International Tax

Please explore upcoming programs or access archived programs below. 

Special Edition Webcasts

Japan's 2013 Tax Reform Proposals and Treaty Amendments: What Will Be the Net Effect?

9 April, 1:00 – 2:00 PM HKT (GMT +8)
Host: David Bickle
Presenters: Mark Brandon, Frances Somerville, and Jun Takahara

Japan's 2013 tax reform proposals, along with amendments to the U.S.-Japan double tax treaty, aim to encourage corporate expansion and promote cross-border investment. Will the net impact of these changes be beneficial for companies and individuals? We'll discuss:

• Enhanced tax measures and credits for corporate investment in production facilities, job creation, salary growth, and R&D expenditures.
• Other tax reforms, including changes in taxation of financial transactions, income taxes, inheritance and gift taxes, and a new interest expense restriction ("earning stripping rule") for corporations.
• U.S.-Japan double tax treaty amendments, including a withholding tax exemption for interest income, relaxation of dividend withholding tax exemption requirements, and mandatory binding arbitration.

Gain the latest insights on tax and treaty issues affecting companies and individuals in Japan.

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(Tune in to the Japanese version of this webcast on 9 April at 11:00AM – 12:00 PM HKT (GMT +8). Please visit Japanese language webcasts page for program details.)

Upcoming Webcasts

Annual Review: Double Tax Treaty Update and OECD / UN Developments

28 May, 2:00 - 3:00 PM HKT (GMT +8)
Host: Steve Towers
Presenters: Leonard Khaw, Gyung Ho Kim, and Vicky Wang

We will review the important new double tax treaties in Asia Pacific, major case law and administrative developments concerning the interpretation of double tax treaties, and significant OECD / UN developments relating to double tax treaties. In particular, we'll discuss:

• New double tax treaties signed or ratified by China, Hong Kong, India, Japan, Korea, Singapore, Taiwan, and Thailand.
• Important cases on treaty interpretation, including the "permanent establishment" definition and anti-avoidance rules.
• Update on the proposed amendments to the OECD Commentary in regard to the meaning of "beneficial ownership" and "permanent establishment".
• Update on the OECD intangibles project.
• Overview of the UN Practical Manual on Transfer Pricing.
• Update on the OECD's "base erosion and profit shifting" (BEPS) initiative.

Learn about the important developments in the last 12 months in regard to double tax treaties and OECD / UN projects.

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Supply Chain Tax Planning in China: Opportunities and Challenges

6 June, 2:00 - 3:00 PM HKT (GMT +8)
Host: Tom Ewigleben
Presenters: Ryan Chang and Sarah Chin

As multinationals consider changes to their supply chain in China, what issues can they expect? Is a toll or contract manufacturer arrangement likely to work? What challenges could be associated with setting up an operation for sourcing of goods and raw materials? What distributor arrangements work well in China, and what options are there for stripping distributors of risk? We'll discuss:

• Issues around permanent establishment and transfer pricing, including treatment of intangible property.
• Indirect tax issues, including customs, VAT, and service taxes.
• Conversion and exit tax implications.

Learn about implementation and tax issues facing multinationals that are targeting China as part of their supply chain strategies.

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Article 3(2) and the Search for Meaning: How to Interpret Undefined Terms in Double Tax Treaties

18 June, 2:00 - 3:00 PM HKT (GMT +8)
Host: Steve Towers
Presenters: Rajiv Anand, Leonard Khaw, and Neil Pereira

Double tax treaties use many undefined terms. For example, "fixed place of business" (used in Article 5) and "beneficial owner" (used in Articles 10, 11 and 12) are very important, but generally undefined, terms in treaties. What approach should you follow to determine the meaning of undefined terms in treaties? We'll discuss:

• The application of Article 3(2) (which permits the use of a domestic law meaning): ambulatory vs. static interpretation, the "context" limitation, and unilateral changes to meaning.
• Articles 31 and 32 of the Vienna Convention on the Law of Treaties: the use of ordinary and special meanings, and the use of extrinsic materials.
• The relevance of the OECD and UN Commentaries, and how you should treat changes in the Commentaries.
• Use of domestic law interpretation rules (e.g., substance over form) to determine the meaning of undefined treaty terms.
• "Conflicts in qualification" – i.e., inconsistent interpretations between the two contracting countries.

Understand the approach to follow in order to identify the meaning of undefined terms in double tax treaties.

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Archived Webcasts

International Tax: What Can We Learn from the Top Tax Cases of 2012?

21 March 2013
* Length of webcast: 75 minutes
Host: Steve Towers
Presenters: Leonard Khaw, Neil Pereira, and Sunil Shah

Fascinating court decisions have emerged in 2012 involving the interpretation of double tax treaties and other international tax issues. What do these cases reveal? We'll discuss:

• Permanent establishment cases in India, Spain, and Italy, as well as Indian cases involving the application of the royalties definition to telecommunications and other transactions.
• Non-discrimination article cases in the UK and India, and cases dealing with the "other income" article.
• "Beneficial ownership" cases in Canada and Switzerland, and a landmark transfer pricing case in Canada.
• Anti-avoidance cases in the UK and Australia.
• A business restructuring case in France, and a debt vs. equity characterization case in the U.S.

Understand technical and practical implications of key rulings and discover how they apply to your company's international tax planning.

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Base Erosion and Profit Shifting (BEPS): Changing the Rules

13 March 2013
* Length of webcast: 75 minutes
Host: Steve Towers
Presenters: Leonard Khaw, Eunice Kuo, and Peter Madden

The last few months have seen an extraordinary attack on the tax planning activities of the world's largest companies. The attack has come from multiple directions: the UK Parliament's Public Accounts Committee has publicly criticized the transfer pricing practices of Google, Amazon, and Starbucks; governments in Australia, New Zealand, France, and Germany have made similar public criticisms; in the United Nations Practical Manual for Transfer Pricing, China and India articulate why the existing application of transfer pricing rules does not leave an adequate level of taxable profits in developing countries; the tax authority leaders of the BRICS countries pledge to promulgate international tax and transfer pricing guidance which is appropriate for developing countries; and, on 12 February, the OECD released its report on "base erosion and profit shifting" (BEPS), which was subsequently endorsed by the G20 countries. What does it all mean? And more importantly, where will it all end? We'll discuss:

• BEPS: the story so far
• The road forward: what is the OECD's plan and will the BRICS countries accept it?
• Where will we end up? In particular, what changes do we predict to the established international tax and transfer pricing rules?
• Implementation: how?

BEPS will probably be the biggest story in international tax and transfer pricing in this decade. Find out what it is all about and how fundamental rules might be about to change.

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Definition of "Permanent Establishment" in Article 5: Case Studies

28 February 2013
Host: Steve Towers
Presenters: Claudio Cimetta, Gyung Ho Kim, and Alyson Rodi

The definition of "permanent establishment"(PE) in Article 5 of the OECD and UN model treaties continues to be a major area of international tax controversy. In this webcast, we will adopt a case study approach to highlight the important aspects of the definition commonly confronted in international business. We will also make suggestions as to how the "no PE" position could be strengthened. The case studies will cover:

• PE risks frequently encountered in "supply chain" structures, such as contract or toll manufacturing, storage of goods, limited risk distributors, and in-country service providers.
• Provision of services.
• Secondment of employees.
• Dependent agents.
• "Authority to conclude contracts in the name of the enterprise": scope of this expression in Article 5(5).

Learn how to identify and deal with important PE risks.

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Inbound Investment into Mongolia: Tax Considerations for Mining Companies

26 February 2013
Host: Chris Roberge
Presenters: Colin Brown and Onchinsuren Dendevsambuu

As one of the fastest growing economies in the world and a country with rich mineral resources, Mongolia is becoming an important investment destination. However, it also has many challenges. What are the important tax considerations if you want to invest in the minerals sector of Mongolia? We'll discuss:

• Mongolia at a glance, including the business environment, business entity choices, and tax implications of investing there.
• The government's 2013 agenda, including a second tax reform and its implications for inbound investors interested in the minerals sector.

Learn about the inbound investment climate in Mongolia for mining companies and various ways of making tax-efficient moves there.

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Draft Amendments to the OECD Commentary on the Meaning of "Beneficial Ownership" in Articles 10, 11, and 12

5 February 2013
* Length of webcast: 70 minutes
Host: Steve Towers
Presenters: C.A. Gupta, Leonard Khaw, and Vicky Wang

On 19 October 2012, the OECD released for public comment revised draft amendments to its Commentary on the meaning of "beneficial ownership" in Articles 10, 11, and 12. These revised draft amendments are a response to the significant number of public comments which were made on the earlier draft, which was issued in April 2011. We'll discuss:

• The proposed "constrained by a related contractual or legal obligation" condition: what does it mean?
• Application of the proposed condition to the facts in landmark cases, such as Indofood, Prevost, Velcro, and the Swiss total return swap case.
• Likely impact on financial institutions.
• "Look through" rule.

Find out about the latest OECD thinking in regard to these significant amendments to the OECD Commentary.

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Thailand's Double Tax Treaties: Under the Microscope

18 December 2012
Host: Steve Towers
Presenters: Stuart Simons, Darika Soponawat, and Wanna Suteerapornchai

Thailand's double tax treaties have significant implications for inbound investment into the country. Which treaty is best in class for particular types of income, and what potential issues could you encounter using them? We'll discuss:

• Permanent establishment definitions.
• Withholding tax rates on dividends, interest, and royalties, and capital gains exemptions.
• What to do with "residual income" - business profits article, "other income" article, or fall outside of the treaty?
• Domestic law and administrative aspects of treaty claims in Thailand.

Compare and contrast Thailand's double tax treaties and learn how to identify and use relatively superior treaties for inbound investment into Thailand.

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Cross-Border Income Taxation of Services

23 November 2012
Host: Steve Towers
Presenters: Gyung Ho Kim, Alyson Rodi, Rohinton Sidhwa, and Jennifer Zhang

The cross-border income taxation of services is a complex topic involving the interaction of domestic tax laws and double tax treaties, both of which show a high level of international variation in regard to services taxation. We'll discuss:

• Domestic tax law treatment of cross-border services income, including issues such as nexus, source, classification, gross vs. net taxation, and compliance aspects.
• Double tax treaty issues such as permanent establishment definitions (including Article 5(3)(b) and Article 14 of the UN model treaty), fees for technical services, and Article 21 (other income).
• A particular focus on how Asia Pacific countries deal with these issues.

Understand the various issues involved in the cross-border income taxation of services.

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Euro Currency Instability: Is Breaking up Hard to Do?

22 November 2012
Host: Leonard Khaw
Presenters: Lorraine Griffin, Karlien Porre, and Ian Stewart

Eurozone instability continues to be a significant worry for many Asia Pacific businesses. What actions can you take now to prepare for various possible short-term and long-term outcomes? We'll discuss:

• An economic overview of dynamics in the Eurozone and possible scenarios for which your business should be planning.
• A review of recent governmental reactions to these dynamics from a tax perspective.
• How tax departments of Asia Pacific businesses can communicate with business units across the enterprise to plan their response to future Eurozone developments.
• Intercompany contractual arrangements – appropriately placing risks associated with potential impacts of Eurozone instability across business units.

Learn how continued Eurozone instability can create tax, treasury, and intercompany transaction challenges for multinationals and strategies for addressing these challenges.

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Extending Your Global Supply Chain to Japan: Opportunities and Challenges

14 November 2012
Host: Tom Ewigleben
Presenters: Tim O'Brien and Jun Takahara

As multinationals consider extending their global supply chains into Japan, what issues can they expect? Is a toll or contract manufacturer arrangement likely to work? What challenges could be associated with setting up an operation for sourcing of goods and raw materials? What distributor arrangements work well in Japan, and what options are there for stripping distributors of risk? We'll discuss:

• Issues around permanent establishment and transfer pricing, including treatment of intangible property.
• Indirect tax issues, including customs and consumption tax.
• Conversion and exit tax implications

Learn about implementation and tax issues facing multinationals that are considering Japan as part of their supply chain strategies.

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Draft Amendments to the OECD Commentary on the Definition of "Permanent Establishment" in Article 5: What are the Big Issues under Discussion?

25 October 2012
* Length of webcast: 75 minutes
Host: Steve Towers
Presenters: Claudio Cimetta, C.A. Gupta, and Leonard Khaw

On 19 October 2012, the OECD released, for public comment, updated draft amendments to the Commentary on the "permanent establishment" definition in Article 5 of the OECD model treaty. This latest draft is an update of the OECD's 2011 draft amendments. Our webcast will focus on the substantive differences between the 2012 and 2011 versions, as well as analyzing the key issues which the OECD has chosen not to cover in the amendments. We'll discuss:

• The "at the disposal" test in Article 5(1), including statements seeking to identify the ambit of the test, the application of the test to companies which store customers' goods (e.g., toll manufacturers, logistics companies), and to situations where there is extensive sub-contracting.
• The application of Article 5(1) to secondments of employees and the relationship between Article 5(1) and Article 5(3).
• The "time" requirement under Article 5(1): is 6 months a "rule"?
• Issues concerning the "agency PE" in Article 5(5), including the meaning of "binding" (i.e., legally or economically?), the relationship between Article 5(5) and Article 5(6) (i.e., is Article 5(6) merely an exception to Article 5(5) or something more?), and the application of Article 5(6) to fund managers.

Find out about the latest OECD thinking in regard to these significant amendments to the OECD Commentary.

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Reference materials

• Previous Dbriefs webcast aired on 1 November 2011 - Proposed Changes to "Permanent Establishment" Meaning in OECD Commentary (pdf format, 1MB)
• OECD 2012 Draft: Interpretation and Application of Article 5 (Permanent Establishment) of the OECD Model Tax Convention (pdf format, 811KB)

Asia Pacific Tax Series

China Spotlight
Countdown to the India DTC
Country Focus
Customs & Global Trade
Government Grants & Incentives
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