Tax & Accounting

SHANGHAI – When determining which type of model is most appropriate for managing payroll across multiple countries, employers should take into account the advantages and shortcomings of the three most commonly utilized models. The first, a country-by-country model, entails contracting vendors locally in each country. The second, a managed model, entails contracting a single vendor […]

By Chet Scheltema, Manager, Dezan Shira & Associates BEIJING – China has rapidly implemented value-added tax reform over the last two years, and it has pledged to complete the reform by finally extending it even to the financial services and real estate industries by 2015. While value-added tax systems have grown in popularity worldwide over […]

In Asia Briefing Magazine’s first issue of 2014, we provide a country-by-country introduction to how payroll and social insurance systems work in China, Hong Kong, Vietnam, India and Singapore. We also compare three distinct models companies use to manage their payroll across various countries with external vendors, and explain the differences among three main models: country-by-country, managed, and integrated models while highlighting some benefits and drawbacks of each.

In this issue, we examine the different tax rates in 13 Asian jurisdictions – the 10 countries of ASEAN, plus China, India and Hong Kong. We examine the on-the-ground tax rates that each of these countries levy as well as residency triggers, available tax incentives for the foreign investor, and important compliance issues.

Nov. 19 – The Malaysian government has announced that it will implement a new Goods and Services Tax (GST) beginning April 1, 2015. The initial rate is expected to be 6 percent which will be the lowest amongst ASEAN countries and much lower than the VAT rates in the European Union. The tax was announced […]

Nov. 11 – Many first and second tier suppliers, including small to medium-size enterprises, are prioritizing their investments into Vietnam, acting on the business potential that it holds for companies involved in a larger supply chain providing goods and services to manufacturing hubs in Asia. It is thus increasingly important to understand the taxes which […]

Oct. 30 – This week, consulting firm Ernst & Young (EY) released its latest bi-annual mergers and acquisitions (M&A) report, which cited China as one of the world’s top five destinations for M&A activity alongside India, Brazil, the United States and Canada. The report also further provided an optimistic outlook for China and India, with […]

Oct. 25 – Vietnam’s National Assembly issued the Law on Personal Income Tax (PIT) on November 21, 2007, which came into effect on January 1, 2009. The law applies to individuals earning income, including individuals doing business who were previously included under corporate income tax. According to the PIT Law, PIT is levied on the […]

Oct. 17 – Pursuant to the prevailing regulation on Vietnamese tax management, the taxpayer must submit monthly valued-added tax (VAT) returns and settle tax payments on or before the 20th day of the following month in localities where they conduct production or business. Furthermore, in specific situations, business establishments that pay VAT according to the […]

Oct. 10 – This week, for the first time ever, Malaysia has started to allow the trading of gold futures on Bursa Malaysia – the country’s stock exchange. The Bursa currently has 19 registered futures trading brokers. For some time now, there has been a large gold business within Malaysia, with the country exporting over RM7.1 […]