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In March 2001, the Tokyo Stock Exchange launched a specialized market for real estate investment trusts (J-REITs). The listing of J-REITs on the Tokyo market will give Japanese investors a new investment option in the nation's ultra-low interest environment. It is hoped that the J-REIT will promote an alternative to current financing and stimulate the real estate market.

It appears that the Indian revenue authorities have come full circle in addressing the taxation of foreign telecasting companies (FTCs) operating in India. When FTCs first started operating in India in 1993, there was no specific regime in domestic law to deal with the taxation of such entities – in this case, in respect of income earned from Indian advertisers who placed advertisements on channels broadcast by the FTCs throughout India. In the absence of a specific regime, the income would have been taxable on a net income basis, whereby all attributable expenditure would be allowed to be set off from revenues, subject to the provisions of domestic law, in arriving at the taxable income. However, given the nature of the operations, the revenue authorities realized that computing net income would be an extremely cumbersome, if not entirely insurmountable, exercise.

The Netherlands Supreme Court has recently announced decisions on the participation exemption and fiscal unity regime. Multinationals take note. By Corina van Lindonk and Mark van der Linden, Deloitte & Touche, Rotterdam and Chicago

The OECD negotiates that difficult line between legitimate tax planning activities and outright non-compliance with tax laws. By Richard M Hammer, chairman, Committee on Taxation and Fiscal Policy of the Business and Industry Advisory Committee to the OECD, and Jeffrey Owens, head of Fiscal Affairs, OECD

Significant exemptions from withholding tax were offered to Singapore’s software importers in the recent budget speech. While some legal issues remain unresolved, increased certainty should boost this area. By Kenny Foo, Baker & McKenzie, Singapore

The Chinese government has announced several reforms that aim to balance the tax system in China in preparation for the country's entry in to the WTO later this year. According to reports from the Xinhua national news agency, the Chinese Ministry of Finance intends to alter its sales tax policy to create a level playing field for foreign and domestic financial companies.

The Chilean government has announced a package of broad tax reforms. On April 19 in Santiago, Finance Minister Nicholas Eyzaguirre unveiled 15 reforms aimed at boosting foreign investment in the country, encouraging savings and strengthening the country's ailing stock market. According to Eyzaguirre, the proposals will be submitted to Congress by May 21 of this year, although they could take several months to be passed. Included in the reform package is the removal of the 15% capital gains tax paid on the disposal of shares. The new tax rate will affect local and foreign investors but will only apply to frequently traded issues. It will be effective on stocks bought and sold in the stock market from April 19 and aims to increase liquidity in the market. There are also plans to exempt the stock of new companies with high predicted growth from capital gains tax for three years.

Mexico's president looks set for a battle as he takes his controversial tax reform package to Congress. On April 3, Vicente Fox announced a series of proposals aiming to increase revenue without raising taxes. The most controversial of the changes is the elimination of the 0% rate of value-added tax (VAT) on food and medicines. This will leave a uniform VAT rate of 15%.

Following annual consultations with businesses and representative organizations, the UK Inland Revenue has announced details of the UK's treaty priorities for 2001/2002. In an official statement, UK Paymaster General Dawn Primarolo stated that while the country's top priority is to finish the double taxation treaty with the US, there are also plans for completing work on treaties with countries including France, Jordan and South Africa. She also stated her intention to hold talks about new or updated tax treaties with Croatia, Iran, Saudi Arabia and Slovenia.

4/F, Syciplaw-All Asia Capital Center