QFII, RQFII holders face $4bn tax headache
Under-provisioned fund firms could be hard hit after authorities unveiled a 10% capital gains tax on QFII and RQFII investments retrospectively, sparking fears it could deter interest in the schemes.
It has been estimated that holders of QFII and RQFII quotas could be facing a $4 billion bill after authorities ruled they would be subject to 10% capital gains tax on investments retrospectively.
The move was seen as offering long-term clarity after years of uncertainty over the issue, although under-provisioned mutual fund managers could be challenged to pay the charges.
At the same time some foreign-domiciled firms will enjoy a CGT exemption due to double-tax agree…
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