20161003.Ntpu.巴拿馬文件大解密 (Bl)

Betty Lee
Director, International Tax

October 6, 2016
2016 KPMG, a Taiwan partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Taiwan.
Document Classification: KPMG Confidential
Key Areas of Experience
International tax planning
Tax planning for corporate investment structures
Background
Director, Associate Director of Tax & Investment

Dept., KPMG in Taiwan
Instructor of KPMG in Taiwan
Manager, Assist. Manager of Tax Dept., KPMG in

Hong Kong
BETTY LEE
Professional Service Experience
Director, Tax & Investment

Dept.
Technology, Media and

Telecommunications
Industrial and Consumer
Market
Australia
Hong Kong
Taiwan
International Affiliate Member of the HKICPA
Betty has over 10 years of professional experience gained in a number of jurisdiction, namely Australia,
advice and compliance services to Hong Kong as well as multinational companies.
Later, Betty joined KPMG Taiwan in 2011 where she specifically provides outbound tax and investment
consulting services for both domestic and multinational groups based in Taiwan and Asia Pacific region.
Country Experience
Fellow member of The Tax Institute
Hong Kong and Taiwan. She joined KPMG Hong Kong in 2007 where she provided corporate tax
Function and Specialization
Betty has extensive exposure and specializes in numerous facets of taxation to a range of clients as
Education
well as identifying the needs and provision of required solutions, including Investment holding
structuring and tax planning, group restructuring and relevant tax implications, and general tax
Master of Taxation from the

University of New South Wales,
Australia
Bachelor of Commerce from the
University of New South Wales,
Australia
compliance and advisory support.
Professional Qualifications
Member of the ICAA

Chartered Tax Adviser, Taxation
Institute of Australia
Agenda
International Tax Framework - A Brief Introduction
[]
Corporate Income Taxation (CIT) Trend
[/]
Value-added tax (VAT) Trend
[ /]
Recent changes in Taiwan
[]
Place of Effective Management (PEM)
[]
Controlled Foreign Companies (CFC)
[]
BEPS Action Plan - An Ambitious Project
[]
Tax Transparency
[]
General international tax

concepts
Introduction
Broad aim of international tax planning []
1) Achieving corporate objectives
[]
2) Evaluate tax impact
[]
3) Limit total tax burden
[]
4) Minimise double taxation
[]
5) Retain flexibility
[]
Restricting a countrys power to tax []

- Persons, individuals or corporation, who are either nationals or resident in the country
[, ]
- Economic activities occurring within the country
[]
- Income or profits from property located within the country
[]
Residence or territoriality [ ]
General international tax concepts (1/2)

Residence vs. Source [ vs. ]
-
Residence (worldwide) [ - ]
Total income assessable wherever that income arises
Source (territorial)
[ - ]
Income or profits from property located within the country
Income and profits from economic activity within the country
Resident corporations worldwide basis

[ ]
Non-resident corporations (with branch activities) source
basis
[() ]
General international tax concepts (2/2)

1) Residency legal and tax [ - ]
Domestic law
[]
Central management and control []
Permanent establishment
[]
2) Source []
Domestic law
[]
3) Avoidance of double taxation []
Domestic law relieves (e.g., exemptions, credit system, deductions)

[: ]
Use of tax treaties
[]
Corporate income taxation

(CIT) trend
/
CIT rate trend - EU region

EU Countries
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Austria
Belgium
Bulgaria
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovak Republic
Slovenia
Spain
Sweden
United Kingdom
EU average
25
33.99
10
10
24
25
22
26
33.33
38.36
25
16
12.5
37.25
15
15
29.63
35
25.5
19
25
16
19
23
32.5
28
30
22.99
25
33.99
10
10
21
25
21
26
33.33
29.51
25
16
12.5
31.4
15
15
29.63
35
25.5
19
25
16
19
22
30
28
30
21.95
25
33.99
10
10
20
25
21
26
33.33
29.44
25
16
12.5
31.4
15
20
28.59
35
25.5
19
25
16
19
21
30
26.3
28
21.64
25
33.99
10
10
19
25
21
26
33.33
29.41
24
19
12.5
31.4
15
15
28.59
35
25.5
19
25
16
19
20
30
26.3
28
21.64
25
33.99
10
10
19
25
21
26
33.33
29.37
20
19
12.5
31.4
15
15
28.8
35
25
19
25
16
19
20
30
26.3
26
20.81
25
33.99
10
10
19
25
21
24.5
33.33
29.48
20
19
12.5
31.4
15
15
28.8
35
25
19
25
16
19
18
30
26.3
24
20.42
25
33.99
10
12.5
19
25
21
24.5
33.33
29.55
26
19
12.5
31.4
15
15
29.22
35
25
19
25
16
23
17
30
22
23
20.6
25
33.99
10
12.5
19
24.5
21
20
33.33
29.58
26
19
12.5
31.4
15
15
29.22
35
25
19
23
16
22
17
30
22
21
19.68
25
33.99
10
12.5
19
23.5
20
20
33.33
29.65
29
19
12.5
31.4
15
15
29.22
35
25
19
21
16
22
17
28
22
20
20.12
25
33.99
10
12.5
19
22
20
20
33.33
29.72
29
19
12.5
31.4
15
15
29.22
35
25
19
21
16
22
17
25
22
20
20.48
Difference
(2016-2007)
0
0
0
2.5
-5
-3
-2
-6
0
-8.64
4
3
0
-5.85
0
0
-0.41
0
-0.5
0
-4
0
3
-6
-7.5
-6
-10
-2.51
9
CIT rate trend - Non EU region (selective countries only)

NON EU Countries
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Difference (2016-2007)
Taiwan
25
25
25
17
17
17
17
17
17
17
-8
China
33
25
25
25
25
25
25
25
25
25
-8
Japan
40.69
40.69
40.69
40.69
40.69
38.01
38.01
35.64
33.06
32.26
-8.43
20
18
18
17
17
17
17
17
17
17
-3
Korea, Republic of
27.5
27.5
24.2
24.2
22
24.2
24.2
24.2
24.2
24.2
-3.3
Hong Kong
17.5
16.5
16.5
16.5
16.5
16.5
16.5
16.5
16.5
16.5
-1
28
28
25
25
25
25
25
22
22
20
-8
33.99
33.99
33.99
33.99
32.44
32.45
33.99
33.99
34.61
34.61
0.62
Indonesia
30
30
28
25
25
25
25
25
25
25
-5
Thailand
30
30
30
30
30
23
20
20
20
20
-10
Malaysia
27
26
25
25
25
25
25
25
25
24
-3
Australia
30
30
30
30
30
30
30
30
30
30
United States
40
40
40
40
40
40
40
40
40
40
Asia average
28.46
27.99
25.73
23.96
23.1
22.89
22.05
21.91
22.59
21.97
-6.49
Global average
26.95
26.1
25.38
24.69
24.5
24.4
23.71
23.64
23.87
23.63
-3.32
Singapore
Vietnam
India
10
CIT trend Country / Regional Analysis (1/2)

1)
Globally : Overall decrease in CIT rates, but

[, ]
Use or introduction of anti-abuse rules (in domestic tax law) []

Transfer pricing (TP) []
Thin capitalisation []
Controlled Foreign Companies (CFC) []
Tax transparency trend []
Minimise tax treaty abuse by []
General anti-avoidance rules (in domestic tax law) []
Limitation of benefits (LOB) clause / no treaty shopping
Exchange of information clause / agreements
[ / ]
Beneficial ownership rules
[]
Substance over form
[]
[]
11
CIT trend Country / Regional Analysis (2/2)

2)
Europe []
Luxembourg 2017 tax reform. The corporate income tax rate would phase-down from the current
rate of 21% to 19% in 2017, and then to 18% in 2018
[ 201721%19%(2017) 18%(2018
)]
Switzerland On 17 June 2016, Swiss Parliament approves Corporate Tax Reform III to further
develop Switzerlands position as one of the most attractive business locations worldwide by
lowering of cantonal corporate income tax rates and increasing the general competitiveness of the
tax system.
[2016617III
]
3)
Asia []
Indonesia 2016 Tax Amnesty; Waiver of any taxes due, administrative sanctions and tax criminal
sanctions regarding assets reported in the Declaration Letter for any open tax obligations up to the
last tax year.
[ - 2016;
]
Australia the government will introduce a new diverted profits tax (DPT) with effect for income
years beginning on or after 1 July 2017. The DPT will impose a penalty tax rate of 40%
[ 201771
40%]
12
/
(18)
2010
2003
2012
2010
2010
2014
2004
2016
2010
2010
2011
2004
2013
2011
2011
2014
2005
2011
2010
0/10
0/5/15
5/15
10
5/10
10
10
10/15
10
10
0
10
10
10
5
10
10
10
10
10
3
5
10
10
5
10
10
10
10
10
2013
2007
2010
2011
2015
2011
2001
2007
2015
2009
2011
2012
2015
2014
2001
2011
10
0/10
0/10
0/10
10
10/15
10
10/15
12.5
0
0
0
10
10/15
10
10
15
3
3
3
10
10
10
10
2010
2002
2010
2002
0/15
10
10
10
10
2010
2010
2005
2008
2006
1995
2015
1999
1998
2015
2012
2011
2005
2009
2006
1996
2016
2012
1998
5/10
5/10
10
10
5/10
10
10
5/10
15
10
10
10
10/15
10
7
10
10
10/15
10
7
5
5
5/10
7/10
7
10
10
10
15
7
2012
1996
2012
1999
5/10
12.5
10
10
10
2010
1996
2011
1997
0/5/15
15/10
10
10
10
2014
1994
2015
1996
5/10
5/15
10
10
10
13
/()
(14)
(20)
\
(10)
(Malta)
2013
2012
2013
2013
2012
2014
2014
2014
2013
5
0
5/10
0/10
0
0
0
0/5
0
0
10
10
5
0
0
0
5
0
10
3
5
5
3
4
4
5
3
3/5
0
5/10
10
5
5
10
5
0
5
3
() (5)
(Qatar)
2014
2011
0
0
10/15
2015
2016
0/5
5/10
(2)
2014
4.9/10
10
(5)
2005
10
10
10
2012
10/15
10/15
10
(Macedonia)
1999
10
10
10
2011
10
10
5/10
2004
10
10
10
1996
10/15
10
12.5
2009
10
7/10
10
(Kiribati)
2014
10
10
10
2011
12.5
10
10
1982
40*
15
2010
10
10
(Gambia)
1998
10
10
10
(Senegal)
2004
10
15
12.5
(Swaziland)
1999
10
10
10
() (5)
(4)
*40%
14
Value-added tax (VAT)

trend
/
15
General VAT concepts

1) VAT (or sometimes known as Goods and Services Tax (GST))
/ []
A type of consumption tax
[]
End-user bears the tax
[]
2) Levied on each stage in the production / distribution stages

[/]
Output tax charged on sales
[:]
Input tax paid for purchases
[:]
Output net off against input tax credits []
Effectively a charging agent
[ ]
16
VAT rate trend - EU region (selective countries only)

2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Difference
(2016-2007)
Austria
20
20
20
20
20
20
20
20
20
20
Belgium
21
21
21
21
21
21
21
21
21
21
Denmark
25
25
25
25
25
25
25
25
25
25
Finland
22
22
22
23
23
23
24
24
24
24
France
19.6
19.6
19.6
19.6
19.6
19.6
19.6
20
20
20
0.4
Germany
19
19
19
19
19
19
19
19
19
19
Greece
19
19
19
23
23
23
23
23
23
24
Hungary
20
20
20
25
25
27
27
27
27
27
Ireland
21
21
21.5
21
21
23
23
23
23
23
Italy
20
20
20
20
21
21
21
22
22
22
Luxembourg
15
15
15
15
15
15
15
15
17
17
Netherlands
19
19
19
19
19
21
21
21
21
21
Spain
16
16
16
18
18
21
21
21
21
21
Sweden
25
25
25
25
25
25
25
25
25
25
17.5
17.5
15
17.5
20
20
20
20
20
20
2.5
19.37
19.37
18.88
19.67
19.71
20
20.15
20.18
20.19
20.12
0.75
EU Countries
United Kingdom
EU average
17
VAT rate trend Non EU region (selective countries

only)
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Difference
(2016-2007)
Taiwan
China
17
17
17
17
17
17
17
17
17
17
Japan
Singapore
Korea, Republic of
10
10
10
10
10
10
10
10
10
10
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
10
10
10
10
10
10
10
10
10
10
12.5
12.5
12.5
12.5
12.5
12.5
13
14
14.5
14.5
Indonesia
10
10
10
10
10
10
10
10
10
10
Thailand
Malaysia
10
10
10
10
10
10
10
10
-4
Australia
10
10
10
10
10
10
10
10
10
10
11.8
11.85
11.7
11.64
11.84
12.24
12.63
12.5
12.37
12.27
0.47
NON EU Countries
Hong Kong
Vietnam
India
Asia average
18
VAT trend - Country / Regional Analysis

1)
Globally : Overall Increase in VAT rates [ / ]
2)
Europe []
3)
The trend for governments to raise more revenues through indirect taxes seems set to continue
[]
EU global shift in VAT/GST taxation for businesses involved in the cross-border supply of services
need to be aware that a global shift is taking place in the way such services are taxed from an indirect
tax perspective
[ VAT/GST]
Asia []
Thailand to extend the reduced 7% VAT rate (from 10% to 7%)

[ ]
India GST Constitution Amendment Bill approved by the Upper House of the Parliament
[ ]
Gulf Cooperation Council (GCC) to prepare for the implementation of VAT tax legislation
[2018]
Japan consumption tax rate increase to postpone to October 2019

[ 201910]
19
CIT & VAT comparison by country EU region (selective countries only)

EU countries rate comparison
40
35
30
25
20
15
CIT
VAT
10
5
0
20
CIT & VAT comparison by countryAsia region (selective countries only)

Asia countries rate comparison
40
35
30
25
20
15
10
5
0
CIT
VAT
21
22

Progression
Provisions / Impact
/
Effective Date
No. of
DTAs*
14
Transfer Pricing
TP Assessment Rules
2004/12/28
Substance-over-form Rule
Article 12-1 of Tax Collection Act

121
2009/5/13
Reduction in corporate tax rate
CIT rate reduced to 17% (from 25%)

25%17%
2010
Thin Capitalization Rule
Article 43-2 of ITA

43-2
2011
CFC Rule
Article 43-3 of ITA

43-3
&CRS
PEM Rule
Article 43-4 of ITA

43-4
&CRS
BEPS
Closely monitor / study

/
32
As of July 2016, all comprehensive DTAs signed only (i.e., excludes Shipping/Air DTAs), including those signed but not yet effective.
23
Taiwan taxation trend []

1.
2.
Signing and/or ratifying tax treaties []
FATCA agreement between Taiwan and United States

[]
3.
Increasing scrutiny on transfer pricing reviews / documentations

[/ ]
4.
Substance over form approach

[]
5.
Increasing Tax incentives - Introduction of Free Economic Pilot Zone (FEPZ)

[ ]
6.
7.
BEPS
8.
24

1.
Place of Effective Management (PEM) []

-
Amendment of the Income Tax Act (ITA) Article 43-4
[43-4]
Global commonly observed rules for PEM
[]
Taiwan Tax Treaties vs. OECD vs. UN Models

[vs. OECD vs. UN Models]
Resident company and PEM defined by key countries

[ - ]
Major considerations for Resident companies and PEM

[ - ]
2.
Controlled Foreign Companies (CFC) []

-
ITA amendment of Article 43-3
[43-3]
Worldwide CFC regime
[CFC]
CFC Regime Essentials
[]
Comparisons of Key Countries
[]
Comparisons to the Taiwan CFC regime [CFC]

25
Place of Effective
Management (PEM)
26
27
100%
PEM

PEM

28
434
PEM
PEM

PEMPEM
CRS
CFC
PEMPEMCFC
29

[] (1/2)

USA
DE
UK
JP
S.Kr
Adopts OECD as their reference point, but reserves the right to use a place of incorporation test for
determining the residence of a corporation.
[OECD]
Adopts OECD as their reference point, but reserves the right to use case law and domestic law to
determine where the place of its effective management is situated, for example, the law commonly use
the residence of the executive director to decide the companys residency.
[OECD(case law)
OECD
]
Adopts the general concept of OECD, the place of effective management will normally be located in the
same country as central management and control, but if located at different locations, then the UK
Business International will make the final decision of the location of the companys residency.
[OECD
]
Adopts OECD as their reference point but reserves their position on the provisions which refer directly or
indirectly to the place of effective management. Instead of the term place of effective management,
Japan and Korea wishes to use in their conventions the term head or main office to determine the
residence of a corporation.
[OECD:(head or main
office)]
30

[] (2/2)

Under the Corporate Income Tax (CIT) Law, China recognizes overseas incorporated domestically
controlled enterprises as PRC Resident Companies based on the place of effective management. If
the company satisfies ALL of the following conditions, it will be considered to have its place of
effective management in PRC and recognized as a resident enterprise:
1) Senior management responsible for the enterprises daily production/business operations are
mainly located in the PRC and the senior management executes its responsibilities mainly in the PRC;
2) Strategic financial and HR decisions are made or approved by organizations or personnel located
in the PRC; 3) Major properties, accounting records, company stamps, Board/shareholders meeting
minutes etc. are maintained in the PRC; 4) 50% or more of the Board members with voting rights or
senior management habitually reside in the PRC.

PRC
[
(
(
(
(1/21/2
]
31
Major considerations for Resident Company and PEM

[]
Place of incorporation/ registration

[] ;
The location of the headquarter of the company

[]
The location of the board of directors and shareholder meetings

[]
The location of the entitys business operation and management control

[]
Where the executive directors or key officers of the company routinely approve the
commercial and strategic decisions, perform their management control and decision
makings
[]
Where accounting books and records are kept

[]
Other relevant factors to be taken into consideration as a whole

[]
32
Controlled Foreign
Companies (CFC)
33
CFC
34
100%
100%
CFC

CFC

35
433
CFC
50
1.
70%
11.9%
2.
CFC
CFC10
CFC
36
433()
CFCCFC
()
CRS
PEM
PEMPEMCFC
37
CFC Regime Major Concepts [] (1/2)

CFC regime is an anti-avoidance mechanism with the primary purpose to
prevent multinational corporations from using tax planning methods to
avoid or defer its tax liabilities
[
]
Major countries with large Taiwanese investments that had adopted CFC regime
include the following countries
[CFC]:
-
Europe and America regions: US, Germany, France and UK

[: ]
Asia Pacific region: Australia, Japan, Indonesia, South Korea and China
[: ]
38
CFC Regime Major Concepts [] (2/2)

CFC main taxing concepts
CFC
1. Substantial Control
1.
Percentage of
shareholdings
Control in substance
2. ()
2. (Subsidiaries) located in low-tax jurisdictions
Effective tax rate
Statutory tax rate

3.
3. Principle of CFC income taxation

Entity approach
4. Exemption rules
Transaction approach
4.
39
CFC Regime Exemption Rules []

1. White list countries
[ / ]
2. De-minimis rules
[ ]
3. Majority of the income derived by the CFC arising is from actual
business operations or active business activities
[]
4. Motive exemption : The main purpose of the transactions or one of
the main reasons for the said controlled foreign companys
existence was not to achieve a reduction in tax liability or tax
avoidance by a diversion of profits
[ ]
40
Comparison of CFC Rules adopted by Key Countries

[CFC] (1/4)
Statutory CIT rate

[]
Year applied
[]
US
Germany
UK
35%
29.72%
20%
1962
1972
1984
A German resident
taxpayer holds more than
50% of a foreign company
(the threshold is reduced if
the foreign company is
engaged in the business of
certain financial
transactions.
Any UK resident
company holds directly or
indirectly, more than 25%
interest of a UK nonresident company, which
is also controlled by the
UK company.
When is CFC applicable [CFC ]

Where U.S. shareholders
(U.S. persons each owning
directly, indirectly or
constructively, at least 10% of
the voting stock of the foreign
corporation) own more than
1. Shareholding % 50% of the voting power or
[]
value of the foreign corporation.
[
[ 25%
[10%
50% ]
50%
]
]
41

[CFC] (2/4)
Statutory CIT rate

[]
Year applied
[]
Japan
S. Korea
China
32.26%
24.2%
25%
1978
1997
2007
A Korean resident
(corporate or individual)
owns directly or
indirectly 10% or more
of a foreign company.
A resident enterprise or an
individual resident in
China holds, directly or indirectly,
10% or more of
the total voting shares, and
jointly holds more than
50% of the total shares of the
foreign enterprise.
When is CFC applicable - contd [CFC ]
1. Shareholding %
[]
If Japanese shareholders
own (directly or indirectly)
more than 50% of the
outstanding shares, the
voting shares or the
dividend rights of the nonJapanese company.
[
50%
/
]
[
10%
]
[10%
50%]
42

[CFC] (3/4)
US
Germany
UK
Japan
South
Korea
China
When is CFC applicable - contd [CFC ]

2. Control in substance
doctrine
[]
Equal
[]
Equal
[]
Equal
[]
Equal
[]
3. Low-tax jurisdictions
[]
Partial
[]
Profits are deemed

being artificially
diverted overseas
[
]
All
[]
All
[]
All
[]
43
If deemed CFC, doctrine

defined type of income
attributable
[CFC
]
1. The Substantive Law
[]
2. The Exchange Act
[]
All or
Partial
[
]
V
V

[CFC] (4/4)
US
Germany
UK
Japan
S. Korea
China
Exemption Rules []
1. White list countries
[/-
]
2. Active business
[]
3. De-minimis rule
[
(
]
4. Motive exemption test

[]
44
Comparisons to the Taiwan CFC regime (1/4)

[CFC]
CFC rules defined by other countries:
[]:
1.
Low-tax jurisdictions []
2.
Substantial Control
[]
Criteria defined Substantial Control:

[]
1.
Quality
(Control in substance [])
2.
Quantity
(Shareholdings
[])
ITA Article 43-3 [433]
Low-tax jurisdictions are defined as countries or

jurisdictions with an income tax rate not more
than 70% of Taiwan PSE income tax rate or similar
effective income tax or rate countries that only
taxes on income derived from sources inside that
jurisdiction.
Aforementioned affiliated enterprises are dictated
by the Company Act and related provisions;
recognition of investment income, scope of
foreign tax credit, relevant calculation methods
and other compliances shall be determined by the
MOF.
70%
Only Quantity criteria was clearly defined; substance determination may cause disputes tax
authorities may determine control in substance but tax payer may disagree
[433 : ]
45

[CFC]
CFC income recognition methodology by other countries [CFC

]:
1. Entity approach
-
Income taxable []
[]
CFC income shall be recognized based on the shareholder's

pro rata share of the foreign entity
[CFC
]
2. Transaction approach
-
[]
The intention/ type of each transaction generated proceeds to

determine whether such income should be applied under the
CFC regime
[CFC
]
According to ITA 43-3, taxpayer shall recognize and include

its pro rata share of affiliated enterprises taxable profits as
investment income in its taxable income for the year.
[433]
shall recognize and include its pro

rata share of affiliated enterprises
taxable profits as investment income in
its taxable income for the year.
Subsequent actual dividends and
distributions from such affiliated
enterprises that were previously
recognized as investment income will
then not be subject to income taxation;
any surplus to previously recognized
investment income shall be included as
taxable income in the allocated year.
...
46

[CFC]
FTC []
scope of foreign tax credit, relevant calculation methods and

other compliances shall be determined by the MOF.
Foreign Tax Credit (FTC)

regulated by other countries
[]
Q1: How to calculate FTC?

[]
[
]
ITA Article 3 [3]
For any profit-seeking enterprise having its head office within

the territory of the Republic of China,...provided, that in case
income tax has been paid on the income derived outside of the
territory of the Republic of China in accordance with the tax act
of the source country of that income, such tax paid maybe
deducted from the amount of tax payable by the taxpayer at
the time of filing final returns on the total profit-seeking
enterprise income, to the extent that such deduction shall not
exceed the amount of tax which, computed at the applicable
domestic tax rate, is increased in consequence of inclusion of
its income derived from abroad.
[
47
Comparisons to the aiwan CFC regime (4/4)

[CFC]
ITA amendment authorized the MOF to establish provisions on
recognition of investment income, scope of foreign tax credit,
relevant calculation methods and other compliances.
-
[:
]
Exemption Rules adopted by key countries [

]:
CFC is located at white list countries
[]
De-minimis rule
[ ]
CFC conducts active business activities []

Motive exemption test
[]
48
BEPS Action Plan

- An Globally Ambitious
Project
49

Citigroup avoided paying
$11.5 billion in taxes
thanks to tax shelters
Microsoft avoids U.S. tax along with HP,

senate memo says
G8 agree to fight tax
avoidance of
companies such as
Amazon, Apple, and
Google
Apple CEO in hot

seat over
companys untaxed
overseas billions
Apple paid only 2% corporation

tax outside U.S.
Bank of America paid
nothing in federal income
taxes last year and got
almost $1 billion from
taxpayers
Barclays secret tax

avoidance factory that
made 1bn a year profit
disbanded
Facebook criticized for

238,000 UK tax bill last
year
Starbucks paid just 8.6M UK tax
in 14 years
Sources: various publicly available news and websites
50

201411(ICIJ)
PWC
54820022010
Jean-Claude Jucker
51

20152
2007
(Le Monde)

2001022006
1120073

52

ICIJ4
( Mossack Fonseca & Co )197021.4
1150(
Panama Papers)
:
53
(BEPS)
20 G20OECD
G20 OECD
OECD
54
BEPS
OECD2013719G20
BEPSBEPS
OECD15
OECD 2014916 Live Webcast-Update on BEPS Project 2014 Deliverables

and Beyond OECD
55
BEPS 15
(2)
(6)
(11)
(7)
(3)
(12)
(8)
(4)
(9)
(5)
(10)
(13)
(14)
(1)
(15)
56
BEPS -2016
20149
20159
(1)
(3)
(2)
(7)
(5)
(4) -
(5)
(6)
(8)
-OECD
(4)
-
(5)
-
(15)
-
(13)
(9&10)
(15)
201512
(12)
(14)
(11)
57
BEPS -2016
OECDG20
:
: OECD
:
:
:
:
58
BEPS
: KPMG International, 2016
59
BEPS 15
OECD
3
(CFC)
2016712
4
2011BEPS
(Harmful Tax Practices)
60
BEPS 15 ()
8
/
9
/
2016
10
/
11
BEPS
12
13
2016
14
2016
15
61
Tax Transparency
62

(Automatic Exchange of Information, AEOI)
OECDG20
AEOI
(Multilateral Convention on Mutual

Administrative Assistance in Tax Matters, MCAAT)
AEOI
63
AEOI
2013419
G20 AEOI
2013
20142
G20
AEOI
2014
20139
50 AEOI
2015
20156
AEOI
61
20145
2017
20172018
902017
2018
2018
64
OECD
1.
2.
3.
4.
5.
6.
7.
8. AEOI
65
AEOI

(CRS)
(, FATCA)
(TIEA)
(EUSD)
EUSD
CRS
AEOI
FATCA
66

(Common Reporting Standard, CRS)
20142G20 CRS AEOI
CRS
1.
2.
3.
4.
67
CRS
KYC
AML
CRS
OECD
Competent
AEOI
Authority Agreement, CAA

CRS
CRS
CRS
68
CRS
20142
G20 CRS
AEOI
2014
20143
44 20179
CRS
2015
20149
G20 OECD
CRS
2016
20151231
20145
OECD47
CRS
2017
201720189
G2021
CRS
2018
69
CRS
20166CRS10182
2017:
2018:
2017:
2018:
*
70
Whats next?
71

(tax matters)
72

BEPS
73
74
75
76
77
78
KPMG
79
Thank you
Presenters contact details:
Betty Lee
Director, Tax
KPMG (Taiwan)
(886) 2 8101 6666 ext 13100
bettylee1@kpmg.com.tw
80
2016 KPMG, a Taiwan partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss
entity. All rights reserved. Printed in Taiwan.
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavor to provide accurate
and timely information, there can be no guarantee that such information is accurate as of the
date it is received or that it will continue to be accurate in the future. No one should act on
such information without appropriate professional advice after a thorough examination of the
particular situation.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.

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Betty Lee

Director, International Tax

Key Areas of Experience

International tax planning

Tax planning for corporate investment structures

Director, Associate Director of Tax & Investment

Instructor of KPMG in Taiwan

Manager, Assist. Manager of Tax Dept., KPMG in

Professional Service Experience

Director, Tax & Investment

Technology, Media and

International Affiliate Member of the HKICPA

advice and compliance services to Hong Kong as well as multinational companies.

Fellow member of The Tax Institute

Function and Specialization

Master of Taxation from the

compliance and advisory support.

Member of the ICAA

General international tax

2) Evaluate tax impact

3) Limit total tax burden

4) Minimise double taxation

Restricting a countrys power to tax []

General international tax concepts (1/2)

Total income assessable wherever that income arises

Income or profits from property located within the country

Income and profits from economic activity within the country

Resident corporations worldwide basis

General international tax concepts (2/2)

Central management and control []

3) Avoidance of double taxation []

Domestic law relieves (e.g., exemptions, credit system, deductions)

Use of tax treaties

Corporate income taxation

CIT rate trend - EU region

CIT rate trend - Non EU region (selective countries only)

CIT trend Country / Regional Analysis (1/2)

Globally : Overall decrease in CIT rates, but

Use or introduction of anti-abuse rules (in domestic tax law) []

General anti-avoidance rules (in domestic tax law) []

Limitation of benefits (LOB) clause / no treaty shopping

Exchange of information clause / agreements

Beneficial ownership rules

Substance over form

CIT trend Country / Regional Analysis (2/2)

Value-added tax (VAT)

General VAT concepts

A type of consumption tax

End-user bears the tax

2) Levied on each stage in the production / distribution stages

Output tax charged on sales

Input tax paid for purchases

Output net off against input tax credits []

Effectively a charging agent

VAT rate trend - EU region (selective countries only)

VAT rate trend Non EU region (selective countries

VAT trend - Country / Regional Analysis

Globally : Overall Increase in VAT rates [ / ]

Thailand to extend the reduced 7% VAT rate (from 10% to 7%)

Japan consumption tax rate increase to postpone to October 2019

CIT & VAT comparison by country EU region (selective countries only)

CIT & VAT comparison by countryAsia region (selective countries only)

Recent changes in Taiwan

Article 12-1 of Tax Collection Act