Regulatory Updates

• Costs on Tax Control Equipment Now VAT Free
  Starting on December 1, 2011, value added tax (VAT) payers can deduct the costs associated with purchase of VAT control equipment, and any costs incurred when conducting technical maintenance on the equipment, from VAT payments. →
• Vietnam to Extend CIT Payments for SMEs by 3 Months
  On January 19, 2012 the Prime Minister enacted Decision No. 04/2012/QĐ-TTg – granting a three-month extension for the payment of corporate income tax which small and medium enterprises, and enterprise using many laborers, must pay for the first and second quarters of 2011. →
• Vodafone Wins Landmark US$2.5 Billion India Tax Case
  India’s Supreme Court has ruled that the British telecom giant Vodafone does not have to pay taxes and penalties for the transaction in 2007 that saw the company acquire a 67 percent stake in Indian mobile phone operator Hutchison Essar. →
• India Further Liberalizes FDI Policy, Drops Mandatory Lock-In Period
  The Indian government is loosening its foreign direct investment regulations and is now allowing foreign investors the opportunity to repatriate their original investment before the expiration of a three-year lock-in period from the day it completes its minimum capitalization norm for the sector. →
• Beijing Adjusts Maternity Insurance Policy
  Starting on January 1, 2012, all company employees in Beijing – including employees with non-Beijing hukous– are required to participate in the city’s maternity insurance program. →