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Besnik Duraj The new Albanian government, formed after the 2013 general elections, has already fulfilled one of its election promises: the reform of the Albanian tax system from flat tax to tiered rates. Significant amendments have been introduced in the national laws on income tax, national taxes, tax procedures, excise, local taxes, value-added tax, the hydrocarbon tax system, and health contributions. The most important changes as of January 1 2014 are briefly presented below.

The ABS market’s return in the US features a healthy dose of caution. But growing confidence and the appearance of new structures begs the question: have we been here before?

Carlos Fradique-Mendez Luis Gabriel Morcillo During 2013, the Colombian Government enacted several regulations simplifying private equity and venture capital (PE/VC) funds' legal framework, providing legal stability and confidence to local and foreign investors (including foreign funds). As of June 2013, local funds may be structured with different participation units reflecting variable fees, preferred returns, or investor types, and which should be now placed in the custody of independent trust companies, following international trends on the protection of funds' interests. A significant reform was the introduction of a new category of investment funds focused on real estate assets, which should now be managed through a regulated management structure that permits large numbers of real estate properties to be exploited through these types of funds. At the same time, one concern remains relating to the issuance of Decree 1848 of 2013, which modified tax withholding rules on the distribution of PE/VC funds. However, the Colombian private equity industry relies on some structured competitive advantages that attract foreign investment, such as treating carried interest as a capital gain and not as ordinary income commonly subject to a tax rate of 10%, or that the fund itself is not subject to income tax (the transparency principle). Decree 1848 introduced a specific methodology that must be applied by the local fund's administrator when determining the portion of the corresponding distribution that is subject to withholding tax.

Sudish Sharma Sonia Abrol Since liberalisation, India has been an attractive destination for most international brands. From time to time, the Indian Government reviews foreign direct investment (FDI) limits when FDI is allowed in new sectors, whereas limits of investment in the existing sectors are modified according to economic conditions and considerations. One sector that has drawn a lot of interest and attention is single-brand retailing, which was significantly liberalised in 2012 but was attached with several onerous conditions, such as local sourcing from small vendors. The extant FDI policy of India on single-brand retail envisages that each investor in this sector will sell products of a single brand only, whereas several multinational groups own multiple brands under a single entity or investment group. Foreign investors argue that having separate companies for each brand creates operating complexities, in some cases making the Indian venture unviable.

Jan Willem Möller of Loyens & Loeff analyses why the country is emerging as the eurozone’s hub for dim sum bonds

The European Commission's (EC's) proposal to reform regional banks' trading activities is the latest in a line of misguided attempts to prevent a repeat of the 2007 – 2008 global financial crisis. Previously, the UK had favoured a structural split that would force banks to detach their risky trading activities from their retail operations. In the US, the Volcker rule imposes a ban on proprietary trading in the banking group. Europe's recent offering includes both structural separation provisions and a Volcker equivalent that would ban proprietary trading.

US ABS is hoping for something more exciting The asset-backed securities (ABS) market appears to be in full recovery mode. The figures for 2013 were close to their 2000 levels, with increases in auto loans and esoterics helping to pick up the slack created by the dark cloud still hanging over the mortgage industry. The real sign of the market's return however, is its creativity. Though a large amount of vanilla deals are often the hallmark of a market returned to full health, ABS has always thrived on innovation. The trick will be balancing that innovation with appropriate risk management techniques. While there will always be downturns, the latter will help manage those dips in a way that leaves confidence intact, thereby allowing innovation to rebuild the market.

Hong Kong has certainly advertised its advantages as an international listing destination. But Japanese retailer Fast Retailing's listing of Hong Kong Depositary Receipts (HDRs) has highlighted the problems with the HDR regime, and more broadly, its rules for overseas company listings.

Exchangeables out of Asia are just as rare CP Foods' exchangeable bond was the first out of Thailand and the country's first equity-linked product since BTS Group's convertible in January 2011. Market participants have described exchangeables out of Asia as 'rare beasts.' Deal counsel had to get investors comfortable with not only a product from a new jurisdiction, but also its tense political situation given opposition leaders had promised to start a month of protests to shut down Bangkok from January 13.

The government has set up asset management companies to reduce risk in the country’s banking system. But can they enhance value in distressed businesses?