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The most significant amendments to the consumption tax regime since it was introduced, were recently enacted effective from 1 April 2006.
The purpose of the amendments is to adjust existing taxable categories by aligning the definitions of taxable items and the tax rate structures with prevailing industry and environmental protection policies. The amendments also aim to correct changes in consumption standards with respect to items previously considered to be high level luxury items but which are now considered common consumption items.
Also in this issue:
· CHINA
- Amendments to consumption tax
- Charge on petroleum companies – introduced
· HONG KONG
- Source of securities brokerage income
· INDIA
- Sale of advertising airtime between non-residents – taxable
· INDONESIA
- Two-year program to promote investments
- Sale and leaseback transactions – VAT ruling
· JAPAN
- Guidelines concerning intangible property and cost contribution agreements – introduced
- Non permanent residential status – reforms enacted
· KOREA
- Revisions to tax Laws
- Internal tax audit procedures – disclosed
· NEW ZEALAND
- Foreign income exemption for "transitional" residents
- Taxation of investment income – rules finalised
- Bill concerning depreciation and FBT – sent to Parliament
· SRI LANKA
- Stamp duty re-imposed
· TAIWAN
- Less onerous transfer pricing documentation requirements permitted
· VIETNAM
- Transfer pricing regulations – circular issued
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