Other Briefings
ASEAN Case Study: The Auto Industry and GM
With the ASEAN Economic Community going into effect at the end of this year, many companies are now seriously considering moving their operations to the region. However, the question remains as to where in ASEAN to base your business. As such, it is helpful to consider corporations that have made the move to ASEAN in the past and to try and understand their reasons for doing so. We delve into GM’s expansion into the region and provide snapshots of their operations in a few key countries.
Understanding Inheritance and Estate Tax in ASEAN
Inheritance and estate taxes (sometimes referred to as “death taxes”) can have a significant financial effect upon your assets if you are not ready for their imposition. While ASEAN is working to standardize many financial regulations throughout the economic community, inheritance and estate taxes are still imposed differently depending on the country.
ASEAN Regulatory Brief: CIT Incentives, PIT Changes, Export Management Fees, VAT on E-commerce, and More
In this ASEAN Regulatory Brief, we look at some of the important regulatory changes taking place in Thailand, Cambodia, Malaysia, Indonesia, and Indonesia during the months of January and February.
Business Optimism in Singapore Drops Again – Time to Worry?
Local businesses in Singapore started 2015 with a pessimistic outlook, continuing a downward trend for the third quarter in a row. According to the newest Business Expectations Survey (BES) – conducted by the Singapore Commercial Credit Bureau (SCCB) – the current Business Optimism Index (BOI) score of +1.11 percent, is the lowest since the first quarter of 2013. In the fourth quarter of 2014, the BOI stood at +10.79 percent. The SCCB has pointed to global economic uncertainty, rising cost pressures and manpower issues, as well as lower demand in the export-oriented sector, as possible drivers behind the lowered optimism.
ASEAN Exchanges: Myanmar Integrates Further
Myanmar’s Deputy Finance Minister, Maung Thein, has announced that the over-the-counter Myanmar Securities Exchange Centre (MSEC) will be replaced with the Yangon Stock Exchange in October 2015. So far, ten companies are expected to meet the criteria for initial listing on the exchange.
Cambodia Raises its Income Tax Threshold
At the beginning of January, Cambodia reduced the income tax burden on workers in the country. The government has raised its tax threshold from 500,000 riel (US$125) to 800,000 riel (US$200). The previous lowest income tax bracket had begun at 500,000 riel, at a rate of five percent. This change puts approximately US$3.75 a month back into the pockets of workers in Cambodia earning over US$200 per month.
Singapore Signs IGA on FATCA with the United States
On December 9, 2014, Singapore became the first country in Southeast Asia to sign an Intergovernmental Agreement (IGA) on tax information sharing with the United States. The signing follows an in substance agreement reached between Singapore and the US in May 2014. Most countries around the world have been entering into IGAs with the US government since the US introduced a complex reporting and withholding regime through the passage of the Foreign Accounts Tax Compliance Act (FATCA) in March 2010.
ASEAN Open Skies Policy To Be Implemented in 2015
The ASEAN Open Skies policy will be implemented next year with the goals of increasing regional and domestic connectivity and enhancing regional trade.
Turkey Launches Anti-Dumping Probe into Malaysia, Vietnam Steel Re-Exports
The Vietnam Competition Authority has announced that Turkey’s Ministry of Economy is investigating steel products imported from Malaysia and Vietnam following a complaint by M/s Jindal Stainless Limited.
OECD and ASEAN Release Investment Policy Review of Myanmar
On December 9th, the Second ASEAN-OECD Investment Policy Conference was held in Jakarta, Indonesia, to discuss the continued facilitation and promotion of ASEAN investment for regional integration. The event brought together ASEAN investment policy makers, Organization for Economic Cooperation and Development (OECD) members, and industry leaders, to showcase ASEAN’s regional investment integration achievements since the first conference in 2010. Included at the conference was the release of the OECD’s Investment Policy Review of Myanmar, which marked the country as one to watch heading into 2015.
