Summary: 1. Treaties - Korea / Luxembourg treaty: protocol entered into force on 4 September 2013 - Changes to dividend, interest, and royalty withholding tax rates - Deletion of Article 28 from treaty • Excludes certain Luxembourg holding companies from treaty benefits • Korean tax authorities have used Article 28 to deny treaty benefits to Luxembourg SICAVs and SICAFs (collective investment vehicles) • Deletion of Article 28 should avoid such disputes in future – however, existing disputes remain unresolved For information: Gyung Ho Kim (Seoul): gykim@deloitte.com 2. Cases - India: Reliance Infocom • Mumbai Income Tax Appellate Tribunal • Supply of software by Lucent (U.S. resident) to Indian company, relating to mobile telecom network • Tribunal held that payment for supply of software was a payment for the use of, or the right to use, copyright – and was therefore a "royalty" under Indian domestic tax law and the India / U.S. treaty • Commentators have criticized this decision, on the basis that it confuses copyright and copyrighted product For information: Rajesh Gandhi (Mumbai): rajegandhi@deloitte.com 3. China: Shanghai Free Trade Zone - High level of anticipation of the new Shanghai FTZ - Speculation that Hong Kong's competitive position might be damaged by the Shanghai FTZ For information: Vicky Wang (Shanghai): vicwang@deloitte.com.cn Ye Hong (Shanghai): hoye@deloitte.com.cn 4. Indonesia - Government announces tax measures to provide cash flow advantages to certain labor-intensive companies - Measures apply to companies in specified industries • Textile industry • Apparel industry • Footwear industry • Children's toy industry For information: Nazly Siregar (Jakarta): nsiregar@deloitte.com 5. In brief - Vietnam: foreign individuals • Circular (11/2013) issued • For information: Tom McClelland (Ho Chi Minh): tmcclelland@deloitte.com - "Call me Mike" • Indian and U.S. competent authorities meet - Australia: change of government • New government does not control upper house of Parliament: impact on policies to repeal certain taxes? • Status of the previous government's announced, but not yet legislated, tax law changes? • Presidency of G20: strong or low key leadership position in regard to BEPS? • For information: David Watkins (Sydney): dwatkins@deloitte.com.au • For our report on the tax policies of the new Australian government: http://www.deloitte.com/ap/dbriefs/bytes
