Tax Plan for China

Tax Plan for China

The China’s Ministry of Finance and the State Administration of Taxation have a plan to reduce the incidence of individual income tax on low to middle incomes for the next year.

There is a lot of concerns at the widening income gap between the wealthy and the low to middle income earners in the country, despite previous efforts to reduce it through the income tax system by increasing the tax threshold.

Nowadays the individual income tax system for a Chinese resident is based upon an initial monthly income threshold before tax payments are due of CHY2,000 (USD300), followed by nine progressive tax rates between an initial 5% for a total monthly taxable income of CHY2,001 to CHY2,500, and 10% for between CHY2,501 to CHY4,000, up to a marginal rate of 45% for monthly income levels above CHY12,000.

It is therefore now reported that the proposed income tax reform will attempt to benefit lower-paid employees in particular, not only by raising the initial tax threshold, but also by reducing the number of tax rate tiers and, thereby, increasing substantially the income levels at which the first two tiers occur.

Braxton Asia may help you on this and other tax planning issues.

Media Marketing Online expands operations in Asia Pacific with a company in Hong Kong

Media Marketing Online expands operations in Asia Pacific with a company in Hong Kong

We are excited to say that we have expanded our operations in the Asia Pacific region. Through our new regional company in Hong Kong, our local team will support MMO’s customers – advertisers, agencies, publishers and bloggers – in connecting with the growing number of consumers across the region that are accessing blogs, news and mobile web sites.
Outside of Europe and Latin America, Asia is the MMO’s largest markets today. We’ve seen iPhone usage explode in advanced markets such as Australia, Singapore, and Hong Kong.
Our team in Hong Kong is already starting to work closely with customers throughout the region to open new online magazines and to break down the barriers to doing business on mobile. Our goal is to develop the global magazine online marketplace and make mobile work for advertisers who want to engage with a targeted audience of consumers and for mobile publishers who need to effectively monetize their business. In addition, our localized sites for English, Bahasa or Chinese delivers the rich functionality, detailed targeting options, scalable ad units and robust self-serve capabilities the Asia Pacific market needs.
We are looking forward to the challenge of continuing to grow Media Marketing Online’s leadership position in online magazine and mobile advertising in Asia Pacific.
For more information, visit www.media-marketing-online.com

European Union Direct Taxes

Permanent Establishment is a vital concept in international taxation. While for direct taxes, it is mainly defined by the OECD Model Convention, the European VAT Directive and its implementing Regulation provide an EU-wide approach for VAT.
Difficulties arise as terminology and definitions in indirect and direct tax diverge. Moreover, countries have implemented and interpreted the EU and OECD rules in a different way, impacting on issues like cross-border reorganisations, transfer pricing, taxation of dividends and interest and royalties, tax residence, temporary and permanent transfer of assets, place of supply and VAT liability.
In both direct and indirect tax, the concept of Permanent Establishment has undergone very recent changes: The 2010 changes to the OECD Model Convention and Commentary, and in particular the new Art. 7, will be adopted in national law, as speakers from the Netherlands and Germany will report. The effect of the new definition on treaties with other countries will also be considered.
Some of this topic is addressed in the new book "European Union Direct Taxes", by the International Tax Professor Salvador Trinxet Llorca.
In indirect tax, the current more important issue is the practical consequences of the adoption of the Regulation implementing the EU VAT Directive in January 2011.