Company Taxation in the Asia-Pacific Region, India, and Russia (eBook)

Preface 6
Contents 8
List of Figures 10
List of Tables 12
List of Abbrevation 14
Executive Summary 16
Objectives of the Study and the Model Applied (Chap. 1) 16
Company Taxation Regimes in the Asia-Pacific Region, India, and Russia (Chap. 2) 17
Effective Tax Burden on Domestic and Cross-Border Investments (Chap. 3) 17
Impact of Incentives (Chap. 4) 19
Tax Planning Strategies (Chap. 5) 20
Corporate Taxation and Foreign Direct Investment Flows (Chap. 6) 21
Chapter 1: Motivation for and Structure of the Study 22
Chapter 2: Company Taxation Regimes in the Asia-Pacific Region, India, and Russia 24
Overview 24
Corporation Tax Systems 24
Tax Rates 26
Tax Bases 28
Industrial Buildings 28
Intangibles 28
Tangible Fixed Assets 31
Inventories 32
Provisions 32
Losses 32
Interest Deductibility 33
Non-Profits Taxes for Corporations 33
Conclusion 35
Chapter 3: The Effective Tax Burden on Domestic and Cross-Border Investments in the Asia-Pacific Region 36
Methodology and Assumptions 36
The Effective Tax Burden at the Level of the Subsidiary (Domestic Investment) 39
Overall Tax Burden 39
Impact of Different Sources of Finance 41
Impact of Different Types of Investment 42
The Effective Tax Burden on Cross-Border Investments 44
General Approaches to the Taxation of Cross-Border Investments 44
Situation of a German Parent Company and a US Parent Company 47
Taxation of Cross-Border Dividend Flows and Interest Payments 47
Overall Tax Burden 48
Impact of Different Sources of Finance 51
Chapter 4: Tax Incentives in the Asia-Pacific Region 54
Overview of Tax Incentives 54
Australia 55
Cambodia 55
China 60
Hong Kong 61
India 61
Indonesia 62
Japan 62
Malaysia 62
Philippines 63
Russia 64
Singapore 64
South Korea 65
Taiwan 65
Thailand 66
Vietnam 66
Impact on the Tax Burdens at the Level of the Subsidiary 67
Impact on the Tax Burdens at the Level of the German and the US Parent Company 68
Tax Incentives for Group Structures 72
Chapter 5: Tax Planning Strategies 76
German Parent Company 76
US Parent Company 81
Conclusion 82
Chapter 6: Corporate Taxation and Foreign Direct Investment Flows 84
Introduction: Corporate Taxation and International Investment Flows 84
The Development of Corporate Income Tax Rates Over Time 85
The Role of Tax Incentives 87
Foreign Direct Investment Flows 88
Do Taxes and Investment Incentives Drive Foreign Direct Investment Flows to East Asia? 92
Conclusion 96
Appendix 98
References 104