Tuesday , August 20, 2019 |   21:24:43 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
(TP - Transfer pricing adjustment should be restricted to only value of international transaction pertaining to manufacturing operations: ITAT See 'Breaking News') DTAA - Referral fees earned by foreign concern for their services carried out abroad, cannot be attributed or held as having been "deemed to have accrued or arisen" to said foreign concern in India: ITAT (See 'Breaking News') TP - No penalty u/s 271G can be levied for non-furnishing of segmental information, without rendering any finding on segmental break-up submitted by taxpayer: ITAT (See 'Breaking News') I-T - If no expenditure on payment of upfront fee to Foreign company has been incurred by Indian taxpayer entity, then no deduction can be availed by it while filing I-T return: ITAT (See 'Breaking News') I-T - Commission paid to agents abroad for procuring export orders overseas, does not amount to FTS and hence does not attracts withholding tax liability u/s 195: ITAT (See 'Breaking News') CBDT clarifies on treatment of farm-in expenditure of E&P Companies (See 'Bulletin Board') TP - TPO cannot question quantum of benefit accrued to taxpayer entity, for deciding ALP of Intra group services & royalty payments made to overseas AEs: ITAT (See 'Breaking News') TP - Company having huge brand value & ownership over intellectual property, are not comparable to captive BPO service providers: ITAT (See 'Breaking News') DTAA - Subscription fees received by non-resident entity from its Indian customers/subscribers has to be assessed as 'royalty': ITAT (See 'Breaking News') I-T - Once MAP resolution regarding attribution of profits of PE in India stands agreed between Competent Authorities, then matter regarding presence of PE calls for remand: ITAT (See 'Breaking News') I-T - Disallowance u/s 40(a)(i) cannot be imposed on royalty payments without verifying if taxpayer has deducted or not deducted TDS at time of payment to non-resident: HC (See 'Breaking News') BEPS - India notifies MLI as per agreement signed in Paris (See 'MLI' in 'INTL Taxation') Vanishing Demand makes Recession for Real! Tax Regime also contributes! (See 'THE COB(WEB)' in TIOL) I-T - No TDS u/s 195 is attracted to payments made overseas, if services were rendered outside India and payment was also received abroad: ITAT (See 'Breaking News') I-T - Payments made abroad for purchasing software without acquiring any copyright, does amount to royalty and hence does not attract TDS liability: ITAT (See 'Breaking News') TP - Inability to produce segmental profits due to trade difficulties in diamond industry, does not justify levy of penalty u/s 271G, if there is due compliance of Section 92CA & 92D: ITAT (See 'Breaking News') TP - Confirmation of ALP adjustment & transfer pricing additions in appellate proceedings by FAA, without resorting to independent application of mind, calls for remand: ITAT (See 'Breaking News') I-T- Merely because the Department's Non-filers Monitoring System issues a notice to the assessee the Revenue is at liberty to issue notice u/s 147 - NO: HC (See 'Breaking News') Multilateral Instrument - The clock is ticking!! (See 'TII Special')
 
TII SEARCH
 
 
   
Home >> News Brief
 

Asian & Pacific economies see buoyancy of tax revenues
By TII News Service
Jul 24, 2019 , Paris

    
TAX-to-GDP ratios increased in the majority of Asian and Pacific economies covered by a new OECD report published today. Nine of the economies in the publication increased their tax-to-GDP ratios between 2016 and 2017, compared with only three in the preceding year, according to Revenue Statistics in Asian and Pacific Economies 2019.

This sixth edition of Revenue Statistics in Asian and Pacific Economies covers 17 countries, including Vanuatu for the first time. Tax-to-GDP ratios across these countries varied considerably, ranging from 11.5% in Indonesia to 32.0% in New Zealand. In general, tax-to-GDP ratios were higher in the Pacific economies than in the Asian economies: Pacific economies had tax-to-GDP ratios higher than 24%, with the exceptions of Tokelau (14.2%) and Vanuatu (17.1%), while the Asian economies reported tax-to-GDP ratios below 18%, with the exceptions of Korea (26.9%) and Japan (30.6%, 2016 figure).

The increased revenue collection of most countries in 2017 was largely driven by economic factors rather than changes in tax policy or administration. These factors included higher revenues from oil production in Kazakhstan, the growth of the logging sector in the Solomon Islands and Vanuatu's recovery from Cyclone Pam in 2015. Meanwhile, a fall in revenues from corporate income tax (CIT) and value added tax (VAT) resulting from an economic slowdown explained the decline in Papua New Guinea's tax-to-GDP ratio. Over a longer timeframe, 11 of the 17 economies in the publication increased their tax-to-GDP ratios between 2007 and 2017, with the exception of Australia, Indonesia, Kazakhstan, Papua New Guinea, New Zealand and Vanuatu.

This publication also includes data on non-tax revenues for five Pacific economies (the Cook Islands, Papua New Guinea, Samoa, Tokelau and Vanuatu). These revenues, which include mainly grants, resource income (including fishing and mining) and other fees, were equivalent to at least 6% of GDP in the Cook Islands, Tokelau and Vanuatu. Grants exceeded 30% of total non-tax revenues in all five countries and were the main source of non-tax revenues for the Cook Islands (65.7%), Papua New Guinea (59.9%), Samoa (51.1%) and Vanuatu (52.2%).

The report is a joint publication of the OECD Centre for Tax Policy and Administration and the OECD Development Centre with the co-operation of the Asian Development Bank (ADB), the Pacific Islands Tax Administrators Association (PITAA) and the Pacific Community (SPC) and the financial support of the European Union.

Revenue Statistics in Asian and Pacific Economies 2019 includes a special feature exploring the operations of tax administrations in the region produced in collaboration with the ADB.

Key findings

Tax revenues as a percentage of GDP

· In 2017, tax-to-GDP ratios varied across the 17 economies, from 11.5% in Indonesia to 32.0% in New Zealand. Tax-to-GDP ratios in all Asian and Pacific economies in the publication were lower than the OECD average tax-to-GDP ratio of 34.2%.

· Eight of the economies had tax-to-GDP ratios above the Latin American and the Caribbean (LAC) average of 22.8%.

· Five countries (Fiji, Kazakhstan, Singapore, Solomon Islands and Vanuatu,) experienced increases larger than 1.0 percentage point between 2016 and 2017 while Malaysia and Papua New Guinea experienced the largest decreases (0.7 percentage points in both cases).

· Over the last decade, tax-to-GDP ratios increased in 11 countries in this publication and declined in six. The highest increases were observed in Fiji and the Solomon Islands (4.4 and 4.5 percentage points, respectively) while the largest declines were registered in Kazakhstan and Papua New Guinea (9.7 and 7.0 percentage points, respectively).

Tax structure

· In nine economies in this publication, taxes on goods and services accounted for the largest share of tax revenues in 2017. Within goods and services, VAT is an important and increasing source of revenues in most Asian and Pacific economies.

· Income taxes provided the main share of tax revenues in the eight remaining countries with the exception of Japan, where social security contributions (40.4% of total tax revenue, 2016 figure) represented the largest source.

· The tax structure of Asian economies tends to differ from that of Pacific economies:

o VAT accounted for at least 25% of total tax revenue in the Pacific economies with the exception of Australia and Papua New Guinea, but less than 25% in the Asian economies, except Indonesia.

o Revenues from CIT were higher than revenues from personal income tax (PIT) in most Asian economies, with the exception of Japan and Korea; whereas the reverse is true in the Pacific, except in Fiji.

· Revenues from VAT ranged from 12.9% of total tax revenue in Australia (2016 figure) to 44.4% in the Cook Islands (the Solomon Islands and Tokelau do not impose VAT) and was higher as a share of total taxes in the Pacific compared to Asian economies.

· Across all economies with the exception of Tokelau (which does not impose CIT) and Vanuatu (which does not impose income taxes), revenues from CIT ranged from 9.1% of total tax revenue in Samoa to 41.5% in Malaysia.

 
 
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
  • MLI
  • 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.