Column: Belt & Road Column(s)

There have been a number of New Zealand (“NZ”) tax legislation developments during 2023, which are detailed below. It should also be noted that NZ’s general election in October 2023 has resulted in a change of government, which could have implications for some of the tax measures enacted, or introduced but not yet passed, prior to the election....

There have been a number of changes recently to Cambodian tax law and its interpretation, as well as to the compliance processes. There has been a steady transformation from a manual filing and reporting system to an electronic platform. Although certain requirements still require manual processing due to the limitations of the electronic system, we believe the electronic platform is a step in the right direction in terms of creating a more efficient and streamlined tax system in Cambodia. Taxpayers in Cambodia need to keep themselves up to date on the rapid changes in the tax laws and practices to ensure they properly comply with their obligations in Cambodia and take advantage of any opportunities....

Chilean tax law has witnessed several changes in its tax rules over the past few years. On 29 January 2020, the Chilean Congress approved the so-called ‘Modernisation Tax Bill’ after a year and a half of discussion. The original bill went through substantial amendments both in the House of Representatives and in the Senate, incorporating the amendments agreed to in December 2019 in the so-called ‘Tax Agreement’ between the Senate’s Finance Commission and the Government, to finance the new social agenda. Chile published Law No. 21,210 on the modernisation of tax legislation in the Official Gazette on 24 February 2020. Furthermore, on 4 February 2022, the Guaranteed Universal Pension Law No. 21,420, which, in order to finance a new pension law, contains a series of eliminations and modifications to existing tax exemptions in different regulations, was approved by the Chilean Government and published in the Official Gazette. Currently, the left-wing government, led by President Gabriel Boric, is discussing a new Tax Reform Bill...

Background The relationship between China and South Korea dates back centuries. There were trade and cultural exchanges between the two countries through the Silk Road. In recent years, China and South Korea have endeavoured to boost their strategic and cooperative partnership in various sectors. South Korea is among China’s top trading partners. Both countries are members of the Regional Comprehensive Economic Partnership, a free-trade agreement between 16 countries to strengthen economic links and to enhance trade and investment related activities, which entered into force in January 2022 and took effect in South Korea in February 2022. From a Hong Kong perspective, South Korea was ranked Hong Kong’s 6th largest trading partner in 2020. Hong Kong is an important entrepôt for merchandise trade between South Korea and mainland China. Re-export trade between the two economies through Hong Kong amounted to HK$251.5 billion in 2020. South Korea has emerged as a soft power in Asia. It is Asia’s fourth-largest economy, famous for its exports of...

The Philippines has witnessed changes in its tax rules. Republic Act No. 11534, otherwise known as the “Corporate Recovery and Tax Incentives for Enterprises Act” or “CREATE”, has, among other things, introduced changes in corporate income taxation and the tax incentive system. Another change is the new procedures requiring the filing of a tax treaty relief application (“TTRA”) or a request for confirmation for all types of income payments derived by non-resident taxpayers from Philippine sources. A further change is the requirement on selected taxpayers to file a disclosure form on related-party transactions; these selected taxpayers should prepare the relevant transfer pricing documentation if they meet the materiality thresholds. One development to be monitored is the setting up by the Bureau of Internal Revenue (“BIR”) of an e-receipt system. Upon the establishment of the e-receipt system, certain taxpayers will be required to issue electronic sales or commercial invoices and to electronically report their sales....

Although Luxembourg is one of the world’s smallest sovereign states, it has been successful in attracting worldwide-based investors, banks, multinational corporations, state-owned enterprises, sovereign wealth funds, and high net worth individuals seeking to establish or expand their business across borders.   The well-known Luxembourg “SOPARFI”, a vehicle used by many for bridging investors and investments, has been and still is an unquestionable success, with thousands of such companies being formed for investing in all types of assets.   Thanks to its stable financial ecosystem as well as the flexible and pioneer approach of European regulations, Luxembourg is also a recognised leader within the world’s financial industry. For example, with more than EUR5 trillion assets under management, Luxembourg is the second largest fund domicile in the world and the global leader as far as cross-border fund distribution is concerned. It also is a long-established fund domicile for investment flows into and out of China.   Luxembourg has earned its reputation as an ideal hub for Chinese outbound...

This article critically examines the provisions related to capital gains tax under Fiji’s 2015 Income Tax Act. As a part of this examination, the paper iIn this process, arguments are raised, concerning the inclusion and exclusion of certain capital assets in defining a capital asset and in the computation of capital gains tax. The article also raises certain contentions that reflect the loopholes in the legal framework of capital gains tax that can be exploited for tax avoidance. The study further conducts a comparative examination of the capital gains taxation prescribed under the 2011 Capital Gains Decree and the 2015 Income Tax Act. Judicial pronouncements are cited. The researchers conduct an empirical study that examines the number of cases filed in different adjudication forums in Fiji and compares the success and failure rate of the taxpayer and Fiji’s Revenue and Customs Service in these cases. In concluding remarks, the authors discovered that the Jurisprudence of Capital Gain Taxes in Fiji...

In the sections that follow, we describe the most significant taxes in Uzbekistan. There are a number of other less significant or specific taxes, such as excise taxes and a number of taxes on “subsurface users” (i.e. oil, gas, and mining companies). It is important to perform a thorough review of any proposed business activity in order to determine the actual taxes that apply to it....

With its strategic geographic location between China and Africa and its stable regulatory environment, Mauritius looks set to strengthen its position as an investment gateway to Africa under China’s “Belt and Road” initiative. This article discusses the tax factors that contribute to the success of Mauritius as a preferred investment jurisdiction and highlights some of the structuring possibilities available to Chinese entities looking to invest in Africa. These tax factors include a simple tax system, fast expanding double taxation tax agreements (“DTAs”), and being white-listed by the Organisation for Economic Cooperation and Development (“OECD”)....

Singapore’s global economic standing, stable political landscape, strong legal system, business-friendly policies, skilled labour force, and support for innovation, among other factors, have placed the island nation among the most successful countries in the world in attracting foreign investment. As a global financial hub, Singapore has a robust financial infrastructure to support companies in their growth and regional expansion. With its excellent connectivity providing easy access to emerging markets, Singapore has positioned itself as a launchpad for doing business in Asia. It also has a vibrant entrepreneurial ecosystem whereby start-ups are nurtured through pro-innovation government policies, easy access to angel funding, and a strong technical infrastructure. Therefore, it is no surprise that Singapore continues to be one of the key destinations for investments made by Chinese companies. On the flipside, China has emerged in recent years as the top destination for Singapore’s foreign direct investment. With Singapore being one of the designated countries under the Belt and Road Initiative (BRI),...