January 2018 Global Tax Alert Hong Kong introduces tax and transfer pricing legislation to counter Base Erosion and Profit Shifting EY Global Tax Alert Library Access both online and pdf versions of
More informationHong Kong Tax Alert. Inland Revenue Department (IRD) outlines its views on certain Salaries Tax and treaty-related issues relating to individuals
Hong Kong Tax Alert 15 January 2018 2018 Issue No. 4 Inland Revenue Department (IRD) outlines its views on certain Salaries Tax and treaty-related issues relating to individuals Issues discussed in the
More informationHong Kong releases new practice note on concessionary tax regime for qualifying aircraft leasing activities
10 November 2017 Global Tax Alert Hong Kong releases new practice note on concessionary tax regime for qualifying aircraft leasing activities EY Global Tax Alert Library Access both online and pdf versions
More informationHong Kong s OECD BEPS Associate status requires implementation of BEPS minimum standards
28 June 2016 International Tax and TP Alert Hong Kong s OECD BEPS Associate status requires implementation of BEPS minimum standards Executive summary On 20 June 2016, Hong Kong announced that it will
More informationCorporate Treasury Centres in Hong Kong almost a reality. Corporate Treasury Centres
HONG KONG TAX ALERT ISSUE 2 January 2016 Corporate Treasury Centres in Hong Kong almost a reality Summary Bill provides for a concessionary rate of profits tax of 8.25% for Qualifying Corporate Treasury
More information8 June Issue No. 12. New practice note explains how IRD will interpret the new law exempting PE funds from tax
Hong Kong Tax Alert 8 June 2016 2016 Issue No. 12 New practice note explains how IRD will interpret the new law exempting PE funds from tax Useful guidance provided, but certain issues e.g., the permitted
More informationBy and by hand. 21 January Your Ref.: CB4/BC/2/15 Our Ref.: C/RIF, M104210
By email (bc_102_15@legco.gov.hk) and by hand 21 January 2016 Your Ref.: CB4/BC/2/15 Our Ref.: C/RIF, M104210 Hon. Kenneth Leung Chairman, Bills Committee on Inland Revenue (Amendment) (No.4) Bill 2015,
More informationHong Kong Tax Alert. Legislative bill detailing enhanced tax deductions for qualifying R&D activities introduced. 8 May Issue No.
Hong Kong Tax Alert 8 May 2018 2018 Issue No. 11 Legislative bill detailing enhanced tax deductions for qualifying R&D activities introduced On 20 April 2018, the Inland Revenue Amendment (No. 3) Bill
More informationHong Kong Tax alert. Inland Revenue (Amendment) Bill 2015 gazetted to extend Profits Tax Exemption for Offshore Funds to Private Equity Funds
31 March 2015 2015 Issue No. 5 Hong Kong Tax alert Inland Revenue (Amendment) Bill 2015 gazetted to extend Profits Tax Exemption for Offshore Funds to Private Equity Funds Executive Summary The Budget
More informationHONG KONG BEPS AND NEW TRANSFER PRICING LAW
10 July 2018 HONG KONG BEPS AND NEW TRANSFER PRICING LAW Executive summary Hong Kong's Legislative Council on 4 July 2018 passed the Inland Revenue (Amendment) (No. 6) Bill 2017), which became effective
More informationNext Generation Fund Structuring Are you ready? 10 May 2017
Next Generation Fund Structuring Are you ready? 10 May 2017 Global Private Equity Fundraising Activity Page 2 Agenda and Speakers 1. Fund Level Considerations Adam Williams EY Greater China Private Equity
More informationHong Kong Tax Alert. 20 November Issue No. 17
Hong Kong Tax Alert 20 November 2015 2015 Issue No. 17 IRD gives guidance on the deductibility of specific provisions relevant to bank loans and the tax characterization of perpetual notes In the 2015
More informationGlobal Tax Alert. Singapore Tax Authority releases updated transfer pricing guidelines. Executive summary. News from Transfer Pricing
8 January 2015 Global Tax Alert News from Transfer Pricing EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/
More informationHong Kong Tax alert. 4 June Issue No. 10
4 June 2015 2015 Issue No. 10 Hong Kong Tax alert Court of Appeal rules that license fees received by a non-hong Kong resident for granting rights to a Hong Kong taxpayer to exhibit television programs
More informationPAPER 2.04 HONG KONG OPTION
THE ADVANCED DIPLOMA IN INTERNATIONAL TAXATION June 2017 PAPER 2.04 HONG KONG OPTION SUGGESTED SOLUTIONS PART A Question 1 Part 1 In respect of the sales to mainland customers, the profits so derived would
More informationThough funds are generally exempt from profits tax in Hong
Tax Law: Latest Developments in the Taxation of Hong Kong Asset Managers As Hong Kong proposes new rules to combat base erosion and profit shifting ( BEPS ), asset management groups operating in Hong Kong
More informationInland Revenue Authority of Singapore releases 2016 Transfer Pricing Guidelines
11 January 2016 Global Tax Alert News from Transfer Pricing Inland Revenue Authority of Singapore releases 2016 Transfer Pricing Guidelines EY Global Tax Alert Library Access both online and pdf versions
More informationIRAS release of e-tax guide: Transfer Pricing Guidelines (Fourth edition)
Issue 9 17 January 2017 Transfer pricing alert IRAS release of e-tax guide: Transfer Pricing Guidelines (Fourth edition) Overview On 12 January 2017, the Inland Revenue Authority of Singapore (IRAS) released
More informationGlobal Tax Alert. OECD releases report under BEPS Action 2 on hybrid mismatch arrangements. Executive summary
23 September 2014 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date
More informationNew Zealand to implement wide ranging international tax reforms
15 August 2017 Global Tax Alert New Zealand to implement wide ranging international tax reforms EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your
More informationChina s Tax Authorities issue groundbreaking consultation draft to update transfer pricing rules in a Post-BEPS environment
24 September 2015 Global Tax Alert News from Transfer Pricing EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/
More informationSingapore Variable Capital Company
05 April 2017 Tax alert Singapore Variable Capital Company On 23 March 2017, the Monetary Authority of Singapore (MAS) issued a consultation paper 1 on the proposed framework for Singapore Variable Capital
More informationExecutive Summary. This paper discusses some of these key tax considerations that the Government should review closely:
FSDC Paper No.26 A Paper on Tax Issues Affecting Hong Kong to Become a Preferred Location for Regional and International Financial Institutions to Originate and Trade International Financial Products December
More informationWill open-ended fund companies (OFCs) serve as an option for Hong Kong-based hedge fund managers?
Will open-ended fund companies (OFCs) serve as an option for Hong Kong-based hedge fund managers? The better the question. The better the answer. The better the world works. The Securities and Futures
More informationCyprus Tax Authority issues guidance on revised transfer pricing framework for intra-group financing activities
5 July 2017 Global Tax Alert News from Transfer Pricing Cyprus Tax Authority issues guidance on revised transfer pricing framework for intra-group financing activities EY Global Tax Alert Library Access
More informationGlobal Tax Alert. Spain proposes amendments to the Spanish ETVE and participation exemption regimes. Executive summary. Detailed discussion
12 September 2014 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date
More informationJapan and Chile sign income tax treaty
28 January 2016 Global Tax Alert Japan and Chile sign income tax treaty EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: www.ey.com/taxalerts
More informationHong Kong Tax alert. Time limit for a section 70A application may not be as generous as it appears
4 March 2015 2015 Issue No. 4 Hong Kong Tax alert Time limit for a section 70A application may not be as generous as it appears Under section 70A of the Inland Revenue Ordinance (IRO), a taxpayer can apply
More informationOECD, UN, IMF and World Bank issue toolkit for addressing difficulties in accessing comparable data for transfer pricing analysis
6 July 2017 Global Tax Alert OECD, UN, IMF and World Bank issue toolkit for addressing difficulties in accessing comparable data for transfer pricing analysis EY Global Tax Alert Library Access both online
More informationSingapore enacts transfer pricing documentation requirements and publishes updated transfer pricing guidelines
26 March 2018 Global Tax Alert News from Transfer Pricing Singapore enacts transfer pricing documentation requirements and publishes updated transfer pricing guidelines EY Global Tax Alert Library Access
More informationOECD releases first discussion draft on transfer pricing aspects of financial transactions
6 July 2018 Global Tax Alert OECD releases first discussion draft on transfer pricing aspects of financial transactions NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition
More informationUK s bilateral APA program for financial transactions is in line with growing global approach
5 November 2018 Global Tax Alert News from Transfer Pricing UK s bilateral APA program for financial transactions is in line with growing global approach NEW! EY Tax News Update: Global Edition EY s new
More informationSouth African Revenue Service releases public notice on recordkeeping for transfer pricing transactions
9 November 2016 Global Tax Alert News from Transfer Pricing South African Revenue Service releases public notice on recordkeeping for transfer pricing transactions EY Global Tax Alert Library Access both
More informationOECD issues Action Plan on Base Erosion and Profit Shifting (BEPS)
22 July 2013 OECD issues Action Plan on Base Erosion and Profit Shifting (BEPS) Executive summary On 19 July 2013, the Organisation for Economic Cooperation and Development (OECD) issued its much-anticipated
More informationGlobal Tax Alert. OECD issues updated guidance under BEPS Action 8 on transfer pricing aspects of intangibles. Executive summary
21 September 2014 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date
More informationIndia introduces secondary adjustment and interest limitation rules
6 April 2017 Global Tax Alert News from Transfer Pricing India introduces secondary adjustment and interest limitation rules EY Global Tax Alert Library Access both online and pdf versions of all EY Global
More informationSignificant tax changes: UK implications for captive insurers
Tax Services Significant tax changes: UK implications for captive insurers Executive summary This alert sets out how recent developments in the global tax environment may impact UK-connected groups with
More informationThe new global tax environment. What the global focus on Base Erosion and Profit Shifting (BEPS) means for your business
The new global tax environment What the global focus on Base Erosion and Profit Shifting (BEPS) means for your business Changing business environment Macroeconomic megatrends, mobility of capital and growth
More informationThe BEPS and transfer pricing Bill will soon be enacted with various amendments
News Flash Hong Kong Tax The BEPS and transfer pricing Bill will soon be enacted with various amendments June 2018 Issue 8 In brief The Inland Revenue (Amendment) (No. 6) Bill 2017 1 (the Bill) which was
More informationUK HMRC issues update on diverted profits tax
20 March 2015 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date UK
More informationHong Kong Tax alert. New law allows tax deductions for registered trademarks, copyrights and registered designs
10 January 2012 2012 Issue No. 1 Hong Kong Tax alert New law allows tax deductions for registered trademarks, copyrights and registered designs The Inland Revenue (Amendment) (No. 3) Ordinance 2011 was
More informationIntangibles in transfer pricing: A look at the new OECD guidance and Japanese regulations
4 April 2016 Japan tax alert Ernst & Young Tax Co. Intangibles in transfer pricing: A look at the new OECD guidance and Japanese regulations EY Global tax alert library Access both online and pdf versions
More informationGlobal tax points for insurers. Volume 1 Issue 3
Global tax points for insurers Volume 1 Issue 3 Foreword Welcome to our third edition of Global tax points for insurers, an informal series that provides insurance executives with a snapshot of some interesting
More informationTax watch: Edition 2. March Transfer Pricing, Permanent Establishment and Interest Limitation Changes Announced
The views reflected in this document are the views of the authors and do not necessarily reflect the views of the global EY organisation or its member firms. Tax watch: Edition 2 March 2017 Transfer Pricing,
More informationChina s new transfer pricing compliance requirements: impact on foreign headquarters
China s new transfer pricing compliance requirements: impact on foreign headquarters On 29 June 2016, China s State Administration of Taxation (SAT) issued SAT Bulletin [2016] No. 42 (Bulletin 42), which
More informationHong Kong SAR Government s Roadmap following the outcomes of the BEPS Consultation
News Flash Transfer Pricing Hong Kong SAR Government s Roadmap following the outcomes of the BEPS Consultation August 2017 In brief On 31 July 2017, the Hong Kong SAR Government (the Government) released
More informationTax Alert Canada. Intra-group services and section 247 of the Income Tax Act
2015 Issue No. 16 3 March 2015 Tax Alert Canada Intra-group services and section 247 of the Income Tax Act EY Tax Alerts cover significant tax news, developments and changes in legislation that affect
More informationJapan releases guidance on transfer pricing documentation requirements
7 June 2016 Global Tax Alert News from Transfer Pricing Japan releases guidance on transfer pricing documentation requirements EY Global Tax Alert Library Access both online and pdf versions of all EY
More informationBanking & Capital Markets Tax Alert
Autumn Statement 2014 Banking & Capital Markets Tax Alert The headline Autumn Statement news for banks, building societies and other regulated entities is the restriction on the use of brought forward
More informationNew Zealand s incoming Government to prioritize International tax reforms
30 October 2017 Global Tax Alert New Zealand s incoming Government to prioritize International tax reforms EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy
More informationAustralia releases draft anti-hybrids law
28 November 2017 Global Tax Alert Australia releases draft anti-hybrids law EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: www.ey.com/taxalerts
More informationAustralia s proposed Diverted Profits Tax to affect many multinational businesses
2 December 2016 Global Tax Alert Australia s proposed Diverted Profits Tax to affect many multinational businesses EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts.
More informationHong Kong and India sign income tax treaty
28 March 2018 Global Tax Alert Hong Kong and India sign income tax treaty EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: www.ey.com/taxalerts
More informationHong Kong-India income tax treaty enters into force
6 December 2018 Global Tax Alert Hong Kong-India income tax treaty enters into force NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email subscription
More informationNew Australia- Germany Tax Treaty enters into force
12 December 2016 Global Tax Alert New Australia- Germany Tax Treaty enters into force EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser:
More informationOECD releases new guidance on transfer pricing for low value-adding intra-group services under BEPS Actions 8-10
13 October 2015 EY OECD BEPS project Stay up-to-date on OECD s project on Base Erosion and Profit Shifting with EY s online site containing a comprehensive collection of resources, including news, Alerts
More informationUK CFC rules: European Commission publishes opening decision on State aid
20 November 2017 Global Tax Alert UK CFC rules: European Commission publishes opening decision on State aid EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts.
More informationHong Kong. The 2016/17 budget. Profits tax. Salaries tax
Hong Kong The 2016/17 budget The Financial Secretary delivered the 2016/17 budget on 24 February 2016. The tax and one-off relief measures proposed in the budget are summarised below. Profits tax The profits
More informationState income tax exposure for fund managers
State income tax exposure for fund managers Continuing trends and recent developments in state tax legislation may result in fund managers having a taxable presence (also known as tax nexus) and a potential
More informationKey Hong Kong Tax Develop ments. 27 February 2017
Key Hong Kong Tax Develop ments 27 February 2017 Agenda A Key Hong Kong Tax Developments 1) Base Erosion and Profit Shifting 2) Corporate Treasury Centre 3) Offshore Private Equity Fund Exemption 4) Comprehensive
More informationAustralia s revised exposure draft on hybrid mismatch tax rules: A detailed review
19 March 2018 Global Tax Alert Australia s revised exposure draft on hybrid mismatch tax rules: A detailed review EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts.
More informationGlobal Tax Alert. Australian multinational antiavoidance. reporting and increased penalties. Wide-ranging impact requires action by multinationals
17 September 2015 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date
More informationIntangible property transactions. International context
EY China TP Alert SAT s newly released Bulletin 6 strengthens MAP procedures in advance of peer reviews and enhances alignment of China s transfer pricing rules with OECD standards On 1 April 2017, China
More informationUK publishes draft clauses and other Documents under Finance Bill 2018
15 September 2017 Global Tax Alert UK publishes draft clauses and other Documents under Finance Bill 2018 EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy
More informationOECD BEPS and EU Anti-Tax Avoidance Directive
Tax Services OECD BEPS and EU Anti-Tax Avoidance Directive Implications for captive insurers Executive summary Over the last five years global tax authorities have increasingly scrutinised captive insurance
More informationSpain proposes to strengthen CFC rules
5 November 2014 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date Spain
More informationAustralia issues draft tax guidelines regarding transfer pricing documentation, penalties and reconstruction
17 April 2014 Global Tax Alert News from Transfer Pricing EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/
More informationOECD releases Singapore s peer review report on implementation of Action 14 minimum standard
Transfer Pricing Alert Issue 18 04 April 2018 OECD releases Singapore s peer review report on implementation of Action 14 minimum standard Executive summary On 12 March 2018, the Organisation for Economic
More informationThe new BEPS and transfer pricing law passed in Hong Kong
News Flash Hong Kong Tax The new BEPS and transfer pricing law passed in Hong Kong July 2018 Issue 9 In brief The Legislative Council passed the base erosion and profit shifting (BEPS) and transfer pricing
More informationIreland publishes Independent Review of Irish Corporate Tax Code
14 September 2017 Global Tax Alert Ireland publishes Independent Review of Irish Corporate Tax Code EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into
More informationTaxing gains made by nonresidents immovable property and other proposals
22 November 2017 Autumn Budget 2017 Taxing gains made by nonresidents on UK immovable property and other proposals Summary Taxation of gains on UK immovable property Today, as part of the Autumn Budget
More informationTax Alert. Final Element of Investment Manager Regime resolves Australian tax uncertainties for foreign funds. Overview
August 2015 Tax Alert Overview Foreign funds may qualify where: they make direct investments not attributable to an Australian permanent establishment; or if investments are made on the fund s behalf through
More informationIndonesia implements new transfer pricing documentation requirements in line with BEPS Action 13
16 January 2017 Global Tax Alert News from Transfer Pricing Indonesia implements new transfer pricing documentation requirements in line with BEPS Action 13 EY Global Tax Alert Library Access both online
More informationTax Alert. Multinational businesses and tax - Australian Taxpayer Alerts on four structuring issues. At a glance
April 2016 Tax Alert Multinational businesses and tax - Australian Taxpayer Alerts on four structuring issues At a glance ATO issued Taxpayer Alerts covering certain arrangements for Thin capitalisation
More informationHuman resource & Tax alert
September 2018 Human resource & Tax alert China launches individual income tax reform Executive summary The fifth session of the 13th National People's Congress Standing Committee passed the revisions
More informationUK publishes draft Finance Bill clauses and other documents
9 July 2018 Global Tax Alert UK publishes draft Finance Bill clauses and other documents NEW! EY Tax News Update: Global Edition EY s new Tax News Update: Global Edition is a free, personalized email subscription
More informationLuxembourg transfer pricing legislation at a glance
2017 EY TAX Alert Luxembourg Luxembourg transfer pricing legislation at a glance Executive summary The law of 23 December 2016 on the budget for the year 2017 ( Budget Law ) has introduced a new article
More informationPakistan implements formal transfer pricing documentation and Country-by- Country Reporting requirements
7 August 2017 Global Tax Alert News from Transfer Pricing Pakistan implements formal transfer pricing documentation and Country-by- Country Reporting requirements EY Global Tax Alert Library Access both
More informationJuly EY REIT alert Real Estate Investment Trusts introduced in Ireland
July 2013 EY REIT alert Real Estate Investment Trusts introduced in Ireland 2 Introduction As announced in last December s Irish Budget, Ireland s 2013 Finance Act contains measures facilitating the establishment
More informationLuxembourg publishes draft law ratifying Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS
4 September 2018 Global Tax Alert Luxembourg publishes draft law ratifying Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS NEW! EY Tax News Update: Global Edition EY s
More informationAsia-Pacific update. TEI International Tax Planning Houston. 21 February 2017
Asia-Pacific update TEI International Tax Planning Houston 21 February 2017 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited,
More informationChina s SAT Issues Draft Guidance on Transfer Pricing Rules and BEPS Initiatives
China s SAT Issues Draft Guidance on Transfer Pricing Rules and BEPS Initiatives China s State Administration of Taxation (SAT) on 17 September released a discussion draft of Special Tax Adjustment Implementation
More informationCyprus Tax Update. Kyiv May 2018
Cyprus Tax Update Kyiv May 2018 Today s agenda 1. Snapshot of Cyprus tax system 2. Developments affecting the Cyprus tax regime 3. Selected developments : a) ATAD b) TP 4. Selected structures 5. Expected
More informationEFFECTS ON TRADING AND AND SOLUTIONS
TRANSFER PRICING EFFECTS ON TRADING AND FINANCING CYPRUS COMPANIES AND SOLUTIONS By Marios Efthymiou Managing Director DEFINITIONS Base erosion and profit shifting (BEPS) refers to tax avoidance strategies
More informationGlobal Tax Alert. Spain releases draft bill of Spanish tax system reform. Executive summary. Detailed discussion
25 June 2014 Spain releases draft bill of Spanish tax system reform EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International-
More informationChina s Jiangsu provincial state tax authority updates its compliance plan for international tax administration
EY China TP Alert China s Jiangsu provincial state tax authority updates its compliance plan for international tax administration Following the first release of Compliance Plan for International Tax Administration
More informationHong Kong SAR Government previews forthcoming BEPS legislation
Hong Kong SAR Government previews forthcoming BEPS legislation August 11, 2017 In brief On 31 July 2017, the Hong Kong SAR Government (the Government) released its consultation report on measures to implement
More information