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The increasing size and sophistication of China’s digital economy, as well as the rapid expansion of Chinese digital economy enterprises into foreign markets, is highlighting a range of complex tax issues, and the importance of policymaker efforts to resolve them. Khoon Ming Ho, Conrad Turley, Sunny Leung, and Mimi Wang explore the issues.

Following years of rapid change to China’s cross-border corporate income tax (CIT) rules and advances in enforcement effectiveness, a more measured approach has recently emerged, reflecting business environment changes and China’s evolved position within the global economy. Chris Xing, Conrad Turley, Grace Xie, and William Zhang, trace the latest trends.

Hong Kong has seen substantial changes to its tax landscape in 2018. Curtis Ng, Michael Olesnicky, John Timpany and Ivor Morris discuss Hong Kong’s tax changes for transfer pricing (TP) and research and development (R&D) aimed at enhancing Hong Kong’s competitiveness and driving its economic growth.

Brazilian tax authorities have provided guidance on the application of the reduced 0% income withholding tax rate on international charter leasing payments.

Taxpayers are still waiting for clarity in one of Brazil’s most important tax disputes, which cost the federal government around BRL 250 billion ($68 billion) when it was concluded in March 2017.

The federal Brazilian tax authority (RFB) has confirmed that off-the-shelf software acquired for personal use should not be subject to withholding tax.

In recent months, the trade issues between China and the US have continued to escalate. So far, the US has imposed 10% tariffs on $250 billion out of the more than $500 billion of China exports to the US, and China has responded with tariffs on $110 billion out of $130 billion US exports to China.

The Federal Brazilian tax authority (RFB) has confirmed that payments for the right to use trademarks and know-how to a French entity should be subject to income withholding tax and CIDE.

Chief Executive Carrie Lam Cheng Yuet-ngor delivered her second policy address on October 10 2018, which sets out the Hong Kong government’s policies over the coming years.