Monday , May 20, 2019 |   04:19:00 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Instant Updates Newsletters
 
NEWS FLASH
 
TP - Once distributor is sufficiently compensated by overseas AE without providing return on marketing intangibles, then no further adjustment on account of AMP expense is warranted: ITAT (See 'Breaking News') DTAA - Income earned by overseas entity from Indian Customers with respect to subscription fees for Chemical Abstracts Services, is not taxable as royalty: ITAT (See 'Breaking News') CBDT issues clarification regarding definition of 'Fund Manager' under Section 9A(4)(b) (See 'Circular' in 'Intl Taxation') I-T - Issue of corporate guarantee by Indian taxpayer entity in favour of its overseas AE is 'international transaction' covered by provisions of Section 92B: ITAT (See 'Breaking News') DTAA - If 'right to use copyright' in software was never transferred by foreign company in favor of Indian customers, then sale proceeds cannot be characterized as 'Royalty': ITAT (See 'Breaking News') TP - Mere arrangement for use of AEs brand name is no basis to infer that parties were acting together to incur higher AMP expense for rendering brand building services: ITAT (See 'Breaking News') TP - Failure to upload electronically Form No 3CEB corroborated with bona fide explanation for such error will not attract penal provisions of Section 271BA: ITAT (See 'Breaking News') I-T - Commission paid to agents abroad for rendering services overseas is not income deemed to accrue or arise in India & hence is not taxable in India: ITAT (See 'Breaking News') TP - Onus on Indian taxpayer entity is limited to prove 'availing of services' & not 'accrual of benefit' w.r.t payments made to their overseas AEs: ITAT (See 'Breaking News') TP - CUP method is not apt for benchmarking export of finished goods to AEs if substantial differences persist on account of functions, geography, volume & risk: ITAT (See 'Breaking News') TP - Once there is transaction between two AEs, it ceases to be 'uncontrolled transaction' and, thereby, goes out of reckoning under Rule 10B(1)(e)(ii): HC (See 'Breaking News') TP - It is not expected from Writ Courts to undertake exercise of comparison which is essentially fact finding exercise: HC (See 'Breaking News') DTAA - Payments made by Indian end-users to foreign licensor of copyright, seeking permission for using software, amounts to royalty and hence attracts TDS: HC (See 'Breaking News') GST - Real Estate - FAQs are welcome but more needs to be done! (See 'The Cob(Web)' in TIOL) TP - Inclusion of FOB value of AE's contract in operating cost in order to determine its margin, is not permitted under TNMM as per Rule 10B(1)(e): HC (See 'Breaking News')
 
TII SEARCH
 
 
   
Home >> News Brief
 

Low-wage jobs fuel employment growth in OECD countries
By TII News Service
Apr 30, 2019 , Paris

    

AS per new OECD Report, employment is rising in OECD countries but most jobs continue to be created in relatively low-productivity, low-wage activities.

The latest Compendium of Productivity Indicators says the trend has compounded the impact of generally weak business investment on productivity growth.

The downward pressure on wages may have allowed firms to defer investment decisions, instead meeting increased demand by hiring additional staff and, in turn, undermining the potential for investment-driven productivity growth, the report says.

In France, Germany and the United Kingdom, the top three sectors with the largest employment gains between 2010 and 2017 accounted for one third of total job creation but paid below average wages. Moreover, in Belgium, Finland, Italy and Spain industries with above average labour productivity levels saw net job losses.

The data show wage growth (adjusted for inflation) improving in recent years but remaining below pre-crisis rates in two thirds of OECD countries despite a period of negligible or slow wage growth, and earlier declines in purchasing power in the aftermath of the crisis. Indeed, real wages remain below crisis levels in Greece, Italy and Spain, and have also contracted in recent years in Belgium and Canada.

More jobs in lower paid sectors such as accommodation and catering and health and residential care, weigh on average wages across the economy as a whole.

The report also shows that the share of income from economic activity going to labour through wages has continued to fall over the past 15 years in many countries, most markedly in manufacturing. By 2017, the sharpest falls were in Ireland, Poland and Portugal but labour income shares have also declined substantially in Australia, Hungary, Israel, Japan and the US.

With labour costs now beginning to rise in many countries, firms may start to reconsider investment decisions, the report adds. But political uncertainties, trade tensions and the erosion of business and consumer confidence may continue to weigh on investment. The report calls for policies to stimulate investment, capitalise on the efficiencies and economies of scale provided by the digital transformation and encourage growth in high productivity activities.

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAAs
  • TIEAs
  • Limited Treaties
  • Other Treaties
  • Notifications
  • Circulars
  • Circulars (I-T Act, 1922)
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • Relevant Portion of I-T Act,1922
  • Relevant Portion of I-T Rules,1962
  • GAAR
  • Equalisation Levy
  • Draft Guidelines
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • DTC Bill
  • UN Model
  • Miscellaneous
  • OECD Conventions
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • Draft Notifications
  • Circulars
  • Instructions
  • Notifications
  • Relevant Sections of Act
  • TP Rules
  • Forms
  • Miscellaneous
  • APA Annual Report
  • APA Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • RBI Circulars
  • FDI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • Black Money Act
  • PMLA Notification
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • SEBI
  • Multimodal Transportation
  • Vienna Convention
  • NBFC Reports
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • Intellectual Property
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • CBR Act, 1963
  • MCA Circular
  • Book Review
  • Limitation Act
  • SSAs
  • EPFO
  • FAQs
  • Acts
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Types of Visa
  • Agreements
  • Arbitration
  • Model Text
  • Relevant Portion of I-T Act
  • Circulars
  • I-T Rules, 1962
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2019 Taxindiainternational.com Pvt.Ltd. All rights reserved.