TRADE
Hong Kong
Hong Kong to Amend Copyright Ordinance to Improve Intellectual Property Regime
The Hong Kong government has revealed that legislative amendments are being examined for the Copyright Ordinance to strengthen the city’s intellectual property regime. Amendments will be made to improve the legal framework for copyright protection, including vigorous enforcement regimes to counter piracy and counterfeiting activities, and to increase awareness of and respect for copyright in the community. Read more...
Chinese Enterprises Utilize Hong Kong’s Excellent Business Environment to Expand Out of China
In 2005, Hong Kong recorded a 58% increase in the number of Mainland enterprises granted approval to invest in the territory. Growing investment from the Mainland indicates Hong Kong’s increasing importance as a springboard for Chinese enterprises to expand their operations out of China. Read more...
China
China Reveals 2006 Action Plan on IPR Protection
China’s National IPR Protection Working Group Office unveils its 2006 action plan in March focusing on legislation, trade mark, copyright, patent, and customs protection. The plan aims to better protect Intellectual Property Rights in China, and combat various infringement and other illegal activities. Read more...
China’s Economic Structure Reform Leads to Increase in Tax Revenue from Private Enterprises
The changing of state-owned enterprises into joint-stock or joint-venture companies in China over the past five years has led to large increases in total tax revenue from private enterprises. According to China’s State Administration of Taxation, the total tax revenue from domestic private enterprises has increased nearly eight times of the previous five-year period between 1996 and 2000 with a record annual growth rate of 45.3%. Read more...
North America / Europe
U.S. To Negotiate Free Trade Agreement with Malaysia
The U.S. intents to negotiate a Free Trade Agreement (FTA) with Malaysia. After removing tariffs and non-tariff barriers between the two countries, it is expected that the agreement will improve market access, enhance competitiveness, and increase prosperity for both nations. Read more...
EC To Include Asian Financial Centers Within the Ambit of the EU Savings Tax Directive
The European Commission is trying to extend the EU Savings Tax Directive by broadening the existing tax agreements with Asian financial centers, such as Hong Kong and Singapore and requesting for information exchange on potential tax evasion. Currently, provisions in the directive apply to individuals, but not to companies or trusts, who are citizens of member states. As a result, wealthy investors have shifted their assets to the booming financial centers in the Far East to circumvent the directive. Read more...
EU Threatens To Reintroduce Sanctions Against U.S.
The latest WTO ruling affirms a judgment that the U.S. Foreign Sales Corporation law, which offers tax exemptions to U.S. exporters, was in breach of global trade rules. The EU advises the WTO that unless the U.S. government complies with WTO regulations, it would impose trade sanctions on the U.S. Read more...
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TAX
Hong Kong
Hong Kong Profit Tax Exemption Boosts Competitive Edge
The Hong Kong government’s decision to scrap profit tax on offshore fund gives the territory competitive edge in the fast growing global hedge fund sector. The move brings the city in line with international financial centers, including London and New York. It is expected that Hong Kong will attract new offshore funds, boost market liquidity, and lure more money managers to the city’s key financial services industry. Read more...
China
China To Draft New Corporate Tax Law by August 2006
In order to modernize its tax system in line with the pace of economic reform, China plans to draft new legislation to unify the corporate tax rate by August 2006. This will level the playing field by having domestic firms and foreign-backed enterprises pay a unified corporate tax rate to ensure fair market competition. Read more...
China Approved New Tax Incentives To Encourage Hi-Tech Development
China’s introduces new tax breaks for the high technology industry to encourage a greater level of research and development. New technology enterprises located in national hi-tech zones and certain research centers as well as venture capitalists and exporters of hi-tech products will benefit most from this tax treatment. Read more...
North America / Europe
U.S. Begins Negotiation on Tax Cut Package
U.S. congressional negotiators are trying to merge vastly different bills approved by the Senate and the House of Representatives and pass a final bill that include an extension of tax breaks for capital gains and dividends. Without congressional action, the House-passed bill of 15% tax rate for capital gains and dividends will expire at the end of 2008 and taxes on long-term capital gains would revert back to 20% while dividends will be taxed the same as other income. Read more...
Multinational Firms Eye On Clarity and Simplicity of Tax Systems in Locating Businesses in Europe
According to a survey carried out by KPMG in the U.K., clarity and simplicity of a country’s tax system rather than its tax rates appear to be the deciding factors for multinational firms in deciding where to locate their operations. The majority of the respondents expressed their views that clarity of interpretation of tax legislation and consistency in tax-related judgments are high in priority for their international business planning. Read more...
Offshore
Costa Rica Negotiating Double Taxation Treaties
Following its controversial switch from a territorial tax system to a global tax system, Costa Rica is negotiating several double taxation avoidance agreements with Israel, South Korea, Switzerland, Canada, and Spain. Currently, Costa Rica does not have double taxation treaties with any countries, except an exchange of information treaty with the U.S. Read more...
Isle of Man To Introduce Zero Corporate Tax
The Isle of Man will introduce a new 0% tax regime effective on 5th April 2006. The zero tax strategy is expected to stimulate inward investment by businesses establishing on the island and will provide a consistent treatment across all sectors of the economy. Read more...
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