Column: PRC & International Technical Column(s)

Abstract This article explores the evolution of the general anti-avoidance rule (“GAAR”) in Singapore’s income tax legislation from its enactment in 1988 to its subsequent judicial interpretation and application by the Singapore law courts. From the outset, the focus of the GAAR has been to target blatant tax avoidance schemes and not to interfere with bona fide commercial or personal transactions, even if these transactions resulted in incidental tax savings. Such an approach was affirmed by the Singapore Court of Appeal in a landmark case on tax avoidance when it introduced a formal five-step framework that defined the scope and set out the interpretation of the GAAR....

全國人大常委會於2023年12月29日審議通過了《中華人民共和國公司法》修訂案（以下簡稱新《公司法》）。新《公司法》在公司資本制度、公司治理結構、董監高職責及簡化流程等方面作出了重要修訂，是《公司法》自1993年頒布以來最為全面的修訂。新《公司法》於2024年7月1日起正式施行，一些修訂條款可能會對企業產生稅務影響。本文將從中國稅務角度介紹新《公司法》與2018年修訂版《公司法》（以下簡稱原《公司法》）的重要條款的新增和改變，並淺析可能產生的稅務影響。...

Abstract Advance tax rulings (“ATRs”) are important as they provide certainty and clarity to taxpayers regarding the tax treatments of specific transactions or arrangements; promote clarity and consistency in applying tax laws, benefiting both taxpayers and tax authorities; and act as an effective tool to prevent tax disputes and foster tax compliance. In the absence of nationwide legislation for ATRs in China, many provincial and municipal tax authorities have recently promulgated their own ruling regimes and started to receive applications. Such trial runs of ATRs are welcomed by taxpayers and tax practitioners. This article provides an overview of the latest developments for Chinese tax authorities to introduce ATR regimes in trial locations and also highlights the ATR practices of Hong Kong and Singapore, which can serve as valuable references for the future implementation of ATRs in China....

Individuals in certain jurisdictions in the Asia-Pacific region have long had an interest in Canada. Sometimes, that interest is to settle in Canada permanently. For others, it is to obtain a Canadian passport and then potentially leave Canada, often returning to their jurisdictions of origin. Like most countries in the world, Canada levies taxation on world income if an individual is a resident. If an individual is not resident in Canada, taxation is confined to certain Canadian source income. Therefore, it becomes very important to determine if and when an individual 1) becomes and 2) ceases to be resident in Canada. Lastly, as this article will show, the rules for determining Canadian residence are significantly modified by international treaties....

Pillar 2 is currently being implemented on a near global basis, with various jurisdictions legislating for a Qualified Domestic Minimum Top-up Tax (QDMTT) and the GloBE Rules. QDMTTs are purely domestic versions of the GloBE Rules, designed to capture Top-up Tax in the implementing jurisdiction. Whereas the GloBE Rules are designed to be internationally applicable. QDMTTs effectively have priority over the GloBE Rules, with the concept of a QDMTT Safe Harbour elevating the importance of QDMTTs further. As jurisdictions implement the rules, the distinction between QDMTTs and the GloBE Rules is becoming more and more apparent. The potential for discrepancy between the various rules implemented across jurisdictions and the challenges posed by the rapidly evolving Agreed Administrative Guidance (AG) are also becoming clear. Each of these aspects threatens to create divergence in what was once perceived, and is still trying to be, a globally uniform and consistent set of rules....

中國的企業所得稅的法定稅率是25%，爲了扶持特定地區的經濟發展，中國在部分區域陸續推出了一系列財稅政策，例如：西部地區、前海深港現代服務業合作區（下文簡稱“深圳前海”）、珠海橫琴粵澳深度合作區（下文簡稱“珠海橫琴”）、福建平潭綜合實驗區（下文簡稱“附件平潭”）、海南自由貿易港（下文簡稱“海南自貿港”）、廣州市南沙區（下文簡稱“廣州南沙”）、上海自由貿易試驗區臨港新片區（下文簡稱“上海臨港”）、新疆困難地區，新疆喀什、霍爾果斯兩個特殊經濟開發區等區域，都推行了企業所得稅低稅率或者企業所得稅减免優惠。...

In March 2021, the Indian parliament passed legislation that inserted a new section 89A into the Indian Income Tax Act, 1961 (“Indian IT Act”). The new section 89A empowers India’s Central Board of Direct Taxes (“CBDT”) to issue rules that specify how India will tax income that accrues in specified non-Indian retirement accounts owned by a tax resident of India. The CBDT announced these new rules in April 2022. This article discusses and analyses the implications of the new section 89A and the new rules announced by the CBDT for the Indian taxation of private US retirement accounts. It then applies this discussion and analysis to concrete taxpayer case scenarios. Keywords: US Retirement Accounts; Indian Income Tax; Cross-Border Taxation, Expatriate Taxation...

《關於應對經濟數字化稅收挑戰“雙支柱”方案的聲明》的“支柱二” 規則作為國際稅收改革多邊方案的重要內容，旨在通過全球反稅基侵蝕（GloBE ）規則及應稅規則（STTR）來設定全球最低稅，解決大型跨國集團利用低稅地轉移利潤和稅收逐底競爭問題。隨著“支柱二”立法模板、註釋和案例說明的正式發佈，“支柱二”規則設計基本完成。本文通過分析“支柱二”規則對我國企業所得稅優惠政策激勵效應的衝擊、對我國吸引利用外資的影響、對稅收立法及征管等方面帶來的影響，提出應對思路和建議，為“支柱二”規則在我國的落地實施建言獻策。 關鍵字：支柱二　全球最低稅率　稅制改革...

Under the introduction of a global minimum tax proposed by the Organisation for Economic Co-operation and Development (“OECD”), jurisdictions all over the world have been prompted to consider whether they should implement response measures in the form of domestic minimum taxes. Domestic minimum taxes should ensure that any top-up taxes that would otherwise be due under the global minimum tax are paid locally rather than to the tax jurisdiction where the multinational enterprise (“MNE”) group is headquartered. The global minimum tax rules (“GloBE Rules”) contain a definition of domestic minimum tax, and the commentary to the GloBE Rules (“Commentary”) provides a degree of technical guidance. However, jurisdictions will be required to make difficult policy decisions, including the approach to implementing a domestic minimum tax in accordance with the definition provided by the GloBE Rules. A critical question jurisdictions face is whether to treat certain foreign taxes, such as controlled foreign corporation (“CFC”) taxes, as covered taxes (effectively creditable taxes) when determining the...

China has seen the continued evolution of its transfer pricing enforcement towards a data-based administrative approach and away from aggressive audits. In respect of the international scene, China has committed to the Organisation for Economic Co-operation and Development’s (“OECD”) Base Erosion and Profits Shifting (“BEPS”) Action 14 minimum standards (“BEPS 1.0 Project”) and is also one of the countries endorsing the Inclusive Framework of the BEPS 2.0 Project to be rolled out in 2022. This article will focus on the latest developments in China’s transfer pricing enforcement during 2021. China has continued to follow the approach developed since 2018. This approach will be discussed from the following three broad perspectives: 1. Transfer pricing compliance 2. Focus on “non-trade” transactions 3. Resolution of international disputes through prioritising the Mutual Agreement Procedure (“MAP”) and facilitating transfer pricing certainty by promoting advance pricing agreements (“APAs”)...