http://www.pwchk.com PwC Hong Kong News en-en 2001-2012 PricewaterhouseCoopers http://www.pwchk.com/webmedia/634342554775622417_pwc_logo.jpg http://www.pwchk.com http://pwc.to/La5CmO Get the salient points of the Public Notice [2012] No.12 ("Circular 12") issued by the State Administration of Taxation in Apr 2012 providing some important clarifications for the implementation of the corporate income tax ("CIT") preferential policies under Caishui [2011] No.58 and set out the relevant application and approval procedures. Circular 12 takes retrospective effect from 1 Jan 2011. The clarification once again indicates the Chinese government's determination to boost the economy in the western region during the State's 12th Five-year Plan. Taxpayers in the western region are encouraged to observe the clarification and lodge application with the in-charge tax authorities to assess their applicable CIT rate. Similarly, taxpayers who are planning to move west are also encouraged to plan and structure their investment. http://pwc.to/La5CmO Tue, 15 May 2012 15:05:00 +0800 http://pwc.to/Jeyw1l Hear from our speakers via a webcast where we shared the latest human capital trends and challenges in Asia Pacific based on a report produced by Saratoga, PwC's human capital analytics arm with a dedicated regional centre in Singapore. We offered our perspectives on the key human capital issues raised, suggested how businesses might overcome them and highlighted the importance of combining a talent strategy with a mobility strategy, in response to the greater emphasis on cross-border deployment of human capital by companies in the region. http://pwc.to/Jeyw1l Tue, 15 May 2012 10:16:00 +0800 http://pwc.to/KJcOmG Risks faced by corporates have dramatically increased in recent years with a mixture of complex business environment and regulatory changes. In particular, large scale expansions into new and unfamiliar markets and products, financial volatility, rapid technological advances as well as frequent accounting standard changes have created unprecedented emerging risks for many organisations. Regulators now expect companies to put in place risk management infrastructure to cope with the increased scope and scale of current and planned business activities. How well do you understand your organisation's risk profile and how to stay ahead? http://pwc.to/KJcOmG Tue, 8 May 2012 18:36:00 +0800 http://pwc.to/JCS0fA With China's slowing economy, Beijing has adjusted its monetary policy by reducing the reserve requirements for Chinese banks twice since late last year to encourage lending. Whilst this may help improve liquidity, more loans nearly always creates more opportunities for bad loans. China's non-performing loan (NPL) levels have not significantly increased yet, but with predictions suggesting that these level are set to increase, it is essential that Chinese banks attempt to optimise recoveries from NPLs. We discuss the glaring differences between how NPLs are handled in Chinese banks and western banks, and how western banks are often able to recover more than their Chinese counterparts. We also share with you our knowledge and experience in helping to resolve Chinese NPLs. http://pwc.to/JCS0fA Tue, 8 May 2012 18:36:00 +0800 http://pwc.to/JdjJr6 China's long-term nursing and rehabilitation care for the elderly is more effectively and efficiently provided in senior housing with healthcare facilities than in tertiary care hospitals. Options are becoming available in a shift that is opening up opportunities for businesses that can deliver the right combination of real estate, healthcare and hospitality tailored for the needs of the Chinese pensioner. In this report, we investigated potential business approaches with illustration of current project example in China, discussed types of potential participants and business model options, some are specifically adopted by local private investors. http://pwc.to/JdjJr6 Wed, 2 May 2012 19:00:00 +0800 http://pwc.to/L5r2Bw Get the high level summary of PwC's comment letter on the IASB and FASB’s second Exposure Draft on "Revenue from Contracts with Customers"; and our update on IASB has delayed projected timetable of some projects. http://pwc.to/L5r2Bw Wed, 2 May 2012 15:51:00 +0800 http://pwc.to/KXMrH5 Explore global automotive transactions and key trends within the global automotive sector, including a review of 2011 automotive deal activity among vehicle manufacturers, suppliers, retailers, vehicle financiers, and other related sectors; key trends that impacted the deal market; a look at the transaction activity by sector and region; and outlook for increased automotive deal activity in 2012 and beyond. http://pwc.to/KXMrH5 Wed, 2 May 2012 15:51:00 +0800 http://pwc.to/Kppr74 China's regulatory bodies are diligently working to create an environment of quality in the application of accounting and internal controls over financial reporting. And with the speed and magnitude of the automotive industry growth in China, this is an important step forward for all companies involved. In fact, many Chinese companies are training their talent, upgrading systems and enhancing the governance structures to tackle these regulations. The challenge may appear daunting to the Chinese companies, where many MNCs have the experience and institutional expertise in these key areas to leverage. So, is this an opportunity to share and collaborate? Or will these changes test the relationships of the MNCs and Chinese partner? http://pwc.to/Kppr74 Wed, 2 May 2012 15:51:00 +0800 http://pwc.to/J5Og8O China's light vehicle sales growth slowed considerably in 2011 compared with 2009 and 2010. However, 2011 will prove to be more exception than rule, as the country's long-term demand potential remains strong. China's growth and total market potential pose a significant challenge for capacity planning and installation. Auto industry fragmentation has also created a dichotomy in terms of capacity utilisation. Mainstream Chinese automakers and their foreign JV partners are struggling to meet demand, while many smaller domestics are currently saddled with excess capacity. http://pwc.to/J5Og8O Wed, 2 May 2012 15:51:00 +0800 http://pwc.to/JfOGnY Look at the key findings in the automotive sector, based on interviews with 104 automotive CEOs in 31 countries, as well as in-depth interviews with CEOs from companies across the automotive value chain, predominantly suppliers, as well as automotive retail companies. http://pwc.to/JfOGnY Wed, 2 May 2012 15:51:00 +0800 http://pwc.to/KiX4F3 Explore how social, technological, economic, environmental and political factors are impacting insurers across the personal, commercial and life, annuity and retirement sectors. This report also assesses how these forces are influencing insurance business models across developed and emerging markets. http://pwc.to/KiX4F3 Mon, 30 Apr 2012 15:22:00 +0800 http://pwc.to/HK5vuw Hear from our Japan tax partners via a webcast where we will discuss a variety of topics including an update on the state of the Japanese economy, recent legislative changes and recent audit activity. In particular, we will focus on the reductions in corporate rates; new "base broadeners" especially the new limitations on the use of net operating loss ("NOL") carryforwards; new "earnings stripping" rules which can limit interest deductions; recent audit activity including focus on finding permanent establishments and the use of treaty information exchange mechanisms during audits; new NOL rules; and treaty update. http://pwc.to/HK5vuw Fri, 27 Apr 2012 17:01:00 +0800 http://pwc.to/HEckMi Hear from our partners via a webcast where we will discuss the tightened foreign exchange registration requirements from the State Administration of Foreign Exchange ("SAFE") and impacts to those MNCs that have implemented various types of equity incentive plans in China. We will address the different requirements for the first tier cities versus other cities; and practical issues and recommendations in employee communication, individual income tax withholding / payment and other ongoing post SAFE registration administration. http://pwc.to/HEckMi Wed, 25 Apr 2012 15:15:00 +0800 http://pwc.to/IViFC7 Hear from our Hong Kong, China and India transfer pricing speakers via a webcast where we will discuss the insights on key developments surrounding the Advance Pricing Agreement (APA) programs in the respective jurisdictions and the potential opportunities likely to be available to multinational enterprises to obtain greater certainty in their international tax affairs. We will share our perspectives on Hong Kong's APA programme launched on 29 Mar 2012 and the Indian APA programme which will be effective on 1 Jul 2012. We will also share our insights on the state of the APA programme in China based on our practical experience and recent statistics published in the SAT's 2010 APA report in Apr 2012. http://pwc.to/IViFC7 Wed, 25 Apr 2012 11:30:00 +0800 http://pwc.to/Jdjz2L An overview of the initial public offerings ("IPO") and listing activities on Greater China's principal stock markets, including Hong Kong, Shanghai, Shenzhen and Taiwan. The analysis covers companies which were listed on these markets from 1 Jan to 31 Dec 2011. http://pwc.to/Jdjz2L Wed, 25 Apr 2012 11:15:00 +0800 http://pwc.to/Kpp1gI We reviewed 46 leading global and regional airlines to see how the industry stacks up on corporate sustainability reporting. The results were encouraging. Key findings include more airlines are reporting on corporate sustainability; excellent corporate sustainability reporting is integrated, relevant and verified; the time has come for sector wide standards; a closer look at corporate sustainability reporting indicators; and the future of airline corporate sustainability reporting. http://pwc.to/Kpp1gI Tue, 24 Apr 2012 09:54:00 +0800 http://pwc.to/L5qT0I Look at certain key performance indicators of more than 150 shipping companies from around the world. Financial data has been derived from financial statements from 2004 up to and including 2010. Our analysis covers both quantitative and qualitative information and gives insight into the recent challenges and drivers of the industry. http://pwc.to/L5qT0I Tue, 24 Apr 2012 09:54:00 +0800 http://pwc.to/JdjxYP The Court of Appeal ("COA") handed down its judgment in the Li & Fung case on 19 Mar 2012. The COA dismissed the Commissioner's appeal and upheld the lower court's judgment that the commission income derived by the taxpayer from sourcing goods from overseas suppliers on behalf of its customers was offshore and not subject to Hong Kong profits tax. Get a summary of the COA's judgment and look at the implications thereon. http://pwc.to/JdjxYP Mon, 23 Apr 2012 18:03:00 +0800 http://pwc.to/HWMtjx Get the salient points of the State Administration of Taxation Public Notice [2012] No.13 ("Circular 13"), entitled "Provisional Measures of Applying the Exempt, Credit and Refund ("ECR") Method to Zero-rated Value Added Tax ("VAT") Services in Their Transformation from Business Tax to VAT under the Pilot Program". Circular 13, is effective retrospectively from 1 January 2012 which provides the detailed implementation rules for the VAT treatment in relation to the export of zero-rated Pilot Services under the Pilot Program in Shanghai. Although Circular 13 provides clarifications on how to calculate and apply the export VAT ECR method and the relevant compliance requirements, it is still a new concept for Pilot Enterprises. Therefore, good documentation is critical to substantiate the genuine nature of the export of the zero-rated Pilot Services. http://pwc.to/HWMtjx Thu, 19 Apr 2012 22:49:00 +0800 http://pwc.to/KbNv8K In the three years since the credit crisis, the Asian hedge fund industry has come under pressure from investors to build trust by improving corporate governance, strengthening operations and providing more transparency into the controls in place. We believe, however, that there is room for further improvements related to conflicts of interest and operational controls to allow the sector to truly fulfil its long-term growth potential. As allocations to Asian managed hedge funds increase, trust and transparency will now be crucial factors in winning investors" favour for allocations of assets. http://pwc.to/KbNv8K Thu, 19 Apr 2012 16:58:00 +0800 http://pwc.to/IJUF7c Get the salient points of the Working Guidelines on Replying to Specific Tax Matters (Trial) (Guoshuifa [2012] No.14) ("the Guidelines") which set out a set of procedures prescribing how the Chinese tax authorities should provide replies on specific tax matters. We also discuss the impact of the guidelines on taxpayers and tax authorities. The release of the Guidelines is a breakthrough from a procedural perspective, despite the strict requirements in the Guidelines which would likely result in tedious documentation preparation and time-consuming application processes. Therefore, it is important for taxpayers to undertake detailed advance planning and be mindful of each and every step of the entire application process. http://pwc.to/IJUF7c Wed, 11 Apr 2012 16:39:00 +0800 http://pwc.to/HDafCj The governments of the US, France, Germany, Italy, Spain, and the UK are exploring a common approach to FATCA implementation through domestic reporting and reciprocal automation information exchange based on existing bilateral tax treaties. We don't anticipate that this bilateral approach will significantly reduce the burden of FATCA compliance for Foreign Financial Institutions ("FFIs"). Indeed, the bilateral approach may make compliance by FFIs more challenging. http://pwc.to/HDafCj Tue, 3 Apr 2012 16:57:00 +0800 http://pwc.to/HFBGvD Get the developments of (i) the IASB and FASB's (the boards) leasing redeliberations in Feb and (ii) the boards' upcoming new proposal on bad debt provisions for banks. We also provide a quiz about how to classify financial instruments from the perspective of the issuer. http://pwc.to/HFBGvD Mon, 2 Apr 2012 17:35:00 +0800 http://pwc.to/HQstxH Internal Revenue Code Section 6038D mandates that certain individuals must report specified foreign financial assets (SFFAs) if their interests in SFFAs exceed various thresholds. If reporting is required, the taxpayer must disclose their SFFAs on Form 8938 (Statement of Specified Foreign Financial Assets) filed with their US federal income tax return. Recently, the Internal Revenue Service issued basic questions and answers on Form 8938 (Q&As) on their website. Although this guidance does not appear to provide novel interpretations, the Q&As provide welcome confirmation regarding certain reporting scenarios. http://pwc.to/HQstxH Mon, 2 Apr 2012 14:31:00 +0800 http://pwc.to/H1OOJx On 29 Mar 2012, the Hong Kong Inland Revenue Department formalised the APA programme in Hong Kong by issuing Departmental Interpretation and Practice Notes No.48 - Advance Pricing Arrangement ("DIPN 48"). Get a high-level outline of the APA programme and our observations on some of the aspects mentioned in DIPN 48. The launch of the APA programme marks a special milestone for transfer pricing in Hong Kong, allowing taxpayers the opportunity to manage their international tax affairs with greater certainty and reduce the risk of double taxation. Considering the expanding DTA network of Hong Kong and increased scrutiny by many of Hong Kong treaty partners, taxpayers should review their transfer pricing positions and evaluate their options with respect to the new APA regime in Hong Kong. http://pwc.to/H1OOJx Thu, 29 Mar 2012 17:19:00 +0800 http://pwc.to/Hq4ngs Explores the policy focus in Premier Wen's final address delivered at the annual session of the Congress and what it means for China's businesses, people, environmental future and investors. http://pwc.to/Hq4ngs Tue, 27 Mar 2012 14:56:00 +0800 http://pwc.to/Hq45WX Get the salient points of a new set of guidelines (Circular Huifa [2012] No.7, "Circular 7") issued by the State Administration of Foreign Exchange ("SAFE") in Feb 2012 as further steps to tighten the foreign exchange registration requirements, and our observations and suggestions. It is highly recommended that the multi-national companies should review their current SAFE registration status to make sure all types of equity incentive plans are properly registered according to Circular 7. http://pwc.to/Hq45WX Tue, 27 Mar 2012 8:08:00 +0800 http://pwc.to/H5xgcq The survey looks at the habits and preferences of online shoppers from eight different markets, including the US, Mainland China, Hong Kong, Germany, France, the UK, Switzerland, and the Netherlands. Over 905 online shoppers were surveyed across 27 cities in Mainland China. Highlights include Mainland Chinese consumers shop online nearly four times as often as their Western European counterparts and nearly twice as often as online shoppers in the US and the UK; Chinese online shoppers use social media far more than those in other countries, meaning that social media will have relatively bigger impact on their purchasing decisions, and more. http://pwc.to/H5xgcq Tue, 27 Mar 2012 8:08:00 +0800 http://pwc.to/GPxGsd Get our recap on the accounting treatment of share-based payments; the previous and revised positions adopted by the Inland Revenue Department ("IRD") on the tax deduction of share-based payments; and our observations on the implications of the change in the IRD's stance on recharge deduction for taxpayers. http://pwc.to/GPxGsd Wed, 21 Mar 2012 9:03:00 +0800 http://pwc.to/GQ0Xhe The conclusion of the first Advance Pricing Arrangement ("APA") for a Chinese company represents a key milestone for the development of China's transfer pricing regime. The case involved a multinational Chinese company headquartered in Jiangsu Province, and covered a transaction between the Chinese company and a related party distribution company located in Europe. Chinese taxpayers should place special attention to substance and the alignment of transfer pricing with the actual value chain, especially during cross-border restructuring and taxation planning. http://pwc.to/GQ0Xhe Tue, 20 Mar 2012 16:04:00 +0800 http://pwc.to/GOS7C3 We surveyed approximately 3,000 banking customers across three separate segments from 9 global markets (including Hong Kong and China) to understand customers' needs, attitudes and behaviours to digital media. Our insights from this research can help banks harness the power of the new and improved digital market, not just by saving costs, but by deepening customer relationships to drive revenue growth. The new digital tipping point explores these insights and the opportunities that exist for banks. http://pwc.to/GOS7C3 Tue, 20 Mar 2012 11:47:00 +0800 http://pwc.to/xc5qlX Hear from our partners via a webcast where we discussed how to realise operational and subsequent tax benefits expected from a new business model. In particular, how business structures and transaction flows are just the start of a change process and, through case studies, discuss and demonstrate the need to consider and plan for the related operational changes and subsequent sustainability with equal rigour. http://pwc.to/xc5qlX Mon, 19 Mar 2012 17:16:00 +0800 http://pwc.to/Hc3Uzt Views and insights from 160 top management executives in China and Hong Kong. This report also seeks to inform and engage the business community about the key concerns and goals of CEOs in this part of the world. http://pwc.to/Hc3Uzt Fri, 15 Mar 2012 16:47:00 +0800 http://pwc.to/wbcLFq Hear from our partners via a webcast where we will discuss the interactions between transfer pricing and customs valuation; methods of testing and supporting intercompany prices for customs valuation acceptability; how to deal with transfer pricing adjustments and manage other payments, such as license fees, royalties or cost sharing arrangements; real life examples and better practice in Asia. http://pwc.to/wbcLFq Fri, 9 Mar 2012 14:05:00 +0800 http://pwc.to/zNSDBX The Hong Kong Inland Revenue Department concluded the first transfer pricing related advance ruling case in mid-Feb 2012. This advance ruling marks a milestone development for transfer pricing in Hong Kong. It also specifies the transfer pricing principles and calculation methods for the covered transactions in future years, and thus could effectively be regarded as equivalent to a unilateral advance pricing arrangement. http://pwc.to/zNSDBX Tue, 6 Mar 2012 18:12:00 +0800 http://pwc.to/xanSTr Get the overview of tax collection figures from non-tax resident enterprises ("Non-TREs") in 2011 and our observations on the driving forces behind these figures and their implications for Non-TRE investors. http://pwc.to/xanSTr Tue, 6 Mar 2012 18:12:00 +0800 http://pwc.to/w1gHrD Exchange traded funds ("ETFs") are one of the fastest growing segments of the asset management industry and ETFs in Asia have evolved over the past years and experienced double digit growth year after year since 2008. Within Asia, Hong Kong is the second largest market in terms of turnover and market capitalisation. This report provides an introduction to the world of ETFs in Hong Kong and has been designed to assist you with your strategic ETF expansion into Hong Kong. http://pwc.to/w1gHrD Thu, 1 Mar 2012 15:46:00 +0800 http://pwc.to/wnfxE8 Around the world tax authorities and transfer pricing professionals are increasingly focusing on the transfer pricing issues arising from intra-group loans, guarantees and cash pools. Our financial services transfer pricing specialists produced a special edition of its FSTP Perspectives publication discussing many of the transfer pricing issues arising from related party financing transactions. Topics include intercompany debt - US audit environment and considerations; the Netherlands: Landmark court case on the treatment of inter-company loans; transfer pricing complexities related to cash pooling arrangements; a framework for evaluating related-party guarantees; intra-group loans: Are loan terms and conditions important; intra-group financial transactions documentation and risk. http://pwc.to/wnfxE8 Wed, 29 Feb 2012 12:15:00 +0800 http://pwc.to/y5fPpd Get our year-end reminders which (1) gives consideration to the impact of the current economic climate on 2011 financial statements, (2) summarises new accounting standards and hot topics, and (3) updates some disclosure considerations that may impact year-end financial reporting. We also provide a list of our recent IFRS publications in this update for your reference. http://pwc.to/y5fPpd Tue, 28 Feb 2012 15:21:00 +0800 http://pwc.to/yQ8XKj On 15 Sep 2011 rogue trading hit the headlines again when UBS announced that it had discovered unauthorised trading in its Investment Bank. The trader in question has been charged by UK authorities with fraud and the resulting losses amounted to $2.3bn. Such unauthorised trading incidents result in significant corporate losses and destroy shareholder value. The risk is not restricted to proprietary books of investment banks. It also exists in investment portfolios of insurance companies, third party funds managed by funds managers and discretionary accounts of private bankers (for example). What are the typical warning signs, and how do human factors play a part in unauthorised trading? What questions should management be asking themselves? http://pwc.to/yQ8XKj Tue, 28 Feb 2012 15:21:00 +0800 http://pwc.to/AeyrXG Get the key principles and complex requirements of IFRS 10, "Consolidated financial statements", accompanied with practical examples and observations based on the experience of our global network of firms. Because of the importance of IFRS for many companies in China and the continued convergence of China Accounting Standards with IFRS, we have also translated this publication into Simplified Chinese to help Chinese practitioners bridge the gap between accounting principles and their applications. http://pwc.to/AeyrXG Mon, 27 Feb 2012 16:52:00 +0800 http://pwc.to/w3NHQD The proposed regulations providing guidance on the various provisions under the Foreign Account Tax Compliance Act ("FATCA"), which was enacted as part of the Hiring Incentives to Restore Employment Act of 2010, were issued on 8 Feb. Although these regulations are only proposed, they appear to provide sufficient guidance for insurers to determine what products are in scope, the process and system changes which will need to be made, and enable insurers to develop a communication plan with customers and distribution networks in order to address the looming effective dates of these rules. http://pwc.to/w3NHQD Wed, 22 Feb 2012 12:21:00 +0800 http://pwc.to/AxuF7s According to the results of the survey, the majority of executives across industries and markets worldwide are confident in the effectiveness of their organization's information security practices. This group includes more than 9,600 CEOs, CFOs, CIOs, CISOs, CSOs and other executives responsible for their organization's IT and security investments in more than 138 countries. Yet all is not in order. Some evidence points to a "crisis in leadership" and dangerous deficits in strategy. Capabilities across security domains are degrading. And security-related third-party risks are on the rise. What does this mean for your business and what should you address now in order to prepare for the cyber threats ahead? http://pwc.to/AxuF7s Wed, 22 Feb 2012 9:29:00 +0800 http://pwc.to/zgxn0U The proposed regulations providing guidance on the various provisions under the Foreign Account Tax Compliance Act ("FATCA"), which was enacted as part of the Hiring Incentives to Restore Employment Act of 2010, were issued on 8 Feb. Although these regulations are only proposed, they appear to provide sufficient guidance for fund managers to begin assessing what information gaps exist, determining what systems changes will need to be made, and communicating with their third-party service providers in order to address the looming effective dates of these rules. http://pwc.to/zgxn0U Fri, 17 Feb 2012 17:41:00 +0800 http://pwc.to/ymk9kY Data protection is no longer seen as an IT issue in isolation and the various data loss incidents have led to significant economic loss, impairment of the organisation's reputation as well as serious legal lawsuits. Find out how to enable your organisations to discover and classify your sensitive data, evaluate various DLP vendors' solutions, ensure the most adequate solution deployment, educate business users and report/handle pre-determined data security incidents on a real time basis, through both detective and preventive approaches. http://pwc.to/ymk9kY Wed, 15 Feb 2012 10:42:00 +0800 http://pwc.to/yylKkm e-Commerce systems are based upon the use of the Internet, which provides open and easy communications on a global basis. However, because the Internet is unregulated, unmanaged and uncontrolled, it poses a wide range of risks and threats to the business community. Do you know the threats from hackers and the risks to business and can you manage the consequences? http://pwc.to/yylKkm Wed, 15 Feb 2012 10:42:00 +0800 http://pwc.to/yZLbL0 This summary is based on interviews with 125 asset management CEOs in 14 countries. With financial markets in crisis once again, asset management CEOs are concentrating on finding growth in an economy where this is not easy. They are exploring how to do so in both the developed markets and fast-growing Asian region. But they are executing growth plans cautiously, keeping costs down, concentrating on execution and closely monitoring risk. http://pwc.to/yZLbL0 Wed, 15 Feb 2012 10:42:00 +0800 http://pwc.to/Ad7m2g The IASB and the FASB are continuing their deliberations around the development of a new loan loss impairment standard. While committed to the 'Three-Bucket Approach', the Boards are refining the principles and engaging with constituents to address a number of theoretical and operational issues. This paper analyses several of the issues involved and provides insights into the response we are observing among our banking clients. http://pwc.to/Ad7m2g Tue, 14 Feb 2012 14:35:00 +0800 http://pwc.to/w6Zx0r Explore our methodology for architecting and building a practical and flexible approach to FATCA compliance. It offers strategic insights on the implications of the changing information reporting requirements under FATCA and takes a deeper dive into some of the people, process and technology considerations to develop a FATCA compliance blueprint, both from an assessment and implementation perspective. The process has been applied to help a number of financial institutions to address FATCA issues. http://pwc.to/w6Zx0r Fri, 10 Feb 2012 19:20:00 +0800 http://pwc.to/AeUevK On 1 Feb 2012, the Hong Kong Financial Secretary delivered the final budget announcement of the current Administration. As far as Hong Kong salaries tax is concerned, no change in the standard tax rate, marginal tax rates and marginal tax bands has been proposed. However, numerous changes to the personal allowances and concessionary deductions for salaries tax have been proposed to help ease the pressure of inflation and uncertain economic outlook on the community. In addition, a basket of one-off relief measures similar to those mentioned in the last year have been proposed to help safeguard the people's livelihood. http://pwc.to/AeUevK Fri, 10 Feb 2012 16:01:00 +0800 http://pwc.to/x12oMw The Department of Treasury and Internal Revenue Service issued the long awaited proposed regulations on 8 Feb 2012 providing guidance for foreign financial institutions, non-financial foreign entities, and U.S. withholding agents to implement various provisions under the FATCA of 2009, which was enacted as Section 501 in the Hiring Incentives to Restore Employment Act of 2010. The proposed regulations describe detailed procedures for implementing the FATCA withholding tax and information reporting regime, and are expected to significantly affect the business practices, policies and procedures, and systems for a wide variety of financial institutions and other taxpayers in Asia. http://pwc.to/x12oMw Fri, 10 Feb 2012 11:25:00 +0800 http://pwc.to/xc5Cs0 The State Administration of Taxation ("SAT") has issued two notices on the indirect tax treatments for assets restructuring transactions: (1) Notice Regarding Value Added Tax ("VAT") Treatments for Assets Restructuring (the SAT Notice [2011] No.13) took effect from 1 Mar 2011; (2) Notice Regarding Business Tax ("BT") Treatments for Assets Restructuring (the SAT Notice [2011] No.51) took effect from 1 Oct 2011. These two notices collectively clarify that assets restructuring transactions such as merger, spin-off, sale or swap of assets, etc. involving the transfer of all or part of certain qualified assets (collectively covering tangible goods, immovable property and land use rights) of an enterprise to another enterprise together with their associated creditors' rights, liabilities and labour force shall not be subject to VAT and BT respectively. Get the salient points of these two notices as well as our insights and observations. http://pwc.to/xc5Cs0 Wed, 8 Feb 2012 12:26:00 +0800 http://pwc.to/wOK3zN Highlight the Indian Supreme Court's key judgments / observations on the Vodafone case, compare the similarities and disparities with China's tax rules on overseas indirect equity transfer ("indirect transfer") stipulated in tax circular No.698 issued by the State Administration of Taxation ("SAT") in Dec 2009, and more importantly, analyse the potential influence of the Vodafone case on the SAT's position on indirect transfers. http://pwc.to/wOK3zN Wed, 8 Feb 2012 11:25:00 +0800 http://pwc.to/wkS1tY Get the most updated environment and challenges faced by multinational retail and consumer ("R&C") companies on importing apparel, footwear and fashion accessories into China. R&C sector continues to face tariff and non-tariff challenges from China Customs, Commodity Inspection & Quarantine and other government agencies, with a focus on controlling landed costs in China; attaining operational excellence; overcoming market access and barriers; and internal responsibility. http://pwc.to/wkS1tY Tue, 7 Feb 2012 17:03:00 +0800 http://pwc.to/znTqzs The internal revenue service ("IRS") recently announced that it is reopening the offshore voluntary disclosure initiative ("OVDI") for non-filers of US income tax returns and foreign bank account reports. The new OVDI has the same structure as the 2011 initiative (which ended on 9 Dec 2011) with certain key differences. There is no set deadline to this programme, but the IRS has stated that they may change the terms of the programme going forward at any time. Although this new programme may provide relief to some, each taxpayer should consider their specific situation and the options available, before making a decision about how best to become compliant regarding their previously unreported offshore accounts and income. http://pwc.to/znTqzs Tue, 7 Feb 2012 17:02:00 +0800 http://pwc.to/zNJ6ax With the globalisation of the economy and the resulting growth in intercontinental trade flows, the business value of the enabling port and logistics activities is becoming increasingly dependent on the strength of the total logistic chains in which they participate. Contemporary port value management aims at identifying value enhancing opportunities by reconsidering the position from a logistic chain perspective. This results in value centred investment, pricing and operating strategies. http://pwc.to/zNJ6ax Mon, 6 Feb 2012 18:19:00 +0800 http://pwc.to/xGbWYp Get the development and changes in China's retail companies in the post-financial crisis era. We also analysed the new trend of China's retailers in terms of their profit and financing models. In view of the significance of mergers and acquisitions in China's retail industry and capital market on financing and expansion of retail enterprises, we also conducted a separate analysis of these issues. http://pwc.to/xGbWYp Mon, 6 Feb 2012 16:58:00 +0800 http://pwc.to/A8K1t8 Explore what risks bankers worldwide are facing in the current climate and how they prioritise them. Based on over 700 responses from 58 countries, the survey identifies high level issues where the banking industry may be vulnerable. http://pwc.to/A8K1t8 Fri, 3 Feb 2012 15:15:00 +0800 http://pwc.to/wiylq9 The 2012/2013 Hong Kong Budget was presented to the Legislative Council by the Financial Secretary, Mr John Tsang, on 1 February 2012. Get our Budget commentary, highlights, tax facts and figures, and tax rates card as reference, available in both English and Traditional Chinese. http://pwc.to/wiylq9 Wed, 2 Feb 2012 1:45:00 +0800 http://pwc.to/yQQrMl Highlight the salient points of Circular Renshetingfa [2011] No. 113 ("Circular 113"), titled "Notice Clarifying Certain Issues Regarding the Participation in the Social Security Scheme by Foreign Employees Working in China" issued by the Ministry of the Human Resources and Social Security on 2 December 2011. Get our observations on this important and widely discussed topic that affect many businesses and their foreign employees in China. http://pwc.to/yQQrMl Fri, 27 Jan 2012 16:15:00 +0800 http://pwc.to/wYREcV Get the most important principles and complex requirements of IFRS 13, accompanied with practical examples and observations based on the experience of our global network of firms. Given the continued convergence of China Accounting Standards and IFRS and extensive use of fair value for financial instruments, we have also shared our experience in the area of valuation for financial products that are commonly seen in China. Major topics include scope; measurement; considerations specific to non-financial assets: highest and best use, liabilities and equity, and financial instruments; valuation techniques; fair value hierarchy; inactive markets and non-orderly transactions; disclosures; effective date; potential business impacts; and practical examples for the valuation of financial instruments. http://pwc.to/wYREcV Wed, 19 Jan 2012 12:23:00 +0800 http://pwc.to/zMW0kY Get the key messages and our observations of Circular Shangzihan [2011] No.1078 ("Circular 1078") jointly released by the Ministry of Commerce and the State Administration of Foreign Exchange on 12 Dec 2011. This Circular aims to clarify the new requirement on RMB reinvestments by Chinese holding companies set out in Circular Huizihan [2011] No.7 ("Circular 7") and address other administration issues. It has also provided clarifications which rectify the adverse impacts of Circular 7. http://pwc.to/zMW0kY Wed, 18 Jan 2012 14:32:00 +0800 http://pwc.to/xzVZ1o China continues to lead the world in semiconductor consumption with a compound annual growth rate of 24.8% since 2000, due to the transfer of worldwide electronic equipment production to China and the increased semiconductor content in products. This report combines statistics and executive interviews to analyse the semiconductor industry in China, including geographical and product category demand and shifts in the semiconductor value chain. http://pwc.to/xzVZ1o Wed, 18 Jan 2012 09:09:00 +0800 http://pwc.to/zLx3aL Get the IASB's amendment to IFRS 9 "Financial instruments" that delays the effective date to annual periods beginning on or after 1 Jan 2015, amendment to the application guidance in IAS 32 "Financial instruments: Presentation" that clarifies some of the requirements for offsetting financial assets and financial liabilities on the statement of financial position, and also amendments to transition guidance in IFRS 10 "Consolidated financial statements". http://pwc.to/zLx3aL Wed, 11 Jan 2012 12:09:00 +0800 http://pwc.to/zM76Zy Get the latest compliance, regulatory, M&A, pricing, and taxation updates in the pharma industry from Australia, China, Hong Kong, India, Japan, Korea, Singapore and Taiwan. http://pwc.to/zM76Zy Wed, 11 Jan 2012 10:06:00 +0800 http://pwc.to/zrAsPY Get the main trends dictating the need for a new approach to the manufacturing and distribution of medicines, together with some of the techniques and technologies that will help the industry make the necessary changes. We also look at the key characteristics of the 4 options for restructuring the pharmaceutical supply chain, and the implications they carry. http://pwc.to/zrAsPY Tue, 10 Jan 2012 17:42:00 +0800 http://pwc.to/wAwnhJ The series of reform policies released by the Chinese Government and the active implementation and enforcement by local authorities since 2008, and in particular, the gradual closing down of toll manufacturing and the offering of the distinctive "same location Wholly Foreign Owned Enterprise (WFOE) conversion" regime to import processing manufacturers, have all led to the slowing down of processing trade. Get the highlights of the new processing trade regime and the impacts to processing trade in the Pearl River Delta. http://pwc.to/wAwnhJ Tue, 10 Jan 2012 17:42:00 +0800 http://pwc.to/w695nu Highlight the salient points of Circular Caishui [2011] No.131 ("Circular 131"), jointly released by the Ministry of Finance and the State Administration of Taxation on 29 Dec 2011, clarifying the scope of exported pilot services which are zero-rated or exempted. We also share our observations on what this means for international transportation services and logistics auxiliary services, and export of other services. http://pwc.to/w695nu Fri, 6 Jan 2012 12:29:00 +0800 http://pwc.to/zzxoO5 The Commissioner of Inland Revenue ("CIR") announced in a recent seminar organised by the Hong Kong Inland Revenue Department that an Advance Pricing Arrangement ("APA") program will be launched in Hong Kong in Apr 2012. Get the salient points mentioned by the CIR during the seminar in relation to the implementation of the APA program and our observations of this important development for transfer pricing in Hong Kong since the issuance of DIPN 46 in Dec 2009. http://pwc.to/zzxoO5 Fri, 6 Jan 2012 11:14:00 +0800 http://pwc.to/yiWbGw Get the trends in both the casino and online gaming industries, with full five year historical and forecast revenue data by territory for bricks-and-mortar casinos, and an in-depth exploration of the prospects and challenges for the online gaming market across the world's regions including United States, EMEA, Asia Pacific, Latin America and Canada. http://pwc.to/yiWbGw Wed, 4 Jan 2012 10:16:00 +0800 http://pwc.to/td0VDb The long awaited RQFIIs Pilot Programme has been announced on 16 Dec 2011. An initial Renminbi 20 billion quota will be granted to eligible Hong Kong subsidiaries of Mainland Chinese asset management houses and securities brokers. Get the key requirements for a RQFII applicant and some of the potential tax implications in relation to investments in Mainland China via the RQFIIs Pilot Programme. http://pwc.to/td0VDb Thu, 29 Dec 2011 9:34:00 +0800 http://pwc.to/vc0t76 Recap the major tax developments that took place in 2011 including Hong Kong's treaty network, update on international tax issues, Hong Kong profits tax case law, legislations on two Hong Kong profits tax incentives enacted in 2011, and developments in salaries tax. http://pwc.to/vc0t76 Wed, 28 Dec 2011 18:49:00 +0800 http://pwc.to/rXvUgQ The long awaited Customs Advance Valuation Rules are due to be released by the end of Dec 2011 and will take effect on 1 Jan 2012. Given the limited coverage of the advance ruling regulation, most MNCs are likely to still need to adopt the "traditional" information price registration practice with Commodity Price Information Office. Companies are recommended to review and discuss their transfer pricing for cross-border transactions with Customs prior to any change of their business model or pricing methodology, to obtain consensus with Customs, establish good relationships, and streamline the import clearance. http://pwc.to/rXvUgQ Wed, 28 Dec 2011 17:07:00 +0800 http://pwc.to/swJ9zh Consider three common questions in the application of IAS/HKAS 39 Financial Instruments: Recognition and Measurement and IFRS/HKFRS 7 Financial Instruments: Disclosures, and share our insight and experience in resolving these issues. Additionally, we outline five recent issues that have been referred to the IFRS Interpretations Committee for their guidance in the business combination and reorganisation arena. http://pwc.to/swJ9zh Wed, 28 Dec 2011 16:05:00 +0800 http://pwc.to/tKpsiy Get the 2011 version of the illustrative IFRS/HKFRS consolidated financial statements for a fictitious listed manufacturing, wholesale and retail group incorporated in Hong Kong. The illustrative example is prepared in accordance with the requirements as set out in the Hong Kong Companies Ordinance; the Listing Rules issued by the Stock Exchange of Hong Kong Limited; IFRSs issued by the International Accounting Standards Board; and HKFRSs issued by the Hong Kong Institute of Certified Public Accountants. http://pwc.to/tKpsiy Wed, 28 Dec 2011 16:05:00 +0800 http://pwc.to/rr1RH2 The explosion of mobile telecommunication networks and handheld devices has led to a race in developing applications as a new revenue or service delivery channel to increase customers' interaction and satisfaction. Too often, the rush to develop these applications has resulted in a development lifecycle that lacks a sufficient security focus, thereby making this newfound open access to consumers' sensitive information a prime target for criminals. Employees are also asking for access to real-time data including company financial data, so corporations are increasingly looking to mobile applications to increase productivity, employee satisfaction, and foster innovation in the organisation, but at the same time are opening themselves up to new information security challenges. http://pwc.to/rr1RH2 Wed, 28 Dec 2011 16:05:00 +0800 http://pwc.to/sYzNZb The Shaanxi Provincial State Tax Bureau has concluded China's first thin capitalization audit case. Besides thin capitalization, the case also involves an investigation of tangible goods transactions and equity transfer. Given the increasing scrutiny and the conclusion of the first thin capitalization audit case, taxpayers are advised to closely monitor their financing arrangements in general and debt-to-equity ratios in particular, and to prepare proper documentation where the threshold ratios are exceeded in order to secure interest expense deductions, avoid the additional 5% penalty component of the interest levy, and mitigate transfer pricing adjustment risks. http://pwc.to/sYzNZb Tue, 20 Dec 2011 15:59:00 +0800 http://pwc.to/vfhIQO A summary of the financial performance of the major Chinese banks in Q3 2011. It also includes analysis of key ratios, performance indicators, results and financial positions of the Top 10 Listed Chinese Banks based on their assets at 31 Dec 2010. http://pwc.to/vfhIQO Mon, 19 Dec 2011 17:40:00 +0800 http://pwc.to/sHxLd2 Explore the key drivers of change for the insurance industry and implications for your insurance business. Our extensive research reviews the sweeping changes across social, technological, environmental, economic and political perspectives, providing the knowledge to evaluate scenarios of maximum relevance to your business. http://pwc.to/sHxLd2 Wed, 14 Dec 2011 09:22:00 +0800 http://pwc.to/upVloB An outlook for six retail and consumer products sub-sectors in Asia - food and general retail, fashion and apparel, online retailing, fast-moving consumer goods, luxury brands, and durable consumer goods and electronics particularly in China, Hong Kong, India, Japan and Taiwan. It also looks at how the industry is faring in 2011 and is expected to grow through 2015, and opportunities and challenges in the years ahead. http://pwc.to/upVloB Tue, 13 Dec 2011 15:28:00 +0800 http://pwc.to/uIZwTG Get the changing dynamics of capital markets and global IPO activity. The findings are based on a PwC survey conducted by the Economist Intelligence Unit in Aug 2011 of almost 400 senior executives from companies across the globe, supplemented with in depth interviews with other market advisers so as to understand their views on the factors that are shaping the development of equity capital markets. The report also examines the increasing competition from emerging market stock exchanges, the effect that is having on incumbent exchanges, and the priorities and concerns for companies looking to list. http://pwc.to/uIZwTG Tue, 13 Dec 2011 14:50:00 +0800 http://pwc.to/w2Jv8i Get the key provisions of the newly enacted legislation for tax deduction of the acquisition costs of copyrights, registered designs and registered trademarks (collective referred to as "specified IP rights"). We also share our observations on some of the potential limitations of the legislation in granting tax relief to Hong Kong taxpayers for their costs incurred on acquiring the specified intellectual property rights under certain circumstances. http://pwc.to/w2Jv8i Tue, 13 Dec 2011 14:50:00 +0800 http://pwc.to/rzDIwD A mid-year update of global mining deals in 2011, key findings including global mining M&A deal volumes and values rally during the first half of 2011; soaring deal valuations keep Chinese buyers close to home; the US overtakes Canada and Australia to become the mining sector’s most acquisitive nation (by deal value); and key steelmaking ingredients dominate M&A during 2011. http://pwc.to/rzDIwD Tue, 13 Dec 2011 10:06:00 +0800 http://pwc.to/sSFicn A comprehensive analysis of the financial performance and position of the global mining industry as represented by the Top 40 mining companies by market capitalisation. http://pwc.to/sSFicn Tue, 13 Dec 2011 10:06:00 +0800 http://pwc.to/rX4t1M An outlook on the Asia Pacific real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues based on interviews and surveys from more than 360 of the most influential leaders in the industry. http://pwc.to/rX4t1M Thu, 8 Dec 2011 14:33:00 +0800 http://pwc.to/vkbMu8 Hear from our tax professionals on the overview of the transfer pricing rules in Indonesia, documentation requirements, reasonably full disclosure requirements in tax returns, and an active and challenging tax audit environment in respect of related party transactions; the Tax Office's approach to transfer pricing on tax audits; common areas of Tax Office scrutiny; what you can do to mitigate adjustments; and should you consider an Advanced Pricing Arrangement? http://pwc.to/vkbMu8 Wed, 7 Dec 2011 14:23:00 +0800 http://pwc.to/tB4QxI When it comes to making an investment in the PRC, Hong Kong and BVI companies are typically involved, often as the immediate holding company of the PRC company that will hold the investment (this PRC company is usually a wholly foreign owned enterprise or WOFE). There are tax advantages of using a Hong Kong company to hold PRC assets but another reason is the relative rigour of the Hong Kong legislative structure which provides protection and remedies to investors and lenders in the event of default. However, investors and lenders should bear in mind that the recovery process could be faced with many obstacles. The appointment of Receivers and/or Liquidators at the Hong Kong or BVI company level as a means to force a settlement can lead to positive results. http://pwc.to/tB4QxI Wed, 7 Dec 2011 11:05:00 +0800 http://pwc.to/vCSz64 PwC, in cooperation with the Supply Chain Management Institute of the EBS Business School, conducted a RealTime Delphi survey of 80 panellists in 25 countries. This report draws upon the results of this survey, as well as incorporating a security risk profile that transportation & logistics companies can use to analyse the security of their operations. http://pwc.to/vCSz64 Wed, 7 Dec 2011 11:05:00 +0800 http://pwc.to/rHLGzQ Get the strategic and emerging issues surrounding the expanding activities of foreign insurance companies in China based on survey responses from CEO and senior executives of 28 foreign insurers currently active in China. We also provide our observations on changes to China's insurance marketplace, key risks, the evolving regulatory environment, future opportunities and the state of competition. http://pwc.to/rHLGzQ Tue, 6 Dec 2011 17:32:00 +0800 http://pwc.to/slTV3K Hear from our partners via a webcast where we provided companies which have been affected directly and / or indirectly by the flood, some guidelines and key issues to ensure that they have considered all factors in their response and recovery phase. We also discussed and shared our experiences as well as some key issues learned from our communities, in particular, what are key accounting concerns from disruption; what are tax, legal and customs issues that you should be thinking about; and how can we all emerge stronger? http://pwc.to/slTV3K Mon, 5 Dec 2011 17:52:00 +0800 http://pwc.to/sIs2BD In the near future, RMB funds are expected to become increasingly prominent in the private equity and venture capital ("PEVC") market, as both Chinese and foreign PEVC institutions have shown significant interest in setting up RMB funds. This report covers the topics including establishment and structuring, fund raising, investment, exit, financial and investor reporting. http://pwc.to/sIs2BD Tue, 29 Nov 2011 17:27:00 +0800 http://pwc.to/rZYGvP Get the findings of the Peer Review report published by the Global Forum on 26 October 2011 focusing on Hong Kong's legal and regulatory framework for transparency and exchange of information, and the recommendations for improvement made by the Global Forum and the response of the Hong Kong SAR Government. http://pwc.to/rZYGvP Tue, 29 Nov 2011 15:41:00 +0800 http://pwc.to/uutvvG Get the concept of permanent establishment ("PE") as defined in Article 5 of the Organisation for Economic Co-operation and Development ("OECD") Model Tax Convention, look at the changes proposed in the discussion draft on PE recently issued by the OECD and our observations on some of these changes. What are the implications to those Hong Kong companies with business activities / operations in a treaty jurisdiction or companies from a treaty jurisdiction that have established a presence in Hong Kong? http://pwc.to/uutvvG Tue, 29 Nov 2011 15:41:00 +0800 http://pwc.to/s5vZc7 Get the update on the IASB and FASB's new exposure draft on revenue from contracts with customers; and the guidance from the IFRS Interpretations Committee on accounting for stripping costs in production phase of surface mine. http://pwc.to/s5vZc7 Tue, 29 Nov 2011 15:37:00 +0800 http://pwc.to/sh35sY A practical guide to IFRS which covers the complex accounting requirements of financial instruments. It includes a wealth of practical examples and illustrations to help explain this aspect of accounting, which has become increasingly complicated in recent years. This volume covers the objectives and scope of IAS 32, IAS 39 and IFRS 7; nature and characteristics of financial instruments; financial liabilities and equity; presentation and disclosure. http://pwc.to/sh35sY Tue, 29 Nov 2011 15:37:00 +0800 http://pwc.to/rP8WZi Hear from our tax professionals on the cross-border mobility trends in Asia, in particular, we discussed the insights on current Asian mobility patterns and assignment policies; importance of policy efficiency and cost management; and trends in linking talent management to mobility in the region. http://pwc.to/rP8WZi Wed, 23 Nov 2011 18:16:00 +0800 http://pwc.to/sK8APy Get the fundamental changes taking place in the tax landscape. Articles including Russia adopts new transfer pricing rules: time to change "wait and see" attitude; the changing landscape of value chain transformation; enhancing shareholder value with transfer pricing integration - TPi; the role of risk in transfer pricing; successful management of the transfer pricing audit process; advance pricing agreements in the Asia Pacific; transfer pricing for financial transactions; case law developments: transfer pricing meets business reality; and OECD: Where to from now? http://pwc.to/sK8APy Tue, 22 Nov 2011 14:01:00 +0800 http://pwc.to/t5otyQ Get the salient points and our observations of the two new implementation circulars on the indirect tax reform pilot program ("Pilot Program") jointly released by the Ministry of Finance and the State Administration of Taxation on 16 Nov 2011 in Shanghai. They are Circular Caishui [2011] No.110, titled "Notice Publishing the <Pilot Program for the Transformation from Business Tax ("BT") to Value Added Tax ("VAT")>" and Circular Caishui [2011] No.111, titled "Notice Regarding the Pilot Program for the Transformation of Transportation and Certain Modern Service Industries in Shanghai from BT to VAT". Both Circulars will be effective from 1 Jan 2012 and earmark the official kick off of the long-awaited transformation of BT to VAT for service industries in China. This move will likely bring dramatic changes to the landscape of Chinese indirect tax system. Numerous BT and VAT payers will be impacted either positively or negatively. As usual changes will definitely bring along challenges and opportunities. http://pwc.to/t5otyQ Mon, 21 Nov 2011 15:52:00 +0800 http://pwc.to/rvYCvK The regulators and accounting body in Hong Kong have recently issued a number of revised Listing Rules and a revised professional standard affecting Main Board and Growth Enterprise Market listed issuers and listing applicants. http://pwc.to/rvYCvK Thu, 17 Nov 2011 15:20:00 +0800 http://pwc.to/vGaEf2 Get our insights into topical tax issues in the insurance industry in Asia Pacific region including FATCA: Assessing the implications for insurance companies in Asia; challenges ahead for foreign insurers in China; taxation of Renminbi investments in Hong Kong; plus tax developments, changes and challenges from Australia, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Papua New Guinea, Philippines, Singapore, Taiwan, Thailand and Vietnam. http://pwc.to/vGaEf2 Wed, 16 Nov 2011 09:36:00 +0800