1. Korea

• Tax rate increase to encourage large Korean companies to reduce their cash balances by spending on investment, increased wages, dividends, etc.

• Two calculation methods

• For a copy of 6 August 2014 government press release, visit www.deloitte.com/ap/dbriefs/bytes

• For a copy of July 2014 government document on economic policies, visit www.deloitte.com/ap/dbriefs/bytes

• For information:

Gyung Ho Kim (Seoul): [email protected]

2. Cases

• India

- Zaheer: characterization of profit made on the sale of debentures: “interest” or “capital gain”?

- LG: does Korean parent have a PE in India (at the premises of Indian subsidiary)?

- Reuters: definition of “royalties” in India / UK treaty

- For information:

N.C. Hegde (Mumbai): [email protected]

K.R. Sekar (Bangalore): [email protected]

• Finland

- Hybrid loan case

- For information:

Tomi Pitkanen (Helsinki): [email protected]

3. Inversions

• Biggest international tax story of 2014?

• Why are there many more inversions now?

4. China

• Circular 318: enforcement of capital gains tax on share transfers

• Draft GAAR guidelines: comments from Tax Executive Institute (TEI)

- For a copy of TEI’s comments, visit www.deloitte.com/ap/dbriefs/bytes

• For information:

Vicky Wang (Shanghai): [email protected]

Ye Hong (Shanghai): [email protected]

5. In brief

• Treaties: Korea / Colombia and China / Netherlands treaties enter into force

• OECD

- Request for public comments on BEPS Action 11: for a copy, visit www.deloitte.com/ap/dbriefs/bepscentral

- Part 1 of report on the impact of BEPS on low-income countries: for a copy, visit www.deloitte.com/ap/dbriefs/bepscentral

- Global Forum’s latest batch of peer reviews and compliance ratings, in regard to transparency and exchange of information

• For a copy of Indonesia’s report, visit www.deloitte.com/ap/dbriefs/bytes

• New Zealand: tax authority’s description of recent changes to thin cap rules

- For a copy, visit www.deloitte.com/ap/dbriefs/bytes

- For information:

Teresa Farac (Auckland): [email protected]

• Whistleblowers