Sunnyvale, CA -- (SBWIRE) -- 06/14/2012 -- The Indian Ministry of Environment & Forest (MoEF) has introduced e-waste management rules for the safe disposal and handling of e-waste (Waste electric and electronic equipments) in order to reduce and recycle e-waste in the country.

The E-Waste Management and Handling Rules, 2011 which came into effect on May 1, 2012 are applicable to both manufacturers of electrical goods and consumers of electronic equipment who will now need to maintain records of e-waste in a particular format.

Companies in India (as consumers of electronic equipments) are required to ensure:

- The E-waste (Waste electric/ electronic equipments) generated in house are to be directed to the authorized collection centers, registered dismantlers or recyclers or to be sent back to pick up or take back services to be provided by manufacturers.
- They have to maintain records of E-waste (Waste electric/ electronic equipments) generated, and make such records accessible for investigation to the concerned authorities.

The e-waste management rules are not applicable for lead acid batteries, micro and small enterprises and radio-active wastes. However, Information and Telecommunications equipment and consumer electrical and electronics sectors must ensure that their products are free from hazardous substances like lead, cadmium, mercury, hexavalent chromium and certain other substances. But, the use of such substances is permitted if it is within the prescribed limits.

Waste handling and management guidelines for manufacturers:

- Under an "extended producer responsibility", Personal Computer (PC) producers, cell phone manufacturers and white goods manufacturers have to set up collection centers or introduce 'take back' system.

- Manufacturers will have to bring awareness among consumers about the harmful components present in the product by providing them with equipment handling instructions and booklets.

- Manufacturers have to maintain records of e-waste in the prescribed format to make them available with concerned authorities – State Pollution Control Board (SPCB) or Pollution Control Committees (PCC).

- An annual compliance report must be submitted with the concerned authorities within the specified due date.

Please call/email for more details.
Get the latest press releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 4000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 06/07/2012 -- In order to reduce public deficit this year, the Spanish government has introduced provisional measures to the Corporate Income Tax.

To achieve this objective, the government has fixed a 30% limit on net financial expenses deductibility of the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), maintained zero deprecation of assets for small and medium-sized enterprises (SMEs), and cut down annual overall limitation on tax credits.

The decree comes into effect from March 31, 2012 with a retroactive effect to taxable years starting from January 1, 2012.

Spain Tax Measures: Changes to Corporate Income Tax Regulations:

- Replacing the thin capitalization regulations, the new ruling sets limit of up to 30% on net financial expenses deductibility of the EBITDA, carrying forward the undeducted expenses up to 18 years. If the net interest expense of a taxable year is lower than 30 %, the undeducted expense up to 30% of the EBITDA will be carried forward for 5 years. Deductible net expenses up to € 1 million being always deductible, companies which are not the part of a group of companies with specific limits, and credit institutions do not come under the purview of the 30% limit.

- The new decree maintains free depreciation of assets for (SMEs) where the company maintains employee level. According to the new legislation, from March 31, 2012, no incentive will be applicable for assets obtained after this date; however, free depreciation will be applicable with certain limits for assets acquired before March 31, 2012.

- To facilitate promotion of Research & Development (R&D), environment and other activities, the new ruling has cut down the annual overall limitation on tax credits to 25% of the corporate income tax due minus domestic and international tax credit and discounts. In case R&D tax credits cross 10% of the tax due, the limit is reduced to 50%. The reinvestment tax credit that was excluded before has been included for calculation of the limits. With the intention of offsetting the effects of these provisional methods, carry forward period of unused tax credits has been increased to 15 years. However, for R&D tax credits, the carry forward limit is increased from 15 to 18 years.

Please call or email for more details.
Get the latest press releases and updates on international tax, compliance, HR, finance and legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 05/31/2012 -- India's plans to introduce amendments to its tax laws that include powers to retroactively overturn recent court rulings has sparked off a new contention between the government and Vodafone with the telecommunication company challenging the new retrospective tax legislation.

Vodafone has served a Notice of Dispute against controversial proposals included in the Indian Finance Bill 2012 which allows the government to change tax laws retroactively as well as the power to reverse Supreme Court rulings and judgements.

Background
In a landmark case in January 2012, the Supreme Court ruled that the Indian tax authorities have no jurisdiction to tax Vodafone's $11.2 billion acquisition of the Indian cellphone company from Hong Kong's Hutchison Whampoa Ltd because it was structured as a transaction between two foreign entities. The Supreme Court further asked the Indian tax department to refund the 25 billion rupees ($500 million) that Vodafone had deposited, along with 4% interest.

In the Vodafone case, the deal, struck in 2007, was structured as a transaction between Vodafone's Dutch subsidiary and a Cayman Islands-registered subsidiary of Hutchison Telecommunications International Ltd (HTIL) as the purchaser of the 67% stake in India based Hutchison Essar. India's Supreme Court ruled that the deal is not subject to capital gains tax, which means that Vodafone had no reason to withhold tax. The court disregarded the fact that the main asset changing hands was a controlling interest in an Indian telecom company.

Amendment to India Finance Bill
With an aim to prevent such foreign transactions which are commonly undertaken for foreign investment in India, the Finance Bill states that "an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India if the share or interest derives, directly or indirectly, its value substantially from the assets located in India".

Fearing that this provision in the Finance Bill will overturn the Supreme Court's verdict, the Dutch subsidiary has issued a Notice of Dispute which could involve international arbitration proceedings as per Netherlands' Bilateral Investment Treaty (BIT) with India.

Vodafone International Holdings BV being a Netherlands subsidiary qualifies as an investor according to the treaty principles. Vodafone is arguing that the Indian government is in breach of the treaty's principles which includes fair and equitable treatment to investors. Therefore, it is urging the Indian government to abandon or suitably amend the retrospective aspects of the proposed legislation. However, if the government did not oblige, the company said it would initiate investment treaty arbitration proceedings under the BIT.

Proposed Amendments to Tax Evasion Laws
In light of this development, the Indian government recently announced amendments to the Finance Bill specifically to the retrospective measure of the tax evasion law. It clarifies that the retrospective amendments which are under consideration of the Parliament of India won't be used to reopen cases where assessment orders have already been done. Also, the benefits will not be applicable to Vodafone like cases which involve low tax and non-DTAA destinations like Cayman Island. The amendment also clarifies that the tax evasion law will be applicable only to specific cases where a transfer is facilitated through a low tax or no tax jurisdiction which does not have a Double Taxation Avoidance Agreement (DTAA) with India.

Please call/email for more details.
Get the latest press releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 05/22/2012 -- The Brazilian Government has introduced new amendments to the regulations on financial transactions tax (IOF) imposed on foreign exchange transaction with effect from March 1, 2012.

As per the new ruling, direct foreign loan transactions and transactions involving bonds issued to the international market with a minimum average term of less than three years will be subject to 6% IOF. Also, the new average term will be applicable to a transaction contracted through concurrent foreign exchange transactions.

However, IOF on the settlement of such loan transactions will remain the same and no IOF will be levied upon liquidation of foreign exchange transactions contracted for the purpose of investments in Brazilian Depositary Receipts (BDR).

Amendments to Taxation of Financial Transactions Levied on Derivative Agreements

In a separate announcement, the Brazil government introduced amendments to the rules which levy a financial transaction tax (Imposto sobre Operacoes Financeiras - IOF) on derivative agreements.

Effective from March 15, 2012, there would be no IOF on hedge transactions by an exporter (resident individual or legal entity) provided the following conditions are met:

- Daily total foreign exchange exposure amount must not surpass 1.2 times of the total amount of the exports in the year before.
- The export transactions must justify the foreign exchange exposure within 12 months from the date the OF is due.

Please call/email for more details.
Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 05/22/2012 -- The Brazilian government introduced changes to transfer pricing rules which includes a range of fixed profit margins for various industry sectors. The main changes are effective January 1, 2013 but the rules can also be applicable for calendar year 2012.

Details of Provisional Measure 563

New fixed profit margins for the purpose of calculation of the Resale Minus Profit method (Preco de Revenda menos Lucro – PRL).

The existing profit margins are:

- 20% for transactions related to import of goods for resale
- 60% for transactions related to imported raw materials for use in manufacturing processes.

Depending on the economic activity of the legal entity, the new profit margins will range between 20%, 30% or 40%.

A profit margin of 40% has been allotted for legal entities involved in the manufacture of pharma products, tobacco-based products, optical products, photographic and cinematographic equipment. It also includes sale of dental products, petrol and natural gas extraction and the manufacture of petrol-derived products.

A profit margin of 30% has been fixed for legal entities involved in the manufacture of chemical products, glass or glass-based products, cellulose, paper or paper-related products and metallurgy.

A 20% profit margin will be applicable for legal entities engaged in any other economic activity in Brazil.

The new measure also introduced a reworked methodology to calculate the reference price using PRL method which greatly differs from the existing methodology.

PCI (Price Valuation under Import Transactions - Preco sob Cotacao na Importacao) and PCEX (Price Valuation under Export Transactions -Preco sob Cotacao na Exportacao)

As per the PCI and PCEX methods, the average daily stock market valuation of the goods and rights of a particular transaction will be taken into account while comparing the prices used by Brazilian parties with related parties.

New rules for tax deduction of interest payments

New rules related to the taxes on interest payments for loan agreements between a Brazilian entity and a foreign based related party have been introduced. As such, interest payments will now be deductible for tax purpose covering an amount consistent with the London Interbank Offered Rate (LIBOR) for US deposits of 6 months, added to a rate which will be announced by the Ministry of Finance.

Since Brazil does not comply with the OECD transfer pricing policies, the risk of international double taxation is very high. However, of late the Brazilian tax authorities are more open to discussing changes to transfer pricing policies with the representatives of taxpayers.

According to experts, the recent developments in Brazil's transfer pricing policies and the use of fixed profit margins are an attempt to simplify the administration of transfer pricing methods, thus reducing the number of tax audits. Provisional Measure 563 has also been projected as Brazil's first move towards adopting OECD's Arm's Length Principle.

Please call/email for more details.
Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 05/18/2012 -- A federal court ruling involving employee termination in Australia demonstrated that following the right procedures and maintaining proper records related to long-term employee issues including workplace rights and absence from work, can protect the employer when facing an adverse action claim.

In Eriksson v The Commonwealth [2001] FMCA 964, a federal magistrate ruled in favour of the employer (Department of Health and Ageing) in determining whether the termination of an employee's employment constituted adverse action.

Background to Eriksson v The Commonwealth [2001] FMCA 964 
Meeli Kersti Eriksson working for the Department of Health and Ageing suffered work related injury in 2002 and was certified as unfit for work from December 1, 2006. After futile attempts to restore employment, the employer wanted to retire the employee under medical invalidity grounds by obtaining an invalidity Retirement Certificate from the Australia Reward Investment Alliance (ARIA), which was granted in 2007.

Subsequently, the employee was notified that she would be terminated under section 29(3) (d) of the Public Service Act 1999 (CTH) (PS Act). Following the notification, the employee requested the employer to reconsider the decision and the employer delayed the termination by allowing her to present new evidence on three occasions. The employee failed to provide new evidence and was subsequently terminated. Post termination, the employee made an adverse action claim to Fair Work Australia pursuant to the Fair WorkAct 2009 (CTH) (fW act).

Judgement
The federal magistrate dismissed the employee's claim on the grounds that the termination decision preceded the workplace rights related actions taken by the employee and the employee was also notified about the decision in early 2007.

Implications:
- Organizations in Australia must follow termination procedures and policies with regard to employee notification and recording management decisions related to the issue.
- Employment decisions should be made for reasons unrelated to what might be claimed to be a workplace right.
- Evidences of employee management decisions taken as well as the reason, for which they are taken, should be recorded.

Please call/email for more details.

Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 05/18/2012 -- UK has introduced changes to its immigration rules which would affect foreign nationals residing or entering the UK on employer-sponsored visas as well as the employers. The changes are based on the observations of the Migration Advisory Committee (MAC) and will be effective from June 14, 2012.

Tier 2 Changes to UK Immigration Rules:

Changes for foreign nationals residing or entering in the UK sponsored by A-rated employers:

- The level of skills eligibility criteria for National Qualifications Framework (NQF) has been increased to 6 for those applying under Tier 2. The level for sponsored permission which is at graduate level and above will not change, but there would be an increase in the NQF level which might result in the removal of some middle management. Foreign nationals in the UK or those who are extending their current permission are not required to comply with the new requirement.

- With the introduction of Premium Customer Service for Sponsors, eligible sponsors can have certain privileges – access to Public Enquiry Office and premium sponsor support team.

- The General restriction quota is set at 20,700 for following two years.

- Advertising requirements for premium or Ph.D. level jobs on JobCentre Plus has been ruled out effective June 14, 2012. However, it is mandatory to advertise for twenty eight calendar days in the prescribed medium for the job code.

- The tenure of temporary leave for Tier 2 General has been extended to a maximum of 6 years. After completing 6 years in the UK, the foreign national has to either qualify and apply for settlement or quit the country.

- To stop repetition of applications to remain under Tier 2, Individuals who are switching into Tier 2 General would be subject to maximum of six years of cumulative stay.

- The salary limit to qualify for 'indefinite leave to remain' (ILR) is set at £35,000 per annum or the minimum salary under standard occupational classification (SOC) code, whichever is higher, effective for individual those who apply after April 6, 2016.

- With the end of Tier 1 Post Study Worker category, Tier 2 General Unrestricted (Graduates) came into force from April 6, 2012. The "resident labor market test" (RLMT) is no more required and it is not necessary to request the quota. Nevertheless, any job offer has to comply with the minimum salary requirement with the applicant having a degree in the UK.

Changes to UK Immigration policy affecting Employers:

- Under 'permitted paid engagements' (a new business visitor category covering specified specialist activities) permission under the point based system is not required if the stay does not go past one month.

- For foreign nationals who reside in the UK more than six months, Biometric Residence Cards are mandatory.

- A new Tier 1 Graduate Entrepreneurs category has been introduced enabling 'highly trusted' sponsors to nominate eligible graduates to remain in the UK.

- Domestic workers who reside in a diplomatic household can stay as long as their employers stay which is limited to a maximum of five years. They can neither switch employers nor qualify for ILR.

- Immigration option for Domestic workers in a public household has been made very restrictive. They can reside for a maximum of six months when accompanying a visitor. They can neither extend the staying limit nor qualify for ILR. Also, dependent category that comes under this section has been eliminated for domestic workers.

UK Immigration: Changes to Tier 5 Rules
- Contractual service suppliers under GATS who are not eligible under Tier 2 can only be allowed to enter and reside in the UK for a maximum period of six months.

- Government Authorised Exchange is limited to 12 months instead of 24 months except for the activities that are considered under fellowship or research provisions.

Please call/email for more details.

Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 05/09/2012 -- The Australian Occupational Health & Safety (OHS) law recently underwent a series of changes, violations of which could result in fines of up to $600,000 and/or imprisonment of up to five years for corporate as well as individual executives.

The changes came into effect in January 2012 in New South Wales, Queensland, the Commonwealth, the Australia Capital Territory and the Northern Territory.

The amendments to OH&S laws that Senior Managers and Directors need to be aware of are as follows:

1. The "Person Conducting a Business or Undertaking" (PCBU) is the primary OHS duty holder and not the 'employer'. A PCBU can be an individual or a corporation and can operate a business or undertaking alone or jointly with other PCBUs.

2. The 'duty of care' has been extended to include a larger group of people which now includes all "workers" and "any other person" who has been put at risk by the business activities of the PCBU. This term 'worker could include an employee or even a volunteer. This also indicates that activities that earlier may have been prosecuted under public liability laws and negligence can be actionable under OHS.

3. Officers (Directors and managers) are under personal obligation to do their due diligence to ensure that the organization is compliant with the new OHS rules. As per the legislation due diligence is defined as taking reasonable steps to:

- Obtain and maintain up to date safety knowledge
- Get an up to date understanding of business risks
- Provide and use appropriate resources
- Consider incidents, hazards and risks
- Ensure legal compliance
- Verify compliance with safety standards and ensure legal compliance by undertaking the necessary audit and review process.

Duty holders (in case more than one person is responsible for OHS law compliance, then simultaneously each duty holder) of OHS must, so far as is reasonably practicable, consult, cooperate and coordinate activities with all other persons who have a similar duty related to OHS and also ensure that policies and procedures for compliance are in place.

Corporate Governance - Organization-wide OHS Compliance

With the new compliance requirements of the Australian Occupational Health & Safety law it is advisable for organizations to conduct an audit of existing processes, policies, contracts and identify steps to comply with the new regulations. Specifically, rules related to personal liability needs to be explained to all officers that come under the purview of this law. Implementing an organization –wide due diligence process is advisable in order to ensure all the duty holders meet the compliance requirements.

Please call/email for more details.
Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 05/03/2012 -- The Canadian Finance Minister announced details of the new tax measures which include an expanded list of medical devices and prescription drugs that are free from Goods and Services Tax/ Harmonized Sales Tax. The Economic Action Plan 2012 also details penalties for falsified registration of charitable tax shelters as well as authorizes the Canada Revenue Agency to issue demands for filing returns either through an online notice or by mail.

The details of the new and previously announced tax measures are as follows
- Medical and assistive devices - Expanded list of Goods and Services Tax (GST)/Harmonized Sales Tax (HST) zero-rated medical and assistive devices.
- Prescription drugs - Expanded list of GST/HST zero-rated non-prescription drugs that are used to treat life-threatening diseases.
- Pharmacy Services - Professional services rendered by certain pharmacists have been exempted from GST/HST, but do not include prescription drug dispensing services that are already zero-rated under the GST/HST.
- Medical Expense Tax Credit - the list of eligible expenses under the Medical Expense Tax Credit has been expanded.
- Certain literacy organizations – can claim a rebate of the GST and a part of the HST for books that are distributed for free.
- Registered Disability Savings Plan –certain family members are allowed to temporarily open a Registered Disability Savings Plan for an adult individual who may not be in a position to sign a contract.

Enhancing Accountability for Charitable Donation Tax Shelters
- New penalty for organizations which provide false information while registering and for failing to register a tax shelter before selling interests related to it.
- Penalty for organizations which do not file an information return or those who provide false or misleading sales information.
- The validity period for the tax shelter identification number has been limited to one calendar year.
- Gifts made by a charity to promote political activities of certain candidates to be accounted for as expenditure by the charity on political activities.
- The Minister of National Revenue has been authorized to suspend the tax-receipting privileges of a registered charity or a registered Canadian amateur athletic association, if the charity or association fails to file information return requirements or uses resources towards political activities in excess of the limits stipulated in the Income Tax Act.

Measures Related to Improving Business Investment in Canada
- The temporary Mineral Exploration Tax Credit for flow-through share investors has been extended by a year.
- Corporations will be given room for delay and split eligible dividend designations.
- A designated partner in a partnership will be allowed to issue a waiver on behalf of all partners to extend the time limit for issuing a determination related to the partnership.
- The values of duty and tax-free goods imported by Canadian residents returning after 24-hour and 48-hour absences may be increased to $200 and $800, respectively.

Please call/email for more details.
Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 05/03/2012 -- Hong Kong's Inland Revenue has released its long-awaited Advance Pricing Agreement guidelines, which will initially focus on negotiating bilateral and multilateral APAs specifically with jurisdictions with which Hong Kong has a Double Tax Agreement.

According to the Hong Kong APA guidelines, only resident and non-resident companies with a Permanent Establishment (PE) generating taxable income in Hong Kong can apply for an Advance pricing Agreement. Companies or PE's which do not make taxable profits may not be eligible for the APA procedure which is aimed at reducing the risk of double taxation.

The APA procedure will require various documents to be submitted in stages defined below:
- The initial pre-filing
- Formal application
- Evaluation and analysis
- Negotiation and agreement
- Drafting , agreement and monitoring

China Authorities Explore Private Tax Ruling System

The Chinese tax authorities are considering proposals to implement an advance ruling system that would simplify tax administration and streamline procedures for filing taxes in the country.

The move could prove beneficial to multinationals that are currently grappling with China's complex tax system.

The focus of the Advance Tax ruling (also referred to as Private Tax ruling) is improved taxpayer service by not only helping tax payers comply with the respective tax regulations, but also providing them tax related risk management advice.

Please call/email for more details.

Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 04/05/2012 -- Belgium published a Decree on Advance Tax Payments by Self Employed persons and companies in March 2012 that defines when the advance tax payments are due and the tax surcharge rates incase insufficient payments are made.

As per the Decree
- Companies and self-employed person must make sufficient advance tax payments on April 12, July 12, October 11 and December 20 of a calendar year.
- If the advance tax payments are insufficient, the tax due will, be increased by 2.25% for tax year 2012 (assessment year 2013).
- Surcharge for companies is calculated on 103% and for self-employed on 106% of the amount of tax due, deducting * immovable withholding tax prepayments, withholding taxes, domestic tax credits and foreign tax credits.
- If the amount of the surcharge is below 1% of the tax on which it is calculated or it does not exceed EUR 40, no surcharge is due.

The Decree also states that credit will be provided for advance payments. Details below:
- First Advance Payment:Bonus is 3 % of amount paid
- Second Advance Payment:Bonus is 2.5 % of amount paid
- Third Advance Payment:Bonus is 2 % of amount paid
- Fourth Advance Payment:Bonus is 1.5 % of amount paid

Those credits are set off against the amount of tax surcharge due.

Please call/email for more details.
Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 03/29/2012 -- France has passed legislation enforcing French companies to disburse a bonus to their employees when dividend paid to shareholders exceeds the average of last two fiscal years and when such companies' employee count is 50 or more.

Companies with subsidiaries in France may need to review their dividend distribution policy. Group companies whose holding company is in France also fall under the ambit of this legislation. The law applies to all dividend distributions made from January 1, 2011.

The legislation does to specify the amount of bonus to be paid out, employers will need to negotiate the amount with union or employee representatives.

Employers who refuse to negotiate a payment may even face prison sentences. The number of employees a company has, however, affects the bonus payments.

Bonus payable is exempt from Social Security Contribution up to € 1200 annually, per employee.

Please call/email for more details.

Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

About Nair & Co. 
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

The Chinese Government and the All-China Federal Trade Unions (ACFTU)are escalating efforts to promote collective wage bargaining amongst corporations, especially multinationals operating in the country.

Sunnyvale, CA -- (SBWIRE) -- 03/28/2012 -- The Chinese Government and the All-China Federal Trade Unions (ACFTU)are escalating efforts to promote collective wage bargaining amongst corporations, especially multinationals operating in the country.

China aims to rope in 80% of its enterprises with labor unions in what it terms as the 'Rainbow Plan', which is a massive effort to institute collective wage bargaining practices in the country by 2013. For smaller companies without labor unions, the collective bargaining will be in the form of regional or industry-specified collective contracts.

First announced in 2010, efforts to promote the plan have gained steam recently in view of increasing labor disputes in the country. The current labor law gives a brief outline for collective bargaining but it is difficult to enforce in practice due to bureaucratic hassles.

In a recent case Swedish firm Ikea agreed to higher monthly wages and pay hikes linked to company's yearly turnover for employees under the collective bargaining agreement.

Please call/email for more details.
Get the latest press releases and updates on international tax, compliance and other legal news at Nair & Co. Industry Alerts.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you areexpanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 03/12/2012 -- China's major investigatory and prosecutorial division - Supreme People's Procuratorate (SPP) along with other PRC anti-corruption organizations declared the availability of a centralized database of individuals and companies charged with bribery offenses to the public on February 16, 2012.

Companies and individuals will now be able to check for companies or individuals with bribery convictions throughout mainland China thus, eliminating the cumbersome task of checking every province or region individually.

In 2006, the SPP's database was limited to construction, health/medicine, finance, education and government procurement. However, in 2009, the SPP announced to include all sectors, but had provincial limitations, requiring companies to apply to 31 provincial-level bodies under central government.

The SPP announcement on the integration of the regional level database of bribery convictions indicates the government's effort to make such information easily available to the public.

Although online applications may be currently unavailable, companies are allowed to submit a written application with name and details of the individual or company they want to check, along with a copy of their business license.

About Nair & Co. 
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 03/09/2012 -- The British Home Office has introduced Biometric Residence Permits for more immigration categories, effective February 29, 2012.

Biometric residence permits are now mandatory for applicants who are applying to stay in the United Kingdom for more than six months. Those applying under the 'indefinite leave to remain' category also need to obtain the permit.

Applicants are required to enroll their biometric information which includes fingerprint and facial image in order to obtain the biometric residence permit. Permits can be applied for in person, via postal service or online.

Applicants who have pre-booked appointments with the public enquiry offices on or after February 29 2012 must make sure to take the correct form in order to avoid processing delays.

Biometrics is being used more commonly these days for identity verification purposes. It also aids in preventing impersonation and ID thefts.

About Nair & Co. 
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 03/06/2012 -- Nair & Co., the leader in international business expansionservices, has appointed Sir Alan Collins KCVO CMG as its non-executive Chairman, the company announced today.

Sir Alan, a former senior British diplomat and long standing champion of international business has also just been appointed as the Director General/Chief Executive of the Commonwealth Business Council (CBC). Previously, he has served as Britain's Ambassador to the Philippines and as High Commissioner to Singapore. He was also the Director General Trade and Investment USA and Consul General New York, where he worked extensively to attract high-value inward investment to the UK.

During his time in Singapore, Sir Alan was part of the delegation that won the Olympics for London in 2012. He has most recently also been working as Olympics Ambassador for the UK and is directing international business-related work from the London 2012 Games aiming at outcomes worth over $1.5 billion to the UK economy.

"Sir Alan is truly an international business leader. He has a deep knowledge of international trade and investment particularly in the US, Asia and in Commonwealth countries, as well as the associated interplay of economic and political factors and brings hugely valuable experience and contacts to our board. We are delighted to welcome him to our team," said Nair & Co. co-founder, Dr. Shan Nair.

"Nair & Co.'s core values of facilitating international business growth and making the benefits of globalization easier to achieve complement perfectly what I have been working on for many years. I found the company's fast growth and entrepreneurial culture by itself globalizing at an early stage very refreshing. I look forward to working with the company," Sir Alan commented.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 02/27/2012 -- Recent modifications to Mexico's foreign trade rules make it mandatory for export and import businesses to file information regarding customs transactions electronically.

Starting March 1, 2012, export and import businesses in Mexico will not have the option of manually submitting customs information using paper forms.

Mexico has very detailed import/export declaration forms and is very strict about customs documentation and small mistakes can often result in excessive fines. Also, lack of prior notification of procedural changes and inconsistent interpretation of trade requirements at different ports of entry is a cause of major concern to exporters.

Customs Information Required for Electronic Reporting

The information that businesses need to include in the reporting system are:

- Customs documentation - date and place of issue
- Name and address of the receiver of the merchandise
- Details of the recipient and vendor
- The taxpayer identification number of the voucher issuer
- Identification number of the document
- Commercial description of the merchandise in detail
- The online reporting system has been open for importers and exporters since January 16, 2012.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 02/27/2012 -- The Inland Revenue Department said that it will issue the applicable version of "Employers return of remuneration and Pensions" (BIR 56A) on April 2, 2012.

Hong Kong
- The Inland Revenue Department said that it will issue the applicable version of "Employers return of remuneration and Pensions" (BIR 56A) on April 2, 2012.
- The Inland Revenue Department will also issue the current version of "Tax Return – Individuals" (BIR60) on May 2, 2012.

Denmark
- The first installment of Denmark's biannual Corporation Tax is due on 20 March 2012.

reland
- Revenue has proposed the electronic filing (in iXBRL format) of financial statements on its * * * * Revenue On-line Service (ROS) in addition to the current electronic corporation tax return form CT1.
- Online submission of financial statements by Large Cases Division (LCD) tax payers filing returns may become mandatory from September 2013.

The online services provided by Revenue includes: Customs entry processing, Revenue On-line Service (ROS) for business and self-assessment taxes, online Vehicle Registration Tax, Pay As You Earn (PAYE) Anytime, eStamping and eRCT.

Spain
- Hydrocarbon tax – The annual list of kilometers covered for hydrocarbon tax for 2011to be submitted by April 2, 2012.
- The first corporation tax installment is due on April 20, 2012.
- Keep track of international tax and compliance deadlines.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 02/24/2012 -- Singapore announced a cash grant for small and medium enterprises along with a slew of other announcements including a new scheme for enhancing productivity and innovation during its budget statement on February 17, 2012.

Singapore budget 2012 – Small and Medium Enterprise (SME) Cash Grant
A one-off non-taxable SME cash grant calculated at 5% of the company's revenue for YA2012 will be granted to SMEs. The grant which will be capped at S$ 5,000 (US$ 3,980) can be availed by companies that have made Central Provident Fund (CPF) contributions for at least one employee during the relevant accounting period for YA 2012.

Singapore budget 2012 - Productivity Enhancement and Innovation Credit (PIC) Scheme

Cash Payout Rate - The cash payout rate will be upped from 30% to 60% for up to S$100,000 (US$ 79,540) of qualifying expenditure from YA2013 to YA2015. The cash payout can be claimed any time after the end of each financial quarter, but before the due date for the filing of its income tax return for that particular year.
Training - Expenditure incurred on the training of the company's agents could qualify for PIC, subject to certain conditions.

Research & Development (R&D)
-R&D cost-sharing agreements- Expenses related to R&D cost-sharing agreements may be considered as R&D expenditure and benefit from PIC deduction. 60% of the shared costs will be deemed to be qualifying expenditure.
-Software development - Internal R&D software development can now qualify as R&D. The multiple sales requirement will be removed to facilitate R&D in software development which is not intended for sale. However, software development meant for regular administration of business will not be considered as R&D.
Investments in Automation Equipment - Investment in qualifying automation equipment will be eligible for the cash payout option, subject to certain conditions.

Singapore Budget 2012 - Renovation and Refurbishment (R&R) deduction scheme
In 2013, the expenditure limit for the R&R deduction will be doubled to S$300,000 (US$ 238,630) for each three-year period. The scheme helps the businesses to renew their premises regularly by getting the specified tax deduction.

Singapore Budget 2012 - Capital allowance claims for low-value assets simplifiedTo make the process of claiming capital allowances on certain low-value assets easier from YA2013, the full cost of each such asset in a year will be increased to no more than S$5,000 (US$ 3,980) from present S$ 1,000 (US$ 795).

Singapore Budget 2012 - Streamlining Non-taxation of companies' gains on disposal of equity investments For shares disposed on or after 1 June 2012, gains derived from disposing equity investments by enterprises will not be taxed, provided:

the divesting company holds a minimum of 20% shareholding in the company whose shares are being disposed of; and
the divesting company maintains the minimum 20% shareholding for a minimum period of 24 months just prior to the disposal.
For share disposals in other circumstances, the tax treatment of the gains/ losses derived from share disposals will continue to be determined based on the facts and circumstances pertaining to each case.

Singapore Budget 2012 - The Integrated Investment Allowance ("IIA") Scheme
- A new IIA scheme will be introduced to provide an additional allowance on fixed capital expenditure incurred for productive equipment used overseas for pre-approved projects effective 2013.
- The existing Integrated Industrial Capital Allowance incentive will be withdrawn on February 17, 2012.

Singapore Budget 2012 - Goods & Services Tax (GST)
Temporary import relief period for GST has been extended from 3 to 6 months effective April 1, 2012. All other existing terms and conditions of the scheme will remain unchanged.

Singapore Budget 2012 - Withholding Tax Payment 
The tax payer will be granted an extra month to file and pay the tax. This change will be relevant for all payments made to non-residents on or after July 1, 2012.

About Nair & Co. 
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 02/17/2012 -- China has issued changes to the Companies' and Branch Offices' tax return forms effective Jan 1, 2012. The Corporate Income Tax (CIT) return forms that have been revised are:

-(Form A) for monthly/quarterly provisional corporate income tax returns
- (Form B) - monthly/quarterly and annual corporate income tax returns
- TPAR Form–for tax payment allocation return meant for companies with branches with independent business operations

Changes to monthly/quarterly provisional income tax returns (Form A)

The new Form A includes the following clauses:
- The taxable income of 'specific businesses,' such as the monthly and quarterly deemed profit calculated as per the deemed gross profit rates for property developers for the sale of property still under development.
- Non-taxable income
- Tax-exempt income
- Tax Losses (allowable) which are brought forward
- The independent production and business operation division of the headquarters will be taxed
- Any income tax overpaid in the previous years will be set off against the current period's CIT liability. Overpaid CIT which has not been - refunded will also be considered to reduce the CIT payable for the current period.
- Fixed allocation ratios for provisional CIT payment of headquarters are not indicated in the new Form A, because the allocation ratios for a
- Taxpayer with business branches in operation in the same province as the headquarters would be determined in accordance with the regulations in each province

Changes to the Monthly/Quarterly and Annual CIT return (Form B)

Deemed taxable income needs to be calculated on total revenue and include "deduction of non-taxable income" and "deduction of tax-exempt income" in the total revenue.

The new Form B includes CIT payable deemed by the tax authority. Calculation of deemed taxable income will not be based on total expenditures any more.

The "CIT reduced or exempted" clause has been removed from the section where CIT payable is calculated.

Changes to TPAR Form

A significant change to the new TPAR Form involves the removal of details on total revenue, total salary and total assets of the headquarters from the "information of headquarters" section. Explanatory notes to the TPAR form under Announcement 64 state that such information may be included in 'information of branches' section. This section will also need to contain information regarding each branch except that of the headquarters.

About Nair & Co. 
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

India's Supreme Court on Friday ruled in favor of Vodafone Group’s appeal against a $2.2 billion tax bill on its purchase of a 67% stake in India's Hutchison Essar Ltd.

Sunnyvale, CA -- (SBWIRE) -- 01/25/2012 -- (Sunnyvale, CA)- India's Supreme Court on Friday ruled in favor of Vodafone Group's appeal against a $2.2 billion tax bill on its purchase of a 67% stake in India's Hutchison Essar Ltd.

The verdict gives much-needed clarity to foreign businesses that have been edgy about India's tax regime, but the Indian government could speed up introduction of legislation to negate the impact of this decision on future deals.

The Supreme Court ruled that the Indian tax authorities have no jurisdiction to tax Vodafone's $11.2 billion acquisition of the Indian cellphone company from Hong Kong's Hutchison Whampoa Ltd because it was structured as a transaction between two foreign entities. The Supreme Court further asked the Indian tax department to refund the 25 billion rupees ($500 million) that Vodafone had deposited, along with 4% interest.

The headline-grabbing verdict overturns a ruling by a lower court in Mumbai and ends a very expensive four-year legal battle for Vodafone in India.

"The case was being watched very closely by foreign companies as they saw it as an illustration of the uncertainties of doing business in the Asian powerhouse economy. This ruling sends a positive signal to foreign companies that India is open for business," said Shan Nair, Co-Founder, Nair & Co.

Highlights
- The deal, struck in 2007, was structured as a transaction between Vodafone's Dutch subsidiary and a Cayman Islands-based company that held Hutchison Whampoa's India assets.

- India's Supreme Court ruled that the deal is not subject to capital gains tax, which means that Vodafone had no reason to withhold tax. The court disregarded the fact that the main asset changing hands was a controlling interest in an Indian telecom company.

- The court said that the offshore transaction is a "bona fide" structure and the fact that the selling party's Cayman Islands unit was in place for many years before the deal implied that the deal structure wasn't created just with the purpose of avoiding taxes.

- The verdict provides clarity for other foreign direct investors whose deals have similar structures to Vodafone and is a major boost for companies that are facing similar demands from India's tax department.

- Some of the deals that are facing similar disputes include - Idea Cellular-AT&T, GE-Genpact, Mitsui-Vedanta, SABmiller-Fosters and Sanofi-aventis-Shantha Biotech. British firm Cairn Energy has already agreed to pay tax in India as well as the UK on selling its stake in Cairn India to Vedanta Resources. Depending upon the size of the stake sale, the tax liability could range between $850 million to over $1 billion.

"Many countries take an approach where tax authorities concern themselves only with the corporate structure of a merger deal, not the substance of what assets are changing hands. This ruling puts India in line with such global standards and it is reassuring for foreign businesses, but all eyes will now be on how the government responds to this $2.2 billion tax loss," said Manoj George, CEO, Nair & Co.

Anti-Avoidance provisions in the proposed Direct Tax Code (DTC), a much anticipated overhaul of India's archaic tax laws that is due to be implemented soon, make income from similar cross-border deals taxable in India.

The DTC provisions include that capital gains will be taxed in India on overseas acquisitions if the acquired company holds over 50 per cent assets in India.

Speculation is rife that the Indian finance ministry may include provisions in the Income-Tax Act in Budget 2012, which is due in February, to bring such income to taxation in all future transactions. The government could also seek a review of judgment.

Some experts also believe that a retrospective amendment to the law to tax past transactions cannot be ruled out.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

China’s tax policy framework for 2012 largely focuses on reducing taxes for both individuals and small businesses to maintain economic growth and stability.

Sunnyvale, CA -- (SBWIRE) -- 01/24/2012 -- China's tax policy framework for 2012 largely focuses on reducing taxes for both individuals and small businesses to maintain economic growth and stability. China's Ministry of Finance presented the tax policy framework for 2012 during the National Finance Work Conference in Beijing.

Tax incentive for small low-profit enterprises extended
In 2011, the income tax threshold for individuals had been raised from RMB2000 (USD315) to RMB3500. Micro businesses and small-sized enterprises (with an annual taxable income of less than RMB60,000) will benefit this year with 50% of its taxable income subject to a reduced corporate income tax rate of 20%. The tax reduction will apply from January 1, 2012 to December 31, 2015.

The measures are aimed at helping smaller firms deal with increased costs of doing business. China plans to keep its import taxes low in 2012 to encourage imports and meet consumer demand while also promoting balanced foreign trading relationships.

China import taxes reduced
The Chinese government also announced plans to reduce import taxes to 4.4 % for over 730 goods which is less than half the rate by the World Trade Organization standards for a country that rules the world's export/import business. Energy and natural resources, agricultural products and high-technology equipment will be the most favored segments for imports.

The government also has plans to formulate new policies for resources, consumption and property taxes.

China Value Added Tax
Last year, China had announced a pilot scheme to replace the existing business tax on the country's service sector with value added tax in Shanghai, which if successful, would be extended nationwide.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 12/12/2011 -- The Reserve Bank of India has decided to reduce the validity period for checks, drafts, pay orders and banker's checks from six months to three months from April 1, 2012.

Currently, bankers in India are allowed to make payment of checks and drafts within a period of six months from the date of the instrument.

The Reserve Bank of India in the interest of banking policy and public interest has ruled that banks will not honor checks, drafts, pay orders and banker's checks which are presented beyond a period of three months from the date of the instrument.

Indian High Court rules Goods Supplied to Exclusive Economics Zones (EEZ) are tax free

The High Court of the western Indian state of Gujarat has ruled that the supply of goods to an offshore installation located in exclusive economic zone is not subject to sales tax, including central sales tax.

An EEZ, which is beyond 12 nautical miles to 200 nautical miles will not be subject to sales tax, including central sales tax, since the EEZ is not part of the territory of India and cannot be considered as an inter-state sale.

The Court issued this judgment in the case of Larsen & Toubro v. Union of India (Gujarat High Court) where the High Court examined the provisions in the Maritime Zones of India Act, 1976 (MZA) and observed that India had no control over the EEZ and hence the Gujarat VAT authorities could not demand tax under the CST (Central Sales Tax) Act.

Please call or email for more details.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance,internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 12/02/2011 -- Dormant companies in Italy will be paying a higher corporate tax rate in 2012 as per the new Italian tax law. Companies that can be considered 'dormant' will have to pay 38% corporate income tax (IRES) tax rate next year compared to the current rate of 27.5%.

The corporate income tax increase however, will not affect Unlimited Liability Companies (ULC) or personal companies.

The law also extends the 'dormant' discipline to companies facing financial losses for three consecutive years.

Tax rates for dormant companies in Italy

Companies are considered as 'dormant' when their regular revenues are lower than the following balance sheet items:

2% for shares or other participating instruments and financial credits;

6% for real estate assets (reduced to 5% for office buildings or 4% for buildings purchased during the same year of application);

15% for all other tangible and intangible fixedassets.

E.g., If a company owns an office building valued € 500.000,00, minimum revenues should be € 25.000,00 (or the 5% of € 500.000,00). If actual revenues are € 18.000,00, the company is considered a "dormant" company (unless the company applies for seeking exemption from these provisions).

Income Tax Pre-Payments

The new tax rates would need to be considered while calculating income tax pre-payments due for 2012 or the year following the effective date of September 17th, 2011.

Please call or email for advice on tax deductions related to dormant companies in Italy.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Sunnyvale, CA -- (SBWIRE) -- 12/02/2011 -- The Korean government announced plans to reduce the top marginal corporate tax rate to 20% for companies with tax bases between 200 million won and 50 billion won in 2012.

However, the current corporate tax rate of 22% (effective rate of 24.2% including resident surtax) will be maintained for companies with a tax base of over 50 billion won.

According to the announcement, the new middle tax bracket was proposed to achieve financial stability and improve business benefits for the small and medium sized businesses.

The Korean government also proposed a slew of other changes and developments for the year 2012, some of which are listed below:

- Maintaining a top marginal corporate tax rate of 22% (effective rate 24.2%) and creation of a new middle tax bracket

- Unification of the VAT return due date of local companies and foreign companies.

- Maintaining the top marginal individual income tax rate of 35%.

- Tax Information Exchange Agreements to be signed between Korea, British Virgin Island and Costa Rica.

- NTS (National Tax Service ) targets offshore tax evasions

- VAT Submission Due Date

- The proposal also includes plans for foreign establishments to have the same due date (e.g., a branch or a permanent establishment in Korea) for VAT submissions as the local companies, which is within 25 days from each quarter end. Currently, foreign companies are allowed to file the VAT return within 50 days from each quarter end.

Tax Evasion

The Korean taxation board, the National Tax Service is also said to be actively investigating tax evasion cases against such individuals who have allegedly concealed personal holdings and earnings in offshore accounts.

The proposed revisions above will be applied for the fiscal year starting on or after January 1, 2012 if the proposed tax law changes are passed by the National Assembly.

Please call or email if you need more details on how the Korea's corporate tax and other changes can affect your business.

About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, internal audit compliance, HR and legal department for your international operations. If you are expanding abroad for the first time, our turnkey solution will help you do so with minimal risk, stress and cost. We currently support more than 1000+ client operations in over 50 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at http://www.nair-co.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm