The taxation of software has long challenged tax systems, exacerbated by the rise of software-as-a-service (SaaS), cloud computing, automated digital services and the like. As software increasingly operates without transfer, download or ownership, traditional distinctions between goods, services and intangibles are becoming inadequate. This article explores why taxing software remains an exercise in “catching a shadow”, with particular focus on the Indian Supreme Court’s decision in Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT.The decision reaffirmed that payments for software constitute royalty only where there is a transfer of copyright, and not where users merely obtain restricted rights to use software under an end-user licence. The article analyses how this principle was applied to conventional software distribution models and then examines its limits when confronted with modern digital business models. While Engineering Analysis provides important guidance, the taxation of digital-economy software transactions remains unsettled and highly fact-dependent.
In this article, the decision of the New Zealand Supreme Court in Rasier Operations BV et al. v. E TU Incorporated et al. SC 105/2024 [2025] NZSC 162 is examined. That case deals with the critical question of whether Uber drivers were employees or contractors of Uber. The Supreme Court found that the Uber drivers were employees within section 6 of the Employment Relations Act 2000 and still focused on the intention of the parties in determining this issue, backed up by the traditional tests of control, integration and business reality. This is Part Two of the article.
This article analyses the Bombay High Court (Goa Bench) ruling in Colorcon Asia Pvt. Ltd. v. Joint Commissioner of Income Tax (December 2025), on whether dividend distribution tax (DDT) qualified for relief under the India-United Kingdom double taxation avoidance agreement (DTAA). Under India’s pre-2020 dividend taxation regime, dividends were exempt for shareholders, while companies declaring dividend paid DDT under Indian tax law. The Court held that DDT is an additional income-tax on dividend income within article 2 of the the India-United Kingdom DTAA and thus subject to article 11’s 10% limitation, notwithstanding its collection from the company. Rejecting the Special Bench ruling in Total Oil and distinguishing the Supreme Court’s ruling in Godrej & Boyce, the judgment confirms treaty supremacy, clarifies DDT’s nature and opens the door for refund claims where excess tax was collected. Though likely to reach the Supreme Court, the ruling significantly reshapes India’s treaty-based dividend taxation framework.
In this article, the decision of the New Zealand Supreme Court in Rasier Operations BV et al. v. E TU Incorporated et al. SC 105/2024 [2025] NZSC 162 is examined. That case deals with the critical question of whether Uber drivers were employees or contractors of Uber. The Supreme Court found the Uber drivers were employees within section 6 of the Employment Relations Act 2000 and still focused on the intention of the parties in determining this issue backed up by the traditional tests of control, integration and business reality. This is Part One of the article.
Beneficial ownership is extensively used in the tax laws of numerous jurisdictions, including Singapore. While the same term is used across different areas of tax law, there are three distinct concepts of beneficial ownership which separately apply depending on the context. This article explains how to identify and apply the appropriate concept of beneficial ownership by looking at the relevant provisions of Singapore tax statutes and their subsidiary legislation. It then addresses the special case of the recently enacted Multinational Enterprise (Minimum Tax) Act 2024 and highlights it as the only exception to the general finding that wherever the concept of beneficial ownership is used in Singapore primary tax statutes, the domestic tax law concept should be applied. However, due to careful drafting of the statutes, there is little likelihood of confusion on which concept should apply in cases where that Act and the Income Tax Act 1947 interact.
Recently, there has been an increasing engagement with the Principal Purpose Test (PPT) in India through case law and circulars issued by the income tax authorities. In light of the above, this article provides an extensive review of the anti-treaty abuse jurisprudence in India, with a specific focus on the implementation of the PPT as an anti-treaty abuse tool. Specifically, it argues against the implementation of the PPT in India. The incorporation of a vague standard such as the PPT as a general anti-abuse tool muddles the already existing vibrant domestic anti-abuse statutory provisions and jurisprudence in India by creating conflicting anti-abuse frameworks. Thus, it is argued that India would do well to rely on domestic GAAR provisions, along with treaty SAAR provisions, to tackle treaty abuse and move away from the PPT as an anti-abuse tool.
This article explores Vietnam’s new tax incentives aimed at boosting private sector growth, particularly for small and medium-sized enterprises and innovative start-up enterprises. It reviews key reforms to corporate income tax and support mechanisms designed to ease compliance, encourage reinvestment and enhance competitiveness. The analysis offers insights into policy impacts, implementation challenges and implications for investors.
E-Invoicing has emerged as a key element in Malaysia’s tax digitalization agenda, carrying significant implications for multinational enterprises operating in the country. This article examines the regulatory, operational and technological dimensions of implementing an e-Invoicing system within the Malaysian context. It highlights the mandatory compliance requirements set by the Inland Revenue Board of Malaysia, identifies challenges such as cross-border transactions, system integration and alignment with local reporting obligations, and evaluates the risks associated with non-compliance. Strategies for effective adoption are proposed, including phased implementation, the harmonization of processes with Malaysian regulations and structured stakeholder training. Findings suggest that, in Malaysia, e-Invoicing functions not only as a statutory requirement but also as a mechanism to enhance transparency, efficiency and consistency in tax administration. By situating Malaysia’s approach within its regulatory framework, this article contributes to ongoing discourse on the role of digitalization in strengthening national tax compliance.
China’s first comprehensive VAT Law, effective 1 January 2026, transforms a patchwork of regulations into a formal statutory framework. This article takes a strategic view of the reform, analysing four themes central to corporate readiness. First, it traces how the VAT Law redraws the boundary between taxable, deemed-taxable and non-taxable event – narrowing deemed-sales rules while preserving scope for anti-avoidance challenges. Second, it explains the shift to a consumption-based source rule for services and the strengthened withholding mechanism for non-resident supplies in a cross-border context. Third, it evaluates changes that advance VAT neutrality, including potential creditability of loan-interest VAT. Finally, it discusses administrative modernization in China. This article provides a comprehensive roadmap for understanding the new law ahead of 2026.
This article examines the state of China's tax litigation mechanism and describes the current pilot reform programmes: the Xiamen Model and the Shanghai Model. The Xiamen Model centralizes jurisdiction and adjudication of three types of tax-related cases (civil, administrative, criminal) within a specialized “tax collegiate panel” of a district-level court in Xiamen. In contrast, the Shanghai Model sets up the specialized tax tribunals within two courts, which centrally handle all first-instance and appellate tax administrative cases across Shanghai. Regarding whether China should establish a tax court, the article presents a dialectical perspective suggesting China, as a low-tax litigation jurisdiction, should carefully assess the cost-effectiveness of resource investment needed.
This article discusses the volume and the substance of the amendments that have been made to the tax treaties of Indonesia, Malaysia, Singapore, Thailand and Vietnam through the operation of the G20/OECD Multilateral Instrument on Base Erosion and Profit Shifting. Based on their tax policies, it provides context on their positions and on the related outcomes. The article offers some conclusions on the number of treaties of the states concerned that have been affected by this first of its kind multilateral approach, and on the substance of those changes.
Singapore’s tax treatment of employee stock-based compensation (SBC) is at a crossroads. Companies may face a double burden when Singapore subsidiaries provide services to foreign affiliates under a cost-plus model: the Inland Revenue Authority of Singapore requires notional SBC costs to be included in the cost base (and marked up), even when no actual recharge occurs, while those same SBC expenses have historically been non-deductible for income tax. This article explores the transfer pricing implications, referencing a recent Irish case that permitted exclusion of SBC from the cost base, and considers Singapore’s tax framework and the OECD Transfer Pricing Guidelines. It also examines the deductibility of SBC expenses in Singapore, as proposed in the 2025 Budget, which introduces a new tax deduction for certain SBC-related payments. The article contextualizes the current treatment of SBC in Singapore and outlines planning and compliance strategies to address the challenges of non-deductibility and transfer pricing adjustments.
The Tax Corporate Governance Framework initiative was launched by the Malaysian Inland Revenue Board in 2022. This cooperative compliance programme strives to foster a more open and transparent relationship between taxpayers and tax authorities. This article offers a strategic review of this initiative, analysing three central themes and exploring the intersections between key tax governance principles and overall corporate readiness. The TCG programme showcases continuous progress in tax governance, concentrating on transparency, stakeholder involvement, adherence to governance standards, and fostering compliance and accountability, all of which contribute to sustainable business growth. Consequently, this offers a chance to reinforce investor confidence through strong governance, enhancing reputation and fostering market trust, while simultaneously presenting opportunities to align with environmental, social and governance, and enterprise risk management principles. These practical considerations will be explored further in this article, alongside the different dimensions of the TCG programme.
China’s Online Marketplace Tax Information Reporting Regulation has fundamentally reshaped the compliance landscape for digital commerce since its launch in June 2025. The regulatory framework mandates that offshore online marketplaces submit basic operational data by 30 July 2025, followed by comprehensive information on merchants and individual practitioners (such as influencers and content creators) by 31 October 2025. This reporting scheme enhances transparency by enabling relevant authorities to effectively obtain tax-related information from online marketplaces’ merchants and practitioners. Through this improved oversight capability, authorities can effectively eliminate the traditional separation between registration and operational jurisdictions that previously enabled tax arbitrage, thereby fostering a fair and legally compliant business environment.
General anti-avoidance rule (GAAR) provisions and the principal purpose test (PPT) rule have become operational in most jurisdictions. The criteria for their application may differ across jurisdictions. A taxpayer’s obligations under each rule vary, making them vulnerable to one obligation though they manage to comply with the other, as both rules can be applied concurrently in a particular case. Can a taxpayer, having passed the litmus test of one rule, justifiably claim immunity from the other? This article provides insights into the intricacies of interpretating both rules and explores some unanswered issues. As both rules usher in a new era of anti-abuse law, their interplay is examined in a limited manner from the Indian perspective. Ultimately, the commercial substance of the transaction or arrangement, if properly documented and presented, remains the strongest safeguard for the taxpayer.
Over the past 15 years of serving foreign companies doing business in China, the application of tax treaties has been a frequently discussed topic. Many foreign companies and their Chinese partners are either not familiar with the details of these tax treaties, or not sure how to apply the benefits they offer. Consequently, income taxes are sometimes paid incorrectly in China. This article explains the meaning and practical application of the most commonly used tax treaty clauses and highlights the frequent misunderstandings in their implementation.
The High Court’s decision in Commissioner of Taxation v. PepsiCo, Inc and Commissioner of Taxation v. Stokely-Van Camp, Inc [2025] HCA 30 provides a definitive statement on the treatment of “embedded royalties” and the application of Australia’s diverted profits tax (DPT) to cross-border IP arrangements. In a narrow 4:3 split, the High Court upheld the Full Federal Court’s finding that payments for beverage concentrate under exclusive bottling agreements did not include a royalty component and were not derived by the US IP owners. The ruling emphasizes objective contractual construction in its commercial context, including the role of non-monetary consideration, and the evidentiary burden in anti-avoidance contexts. This article examines the factual background, the Court’s reasoning, and the implications for multinational enterprises, with particular reference to the ATO’s draft guidance in TR 2024/D1 and PCG 2025/D4.
The growing concern over offshore trusts leaks and Indonesia’s lack of specific trust rulings underscore the need for legal reform in this area. Indonesia’s lack of clear trust rulings could lead to inconsistent treatment, legal uncertainty and challenges in addressing tax avoidance issues related to undeclared offshore assets. This article analyses Indonesia’s current tax system alongside practices from six jurisdictions – the United Kingdom, the United States, the Netherlands, Australia, Singapore and Hong Kong – to propose practical solutions. The study identifies temporary measures, such as classifying trusts by analogy with existing legal frameworks, and more permanent solutions, including the enactment of specific trust rulings. Such legislation would formalize the recognition of trusts, establish income attribution rules and integrate anti-avoidance measures. The proposed treatment aims to ensure legal certainty for taxpayers and enhance compliance while addressing potential issues of double taxation and non-taxation.
This article examines how artificial intelligence and related digital technologies are reshaping aspects of tax administration and compliance theory. Traditional models, such as deterrence and tax morale, treat enforcement and legitimacy as distinct dynamics, while Kirchler’s Slippery Slope Framework integrates them but predates large-scale digitalization. Drawing on Australia’s use of predictive auditing, virtual assistants and pre-filled returns, the article develops a hybrid compliance perspective in which technology influences both deterrence and trust simultaneously. Comparative references to Singapore, Indonesia and New Zealand illustrate how these effects vary depending on institutional capacity and taxpayer confidence. The article argues that technology’s impact is contingent on transparency, safeguards and governance choices, noting that it can support compliance but may also undermine legitimacy if deployed without appropriate oversight.
State capacity in taxation is a major determinant of which countries become prosperous. The Administrative Foundations of the Chinese Fiscal State explores how China developed a tax system to support its economic transformation, and the general lessons this holds for developing countries. Rather uniquely, China first embraced, and then abandoned, the paradigm of self-assessment. Minimizing reliance on self-assessment became the fundamental distinguishing feature of Chinese tax administration. While China’s emphasis on extensive monitoring of taxpayers and frequent government interventions, along with a de-emphasis on audits and deterrence, is consistent with recent empirical findings on the effectiveness of different enforcement tools, it challenges conventional wisdom about tax administration. The book ultimately argues that there are fundamentally different forms of state capacity: although commentators on tax and development often equivocates on the meaning of state capacity, choosing between irreconcilably different forms of state capacity may be unavoidable.
