TAX CARDS. General Guide to Asia Pacific Countries Tax Facts. AGN INTERNATIONAL ASIA PACIFIC Limited

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1 TAX CARDS General Guide to Asia Pacific Countries Tax Facts AGN INTERNATIONAL ASIA PACIFIC Limited

2 AGN INTERNATIONAL ASIA PACIFIC Limited An Association of Separate and Independent Accounting and Consulting Firms TAX CARDS General Guide to Asia Pacific Countries Tax Facts index Australia. 3 China 6 Hong Kong. Indonesia Japan.. 20 Korea Malaysia Singapore.. 33 Thailand DISCLAIMER: The information shown is for information and comparative purposes only. You should seek professional advice before taking any action. All rights reserved. No part of this publication may be reproduced, stored in a retrievable system, be re-sold in any other form of binding or cover or transmitted in any form or by any means, electronic, mechanical, digital, photocopying, recording or otherwise without the prior permission of AGN International Ltd.

3 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Australia 1. Basis of Taxation Residents are taxed on their worldwide income from all sources. Non-residents are taxed only their income from Australian sources. 2. Corporate Tax Australia has a flat corporate tax rate of 30% 3. Withholding tax rate (non-treaty) Class of Income Resident Non-resident Individual/ Corporation Dividend NA 0%*/30%** (1) Interest NA % Royalties/know-how NA 30% (1) Rents (for moveable property) NA NA Management fees NA NA Technical fees NA NA Directors fees NA NA * Franked - ** Unfranked (1) Reduced under various DTA 4. Resident individual tax rates Taxable Income ($) Tax Payable 0-$1,200 NIL $1,201 - $37,000 19c for each $1 over $1,200 $37,001 - $0,000 $3,72 plus 32.c for each $1 over $37,000 $0,001 - $10,000 $17,47 plus 37c for each $1 over $0,000 $10,001 and over $4,47 plus 4c for each $1 over $10,000. Non-resident individual tax rates Taxable Income ($) Tax Payable (%) $0- $0, c for each $1 $0,001 - $10,000 $26,000 plus 37c for each $1 over $10,001 + and over $63,000 plus 4c for each $1 over $10,000 3

4 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Australia 6. Goods and Services tax GST is levied at %. Entities have to register once turnover reaches AUD$7,000 (AUD$10,000 for non-profit entities). 7. Estate duty Australia does not have any death or estate taxes.. Stamp duty This fluctuates throughout Australian States and Territories but generally can reach up to 7.2%. 9. Property tax Australian States/Territories impose land tax, which is levied on the value of all land above a particular tax-free threshold held by an individual or entity at a particular time each year unless specifically exempted. An individual s principal place of residence is exempt from land tax and although tax-free thresholds and rates vary between the States/ Territories, in NSW for example, the tax-free threshold for is $396,000 and the rate of land tax is 1.6%.. Income tax filling deadlines Types of Form Entity Deadlines* Tax Return Residential individual 31 October Tax Return Non-residential individual 31 October Tax Return Company 1 January (1) Tax Return Partnerships 31 October *This may be extended if a tax agent is engaged to lodge the tax return. (1) This may be earlier if the company lodged late in the prior year or later depending upon tax paid in the prior financial year.. 4

5 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Australia 11. Double Tax Agreements. Certain payments by resident in Australia to non-residents are subject to domestic withholding tax rates. The rates of taxes may be reduced under the terms of a double tax agreements with a treaty country as those listed below. Treaty Country Interest WHT Rate Unfranked Dividend WHT Rate (1) Royalty WHT Rate Canada 1 China 1 France 1 Germany 1 India Indonesia 1-1 Ireland 1 Italy 1 Japan 1 Korea 1 1 New Zealand 1 - Singapore 1 South Africa 1 Spain 1 Switzerland 1 United Kingdom 1 United States -1 Updated: Sept Information provided by: Firm: HALL CHADWICK Chartered Accountants & Business Advisors Website: Contact person: Mr David Kenney DKenney@hallchadwick.com.au This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances.

6 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS China 1. Basis of Taxation The Chinese income tax year commences on 1 January and ends on 31 December. Chinese residents are taxed on their worldwide income whereas non-residents are only taxed on their China sourced income. Total income obtained by Enterprises from various sources in monetary and non-monetary includes: income from sale of goods; income from provision of labor services; income from transfer of property; income from equity investment such as dividend and bonus; interest income; rental income; income from royalties; income from donations and other income. 2. Corporate Tax Corporate Income Tax rate 2% Small Low Profit Enterprise 20% 3. Withholding tax rate (non-treaty) CIT for Non-Resident 20% Preferential rate % 4. Individual Income Tax Rates on Salary; Individual income tax shall be levied on the following categories of income: a: income from wages and salaries; Level Taxable Income Tax Rate (%) Note: Start point for Resident is RMB300. Start point for Non-Resident is RMB400. b: income from production or business operation derived by individual industrial and commercial households; 6

7 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS China c. income from contracted or leased operation of enterprises or institutions; Level Taxable Income Tax Rate (%) d. income from remuneration for personal service; e. income from author's remuneration; f. income from royalties; g. income from interest, dividends and bonuses; h. income from lease of property; i. income from transfer of property; k. contingent income; l. other income specified as taxable by the finance department of the State Council. From d to k A flat rate of 20% shall be taxed. 6. Goods and Services Tax Value Added Tax (VAT) VAT is levied on all units and individuals engaged in the sales of goods, provision of processing, repairs and replacement services, and the importation of goods within the territory of the People's Republic of China. VAT rate a.17% b.13% for sales and import of listed goods. Business Tax (BT) BT is levied on all units and individuals engaged in the provision of services as prescribed in these Regulations (hereinafter referred to as 'taxable services'), the transfer of intangible assets or the sale of immovable properties within the territory of the People's Republic of China shall be taxpayers of Business Tax (hereinafter referred to be 'taxpayers'), and shall pay Business Tax in accordance with these Regulations. Business Tax Taxable Items and Tax Rates table: Taxable items Scope of charge Tax Rate % 1. Communications and transportation Transportation by land, water, air and pipeline, loading unloading and delivery 2. Construction Construction, installation, repair, decoration 3 and other engineering work 3. Finance and insurance 4. Posts and telecommunications 3. Culture and sports 3 3 7

8 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS China Taxable items Scope of charge Tax Rate % 6. Entertainment Singing bars, dance halls, karaoke lounges, commercial music halls, musical tea houses, billiards, golf, bowling and amusement facilities 7. Servicing Agency, hotel, catering, tourism, warehousing, leasing, advertising and other services. Transfer of Intangible assets Transfer of land-use rights, patent rights, unpatched technologies, trade mark, copyrights and goodwill 9. Sale of immovable properties Sale of buildings and other attachments to land -20 VAT Reform China is launching a VAT reform since 2012 January starting from Shanghai and expanding to several provinces of PR China. For those industries involved in the VAT reform and VAT rates are:. Taxable Items Tax Rate % Communications and transportation 11 Modern service industry including RD and technical 6 service, IT technical service, Culture creative service, logistic service, tangible assets leasing, verification Consumer Tax (CT) CT is levied in the production, subcontracting for processing or the importation of consumer goods prescribed by these Regulations (hereinafter referred to as 'taxable consumer goods') within the territory of the People's Republic of China. CT Rates: 3%-4% 7. Estate Duty China does not have Estate duty.. Stamp Duty Stamp Duty Rates: 0.03%-0.1% 9. Property Tax 1.2% or 12% for rental.. Income Tax Filing Deadlines Type of form Residential individual Non-residential individual Companies Deadline 31st March 31st March 31st May

9 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS China 11. Double Tax Agreements China has entered into Double Tax Agreements ( DTA ) with 99 countries by the end of June, 96 DTAs have come into effect. China has signed two tax arrangements with Hong Kong Special Administrative Region (HK) and Macao Special Administrative Region (Macau). ( Limited but not all DTA information are listed below for reference only. Country Dividend % Interest % Royalties % Japan % % % USA % % % - 6% for using machinery UK % % % - 6% for using machinery Germany % % % - 6% for using machinery Singapore % 7% (only apply to % Financial Institution) Hong Kong % 7% 7% Updated: September Information provided by: Firm: Fiducia Management Consultants Website: Contact person: Ms Mandy Long mandylong@fiducia-china.com This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances. 9

10 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Hong Kong 1. Basis of taxation 1. Income is taxed on territorial basis. Therefore, there is no distinction made between residents and non-residents. Moreover, no tax is levied on profits arising abroad even if they are remitted to Hong Kong. 2. Tax is levied on actual basis. When the fiscal year ended on March 31, Tax Department will issue tax return in April (For Corporation) and May (For Individual), taxpayer are required to report their income for the preceding year and pay tax according to the tax assessment issued by the Tax Department. 2. Corporate Tax Rate Standard tax rate for year of assessment 2012/ is at 16.%. For the year of assessment 2012/13, a tax reduction of 7% will be granted with maximum limited to HK$, Withholding Tax Rate (non-treaty) Marginal net chargeable income Non-resident Corporation / Dividends Unincorporated Non-resident Royalties / know-how 4.9% / 4.% Rents (for moveable property) Management fees Performance by non-resident entertainers / Sportsmen 11%/% 4. Individual Tax Rates Tax payable is calculated at progressive rates on the net chargeable income or at standard rate of 1% on the net income (before deduction of allowances), whichever is the lower. The major allowances deduction granted in arriving the net chargeable income for year 2012/13 and /14 are as follows:

11 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Hong Kong 2012/13 /14 onward (a) Basic Allowance HK$ 120,000 HK$ 120,000 (b) Marriage Allowance HK$ 240,000 HK$ 240,000 (c) Child Allowance - each (For the 1 st to the 9 th child) (d) Dependant Brother/Sister Allowance - each (e) Dependant Parent/Grand Parents Allowance each (f) Additional Child Allowance during the year of birth HK$ 63,000 HK$ 70,000 HK$ 33,000 HK$ 33,000 HK$ 3,000 [76,000] HK$ 3,000 [76,000] HK$ 63,000 HK$ 70,000 (g) Self education Expenses Deduction on amount spet up to ceiling of HK$ 60,000 HK$ 0,000 (h) Home loan Interest HK$ 0,000 HK$ 0,000 (i) Contribution to Recognized Retirement Scheme HK$ 14,000 HK$ 10,000 For the year of assessment 2012/13, a tax reduction of 7% will be granted with maximum limited to HK$,000.. Goods and services tax 6. Estate duty. The Estate Duty charge was abolished effective from February 11, Stamp duty (a) Transfer of Hong Kong Stock: 0.1% of the amount of the consideration or of its value on every sold note and every bought note. (b) Conveyance on sale of Immovable Property Ad Valorem Stamp Duty (AVD): Property Consideration Duty Applicable from 23 February New rates Normal Rates (2) Up to HK$2,000, % HK$ 0 HK$ 0 HK$2,000,001 - $3,000, % 1.0% 1.0% HK$3,000,001 - $4,000, % 2.2% 2.2% HK$4,000,001 - $6,000, % 3.00% 3.00% HK$6,000,001 - $20,000, % 3.7% 3.7% HK$20,000,001 and above.0% 4.2% 4.2% Duty rates Applicable before 23 February 11

12 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Hong Kong Note: (1) On 22 February, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to adjust the ad valorem stamp duty (AVD) rates and to advance the charging of AVD on non-residential property transactions from the conveyance on sale to the agreement for sale. Any residential property (except that acquired by a Hong Kong Permanent Resident who does not own any other residential property in Hong Kong at the time of acquisition) and nonresidential property acquired on or after 23 February either by an individual or a company, will be subject to the new rates of AVD upon the enactment of the relevant legislation. Transactions which took place before 23 February will be subject to the original stamp duty regime. (2) The normal rates apply to residential property acquired by a Hong Kong permanent resident who does not own any other residential property in Hong Kong at the time of acquisition. (c) Special Stamp Duty (i) The Stamp Duty (Amendment) Ordinance 2011 imposes Special Stamp Duty (SSD) on top of the ad valorem stamp duty on the disposal of residential properties with effect from 20 November 20. Unless the transaction is exempted from SSD or SSD is not applicable, any residential property acquired on or after 20 November 20, either by an individual or a company (regardless of where it is incorporated), and resold within 24 months, will be subject to SSD. (On 26 October 2012, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to adjust the rates and to extend the holding period in respect of SSD. The relevant provisions are set out in the Stamp Duty (Amendment) Bill 2012 which was gazetted on 2 December Any residential property acquired on after 27 October 2012, either by an individual or company (regardless of where it is incorporated), and resold within 36 months, will be subject to the new rates of SSD upon the enactment of the relevant legislation. Transactions which took place within 20 November 20 and 26 October 2012 will be subject to the original SSD regime. (ii) SSD is calculated as follows: the stated consideration or the market value of the property (whichever is the higher) x the applicable rate The applicable rates of SSD based on the holding period of the property by the seller or transferor before disposal - If the property was acquired between 20 November 20 and 26 October 2012:- Holding Period For Rate of Charge 6 months or less 1% More than 6 months but for 12 months or less % More than 12 months but for 24 months or less % - If the property was acquired on or after 27 October 2012:- Holding Period For Rate of Charge 6 months or less 20% More than 6 months but for 12 months or less 1% More than 12 months but for 36 months or less % 12

13 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Hong Kong (d) Buyers; Stamp Duty (BSD) On 26 October 2012, the Financial Secretary announced that the Government would amend the Stamp Duty Ordinance to introduce with effect from 27 October 2012 a Buyer s Stamp Duty ( BSD ) on residential properties. The relevant provisions are set out in the Stamp Duty (Amendment) Bill 2012 which was gazetted on 2 December Upon the enactment of the relevant legislation, any residential property acquired by any person (including a company incorporated) except a Hong Kong permanent Resident will be subject to the BSD. BSD is to be charged at a flat rate of 1% on all residential properties, on top of the existing stamp duty and the special stamp duty, if applicable.. Property Tax Standard tax rate at 1% with deemed expenses deduction equal to 20% of the property income. Hence, the effective tax rate is 12% of the property income derived. 9. Income Tax Filling Deadline Income Tax Return filing deadline falls within 1 month from the date of issue of the Tax Return. However, the deadline for submission of the Tax Return will be extended if they are submitted through Taxation Representatives. Tax return issued to Usual Tax Return issue date Submission Deadline Extended submission deadline through taxation representatives Individual - Without Sole Proprietor Business - With Sole Proprietor Business Corporation/Partnership May 1 May 31 June 30 May 1 May 31 September 30 - Accounting year ended April 1 April 30 No Extension between April To November - Year ended in December April 1 April 30 August 1 - Year ended from January to March April 1 April 30 November 1 13

14 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Hong Kong. Double Tax Agreements Under the double tax agreements signed between Hong Kong and other countries, the withholding tax rate on certain income received by the Hong Kong resident are subject to a lower withholding rate. Please refer to the following list of the tax rate agreed between Hong Kong and some major treaty partner. [Sourced from the website of the Hong Kong Inland Revenue Department] Country Effective from (Year of Assessment) Dividends Interests (%) Royalties (%) Technical Fees (%) Qualifying Companies (%) Others (%) Australia 2012/ 0-3 NA Belgium 2004/200 0/ 1 NA Brunei 2011/ / 1 Canada PENDING 1 NA Czech / NA France 2012/ NA Guernsey PENDING NA Hungary 2012/ NA Indonesia /2014 NA Ireland 2012/ - 3 NA Italy PENDING NA Japan 2012/ NA Jersey 2014/ NA Kuwait 2014/201 0/ NA Liechtenstein 2012/ NA Luxembourg 200/ NA Mainland of China 2007/ NA Malaysia /2014 Malta / NA Mexico 2014/ / NA Netherlands 2012/ 0-3 NA New Zealand 2012/ 0/ 1 NA Portugal /2014 NA Qatar PENDING - - NA Spain / NA Switzerland / NA Thailand 2006/2007 /1 //1 NA United Kingdom 2011/2012 0/1 Domestic Rate 3 NA Vietnam 20/2011 7/ NA 14

15 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Hong Kong Note (1) Qualifying Companies Refer to Article of the relevant Comprehensive Double Taxation Agreement / Arrangement to see whether the company is qualified for the special rate. (2) Interest Exemption is granted to the interest paid to specified bodies and institutions. Such exemptions are not considered in this column. (3) The symbol -: represents that the country / territory does not have any taxing right on the dividends and / or interest. (4) The abbreviation NA means no technical fees article. Remarks The information provided in this tax card is extracted from the website of the Hong Kong Inland Revenue Department and is strictly prohibited for commercial use. Updated: September Information provided by: Firm: Chu and Chu CPAs Website: Contact person: Ms Pinky Chan pinky@chuchu.com.hk This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances. 1

16 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Indonesia (in Indonesian Rupiah Rp) 1. Basis of Taxation Income is taxed on a current year basis and taxpayers are required to submit tax returns on a self assessment basis. Residents are taxed on their worldwide income whereas non residents are only taxed on their Indonesian sourced income. 2. Corporate Tax In general the tax rate is 2%. Public companies which shares of at least 40% of total paid up capital are traded at the Indonesian stock exchange and comply with certain requirements can get % reduction. SMEs with gross turnover of maximum Rp 0 billion get 0% reduction from this rate levied on taxable income generated by gross turnover of up to Rp 4. billion. The rate is 1% for SMEs with gross turnover of up to Rp 4. billion/year which is payable monthly.. 3. Withholding tax rate (non-treaty) Resident Non-resident Individual/ Corporation Dividends (1) 20% Interest 1% 20% Royalties/know-how 1% 20% Rents (for moveable property) 2% 20% Management fees 2% 20% Technical fees 2% 20% Directors fees (2) 20% (1) No withholding tax if paid out of retained earnings to companies which have ownership of at least 2%, otherwise the rate is 1%. Rate is % if paid to individuals. (2) Progressive rate, see item 4 below. 4. Residential individual tax rates Taxable Income Tax Rate 1-0,000,000 % 0,000,001-20,000,000 1% 20,000,001-00,000,000 2% In excess of 00,000,000 30%. Non-resident individual tax rates 20% 6. Goods and Services tax Divided into Value Added Tax (VAT) and Sales Tax on Luxury Goods. VAT rate is in general % of sales price/import value of taxable items and 0% on export of goods and services except for certain export of goods and services as reg- 16

17 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Indonesia ulated by the Ministry of Finance. Sales Tax on Luxury Goods rates are currently between % and 7% depending on the types of goods and may be increased up to 200%. 7. Estate duty Transfer of land and building rights is subject to tax to the party receiving/obtaining the rights. Rate is (% x taxable acquisition value*) x 0% *Taxable acquisition value = tax object acquisition value - allowable non-taxable threshold.. Stamp duty Types of Transactions Stamp Duty Agreements/documents to document facts, actions of civil nature Rp 6,000 Deeds prepared by notary public Rp 6,000 Documents bearing a sum of money which state receipt of money etc. * Financial instruments such as cheques, bank drafts, securities * Documents to be used as evidences before a court Rp 6,000 * Except for cheques, duty is Rp 6,000 if value stated in document is above Rp 1 million and Rp 3,000 if between Rp 20,000 and Rp 1 million. No duty for values below Rp 20,000. For cheques, the duty is Rp 3,000 for all values. 9. Property tax 0.% x taxable sale value* *Taxable sale value = (tax object sale value - amount exempt) x assessment value. Assessment value is 20% for tax object sale value of up to Rp 1 billion and 40% for value above Rp 1 billion.. Income tax filing deadlines Types of Form Deadlines Formulir 1770 Residential individual March 31 the following year Filing not required Non-residential individual Formulir 1771 Companies (incl. Partnerships) 4 months after fiscal year-end Formulir 1721 Personnel January 31 the following year 11. Double Tax Agreements. Certain payments by resident in Indonesia to non-residents are subject to domestic withholding tax rates. The rates of taxes may be reduced under the terms of a double tax agreements with a treaty country as those listed below. 17

18 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Indonesia Country Dividend % Interest % Royalties % Algeria 1% 1% 1% Australia 1% % %/1% Austria % % % Bangladesh % % % Belgium % % % Brunei Darussalam % % % Bulgaria 1% % % Canada 1% % % Czech % 12.% 12.% China % % % Denmark % % 1% Egypt 1% % 1% Finland % 1% %/1% France % % % Germany % % %/1% Hungary 1% 1% 1% India % % 1% Italy % % %/1% Japan % % % Jordan % % % Korea, Republic of % % 1% Korea, Democrat People s % % % Republic of Kuwait % % 20% Luxemburg 1% % 12.% Malaysia 1% 1% 1% Mexico % % % Mongolia % % % Netherlands % % % New Zealand 1% % 1% Norway 1% % %/1% Pakistan % 1% 1% Philippines 1% 1% 1%/2% Poland % % 1% Romania 12.% 12.% 12.%/1% Russia 1% 1% 1% Seychelles % % % Singapore % % 1% Slovak % % %/1% South Africa % % % 1

19 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Indonesia Country Dividend % Interest % Royalties % Spain % % % Sri Lanka Sudan Sweden Switzerland Syria Taiwan Thailand Tunisia Turkey United Arab Emirates Ukraine United Kingdom United States of America Uzbekistan Venezuela Vietnam 1% 12% % % % % % % % % % % % % % 1% 1% 1% % % % % %/1% 12% % % % % % % % 1% 1% % %/1% 12.% 1%/20% % 1% 1% % % % %/1% % % 20% 1% Updated: July Information provided by: Firm: Darmawan and Hendang Website: Contact person: Mr Jim Darmawan jim@d-hcpa.com This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances. 19

20 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Japan (in Japanese Yen) 1. Basis of Taxation Individual; Income is taxed on a calendar year basis and payable by March 1 of the immediate following year. Income for domiciled resident is taxed on worldwide basis and for non-domiciled resident on income attributable to Japan (cash transfer into Japan for income outside Japan). 2. Corporate Tax National income tax rate : 2.% Local income tax rate : Enterprise tax rate: 20.7% of national income tax 9.6% of income (tax deductible in the year paid) Effective tax rate for a larger company is approximately 3%. For a smaller company, having its paid up capital of less than JPY0M, effective tax rate can be reduced by approximately %. Usually tax incentives are given through tax credit or accelerated depreciation in Japan but not through reduced tax rate. 3. Withholding tax rate (non-treaty) Resident Non-resident Individual/ Corporation Dividends 20% 20% Interest 20% 1% Royalties/know-how 20% 20% Rents (for moveable property) 0% 0% Management fees % 20% Technical fees % 20% Directors fees PAYE 20% 4. Residential individual tax rates Accelerative tax rate system Tax rate = National tax rate + Local % Taxable Income of not more than JPY1,90 thousands 1% 1,90 to 3,300 20%-9tousands 3,301 to 6,90 30%-427 6,91 to 9,000 33%-636 9,000 to 1,000 43%-1.36 Over 1,001 0%-2,796. Non-residential individual tax rates 20% 6. Goods and Services tax % Exempt registration level - Annual taxable output of not more than JPYM. Schedule to be raised to % by 3% effective April 2014, but subject to the final approval of the Diet. 20

21 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Japan 7. Estate duty Same as Property tax. Stamp duty Stamp duty is levied on a flat amount depending on a nature and size of each taxable transaction. For example, in case of serving contract, JPY200 for a contract of serving charge of JPY1M or less, and JPY,000 for contracted amount of between M to M. 9. Property tax 14/00 of taxable value. Taxable value is approximately 30 to 40 % of fair market value for commercial and to 20% for residential property. Income tax filing deadlines Types of Form Deadlines Individual tax returns Residential individual March 1, of the immediate following year Individual tax returns Non-residential individual Same as above Blue corporate tax returns Companies Within two months after its financial year end And can be extended by one month if so applied in advance Blue corporate tax returns Partnerships Within two months after its financial year end. The date should be stated in its partnership agreement, as the first instance. Each partner s filing due is by March 1, incase of individual and within two months when the partner is a corporation. 11. Double Tax Agreements. Certain payments by resident in Japan to non-residents are subject to domestic withholding tax rates. The rates of taxes may be reduced under the terms of a double tax agreements with a treaty country as those listed below. As at August, Japan has concluded Tax Treaties with 9 countries (old USSR region are counted as one) Country Dividend %(*) Interest % Royalties % China Indonesia India Korea Malaysia Thailand Philippines Singapore Vietnam (0) 1() (0) 1() 1() 0(1) 1() 1() (0)

22 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Japan Country Dividend %(*) Interest % Royalties % Austria Canada USA UK Italy Germany France Soviet Netherlands South Africa Spain Swiss Sweden 20() (0) (0) (0 or ) 1() 1() 1(0 or ) 1(0) 1() 1() 1() 1() 1() Brazil 12.(0) Australia New Zealand 1(0 or ) 1(0) 0 0 * % in ( ) is a rate applied between the parent-subsidiary company, where a company in Japan is a paying side. Updated: July Information provided by: Firm: Hor-u Group Website: Contact person: Mr Fumiaki Masulo fumi-masuko@hor-u.jp This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances. 22

23 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Korea (in Won) 1. Basis of Taxation Individual Income Tax: Resident individuals are taxed on their worldwide income. Non-resident individuals are taxed only on Korean-source income. Individual income is taxed on a calendar year basis and filed during May of the following year. Corporate Income Tax: A corporation with its head office in Korea is liable to corporation tax on its worldwide income. A corporation with its head office located in a foreign country is liable to corporate tax on its income only from a domestic source. Domestic or foreign corporations can determine their fiscal year by reporting it to their regional tax office. When they fails to report, their fiscal year shall be January 1 st to December 31 st each year. Corporate income is taxed on the fiscal year basis and filed within three months from the end of fiscal year. 2. Corporate Tax National Tax Rate Tax base Tax rate Under 200 million won % 200 million won ~ 20 billion won 20 million won + 20% of the amount exceeding 200 million won Over 200 million won 3.9 billion won + 22% of the amount exceeding 20 billion won Local tax rate: % of National income tax amount Tax incentives Under the Restriction of Preferential Taxation Act, tax incentive systems are provided such as tax deferrals, credits and exemptions. With respect to foreign investment, the corporate tax is reduced or exempted under Chapter ( through 121-7) of the Restriction of Preferential Taxation Act for the following businesses. 1) A business of industry-supporting service which is vital to the strengthening of international competitiveness of domestic industries, and a business accompanying high-level technology. 2) A business carried on by foreign-invested enterprise which moves in a foreign investment zone. 3) Manufacturing business or distribution business operated by an enterprise moving in the free trade zone. 4) Distribution-related business carried on by an enterprise moving in the Free Customs Zone. 3. Withholding tax rate (non-treaty) Resident/Non-resident (with fixed business base) Non-resident (without fixed business base) Dividends 14% 20% Interest 14% 20% Business income 3% 2% Royalties/know-how 3% 20% Rents (for moveable property) 3% 2% Management fees 20% 20% Technical fees 20% 20% Directors fees 20% 20% 23

24 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Korea * Residents are liable to tax on incomes aggregated and taxed progressively 4. Residential individual tax rates National Tax Rate Taxable income Tax rates Under 12 million won 6% 12 million - 46 million won 0.72 million won + 1% of the amount exceeding 12 million won 46 million million won.2 million won + 24% of the amount exceeding 46 million won million won 300 million won 1.90 million won + 3% of the amount exceeding million won Over 300 million won 90. million won + 3% of the amount exceeding 300 millions won Local tax rate % of National income tax amount Tax incentives: Under the Restriction of Preferential Taxation Act, tax incentive systems are provided such as tax deferrals, credits and exemptions.. Non-residential individual tax rates Non-residents with fixed business base are taxed on the same basis with residents (taxed on incomes aggregated and taxed progressively). Non-residents without fixed business base are taxed only on withholding basis (not aggregated nor progressively). Residents and non-residents are taxed on their wages and salaries on the same basis. 6. Goods and Services Tax Value added tax is levied on the supply of goods or services and the tax rate is %. 7. Estate duty Acquisition tax is 2.3%~4.0% of the value acquired. Property tax is 0.2~4% of the current standard value.. Comprehensive Real Estate Holding Tax : 0.%~2%.. Stamp duty Stamp tax is levied on a person who prepares a document certifying establishment, transfer or change of property rights. 9. Property tax Land: 0.2 4% of the current standard value Building: 0. 4% of the current standard value House: 0.1 4% of the current standard value Vessel: 0.3 % of the current standard value Aircraft: 0.3% of the current standard value. Income tax filing deadlines 24

25 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Korea Taxable document Mentioned amount Tax amount Contract of transfer concerning real estate, vessel, aircraft or business Contract of financial services Contract of construction or commission Over million won and under 30 million won Over 30 million won and under 0 million won Over 0 million won and under 0 million won Over 0 million won and under 1 billion won Over 1 billion won 20,000 won 40,000 won 70,000 won 10,000 won 30,000 won Others N/A 0,000 won. Income tax filing deadlines Types of Form Deadlines Individual income tax Residential individual The end of May in following year Corporate income tax Non-residential individual Companies Same with above Within three month after the end of reported fiscal year Individual income tax Partnerships The end of May in following year 11. Double Tax Agreements; Country Dividend % Interest % Royalties % Albania Algeria Arab Emirates Australia Austria Azerbaijan Bangladesh Belarus Belgium Brazil Bulgaria Canada Chile China Croatia Czech Republic Denmark Egypt Estonia Fiji,, 1, 1, 1 7, 1, 1 1 1,,1, 1,,, 1, 1,, 1 1, 1 1, 1 2, 0 1, 1, 2 0, 1 1, 2

26 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Korea Country Dividend % Interest % Royalties % Finland, 1 France, 1 Germany, 1,1 1, 1 Greece, 1 Hungary, 0 0 Iceland, India 1, 20,1 1 Indonesia, 1 1 Iran Ireland, Israel, 7., 2. Italy, 1 Japan, 1 Jordan Kazakhstan, 1 2, Kuwait 1 Laos, 1 Latvia,, Lithuania,, Luxembourg, 1 Updated: August 2011, 1 Malaysia, 1, 1 Mexico 0, 1,,1 Malta, 1 0 Minister of Ukraine, 1 Mongolia Morocco, 12, Myanmar, 1 Nepal, 1 1 Netherland, 1, 1,1 New Zealand 1 Norway 1 1 1, 1 Oman, Pakistan, Papua New Guinea 1 Philippines, 2,1 1 Poland, Portugal, 1 1 Qatar Rumania 7, 7, 26

27 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Korea Country Dividend % Interest % Royalties % Russia Saudi Arabia Singapore Slovakia Slovenia South Africa Spain Sri Lanka Sweden Switzerland Thailand Tunisia Turkey Ukraine United Kingdom United States Uzbekistan Venezuela Vietnam,,, 1,, 1, 1, 1, 1, 1, 1 1 1, 20, 1, 1, 1, 1, 0,1,1 12,1 12,, 1, 1,,1 1 2, 1, 1 2.,, 1 Updated: July Information provided by: Firm: SEOIL & COMPANY LLP Website: Contact person: Mr Jin-Hyuk Joo korea@seoilacc.co.kr This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances. 27

28 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Malaysia (in Malaysian Ringgit) 1. Basis of Taxation Income is taxed on a current year basis. All taxpayers are required to submit tax returns on a self assessment basis. Income tax for resident and non-resident is imposed on income accruing in or derived from Malaysia. 2. Corporate Tax Company resident in Malaysia which has a paid-up capital (PUC) of more than RM2.m at the beginning of the basis period is subject to corporate tax at 2% on its chargeable income (CI). However, for SMEs, a lower corporate tax rate at 20% is applicable on the first RM00,000 of CI. CI in excess of RM00,000 will be subject to the normal corporate tax rate at 2%. SME is defined as a company resident in Malaysia with paid up capital of ordinary shares of RM2.m or less at the beginning of the basis period of a year of assessment whereby such company does not control or is controlled directly or indirectly by another company which has a paid up capital of more than RM2.m in respect of ordinary shares.. 3. Withholding tax rate (non-treaty) Dividends Non-resident person including a company, a body of persons and corporation Interest 1% Royalties/know-how % Rents (for moveable property) % Technical fees % Section 4(f) income (see note below) % Director fee 26% Note: Section 4(f) income refers to gains and profits not specifically provided for under section 4 of the Income Tax Act Such income includes commissions and guarantee fees. However, such income will not be liable to withholding tax if it relates to business income of the non-resident in his home country. 4. Residential individual tax rates (with effective from YA ) Chargeable income Tax rate Rate of Income Tax (%) ,01, ,001, ,001 20, ,001 3, ,200 3,001 0, ,0 0,001 70, ,60 70,001 0, ,0 >0,

29 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Malaysia. Non-residential individual tax rate 26% 6. Indirect Taxes a) Services tax rate 6% Applicable to any person provides taxable services, under the Service Tax Act 197. However, certain taxable professional services (e.g. consultancy and management services) provided by a subsidiary company to another subsidiary company within a group of companies are not subject to service tax. (subject to conditions). b) Sales tax rate - % Applicable to any person manufactures taxable goods locally or imported, under the Sales Tax Act c) Good and Service Tax (GST) 4% The proposed GST to be implemented has been deferred until further notice. 7. Estate duty Had been abolished since I November Stamp duty For share transfer at RM3 per RM1,000 or part thereof. For conveyance, assignment or transfer of properties: On the first RM0,000 1% On the next RM400,000 2% Thereafter 3% 9. Real Property Gains Tax (RPGT) The Minister exempts any person from RPGT in respect of any disposal of chargeable assets between 1/4/2007 to 31/12/2009. Any disposal of chargeable assets made after 31/12/2009 is liable to RPGT at a fixed rate of % if the disposal is made within years from the date of acquisition of such chargeable assets. Any disposal of chargeable assets made after years from the date of acquisition is exempt from RPGT. With effect from 1/1/2012, a tax rate of % will be imposed for a holding period of up to 2 years, % for a holding period exceeding 2 years until years and 0% for a holding period exceeding years. With effect from 1/1/, a tax rate of 1% will be imposed for a holding period of up to 2 years, % for a holding period exceeding 2 years until years and 0% for a holding period exceeding years.. Income tax filing deadlines Types of Form Deadlines Form BE Form B Residential individual 30 April of following year 30 June of following year Form M Non-residential individual 30 April of following year Form C Companies 7 months from date of closing accounts Form P Partnerships 30 June of following year 29

30 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Malaysia 11. Double Tax Agreements. Country Royalties % Interest % Dividend % Albania, Republic Argentina * Australia Austria Bahrain Bangladesh Belgium # Bosnia & Herzegovina** Brunei Canada Chile China, People s Republic # Croatia Czech Republic Denmark Egypt Fiji Finland France Germany - Old agreement - New agreement Hungary India Indonesia # Ireland Islamic Republic of Iran Italy Japan Jordan Kazakhstan Korea, Republic Kuwait # Kyrgyz, Republic Laos Lebanon Luxembourg Malta Mauritius Mongolia Morocco or or or or or or or or 7 or or or or or 1 or 1 or 1 or or 1 or or 1 or or or 1 or 1 or or or 12 or 1 or 1 or 1 or 1 or 1 or 1 or or 1 or or or or 1 or 1 or or 1 or or 1 or or or or or or 1 or 1 or or Ni 30

31 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Malaysia Country Royalties % Interest % Dividend % Myanmar or Namibia or Netherlands or or New Zealand or or 1 Norway or 1 1. Pakistan Approved industrial royalties and interest on approved or loans (as defined or in 1 each double tax agreement) to nonresidents are usually tax exempt. Papua New Guinea or 1 2. Philippines For Taiwan, double tax relief was given to the Taipei or Economic and Cultural or 1 Office in Malaysia by way of exemption orders. Poland or or 1 Qatar or * Limited double tax treaty. ** Gazetted DTAs; not yet entered into force. # Protocol has been gazetted but not entered into Romania force. Updated: Russia 1 July or or or 1 or 1 San Marino Saudi Arabia - Old agreement * 1 - New agreement or Senegal ** or Seychelles # or Singapore - Old agreement or 1 - New agreement or South Africa or Spain 7 or Sri Lanka or Sudan or Sweden - Old agreement or or 1 - New agreement or Switzerland or or Syria or Taiwan Thailand or or 1 Turkey# or 1 Turkmenistan or United Arab Emirates or United Kingdom or United States of America* 1 Uzbekistan or Venezuela or 1 Vietnam or Zimbabwe** or 31

32 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Malaysia 1. Approved industrial royalties and interest on approved loans (as defined in each double tax agreement) to nonresidents are usually tax exempt. 2. For Taiwan, double tax relief was given to the Taipei Economic and Cultural Office in Malaysia by way of exemption orders. * Limited double tax treaty. # Protocol has been gazetted but not entered into force. Updated: July Information provided by: Firm: GEP Associates Website: Contact person: Mr Foong Kok Keong foongkk@gep.com This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances. 32

33 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Singapore (in Singapore dollars $) 1. Basis of Taxation Income is taxed on territorial basis, in other words, tax is chargeable on income accrued in or derived from Singapore or received from outside Singapore. Foreign sourced income is exempt in the hands of individuals. Certain foreign sourced income is exempt for resident companies subject to conditions being satisfied. Income is assessable to tax on a preceding year basis, for example, income for 2012 is taxable in the year of assessment. 2. Corporate Tax The current corporate tax is 17%. There is partial exemption on the first $300,000 chargeable income that can reduce the tax rate to.36% or.67%. A 30% corporate tax rebate capped at $30,000 is granted for years of assessment to 201 respectively. There are tax incentives available such as the Development Expansion Incentive, Global Trader Program, Financial Sector Incentives that provide for concessionary tax rates ranging from, and 1%. 3. Withholding tax rate (non-treaty) Resident Non-resident Individual*/Corporation Dividends Interest 1% Royalties/know-how % Rents (for moveable property) 1% Management fees 1%*/17% Technical fees 1%*/17% Directors fees 20%* 4. Resident individual tax rates The residential individual is subject to graduated rate of taxes ranging from 0 to 20%. Under the Not Ordinarily Resident Scheme, foreign talents working in Singapore can enjoy time apportionment basis of taxation, whereby they would be required to pay tax on attributed employment income based on days worked/spent in Singapore.. Non-resident individual tax rates Short term visiting employee working in Singapore for less than 60 days is exempt. The non-residential individual tax rate is the higher of a flat rate of 1% or applicable resident personal tax rates. 6. Goods and Services Tax The current Goods and Services Tax rate is at 7%. It is a requirement to register for GST when taxable supplies are or exceeds S$1 million. 7. Estate duty Estate duty has been abolished from 1 February

34 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Singapore. Stamp duty For property transfer ranging from 1% to 2% on the first $360,000 and 3% thereafter. For share transfer S$0.20 for every S$0 or part thereof. Transfer of listed company shares do not attract any stamp duty. Additional sellers and buyers stamp duty has been introduced to curb property speculations. 9. Property tax Owner occupied residential property is 0 to 6% Any other property at %.. Income tax filing deadlines Types of Form Deadlines Form B Resident individual 1 April 2012 Form M Non-resident individual 1 April 2012 Form C Companies 30 November 2012 Form P Partnerships 1 April Double Tax Agreements: Certain payments from Singapore to non-residents are subject to domestic withholding tax rates. The rates of taxes may be reduced under the terms of a double tax agreements with a treaty country as those listed in the Appendix. Country Dividend % Interest % Royalties % Albania / Australia Austria Bahrain Bangladesh Belgium Brunei Bulgaria Canada China (People s Republic) Cyprus Czech Republic Denmark Egypt Estonia Fiji Finland France Georgia Germany Hungary India Indonesia Ireland Isle of Man Israel Italy Japan Jersey Kazakhstan 34 1 / 1 /7 /7 / 1 / / / / /1

35 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Singapore Country Dividend % Interest % Royalties % Kuwait Latvia Libya Lithuania Luxembourg Malaysia Malta Mauritius Mexico Mongolia Myanmar Netherlands New Zealand Norway Oman Pakistan Panama Papua New Guinea Philippines Poland Portugal Qatar Romania Russian Federation Saudi Arabia Slovak Republic Slovenia South Africa Spain (from 1 Jan ) South Korea Sri Lanka Sweden Switzerland Taiwan Thailand Turkey Ukraine United Arab Emirates United Information Kingdom provided by: Uzbekistan Vietnam 7 / 7/ 1/ / / / /nil /nil 1/ /nil 1 1/ /7. 7 /nil / /nil / Information provided by: Updated: July Firm: BSL Tax Services Pte Ltd Website: Contact person: Ms N Vimala Devi devi.vimala@bslts.com.sg This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances. 3

36 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Thailand (in THAI BAHT) 1. Basis of Taxation Income is taxed on a preceding year basis, for example, income for 2012 is taxable in the year of assessment. A juristic entity registered under Thai laws, income is taxed on worldwide basis; a juristic entity registered under foreign laws, income is taxed on territorial basis. Thai residential individual, income is taxed on worldwide basis. 2. Corporate Tax A Thai company generally pays tax at rate of 20%. However, some types of company are entitled to a rate reduction as following: SME Enterprises (Small business) SME Enterprise in this regards means a juristic entity registered under Thai laws having paid-up capital not over Baht million at the end of accounting period and the income not over THB 30,000,000. Tax rates for SME are detailed below: Net profit Tax rate (%) 1-300, ,001 - to 1,000, ,000,000 up Company registered in the Stock Exchange of Thailand (SET) 20% of net profit 2.3. Bangkok International Banking Facility and Regional Operating Headquarers % of net profit from qualified income 2.4. Association and Foundation 2% or % on gross receipts 3. Withholding tax rate (non-treaty) Resident Non-resident Individual/Corporation Dividends % % Interest 1%,1% 1% Royalties/know-how 3% 1% Rents (for moveable property) % 1% Management fees 3% 1% Technical fees 3% 1% Director s fees Progressive rate* 1% (*for progressive rate please see item 4 below) 36

37 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Thailand 4. Residential individual tax rates Net assessable income Assessable Tax rate Tax amount range* income amount 1 10,000 10,000 0% 0 10, ,000 10,000 % 7,00 300,001 00, ,000 % 20,000 00,001 70,000 20,000 1% 37,00 70,001 1,000,000 20,000 20% 0,000 1,000,001 2,000,000 1,000,000 2% 20,000 2,000,001 4,000,000 2,000,000 30% 600,000 4,000,001 up 3% * Net assessable income means net income after deduction of expenditure, personal allowances and other allowances can be deducted according to the Revenue code.. Non-residential individual tax rates 1%, except dividend % 6. Goods and Services tax Value added tax, 7% of goods or services prices. 7. Estate duty When a person dies in Thailand, Estate Duty must be paid if the Estate has not been devolved to any heirs and the said Estate earns the income at level to be taxed. Tax to be paid is calculated same as Residential individual tax (item 4). 37

38 AGN INTERNATIONAL ASIA PACIFIC TAX CARDS Thailand. Stamp duty Types of transactions Stamp Lease contract, transfer of share, hire-purchase, contract, hire of work Loan of money or agreement for bank overdraft Power of attorney Baht Memorandum or association of a limited company Baht 200 Articles of association of a limited company Baht 200 Baht 1 for every Baht 1,000 of contract value. Baht 1 for every Baht 2,000 of loan amount. Partnership contract Baht 0 Proxy for voting at a meeting of a company Baht 20 for 1 meeting; Baht 0 for more than 1 meeting 9. Property tax Types of properties Tax rate of assessable value of property per year Land and building for commercial or industrial purpose 0.3% Residential land and building, agricultural land 0.1%.. Income tax filing deadlines Types of forms Phor. Ngor Dor. 90,91 Phor. Ngor Dor. 1 Residential Individual Deadlines End of March of the following year Within 7th day of the following month Phor. Ngor Dor. 90,91 Phor. Ngor Dor. 0 Phor. Ngor Dor. 1 Non residential Individual Companies End of March of the following year 10 days after accounting closing date Within 2 months after half year of accounting closing date Phor. Ngor Dor. 0 Partnership 10 days after accounting closing date 3