Malaysia’s taxpayers are now likely to use Hong Kong as a gateway to investments in China Hong Kong and Malaysia have entered into a new double taxation agreement (DTA), pending ratification, with provisions to clarify that a tax liability on business profits only arises if the company has a permanent establishment (PE) in the other jurisdiction, as well as reducing withholding tax rates and increasing investment opportunities.
US CFOs say they consider certainty in the tax code more important than a reduction in corporate tax rates. At present, few businesses even perform impact assessment models for US tax proposals; such is the extent of the uncertainty.
Eaton Corporation’s decision to move its headquarters from the US to Ireland, following its acquisition of Dublin-based electrical equipment supplier Cooper Industries, highlights the need for US tax reform, warn advisers.
India’s finance minister, Pranab Mukherjee, has said that the share of direct tax should be 12% of the country’s GDP, and that it will soon reach that point.
