While the world is watching the progress on the OECD's global tax proposals for taxing digital businesses and introducing a global minimum income tax rate, which were embraced and committed to by most Asian countries, there have been a number of other tax developments over the past three months which you will read about in this bulletin. The changes are diverse and we encourage you to read the country sections in this bulletin.
A special note perhaps in respect of the following changes which are particularly newsworthy: China's tax treatment of cross-border hybrid payments and the tax exemption of deed tax in qualifying internal reorganisations, Hong Kong's zero tax rate for qualifying carried interest which has now taken effect, the new specified thresholds in India as to what constitutes a 'significant economic presence' in the country and hence constitutes a permanent establishment, Japan's new law which allows the tax authority to appoint a local administrator as a representative of non-resident taxpayers and hence collect the latter's tax from said administrator, the Philippines reduced corporate income tax rates and its simplication of tax treaty applications, Taiwan's new rules which make it easier to conclude a bilateral or multilateral pricing agreement with the Taiwanese tax authority and its new rules to enable write-offs of bad debt for tax purposes and finally, Vietnam's new e-commerce income tax and VAT circular.
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