Chris Devonshire-Ellis Compares China Taxes To Emerging Asia by hkksew3563rd


									I 鈥檝 e just been presenting on the tax regime throughout Asia at the CCH annual
China Tax Conference being held in Shanghai. It 鈥檚 the first time this event has
been held in China and the response has been overwhelming. My function has been to
provide an overview of the changing tax regime across Asia 鈥?a huge subject, but
one that holds a great deal of interest.
  Suffice to say, Asia 鈥檚 tax regimes are changing fast, and it 鈥檚 important to
keep abreast about what is happening and where. Times are tight, and pencil
sharpening, together with increasing interest in the use of special purpose vehicles, tax
havens, and the application of double tax treaties are gathering ever more scrutiny
from various Asian governments, and China in particular.
  There are also significant tax reforms on the immediate horizon, not least with India,
which is about to completely reform its entire tax code. Corporate tax in India is about
to significantly drop in early 2011, while countries such as Vietnam have also
undergone radical reforms. It 鈥檚 not just a huge subject; it 鈥檚 also immensely
complicated and very much a moving target.
  But to provide something for China Briefing readers as a take home from this, it 鈥
檚 worthwhile to take a snapshot of where China is right now and how it stacks up
against the rest of Asia. The chart below is simple, and deals from left to right with
the World Bank assessments of how many hours it takes in each country to file
various mandatory tax forms. That 鈥檚 useful as a pointer to two elements; firstly
how archaic the system is (such as Pakistan) or secondly, how much increased
attention to detail is now being required as governments clamp down and insist on
increasing amounts of data (such as China).
  The corporate tax rates apply as of today, but please note the addendum below,
especially concerning India.
  Finally, 鈥渙 ther taxes 鈥?refers to the combined smaller taxes that also bite into
profitability (China for example has an additional nine taxes that can impact corporate
performance in the country: resource tax, land appreciation tax, real estate tax, vehicle
and vessel tax, stamp duty, deed tax, customs duty, urban land use tax, and farmland
use tax). The figure adds these up in each country and breaks them down into
averages. The comparison makes for fascinating reading.
  To see these figures and read the rest of Chris Devonshire-Ellis's article, visit China
tax and business news site,
  Chris Devonshire-Ellis is also the founder of Dezan Shira & Associates.

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