Monday, 17 February 2020 10:25

PRISM Tax Newsletter- 4th Quarter 2019 issue

The latest issues of PRISM – the quarterly tax newsletter, which is part of Reanda's effort to stay in touch with our clients by sharing updates and insights on the recent taxation changes and current hot topics.

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Capital Gains Withholding: Impacts on Australian and Foreign Residents

Clearance Certificate
A clearance certificate provides certainty to purchasers of their withholding obligations. It confirms the withholding tax is not applicable to the transaction of buying an Australian real property.
The purchaser must withhold 12.5% of the purchase price in transactions involving taxable Australian real property, or an indirect Australian real property interest that provides company title interests, with a market value of $750,000 or more, unless the vendor shows the purchaser a clearance certificate.
The Australian Taxation Office process applications in order of date of receipt. To avoid possible delays in any property settlement, must apply online for a clearance certificate at least 28 days before it is required.


New Administrative Measures of Non-residents Claiming for Treatment under DTAs to be implemented on January 1 2020

On October 14, 2019, the State Taxation Administration of the People’s Republic of China issued the Administrative Measures of Non-residents Claiming for Treatment under DTAs (hereinafter referred to as the "Measures"), which will come into effect on January 1 2020.


Cyprus signs off a Double Taxation Avoidance Agreement (DTAA) with Kazakhstan – May 2019

On 15 May 2019 Cyprus and Kazakhstan have concluded and signed their first Double Taxation Avoidance Agreement (DTTA) and was published in the official Gazette on 24 May 2019. The treaty will be applicable from the 1st of January following the year in which the DTTA has been ratified by both states.

Hong Kong

Fifth Protocol to Arrangement for Avoidance of Double Taxation and the Prevention of Fiscal Evasion between Mainland and Hong Kong

The Fifth Protocol to the Arrangement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion between the Mainland of China and the Hong Kong Special Administrative Region was signed in July 2019. The Fifth Protocol will come into force after the completion of ratification procedures and notification by both sides.


First time appointment of VAT agent for non-resident companies in Bangladesh

The National Board of Revenue has appointed VAT agent for non-resident companies in Bangladesh. Now a non-resident company is able to pay VAT and submit VAT return through VAT agent. Our Bangladesh correspondent firm Pinaki & Company’s ITP member has attained VAT Agent Certificate from National Board of Revenue by qualifying written examination and VIVA conducted by the Customs, Excise & VAT Training Academy held on 15th October 2019. Now Pinaki & Company is ready to provide indirect tax service to non-resident clients who have no physical presence in Bangladesh.


The Encouraging Policy to Promote Small-Medium Enterprises (“SMEs”) in Cambodia

In the attempt to promote the expansion of SMEs, favorable incentives have been set out by the Cambodian government including various encouragements on Customs Duties given to SMEs with the promulgation of Prakas No. 580 MoEF.BrK dated 27 June 2019; and, the Incentives on Profit Tax and the exceptional rates of Deductible Expense offered to SMEs under Priority Sectors under Sub-Decree No. 124 ANK.BK. dated 02 October 2018.


Lifting of capital controls

After four years, the capital controls in Greece have finally been lifted.
The period after the lifting of capital controls will be accompanied in the medium term by more capital inflows than by outflows, market players predict, arguing that both the country's lower risk and the negative interest rates in most Eurozone countries attest to that.


National Budget 2020

The 2020 National Budget with the theme “Driving Growth and Equitable Outcomes Towards Shared Prosperity” was delivered on 11 October 2019
by our Minister of Finance, YB Lim Guan Eng. The Budget is based on four main thrusts:
• Driving Economic Growth in the New Economy and Digital Era
• Investing in Malaysians: Levelling Up Human Capital
• Creating a United, Inclusive and Equitable Society
• Revitalisation of Public Institutions and Finances


Reporting requirements for non-resident landlord companies

Discussion on recent changes brought in by the UK government over the last five years affecting non-resident UK companies with income deriving
from a UK property business and non-resident UK companies who are disposing of UK land and property.