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.

Downloads – View document 

January 19 2021

Visit us at

Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.