《富?，敐桑‵orvis Mazars）：2024-2025年亞太地區營商環境報告（英文版）（59頁）.pdf》由會員分享，可在線閱讀，更多相關《富?，敐桑‵orvis Mazars）：2024-2025年亞太地區營商環境報告（英文版）（59頁）.pdf（59頁珍藏版）》請在三個皮匠報告上搜索。

1、Doing business in Asia Pacific2024-2025The Asia Pacific region plays an important role as a driver of the global economy.As international businesses seek to expand overseas,the region offers some of the best opportunities for growth.This guide has been prepared to assist those interested in doing bu

2、siness in Asia Pacific.It does not cover the subjects it treats exhaustively,but is intended to answer some of the important broad questions that may arise.When specific issues arise,it will often be necessary to consider the relevant laws and regulations and to obtain appropriate professional advic

3、e.Contents4 Introduction5 Australia9 China13 Hong Kong17 India21 Indonesia25 Japan29 Korea,The Republic of33 Malaysia38 Philippines42 Singapore47 Taiwan51 Thailand55 VietnamDoing Business in Asia PacificForvis Mazars4Forvis Mazars is a leading global professional services network operating under a s

4、ingle brand with just two members:Forvis Mazars,LLP in the United States and Forvis Mazars Group SC,an internationally integrated partnership operating in over 100 countries and territories.With a legacy spanning more than 100 years,Forvis Mazars is a natural extension of both firms heritage.At our

5、core is our commitment to providing a different perspective and an unrivalled client experience that feels right,personal,and natural.As a network of just two allied organisations,we act fast to deliver consistent and agile audit,tax,and advisory services worldwide.We nurture a deep understanding of

6、 our clients industries,delivering greater insight,deeper specialism,and tailored solutions.Together,our combined teams of 40,000+professionals have the experience and skills to best serve organisations of all sizes,both locally and globally,now and into the future.Forvis Mazars in Asia PacificPrese

7、nt in the Asia Pacific since 1997,Forvis Mazars operates in more than 15 countries and territories in the region and draws on the expertise of over 9,300 professionals in more than 50 offices.We work as one integrated team,leveraging expertise,scale,and cultural understanding to deliver exceptional

8、and tailored services in audit and accounting,as well as tax,financial advisory,outsourcing,consulting,sustainability,and legal services.With offices throughout the region,we help businesses operate locally,enter new markets and streamline their regional and global operations.We collaborate seamless

9、ly across various sectors,services,and geographies to deliver consistent quality to our clients,combining our skills and expertise with a global perspective and local knowledge to provide clients with a holistic array of professional services.As you develop your business in the Asia Pacific,you will

10、 find in Forvis Mazars a strategic business partner which can provide you with a single point of contact in the Asia Pacific region and help you make the most of opportunities in this business environment.Forvis Mazars is a leading global professional services network operating under a single brand

11、with just two members:Forvis Mazars,LLP in the United States and Forvis Mazars Group SC,an internationally integrated partnership operating in over 100 countries and territories.IntroductionWho we are50+Offices15+Countries&territories190+Partners9,300+ProfessionalsKey figures of Forvis Mazars in

12、 Asia Pacific:Data as at 1 January 2024,unless stated otherwise.Doing Business in Asia PacificForvis Mazars5Doing business in Asia PacificAustraliaDoing Business in Asia PacificForvis Mazars6Establishing an entityThe legal structures available for foreign businesses wishing to operate in Australia a

13、re a subsidiary company or a registered foreign company(where the foreign company registers to conduct business in Australia,i.e.,a branch registration).The concept of a representative office exists in Australia,but can only involve limited business activities of the foreign company in the country,s

14、uch as marketing and maintenance of stock.A company is much simpler to establish and to obtain the various registrations to trade.For this reason,it is the most popular approach to setting up in Australia.In order to establish a company,you must have at least one Australian resident director and an

15、Australian resident“public officer”for dealings with the Australian Taxation Office(ATO).The same person can perform both roles.A branch(registered foreign company)is essentially treated the same as a company from the corporate tax perspective.The initial registration of the foreign company with the

16、 Australian Securities and Investments Commission(ASIC)and the ATO can be a difficult process due to proof of identity requirements for foreign parties.This can add up to 3 months to the establishment process.From 5 April 2022,both Australian and foreign directors also need to obtain a director iden

17、tification number with the Australian Business Registry Services(ARBS)before appointment.In order to establish a branch,you must have appointed a local agent who is responsible for any obligations the company must meet with the ASIC.Australia3.0%5.6%26.64mUSD 64,711*Data collected from data.worldban

18、k.org based on a 2023 report.Inflation*GDP per head*Population*GDP growth*Doing Business in Asia PacificForvis Mazars7Foreign business restrictionsUnder the Foreign Acquisition and Takeovers Act,1975,foreign individuals or foreign-owned companies must seek approval from the Foreign Investment Review

19、 Board(FIRB)before purchasing significant interests in real estate,certain shares of Australian-owned private companies,or shares in foreign companies which own Australian assets.The thresholds that apply to acquisitions of interests can be found on the FIRBs website.Investment incentivesAn Australi

20、an resident company can obtain income tax incentives for research and development expenditure and grants for exporting.A foreign company conducting business through a branch in Australia can obtain these incentives if it is incorporated in a country that Australia has entered into a double tax agree

21、ment with.Tax incentives are available for investors in early-stage innovation companies.The incentives provide a tax offset for the initial cost of investment and an exemption from capital gains tax on the sale of shares held between 12 months and 10 years.For large entities wishing to establish a

22、presence in Australia with a large number of employees,there may be state-based grants or state payroll tax allowances available.These are negotiated individually on a case-by-case basis.Work permits and visasAn expatriate travelling to Australia for business purposes(such as attending a meeting/con

23、ference,negotiating a contract,or making enquiries)can usually obtain a business visitor visa(depending on their nationality).Expatriates who wish to work in Australia must obtain the appropriate working visa,which is generally a Temporary Skills Shortage(TSS)visa,or alternatively,a temporary work(s

24、hort stay activity)subclass 400 visa.Companies operating in Australia,or those in other countries wishing to establish an entity in Australia,are able to sponsor individuals to enter with the TSS visa,which allows a stay in Australia of up to 2 or 4 years,depending on the occupation of the expatriat

25、e employee.TSS visa holders may have an option to apply for permanent residence if nominated by their employer.A visa holder cannot change conditions of employment without prior approval from the Department of Immigration.TaxationAll businesses trading in Australia must obtain an Australian Business

26、 Number(ABN)as well as a Tax File Number(TFN).The main business taxes in Australia are company tax,GST and withholding tax.The general company tax in Australia is 30%,which applies to taxable income.However,a lower rate of 25%applies to companies that conduct a business,have passive income of less t

27、han 80%of their annual income,and have an annual group turnover of less than the relevant annual threshold.The threshold is AUD 50 million from 2021/2022 onwards.The income tax return is due annually,approximately 7 months after the year-end of the company.After the first year of operation,the compa

28、ny may also be required to pay a monthly or quarterly instalment of company tax,depending on the size of the business.These monthly or quarterly instalments are then applied to the tax liability at the fiscal year-end.The standard fiscal year-end in Australia is 30 June.However,a taxpayer can apply

29、to have an alternative year-end to match group reporting dates.Losses are available to be carried forward indefinitely,subject to meeting specific loss tests.All Australian entities in a wholly owned group can choose to consolidate and therefore be treated as a single entity for income tax purposes.

30、In general,Goods&Services Tax(GST)registration is required for all businesses where turnover exceeds AUD 75,000.The rate of GST is 10%.A registered business must lodge GST returns either monthly or quarterly via a business activity statement.The net GST(GST payable minus input tax credits)is pai

31、d to the ATO at the same time.Withholding tax is required to be deducted from the overseas payment of interest,unfranked dividends(i.e.,dividends paid from profits not previously subject to tax in Australia),and royalties.The rate of withholding tax will be determined with reference to whether Austr

32、alia has a double tax agreement with the relevant country.Doing Business in Asia PacificForvis Mazars8Audit and accountingThe reporting requirements of proprietary companies and registered foreign companies depend on whether the company is defined as large or small under the Corporations Act.A compa

33、ny is classified as small if it meets 2 of the following 3 criteria:1.Consolidated gross operating revenue is less than AUD 50 million a year.2.Consolidated gross assets is less than AUD 25 million at year-end.3.Number of employees at year-end is less than 100 for that entity and all controlled enti

34、ties.A proprietary company is otherwise categorised as large.Small foreign controlled companies are required to prepare and lodge audited financial reports with the ASIC unless they meet the criteria for the application of one of the following exemptions:Where their results are included in a consoli

35、dated financial report lodged with the ASIC by a registered foreign company or an Australian company.Where the company obtains relief from the ASIC within the prescribed time period(being from 3 months prior to the commencement of the fiscal year to 4 months following the end of the fiscal year).The

36、 standard fiscal year-end in Australia is 30 June.However,subject to specific legislation,a company can notify the ASIC(in writing)of an alternative year-end in order to synchronise its fiscal year with that of its foreign parent.Country quirks Fringe benefits tax applies to benefits provided to emp

37、loyees,such as cars,entertainment,health insurance,etc.Payroll tax is payable on a state-by-state basis,depending on which state employees are located in(subject to state thresholds).Workers compensation insurance is payable on a state-by-state basis,depending on which state employees are located in

38、.Superannuation(paid by the company)is compulsory for all employees at the rate of 11%of their remuneration,and will increase to 11.5%on 1 July 2024,and 12%on 1 July 2025.Thin-capitalisation restrictions on debt deductions mean that care should be taken when setting the level of share capital requir

39、ed for the business(minimum share capital is AUD 1).There are exemptions available if annual debt deductions are less than AUD 2 million.Forvis Mazars contactsMatthew AshleyManaging Partner,Head of OutsourcingAustralia S.auRichard DeBonoManaging PartnerAustralia Melbourne .auJohn KotzurManaging Part

40、nerAustralia B.auDoing Business in Asia PacificForvis Mazars9Doing business in Asia PacificChinaDoing Business in Asia PacificForvis Mazars10Establishing an entityThe main legal structures available for foreign businesses wishing to operate in China include a wholly foreign-owned enterprise(WFOE),jo

41、int venture,branch office,and representative office.A WFOE is a limited liability company,wholly owned by one or more foreign investors.The WFOE was originally introduced to promote manufacturing activities that were either export-oriented or encouraged advanced technology.Since Chinas entry into th

42、e World Trade Organisation,WFOEs have also been increasingly used for consultancy and services,wholesale,retail,and franchise activities.A joint venture in China is formed by foreign investors and a Chinese party,either as a limited liability entity(equity joint venture)or a co-operative entity(co-o

43、perative joint venture).For foreign investors new to the market,a Chinese partner offers the advantage of familiarity with the Chinese market and may help to shorten the learning curve.In some industries,joint ventures are mandatory,as WFOEs are prohibited.The company registration process for any st

44、ructure requires a registered address,one legal representative and/or one supervisor/audit committee,based on the shareholder structure.There is no minimum capital requirement except for specific industries.However the capital must be sufficient to finance operations due to the foreign exchange cont

45、rol regulations in place in China.The capital must be contributed as specified in the articles of association within a maximum of 5 years in accordance with the local provisions.If the investor wishes to establish a presence rather than a separate legal entity in China,it may choose to establish a b

46、ranch office or a representative office.These 2 arrangements are treated as extensions of the head office overseas.Branch offices are rarely approved for specific industries,while a representative office can only be used to facilitate market entry and/or act as a liaison for the group.A representati

47、ve office cannot make business transactions or provide services to other entities.China5.2%0.2%1.41bnUSD 12,614GDP growth*Inflation*GDP per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars11Foreign business restrictionsForeign

48、businesses are regulated by the Ministry of Commerce(MOC)under the catalogue for the guidance of foreign investment.This catalogue categorises business activities into 2 groups:permitted and prohibited.Companies established in the free trade zone in Shanghai are only subject to the list of prohibite

49、d activities related to this zone.An activity is allowed as long as it is not classified as prohibited.Each group includes a list of the sectors and the legal structures required in each case.Some of the activities require a joint venture,some limit the maximum percentage of shares held by the forei

50、gn partner,while others can be engaged in through a 100%foreign-owned company.Investment incentivesForeign investment incentives are focused on some key sectors and less developed areas.Specifically,incentives are offered for high-end manufacturing,high technology,new sources of energy,energy effici

51、ency,and environmental protection industries,subject to certain conditions.Entities in these key sectors may qualify for a lower enterprise income tax rate of 15%,as compared to the regular enterprise income tax rate of 25%.Research and development activities are also incentivised with 150%of the re

52、lated expenses deductible for corporate income tax purposes.In addition,foreign enterprises are encouraged to increase investments in Chinas central and western regions through tax incentives and other favourable policies.Enterprises operating in these regions may enjoy a lower enterprise income tax

53、 rate of 15%.Notably,laws relating to investment incentives change from time to time.Professional advice should be sought when considering an investment.Work permits and visasTo obtain a work permit,in most cases,the applicant must hold a bachelors degree,have at least 2 years of work experience,and

54、 a local labour contract in China.The application file includes the original college degrees and proof of no criminal record translated into Chinese,notarised and legalised at the Chinese embassy or consulate.TaxationThe main taxes in China are value-added tax(VAT),withholding tax,corporate income t

55、ax,and individual income tax.Starting from 1 May 2016,all taxable services provided by or to taxpayers located in China became subject to VAT rather than business tax.There are 2 VAT payer categories:general VAT payers and small-scale VAT payers.The VAT rates for general VAT payers are mainly 13%for

56、 the lease of movable tangible assets,9%for transportation services,and 6%for other taxable services.The rate for small-scale VAT payers is 3%,and they cannot set off input VAT against output VAT.However,in some cases,VAT payers may be allowed to subtract certain disbursements and subcontracting exp

57、enses from output VAT.In most cases,VAT returns and related payments must be submitted by the 15th day of the following month.Payments made from China are generally subject to withholding tax.If the payments are in relation to passive income,such as dividends,interest or royalties,they are subject t

58、o a withholding tax of 10%(which may be reduced by a tax treaty).In addition,VAT may be charged on items such as interest or royalties.If the payments are in relation to the provision of services,depending on whether there is protection by virtue of tax treaties,profits on such services are subject

59、to corporate income tax of 10%.These kinds of services are subject to VAT,which is usually not covered by tax treaties.Corporate income tax(sometimes called enterprise income tax)is generally applied at a rate of 25%on net profits.Two types of declarations are required:an annual declaration and a qu

60、arterly declaration.These quarterly declarations represent a prepayment of the tax payable on the expected net profit for the year.It is worth noting that,whilst operating losses may be carried forward for up to 5 years,there is no provision for the carry-back of losses or for group relief in respec

61、t of affiliates consolidated losses.The annual declaration must be submitted before May of the following year,together with the statutory audit report.Individual Income Tax(IIT)in China is withheld on a monthly basis by the employer.It is a progressive system and the responsibility for computation a

62、nd declaration is shared between the employee and the employer.Doing Business in Asia PacificForvis Mazars12In practice,however,employers are held responsible for this by the tax authorities and are subject to penalties for failing to withhold or report this properly.Additionally,interest of 0.05%pe

63、r day on late payments due is imposed.The penalty could be as high as 3 times the amount of IIT payable.Any underpaid IIT remains the responsibility of the employee.A person classified as a resident individual in China must settle his annual IIT before 30 June of the following year if he meets the f

64、ollowing conditions:1.The individual will apply for a tax refund since the amount of individual income tax that has been prepaid by the taxpayer is greater than the amount of payable individual income tax for the year.2.The individual has received annual income exceeding CNY 120,000,and the amount o

65、f overdue tax paid by him for the years final settlement exceeds CNY 400.Foreign currency transactions controlsThe State Administration of Foreign Exchange(SAFE)is tasked with the promulgation of rules and regulations governing foreign exchange transactions,monitoring foreign exchange activities,and

66、 setting the renminbi convertibility policy.Foreign companies in China will typically have to deal,directly or indirectly,with the SAFE when receiving funds from,or paying them to,overseas parties.In the case of a loan from an overseas sister or mother company,for instance,the China-based borrowing

67、company would have to register the loan with the SAFE prior to receiving the funds in a dedicated bank account.Such procedures with the SAFE should not be underestimated,as they can be time consuming and complex.Audit and accountingAll Foreign Invested Entities(FIE)in China must have their accounts

68、prepared by a registered Chinese accountant and audited by a registered Chinese CPA firm.The fiscal year-end date for all entities is 31 December.A financial and statutory report must be issued by a CPA firm.Peoples Republic of Chinas(PRC)generally accepted accounting principles(GAAP)are broadly ali

69、gned with the IFRS,with some exemptions for a particular sector or area.Country quirks Legal structure and capital required are sector dependent.Accounts must be prepared by a Chinese accountant and audited by a Chinese CPA Firm.All FIE in China must be audited.Two categories of business activities:

70、permitted and prohibited.Foreign exchange controls exist on all transactions in and out of China.Forvis Mazars contactDr.Julie LaulusaMember of Group Executive BoardManaging Partner,CThomas ChenPartner,Head of OutsourcingCDisclaimerIn the context of this publication,China,Mainland China,or the PRC r

71、efers to the Peoples Republic of China,but excludes the Hong Kong Special Administrative Region,the Macao Special Administrative Region,and the Taiwan Region.Doing Business in Asia PacificForvis Mazars13Doing business in Asia PacificHong KongDoing Business in Asia PacificForvis Mazars14Establishing

72、an entityThere are four basic ways of establishing a business in the Hong Kong Special Administrative Region(HKSAR).A sole proprietorship has minimal restrictions on operation,but it involves unlimited liability for the owner,and therefore it is not normally recommended.A partnership can be general

73、or limited.In a general partnership,partners are jointly and individually liable for debts and obligations.A limited partnership,governed by the limited partnership ordinance,requires at least one partner to have unlimited liability.A limited company can be private or public and is subject to the co

74、mpanies ordinance.Most businesses in the HKSAR are private companies limited by shares.These companies restrict share transfers,limit the number of shareholders to 50,and prohibit public offerings of shares.Public companies have additional requirements.A branch or representative office of any overse

75、as company establishing a place of business in the HKSAR must register under the companies ordinance.If the office serves a liaison function without conducting business that creates legal obligations,it must register as a representative office under the business registration ordinance.Hong Kong3.2%2

76、.1%7.54mUSD 50,696GDP growth*Inflation*GDP per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars15Foreign business restrictionsEssentially,there are no restrictions on setting up a foreign business in Hong Kong and no foreign ex

77、change controls.There is also no Hong Kong residence requirement for shareholders or directors of an entity in the HKSAR.Investment incentivesThere are few incentives to promote business investments,as Hong Kongs low tax rates,excellent financial infrastructure,and favourable investment climate are

78、considered sufficient to attract investments.In recent years,Hong Kong has introduced tax incentives for certain targeted industries or sectors,such as the asset and wealth management industry,insurance and insurance brokerage businesses,corporate treasury centres,and aircraft and ship leasing.A tax

79、 deduction of up to 300%for the first HKD 2 million of qualified R&D expenditure may be claimed.A tax deduction of 200%of the remainder(uncapped)may be taken.Work permits and visasOther than those who have the right of abode or right to land(for ships)in the HKSAR,all foreigners require a visa t

80、o live and work in Hong Kong.As a general rule,any person who wishes to study,enter into employment,invest in Hong Kong,settle in Hong Kong for permanent residence,or stay as a visitor longer than the allowed visa-free period,must obtain a proper visa before coming to the HKSAR via a Chinese consula

81、te or visa office in his country of residence or citizenship.People who take up residence in the HKSAR are required to register for an identity card.After living in the HKSAR for seven years,one can apply for a permanent identity card.If successful,there will be no subsequent requirement for a visa

82、or a work permit.TaxationThere is no value-added tax,sales tax,or capital gains tax in Hong Kong(capital gains may be subject to“profits tax”under certain circumstances).Profits taxProfits tax is imposed for each tax year on Hong Kong-sourced profits derived from a trade,profession,or business condu

83、cted in Hong Kong.There is no distinction between residents and non-residents.The source of profits is determined by an“operations test”(i.e.,identifying the activities which directly produce the relevant profits and the place where these activities are carried out).Expenses are generally deductible

84、 to the extent that they are incurred in the generation of assessable profits.Under the refined foreign-sourced income exemption regime now in place,foreign-sourced interest income,dividends,IP income,and gains on the disposal of all types of property received in Hong Kong by a member of a multinati

85、onal enterprise conducting a trade,profession,or business in Hong Kong may be deemed to be sourced from Hong Kong and subject to profits tax if member of the multinational enterprise fails to meet the exception criteria,i.e.,economic substance,participation,or nexus requirements.A tax year covers a

86、period of 12 months,from 1 April to 31 March of the following year.Profits earned by a business during an accounting year ending within a tax year will be deemed to be its profits for that tax year.Tax losses incurred cannot be carried back,but can be carried forward indefinitely to be set off again

87、st any future assessable profits.Anti-avoidance provisions restrict the use of tax losses where a change in shareholding was made solely or predominantly for the purpose of utilising the losses to obtain a tax benefit.Under the two-tiered profits tax rates regime,the profits tax rate for corporation

88、s is 8.25%on assessable profits up to HKD 2 million,and 16.5%on any part of assessable profits over HKD 2 million.For unincorporated businesses,the profits tax rate is 7.5%on assessable profits up to HKD 2 million,and 15%on any part of assessable profits over HKD 2 million.However,for two or more co

89、nnected entities,only one of them may elect for the two-tiered profits tax regime.Doing Business in Asia PacificForvis Mazars16Salaries tax Salaries tax is imposed for each tax year on an individuals income arising in or derived from Hong Kong from any office,employment,or pension.For Hong Kong empl

90、oyment,all income derived is typically subject to salaries tax,even if some services are performed outside of Hong Kong.Income employment not related to Hong Kong is only taxed to the extent that it is derived from services rendered in Hong Kong.In determining whether employment is classified as Hon

91、g Kong employment or non-Hong Kong employment,the practice of the inland revenue department is to take into account all of the relevant facts,with particular emphasis on where the employment contract was negotiated,entered into,and where it is enforceable;where the employer is resident;and where the

92、 employees remuneration is paid to him.Income from services rendered during visits to Hong Kong by a person not exceeding 60 days in a tax year is exempt.Salaries tax is charged at progressive rates from 2%to 17%on a taxpayers net chargeable income(i.e.,income after deduction of expenses and persona

93、l allowances),with the maximum limited to the standard rate of 15%on the taxpayers net assessable income(i.e.,income after the deduction of expenses without any personal allowances).Audit and accountingAll companies incorporated under the companies ordinance,regardless of size,must have their(annual

94、)financial statements audited by a practicing CPA registered with the Accounting and Financial Reporting Council(AFRC).The Hong Kong Financial Reporting Standards(HKFRS)issued by the Hong Kong Institute of Certified Public Accountants(HKICPA),which are almost fully converged with the International F

95、inancial Reporting Standards(IFRS),are commonly adopted for the preparation of financial statements of companies incorporated under the companies ordinance.Hong Kong also adopts the Hong Kong variation of IFRS for SMEs,which is known as the HKFRS for private entities,for companies that do not have p

96、ublic accountability.SMEs that meet certain criteria,including a size test and shareholders approval,can also choose to apply the Small and Medium-sized Entity Financial Reporting Framework and Financial Reporting Standards(SME-FRF&SME-FRS).Country quirks Legal system originated from and based o

97、n English common law,unlike that of Mainland China.No restriction on foreign business,and no foreign exchange control.The HKD has been pegged to the USD since 1984 at a fixed rate of USD 1=HKD 7.8+/-0.05.Official languages are English and Chinese.Forvis Mazars contactJimmy YipManaging DirectorHong K

98、ongjimmy.yipmazars.hkGilles-Alexandre SalansyPartner,Head of OutsourcingHong Konggilles-alexandre.salansymazars.hkDoing Business in Asia PacificForvis Mazars17Doing business in Asia PacificIndiaDoing Business in Asia PacificForvis Mazars18Establishing an entityInvestors may establish a business or p

99、resence in India either as a foreign company or as an Indian company.A foreign company is one that has been incorporated outside of India and conducts business in India.The structures available include branch office,representative(liaison)office,or project office.The latter can be set up for specifi

100、c projects with the approval of the reserve bank of India.Each of these structures represents an extension of the parent company.A foreign investor may incorporate a company under the Indian Companies Act of 2013.Foreign equity ownership in such Indian companies can be up to 100%depending on the bus

101、iness plan,prevailing government investment policies,and receipt of the requisite approvals.Operations through an Indian company may be established via a joint venture or wholly owned subsidiary.Every Indian company having paid-up share capital of INR 100 million or more is required to appoint a qua

102、lified person as company secretary.Foreign business restrictionsForeign investment is prohibited in a number of activities,including,but not limited to:chit funds,nidhi companies,agricultural or plantation activities,media,real estate(with the main exception being construction or development),constr

103、uction of farmhouses,trading in Transferable Development Rights(TDR),manufacturing of cigars,cigarettes or of tobacco substitutes,atomic energy,and railway operations.In the sectors or activities that are not categorised as prohibited,foreign investment is either:(i)approved by the government,up to

104、limits indicated in policy on foreign investment(approval route);or(ii)permitted up to 100%,subject to applicable laws and regulations(automatic route).In a few sectors,additional conditions,such as minimum capitalisation requirements,must be met.India7.6%5.6%1.43bnUSD 2,485GDP growth*Inflation*GDP

105、per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars19For any investment(whether direct or indirect)made from Bangladesh,China,Pakistan,Nepal,Myanmar,Bhutan,or Afghanistan,or where the beneficiary of an investment in India is s

106、ituated in or is a citizen of those countries,requires the prior approval of the government,regardless of the sector or activities in which the investment is made.There are similar restrictions on the appointment of directors who are citizens of these countries.Investment incentivesTax incentives ar

107、e available for investment in India.India has a number of Special Economic Zones(SEZ).SEZs are considered foreign territories for tax and customs purposes.Companies in an SEZ are eligible for a full tax exemption for the first 5 years and a 50%exemption from tax due for the next five years.Entrepren

108、eurs who supply infrastructure resources in an SEZ are eligible for a 10-year tax exemption.Deduction of taxable profits if operating in an SEZ is available if operations commenced on or before 1 April 2020.A 100%deduction of profits and gains is available for a company or LLP which is engaged in a

109、business involving innovation,development,deployment,or commercialisation of new products,processes,or services driven by technology or intellectual property,and turnover is less than INR 250 million.Entities can claim this deduction for any 3 consecutive years out of 7 years,starting from the date

110、of incorporation.Work permits and visasAll foreign residents entering India must have a visa.The main visa classes in India are:1.Tourist VisaThis visa is given to a foreigner who intends to visit India solely for purposes of tourism or other non-business purposes.2.Transit VisaValid for a period of

111、 15 days for the sole purpose of enabling the holder to travel through India to reach his/her ultimate destination.3.Business VisaThis visa is intended for a foreign resident who visits India for business purposes,including opening a business.4.Employment VisaThis visa is granted to a foreign reside

112、nt who intends to work in India.This is required by any foreign authorised representative of a liaison office,branch office,or project office.Visas are usually issued by Indian representative offices in a foreign country.Applications may be made to the ministry of home affairs in India for an extens

113、ion of an existing visa.Foreign residents who wish to live in India for over 180 days must register with the registration office within 15 days of their entry into India.Residence permits in India are issued for a period corresponding to the period of the employment visa.I tis not necessary to obtai

114、n a separate work permit.TaxationIndirect taxes(such as service tax,VAT,excise duties,etc.)have been subsumed and replaced with a single tax known as a Goods and Services Tax(GST)GST registration is required for businesses with income from services or the sale of goods exceeding INR 2 million or INR

115、 4 million,respectively.There are different rates for GST,depending upon the classification of goods sold.Services are taxed at the rate of 18%.GST returns must be submitted monthly based on the turnover of the company.Furthermore,tax payments must be made before the 20th of the month that in which

116、the tax invoice was raised,on an accrual basis,regardless of whether the taxpayer has received payment from the customer.Withholding tax is income tax deducted at source from certain types of payments(e.g.,rental;advertising;professional,technical,or consultancy services;royalties,and interest).Tax

117、withheld must be paid to the government by the 7th day of the following month.Withholding tax returns are filed quarterly by the withholder,and a withholding tax certificate issued to the income recipient.An equalisation levy is a tax that is withheld at prescribed rates if payment for certain servi

118、ces or for the online sale of goods or services by an e-commerce operator has been made to a non-resident which does not have a permanent establishment in India.Doing Business in Asia PacificForvis Mazars20Rates of income tax for various types of entities(including surcharges,health and education le

119、vies)are presented below:Entities1.Individual(maximum marginal rate presented for individuals)31.20%2.Firm and LLP 31.20%3.Domestic company having opted for the new tax regime 25.168%4.Newly set up manufacturing company(set up after 2020)17.16%5.Foreign company41.60%Companies can opt to be taxed und

120、er the old tax regime,under which they can claim certain exemptions,but are then subject to a higher corporate tax rate(approximately 34%),as well as being subject to pay Minimum Alternate Tax(MAT).Companies that continue to pay taxes under the old tax regime are liable to pay MAT on their adjusted

121、book profits(other than income from a life insurance business),where the tax liability under the normal provisions(excluding surcharge and health and education levies)of the Income Tax Act for the tax year is not more than 15%(excluding surcharges,and health and education levies)of such book profits

122、.Companies must make advance payments on their corporate income tax quarterly based on estimated annual income.Business losses and capital losses may be carried forward 8 years.Unabsorbed depreciation losses can be carried forward indefinitely.With a view to simplify tax compliance for smaller entit

123、ies,the tax law provides that an individual or partnership firm engaged in business whose turnover does not exceed INR 20 million can opt to be taxed under a presumptive tax regime,under which they need to calculate taxable income at 8%of turnover and,for receipts other than in cash,at 6%of such rec

124、eipts.Similarly,professionals whose gross receipts in the fiscal year do not exceed INR 7.50 million can choose the presumptive tax regime of taxation,whereby,they calculate their taxable income at 50%of gross receipts.Audit and accountingA statutory audit of all companies is mandatory in India.Furt

125、hermore,entities with turnover exceeding INR 10 million per annum(or INR 5 million for certain professions)require a tax audit.Indian GAAP is broadly aligned with IFRS,although some of the more complex standards,such as IAS 39,Financial Instruments,are yet to be adopted.Standards converged with IFRS

126、(known as Ind-AS)apply after certain thresholds such as net worth of not less than INR 5 billion for an unlisted company.Country quirks A statutory audit of all companies is mandatory.Entities with turnover exceeding INR 10 million(INR 5 million per annum for certain professions)require a tax audit.

127、Every company with paid-up capital of INR 100 million or more needs to appoint a full-time company secretary,who must be a member of the Institute of Company Secretaries of India.Forvis Mazars contactsBharat DhawanManaging PartnerIndiabharat.dhawanmazars.co.inSantosh BohraPartner,Head of Advisory se

128、rvicesIndiasantosh.bohramazars.inDoing Business in Asia PacificForvis Mazars21Doing business in Asia PacificIndonesiaDoing Business in Asia PacificForvis Mazars22Establishing an entityForeign businesses may establish a limited liability company(LLC)or a representative office in Indonesia.Due to the

129、limitation of liability,the most common entity used by investors looking to earn profit/income is an LLC.In most cases,a representative office is not permitted to earn profit/income and therefore is only considered when the purpose of the entity is to provide services to an overseas head office(e.g.

130、,data collection,handling promotional activity,checking quality,and/or providing after-sales support).The trade representative acts as an advisory liaison between the principal and the Indonesian firm.A licence for a representative office is valid for an indefinite period.Many foreign investors ente

131、ring the Indonesian market at an early stage usually choose to conclude an agency agreement or set up a representative office.However,once the business starts to grow,they can apply for status as a company receiving foreign direct investment.Registering a limited liability company requires a minimum

132、 of 2 shareholders.Upon registration,the shareholders must subscribe for and fully pay up share capital of IDR 10 billion to the company.It is required for the company to be managed by a board of directors,which should be supervised by a board of commissioners.Both boards are appointed by the shareh

133、olders.Indonesia5.0%3.7%277.5mUSD 4,940GDP growth*Inflation*GDP per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars23Foreign business restrictionsA foreign business is any business with even the smallest percentage of foreign

134、shareholding.The type of business activity dictates the level of foreign ownership permitted.Since 2020,the government has opened most industries to 100%foreign ownership.Some require local equity partnerships,and a few industries remain protected from foreign investment and reserved only for Indone

135、sians,particularly small ventures that include the agricultural,handcrafts,and informal sectors.The Job Creation Law No.11 of 2020(“Omnibus Law”)and Presidential Regulation No.49 of 2021(“Positive List of Investment”)detail further the investment restrictions that apply to foreign investments.Foreig

136、n capital investment is governed by the Ministry of Investment/Indonesian Investment Coordinating Board(BKPM),which administers and approves foreign capital investment in the majority of economic sectors.Investments in the oil and gas,mining,banking,finance,and insurance industries also require appr

137、oval from the related ministries.The BKPM is the one-stop government agency for foreign investors for all approvals,licences,and permits required to establish a company.It usually takes approximately 2 months to set up an Indonesian company.In 2015,the BKPM launched a 3-hour investment licensing ser

138、vice for foreign investors with a minimum investment of IDR 100 billion and/or a plan to employ more than 1,000 workers.Investment incentivesLaw no.25/2007 sets out the incentives that may be obtained by a foreign limited liability company.These incentives may take the following form:Income tax thro

139、ugh a reduction of net income to a specified extent based on the total investments made within a defined period;Exemptions from or waivers of import duties on capital goods,machinery,or equipment not yet produced domestically.Exemptions from or waivers of import duties on raw materials or components

140、 for a set period,if certain requirements are met.The Indonesian government also provides tax incentives in the form of tax allowances,tax deductions,tax holidays,and super deduction facility.Those incentives are usually available for entities making investments in specified business sectors,pioneer

141、 industries,labour-intensive industries,R&D activities,and certain regions.Work permits and visasIn 2016,Indonesia implemented a major visa-waiver policy(Presidential Decree No.21 of 2016)which exempted citizens of 169 countries from visa requirements.Citizens of those countries are eligible to

142、enter and remain in Indonesia without a visa for a maximum of 30 days.The visa exemption facility cannot be extended or changed into another type of permit.Based on decree of the minister of law and human rights No.M.HH-01.GR.01.07 of 2023 related to temporary suspension of visit visa free for count

143、ries,only tourists from ASEAN countries(Brunei Darussalam,Cambodia,East-Timor,Laos,Malaysia,Myanmar,The Philippines,Singapore,Thailand,and Vietnam)are entitled to visa-free visits at the time of this publication.Business visas The government issues business visas for those visiting the country for n

144、ormal business activities,including attending a conference,provided their visit does not involve taking up employment or paid work.Several types of business visas can be obtained:a visa on arrival,a single-entry visa,or a multiple-entry visa:1.Visa On Arrival(VOA)This visa is valid for 30 days,but c

145、an be extended for another 30 days(without the need to leave the country).It allows one to carry out activities related to business,meetings,or the purchase of goods,including but not limited to,checking goods at the office,factory,or production site of the goods,to discuss,negotiate,and/or sign bus

146、iness contracts,and to conduct activities related to tourism,and to visit friends or family.2.Single-entry Business Visa This visa is valid for a maximum of 60 days,but can be extended up to 4 times,on a monthly basis,by the immigration department to provide a total maximum stay of 6 months.This vis

147、a is useful for buying trips,negotiations,and consultations.However,this visa does not permit an individual to work in Indonesia.What is considered work is determined by the immigration office.Doing Business in Asia PacificForvis Mazars243.Multiple-entry Business Visa(MEBV)This visa is valid for up

148、to 5 years and is more convenient if one has to travel to Indonesia frequently.One may enter and leave Indonesia at any time within the 5-year period,but is required to leave the country every 2 months,which is the maximum length of stay permitted.This visa is issued by the Indonesian embassy in the

149、 applicants country with the authorisation of the immigration office in Indonesia.When applying,ones business counterparts or sponsors in Indonesia must provide assistance.Electronic temporary stay permitAn electronic Temporary Stay Permit(e-ITAS)is issued to work permit holders,students,dependents

150、of Indonesian citizens,or foreigners with a work permit.This visa,which requires a sponsor,can be issued for a period up to 5 years and can be renewed.It is subject to authorisation from the immigration office in Indonesia.Work permit Obtaining a work permit in Indonesia requires company sponsorship

151、 for any foreigner who wants to work in Indonesia.In order to protect the local job market,there are strict guidelines on who can be issued a work permit.National,multinational,or joint venture firms must submit a manpower plan to the Department of Manpower detailing their annual foreign labour requ

152、irements.A domestic company planning to hire a foreigner must submit an expatriate placement plan(Rencana Penempatan Tenaga Kerja Asing or RPTKA).Once the RPTKA is approved(which serves as a work permit),a limited stay permit(IzinTinggalTerbatas or ITAS)is issued.Employment of foreigners in Indonesi

153、a requires payment of an annual Skill and Development Fund fee(DPKK)amounting to USD 1,200 per foreigner.TaxationThe main business taxes in Indonesia are value-added tax(VAT),income tax,and corporate income tax.Indonesias VAT is a major source of revenue for the government.VAT applies to the import

154、and delivery of most goods and services.Insurance and banking activities are not subject to VAT.VAT is collected at a standard rate of 11%(12%starting 1 January 2025).However,for some services,the effective VAT rate is 1%.In addition,luxury tax varies from 10%to 200%.For the exportation of goods,the

155、 VAT rate is zero.Taxpayers are required to file returns with details of all output and input VAT in the following month.The monthly VAT report must be filed by the end of the following month and net output VAT should be paid before filing.Income tax is applied to resident corporations and individua

156、ls.Income tax is collected both directly and at source through a wide range of withholding taxes.Individuals who are residents in Indonesia for more than 183 days in any 12-month period or who intend to settle in Indonesia are taxed on their worldwide income and are generally allowed a credit for ta

157、xes paid abroad.Non-residents are taxed only on their Indonesian-sourced income.The corporate income tax rate is 22%.Micro,small,and medium-sized businesses(MSMEs/UMKMs)with turnover of up to IDR 4.8 billion(approximately USD 300,000)are subject to 0.5%final income tax on turnover under certain cond

158、itions.Companies with turnover of less than IDR 50 billion(approximately USD 3.1 million)are categorised as MSMEs/UMKMs,and may be granted a discount on the tax rate of 50%,depending on their revenues.Companies that list at least 40%of their shares on the Indonesian Stock Exchange are entitled to a

159、tax cut of 3%from the top rate.This provides an effective tax rate of 19%.Audit and accountingAll publicly listed firms,state-owned companies,firms handling public money(such as banks and insurance companies)and companies having turnover of more than IDR 50 billion(approximately USD 3.1 million)must

160、 have their accounts audited by an Indonesian CPA firm(KAP).Indonesias stated policy is to maintain its national accounting standards(PSAK),but these standards have effectively already converged with IFRS,with only minor differences remaining to date.Country quirks Accounts must be prepared in local

161、 language(Bahasa Indonesia)for tax purposes.Foreigners cannot manage human resources in Indonesia.Forvis Mazars contactSebastien GautierManaging Partner,Head of OutsourcingIndonesiasebastien.gautiermazars.idDoing Business in Asia PacificForvis Mazars25Doing business in Asia PacificJapanDoing Busines

162、s in Asia PacificForvis Mazars26Establishing an entityForeign companies establishing a business entity in Japan can choose from 4 basic types of entities:A subsidiary in the form of a joint stock company(Kabushiki Kaisha or KK).A subsidiary in the form of a limited liability company(Godo Kaisha or G

163、K).A branch.A representative office.A KK is generally the most trusted form of entity in Japan.The documents for setting up a KK in Japan must be submitted in Japanese,and the process typically takes one month to complete.A KK and A GK can be set up with a minimum capital of JPY 1.However,it is pref

164、erable to invest a larger amount for various reasons,such as to facilitate the process of opening a bank account after incorporation.In Japan,a KK and a GK require at least 1 authorised representative,who does not need to be a resident of Japan,while a branch and representative office require at lea

165、st 1 authorised representative who is a resident of Japan.Japan1.9%3.3%124.5mUSD 33,834GDP growth*Inflation*GDP per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars27Foreign business restrictionsThe vast majority of industries

166、have been liberalised and made available for foreign direct investment.Under the Foreign Exchange and Foreign Trade Law(Foreign Exchange Law),foreign direct investment is differentiated from financial and portfolio investment.In principle,advance authorisation is not required and the submission of a

167、 report to the minister of finance and the applicable ministers of a particular industry after the fact is sufficient.Prior notification is,however,required for industries that:(1)threaten the nations security,become an obstacle to the maintenance of public order,or hinder public safety;or(2)are cat

168、egorised as belonging to industries which Japan has not yet liberalised.Furthermore,investments by companies from certain countries are also subject to the requirement to give prior notification.Investment incentivesAs a means of attracting corporate investment,some local administrative bodies offer

169、 tax incentives and various subsidy programs when companies establish or expand their headquarters within a region,create employment opportunities,or invest in new R&D projects or specific industries or projects(such digital transformation,carbon neutrality,etc.).Work permits and visasIn Japan,i

170、t is first necessary to apply for a certificate of eligibility(COE).The immigration system is not particularly simple,but the acquisition of the COE is not particularly difficult for foreign professionals.After the COE is issued,a foreign national can file an application for a visa along with the CO

171、E at a Japanese embassy or consulate in his home country.At the time of entry into Japan,a residence card is issued.The permitted scope of activity is limited to respective residence statutes.The standard processing time is 1 to 3 months.The Japanese immigration system allows the employment of forei

172、gn professionals while strengthening measures to supervise illegal or undocumented residents.In May 2015,the category of highly skilled foreign professionals was introduced.Those who fall under this category can receive preferential treatment,such as being granted permission to stay for a 5-year per

173、iod,a relaxation of the requirements for being granted permanent residence,etc.In April 2023,the category of the special highly skilled professional personnel system(J-Skip)was introduced.This system is designed to further promote Japans economic growth.Apart from the highly skilled foreign professi

174、onals point system,this residence status can be obtained by those who meet a certain level of education,work experience,and annual income.TaxationCorporations engaged in economic activities in Japan are subject to taxes in Japan on the profits generated by those activities.Taxes include corporate ta

175、x(national tax),corporate inhabitant tax(local prefectural and municipal tax),and corporate business tax(local prefectural tax)(collectively referred to herein as“corporate taxes”).Taken all together,the effective tax rate of national corporate tax,corporate inhabitant tax,and business tax(the tax b

176、urden on corporate income)is around 30%to 35%.Capital gains from investments are generally treated as part of ordinary taxable income for corporate tax purposes.Where a tax loss is realised in a given tax year,it may be carried forward by the company to be utilised against taxable profits in future

177、tax years for 9 years(10 years from the fiscal period starting on or after 1 April 2018),provided the company has a“blue-form”tax return filing status and is not subject to anti-abuse rules.The ability to carry back losses has been suspended since 1992,except in certain situations.Consumption tax is

178、 categorised as a value-added tax applied to almost every domestic transaction and every import transaction,except for financial transactions,capital transactions,medical services,welfare services,and educational services.The provision of digital services by foreign service providers to domestic bus

179、inesses or domestic consumers is also subject to consumption tax.The consumption tax rate is now 10%,except for food and beverages,which are taxable at 8%.With the introduction of the qualified invoice system in 2023,a qualified invoice is generally required to claim input tax credits.There is a tra

180、nsitional measure which allows taxpayers to take partial credit of input tax without a qualified invoice to mediate the impact of the introduction of the qualified invoice system for the period from October 2023 to September 2029.Companies classified as small and medium-sized enterprises(SMEs)can ge

181、t significant reduced rates across the board for corporate taxes,but only for the first JPY 8 million of profit.Doing Business in Asia PacificForvis Mazars28To qualify as an SME,a companys capital must not exceed JPY 100 million and group capital must be less than JPY 500 million.Such companies will

182、 have an effective rate of national and local corporate tax of 21%to 25%on the first JPY 8 million of profit only.For SMEs,there is also a provision to carry back losses for one year,which is not available to larger companies.The Japanese withholding tax rate on dividends,interest,and royalties paya

183、ble to a non-resident is generally 20.42%(15.315%for certain types of interest).On payments of dividends,interest,and royalties made to a resident,withholding taxes are levied at rates between 10.21%and 20.42%.Personal taxation and insurance is quite complex.The deduction systems and the timing of d

184、eductions from remuneration for national income tax,local income tax,state health pension contributions,and labour insurance are all completely different.This makes it difficult for smaller companies without dedicated HR departments to do these by themselves,leading to the widespread outsourcing of

185、payroll to professional providers.Japan taxes its residents on their global income,but there are transitional concessions for 5 years for foreigners taking up residence in Japan for the first time.Audit and accountingThe Japanese Companies Act stipulates that a large company(a company with reported

186、capital of JPY 500 million or more,or total liabilities of JPY 20 billion or more,as at the end of its most recent fiscal year)or a“company with committees”is required to have an external accounting auditor and to have its financial statements audited by such.An accounting auditor must either be a C

187、PA or a licenced audit firm.If a company is neither a large company nor a“company with committees”,it is not required to have an auditor.Some other laws also require statutory audits by a CPA,including the Financial Instruments and Exchange Act,which is applicable to listed companies,certain regulat

188、ed entities such as banks,insurance companies,and other companies that raise capital publicly.All KKs are required to file an annual return and provide updates on changes of directors and other key information.They are also required to disclose a summary of their balance sheet,either through the off

189、icial gazette,a newspaper,or on their own website.Specific to Japan is also the corporate auditor system(Kansayaku).The corporate auditor is a company structure specified in the Companies Act,and its role is to audit the directors execution of their overall duties,including those related to accounti

190、ng.Corporate auditors in Japan do not need to be CPAs or accredited accounting firms.Country quirks Smaller companies may have the option of choosing whether or not to register for consumption tax in the opening period of the business year.Some significant tax-planning opportunities may exist in thi

191、s area and this issue must be considered carefully when registering a company.Representative offices of foreign companies can,in most cases,be set up without any formal process of approval other than registering for taxation.However,a representative office tends to face difficulty in holding a bank

192、account or leasing real property.Therefore,in practice,an individual such as an appointed representative will act as a proxy for the office.Functional currency accounting is not allowed.Forvis Mazars contactJean Francois SalzmannManaging PartnerJapanjean-francois.salzmannmazars.jpCeline TakizawaPart

193、ner,Head of OutsourcingJapanceline.takizawamazars.jpDoing Business in Asia PacificForvis Mazars29Doing business in Asia PacificKorea,The Republic ofDoing Business in Asia PacificForvis Mazars30Establishing an entityMost foreign entities in Korea are structured either as a type of company,branch offi

194、ce,or representative office.The majority of companies are chusikhoesa,or stock companies.However,yuhanhoesa,or private companies,may also be suitable for foreign investors.Domestic commercial law applies to investments made through a company.A branch office is not considered a foreign investment,but

195、 it does create a legal presence in Korea.A branch can own assets and generate taxable profit.However,if an entity expects to grow large enough to necessitate the establishment of a company,it may be more cost effective to do this at the outset.Unlike a branch,a liaison office is not permitted to pe

196、rform any business activity.Since it performs non-business tasks for the head office,it is only required to obtain a unique business number as a business owner registered with the jurisdiction tax office without the need for court registration.The tasks performed by a liaison office are limited to p

197、reliminary and auxiliary work,such as business-related contact with the head office,market research,research and development activities,quality assurance,advertisement,data collection,etc.Foreign business restrictions Foreign business restrictions fall into two categories:prohibited activities and p

198、artially restricted activities.Prohibited activities include public interest industries,such as postal services,banking,securities trading,public education,and radio&television.Foreign investors are prohibited from investing in a total of 61 types of business.Most partially restricted activities

199、 also have public interest traits.Foreign shareholding of up to 50%in these activities is allowed.Korea,The Republic of1.4%3.6%51.5mUSD 33,121GDP growth*Inflation*GDP per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars31Invest

200、ment incentivesThe foreign investment promotion act and Koreas domestic commercial law apply to investments of over KRW 100 million made through a company.Invest Korea is the national investment promotion agency and offers a number of incentives to support the entry and successful establishment of f

201、oreign businesses into Korea.For foreign investors that meet the requirements,incentives may include some tax support,cash support,and site location support.Foreign investment zones are designated to attract foreign investments.Businesses located in these zones are provided with incentives.Work perm

202、its and visasA D-8 visa is issued to foreigners who are sent as specialists to work in a company receiving foreign investment or who are going to invest in and manage their own business in South Korea.Alternatively,a company may sponsor a skilled employee with at least 5 years of experience in a rel

203、ated field to obtain an E-7 visa.An employer must register all foreign workers employment permits and must typically maintain the employment ratios stipulated by the law.TaxationThe main business taxes in Korea are value-added tax(VAT),withholding tax,corporate income tax,and personal income tax for

204、 individuals.In general,VAT registration is required for all businesses.The nominal rate of VAT is 10%.Quarterly VAT returns and related payments must be filed by the 25th day of the month following the quarter-end.Withholding tax is a deduction made from certain types of payments(e.g.,royalties,div

205、idends,and interest).The amount of tax withheld depends on the category of services provided and the tax status of the recipient.Rates can range from 0%to 22%(including local income tax),depending on the type of income,such as interest paid by financial institutions to domestic companies or royaltie

206、s paid to foreign corporations.Withholding tax rates vary,depending on the tax treaty with each country.Tax withheld must be reported and submitted by the 10th day of the month following the month in which payment is made,and is set off against the final corporate income tax liability.From 2023,corp

207、orate income tax(including local income tax)is applied at the following aggregate rates:9.9%on taxable income of up to KRW 200 million;20.9%on taxable income in excess of KRW 200 million and up to KRW 20 billion;23.1%on taxable income in excess of KRW 20 billion and up to KRW 300 billion;and 26.4%on

208、 taxable income over KRW 300 billion.Two corporate tax returns are required,an annual return and a half-year return.The half year return represents a prepayment of tax payable based on estimated net profit for the year.The annual tax return should be filed and paid within 3 months of the fiscal year

209、-end.Operating losses reported since 1 January 2021 can be carried forward for up to 15 years.For small and medium-sized enterprises(SME),there is no limitation on the amount of losses carried forward which can be utilised.However,for those which are not SMEs,the maximum amount which can be utilised

210、 in a fiscal year is 80%of taxable income.There are four types of social insurance payments for which contributions must be made:the national pension,health insurance,unemployment insurance,and workers compensation insurance.These social insurance contributions amount to approximately 9%of wages for

211、 the employees portion and between 10.35%to 28.85%of wages for the employers portion.Audit and accountingAn external audit is required in Korea in the following cases:1.For a stock company(chusik hoesa)meeting any of the following three criteria:A listed company(on the stock market,KOSDAQ,KONEX)or a

212、 company to be listed.A company with at least KRW 50 billion in total assets or sales at the end of the last fiscal year.A company meeting two or more of the following four requirements at the end of the last fiscal year:(i)total assets of KRW 12 billion or more;(ii)total liabilities of KRW 7 billio

213、n or more;(iii)total sales of KRW 10 billion or more;(iv)employees of 100 or more.2.For a limited company(yuhan hoesa)meeting any of the following two criteria:A company with at least KRW 50 billion in total assets or sales at the end of the last fiscal year.Doing Business in Asia PacificForvis Maza

214、rs32 A company meeting three or more of the following five requirements at the end of the last fiscal year:(i)total assets of KRW 12 billion or more;(ii)total liabilities of KRW 7 billion or more;(iii)total sales of KRW 10 billion or more;(iv)employees of 100 or more;(v)unitholders of 50 or more.K-I

215、FRSs are compulsory for listed companies and non-listed financial institutions.Unlisted companies have the choice between full K-IFRS and Korean Accounting Standards for non-public entities.Country quirks All B2B domestic transactions are required to issue tax invoices through the Korean tax platfor

216、m,Hometax.All employees working in a company for over one year are entitled to severance pay.For companies which have a fiscal year-end on 31 December,all external audit contracts should be signed by 14 February for the renewal of an audit,or by 30 April for a first-time audit.Contracts should be re

217、ported to the financial supervisory service within 14 days of being signed.Forvis Mazars contactJulien HerveauManaging Partner,Head of OutsourcingKoreajulien.herveaumazars.krDoing Business in Asia PacificForvis Mazars33Doing business in Asia PacificMalaysiaDoing Business in Asia PacificForvis Mazars

218、34Establishing an entityThe principal forms of business organisation in Malaysia are sole proprietorships,general partnerships,limited liability partnerships,limited liability companies,and branches of foreign companies.These entities must be registered with the Companies Commission of Malaysia.Gene

219、rally,it takes about 1 week to incorporate a company,and 1 to 2 months to register a branch of a foreign company in Malaysia.Off-the-shelf companies are readily available and can be bought and used within days.A limited liability company must have at least one resident director,who must be either a

220、Malaysian or a foreigner residing principally in Malaysia with a valid residence pass,MM2H pass,or equivalent pass.A limited liability company must have minimum paid-up share capital of MYR 1.Companies must have a registered office and keep their statutory records in Malaysia.The company is also req

221、uired to appoint one company secretary to assist with secretarial matters once the company is incorporated.A branch of a foreign company in Malaysia must conduct the same business activities as the parent company and have the same company name and director as the parent company.It must appoint at le

222、ast one Malaysian as a resident agent.A limited liability partnership must have at least 2 partners consisting of individuals or corporate entities,or both.It must have one compliance officer who must be a Malaysian or a foreigner with permanent residence.One of the partners is usually appointed to

223、this position.Foreigners can also be partners of limited liability partnerships.Foreign business restrictionsOnly a Malaysian citizen or a permanent resident of Malaysia can register a sole proprietorship or a general partnership business in Malaysia.However,foreign investors are permitted to incorp

224、orate a 100%foreign-owned company in Malaysia.Malaysia3.7%2.5%34.3mUSD 11,648GDP growth*Inflation*GDP per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars35Investment incentivesCompanies in manufacturing,agriculture,hotels and

225、tourism,or other encouraged sectors intending to participate in a promoted activity or manufacture a promoted product,are eligible to apply for either pioneer status or Investment Tax Allowance(ITA)incentives.These sets of incentives are mutually exclusive.Generally,a company enjoying pioneer status

226、 is given a tax exemption of 70%on statutory income(i.e.,adjusted profit after deduction of capital allowances)for 5 or 10 years,with the remaining income subject to tax at the prevailing corporate tax rate.Unabsorbed losses and unabsorbed capital allowances during the pioneer period can be carried

227、forward to the post-pioneer period to be utilised against future business income.Any unabsorbed pioneer losses at the end of the pioneer period can be carried forward up to a maximum of 10 consecutive years.Companies granted ITA incentives are generally entitled to claim a 60%allowance for qualifyin

228、g capital expenditures incurred within 5 years of the date on which the incentives became effective.ITA incentives can be set off against only 70%of statutory income,whilst the remaining 30%is subject to tax at the prevailing corporate tax rate.Unabsorbed ITA incentives can be carried forward to sub

229、sequent years until fully utilised.ITA incentives are granted in addition to normal tax depreciation,known as a capital allowance.Pioneer status and ITA incentives are further enhanced for certain promoted activities and promoted products.A company that is resident in Malaysia which is involved in m

230、anufacturing or agricultural activities is eligible to claim a Reinvestment Allowance(RA)of 60%if it incurs qualifying capital expenditures for expansion,modernisation,automation,or diversification projects,and has been in operation for at least 36 months.The RA granted can be set off against only 7

231、0%of statutory income,whilst the remaining 30%of statutory income is subject to tax at the prevailing corporate tax rate.Any unabsorbed RA at the end of the RA period can be carried forward for utilisation up to a maximum of 7 consecutive years.Attractive and enhanced tax incentives are also availab

232、le for approved service projects,approved food production projects,real estate investment trusts,the biotechnology industry,the tourism industry,research and development activities,integrated logistics services,global services hub activities,Islamic banking and takaful(Islamic insurance)businesses,i

233、nsurance and fund management businesses,the venture capital industry,Malaysian digital status companies,and companies operating in Labuan or in specific development regions,such as Iskandar Malaysia(IM),the Northern Corridor Economic Region(NCER),the East Coast Economic Region(ECER),etc.Work permits

234、 and visasGenerally,a visa is not required for a stay of less than one month for ASEAN nationals,except for those from Myanmar.Visas are required for a stay exceeding one month,except for Brunei and Singaporean nationals.An Employment Pass(EP)is a work permit that enables an expatriate to take up em

235、ployment with an organisation in Malaysia.Issuance of the pass is subject to the foreigner obtaining a contract of employment(up to 60 months).The Expatriate Committee(EC)or relevant authorities must approve having a foreigner fill a position before the EP can be issued by the immigration department

236、 of Malaysia.A Professional Visit Pass(PVP)is granted to foreigners with acceptable professional qualifications or skills.They can enter the country and provide services or undergo practical training with a Malaysian company on behalf of an overseas company on a temporary basis for up to 12 months.F

237、oreign-owned companies incorporated in Malaysia are allowed to bring in expatriates to fill positions(including key ones)where there is a shortage of trained Malaysians.However,this applies only to certain companies.For example,it does not apply to public limited companies,companies limited by a gua

238、rantee,or associations and organisations incorporated under specific acts.In order for a company to be allowed to do this,it must meet certain requirements regarding paid-up capital,based on the type of company:A 100%Malaysian-owned company:MYR 250,000(i.e.,approximately USD 60,900)A company jointly

239、 owned by both Malaysians and foreigners:MYR 350,000(i.e.,approximately USD 85,300)A 100%foreign-owned company:MYR 1 million(i.e.,approximately USD 243,600)The company must also comply with other requirements,such as the foreigner receiving a minimum monthly salary of MYR 5,000 and having certain mi

240、nimum academic qualifications and Doing Business in Asia PacificForvis Mazars36experience.The number of expatriate posts allowed will depend on the guidelines applicable at the time of application and the merits of each case.TaxationMalaysia applies tax on a territorial basis,taxing income accrued i

241、n or derived from Malaysia.Exceptions include income from banking,insurance,and air or sea transport operations,which are taxed globally.Since 1 January 2022,foreign income remitted to Malaysia by tax residents is taxable unless it meets the conditions for exemption until 31 December 2026.Non-reside

242、nts are exempt from tax on foreign-sourced income received in Malaysia.Personal income tax rates for residents range from 0%to 30%,with relief and rebates available.Non-residents are taxed at a flat 30%rate.Tax residency is based on physical presence in Malaysia,and taxes must be prepaid through an

243、instalment scheme.Expatriates must obtain tax clearance before leaving Malaysia after employment ends.Corporate tax is 24%for all companies,with SMEs enjoying a preferential rate of 15%on the first MYR 150,000 of taxable income and 17%on the next MYR 450,000.Companies are considered tax residents if

244、 their management and control are in Malaysia,and must file returns within seven months of the fiscal year-end.Unabsorbed capital allowances can be carried forward indefinitely,while unabsorbed losses can be carried forward for up to ten years.Dividends are tax-exempt under the single-tier tax syste

245、m.Withholding tax of 10%applies to payments made to non-residents for services performed in Malaysia,rental,royalties,commissions,and guarantees,or of 15%for interest payments.Service fees to non-resident contractors are taxed at 13%.Dividends to non-resident shareholders are not subject to withhold

246、ing tax.Real Property Gains Tax(RPGT)applies to property or shares in real property companies,with rates varying based on the holding period.From 1 January 2024,capital gains tax(CGT)replaced RPGT for certain disposals.CGT rates are 10%on net gains or 2%on gross disposal price,with exemptions for sp

247、ecific scenarios.Indirect taxes include excise duty on certain goods,import duty,and stamp duty on certain documents.Goods and Services Tax(GST)was repealed in 2018,replaced by sales and service taxes.Sales tax is charged on taxable goods at 5%or 10%,and low-value goods from abroad are taxed at 10%f

248、rom 1 January 2024.Service tax of 8%(from 1 March 2024)applies to taxable services provided in Malaysia,with specific thresholds for registration.Digital services provided by foreign suppliers are also subject to service tax if income exceeds MYR 500,000 annually.Audit and accountingThe directors of

249、 every company should prepare financial statements and have their annual financial statements audited by an approved company auditor.Financial statements should be prepared in accordance with the approved accounting standards in Malaysia.Private companies should prepare financial statements using th

250、e Malaysian Private Entities Reporting Standards(MPERS)or the Malaysian Financial Reporting Standards(MFRS).All other companies should prepare financial statements using the MFRS.The MPERS is word-for-word the same as IFRS for SMEs,except for the requirements on income tax and property development a

251、ctivities.The MFRS are identical to the International Financial Reporting Standards(IFRS)in all respects other than nomenclature.Subject to the conditions summarised below,some private companies may be exempt from being audited.These companies are required to prepare and file a set of unaudited fina

252、ncial statements which must be prepared using the Malaysian Private Entities Reporting Standard(MPERS)and an audit exemption certificate.The requirements for audit exemption are as follows:Category I(Dormant companies)a.it has been dormant from the time of its incorporation;orb.it has been dormant t

253、hroughout the current fiscal year and in the immediately preceding fiscal yearCategory II(Zero-revenue companies)a.it has not had any revenue during the current fiscal year;andb.it has not had any revenue in the immediate past two fiscal years;andc.its total assets in the current financial statement

254、s,as well as in the financial statements of the immediate past two fiscal years,have not exceeded MYR 300,000.Doing Business in Asia PacificForvis Mazars37Category III(Threshold-qualified companies)a.it has had revenue during the current fiscal year,as well as in the immediate past two(2)fiscal year

255、s,not exceeding MYR 100,000;andb.its total assets in the current financial statements,as well as in the financial statements of the immediate past two fiscal years,have not exceeded MYR 300,000;andc.it had,at the current fiscal year-end,as well as at each of the immediate past two fiscal year-ends,n

256、ot more than five employees.Country quirks Nominee shareholdings are not allowed.Accounts must be prepared by a Malaysian accountant and audited by a Malaysian auditor.The registered office address must be the actual office address.P.O.boxes and lawyers addresses are not permitted.Proxy and circulat

257、ed resolutions of board meetings are not permitted.Forvis Mazars contactChong Fah YowCountry Managing PartnerMalaysiafah-yow.chongmazars.myEsther YapPartner,Head of OutsourcingMalaysiaesther.yapmazars.myDoing Business in Asia PacificForvis Mazars38Doing business in Asia PacificPhilippinesDoing Busin

258、ess in Asia PacificForvis Mazars39Establishing an entityThe Philippines has become an increasingly attractive destination for foreign businesses,thanks in part to its liberalised foreign investment laws.This guide provides a high-level introduction to establishing a business entity in the Philippine

259、s,taking advantage of the opportunities presented by these regulations.Foreign corporations can enter the Philippine capital market in several ways,as discussed below.Domestic subsidiaryThis is a regular corporation,formed as stock or non-stock,with incorporators,directors(or trustees for non-stock)

260、,shareholders(or members for non-stock),and officers.Foreign stockholdings are generally limited to 40%of the total authorised capital stock.Incorporators and board members are not required to be citizens or residents of the Philippines,but must hold at least one“qualifying share.”There can be any n

261、umber of incorporators,but a maximum of 15 directors/trustees.Branch officeA branch office is a foreign corporation licensed to do business in the Philippines,generating income as an extension of its head office abroad.It is represented by a resident agent who handles legal processes.Within 60 days

262、of the issuance of a licence from the Securities and Exchange Commission(SEC),it must deposit securities worth PHP 500,000 or as required by the SEC.Capitalisation varies,with USD 200,000 being required for domestic market enterprises(DME)and PHP 5,000 being required for export enterprises(EE).Repre

263、sentative officeA representative office,also known as a liaison office,is similar to a branch office,but does not generate income in the Philippines.It is fully subsidised by its head office and focuses on information dissemination,marketing,product promotion,and quality control.Similar to a branch,

264、it is represented by a resident agent.The required capitalisation is USD 30,000.Philippines5.5%6.0%117.3mUSD 3,726GDP growth*Inflation*GDP per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars40Regional operating headquartersA R

265、egional Operating Headquarters(ROHQ)is a foreign business entity engaged in international trade with affiliates,subsidiaries,or branch offices in the Asia Pacific region and other foreign markets.Its business activity allows the ROHQ to derive income in the Philippines.It is represented by a residen

266、t agent and the required capitalisation is USD 200,000.Regional area headquartersA Regional Area Headquarters(RHQ),similar to an ROHQ,is a foreign company engaged in international trade with affiliates,subsidiaries,or branch offices in the Asia Pacific region.Its activities are limited to supervisor

267、y communications and coordination of its affairs,subsidiaries,or branches in the region.It cannot derive income or manage any subsidiary or branch office in the Philippines.It is represented by a resident agent,and the required capitalisation is USD 50,000.PartnershipA foreign partnership can also a

268、pply for a licence to do business in the Philippines.The requirements,including capitalisation,are similar to those for a branch office.Joint ventureA foreign corporation can do business in the Philippines by entering into a joint venture agreement or forming a joint venture company through a corpor

269、ation or partnership.Foreign business restrictionsThe Foreign Investments Act allows up to 100%foreign ownership of export enterprises(exporting at least 60%of products/services)and domestic market enterprises(exporting less than 60%).However,the Foreign Investment Negative List restricts certain ac

270、tivities based on nationality requirements.Under Republic Act 11647(RA 11647),micro and small domestic market enterprises with paid-up capital of USD 200,000 are reserved for Philippine nationals,unless specified by the Retail Trade Liberalization Act(RA 8762)and other laws.RA 11647 also aims to fos

271、ter technological innovation and support startups by lowering the capitalisation requirement to USD 100,000,in line with the Innovative Startup Act(RA 11337).Investment incentivesForeign investors can register with the Philippine Economic Zone Authority(PEZA)or the Board of Investments(BOI)to benefi

272、t from investment incentives.The PEZA grants incentives to export businesses in economic zones,while the BOI provides incentives for businesses in areas of Investment Priorities Plan(IPP).Incentives are also available for businesses in special economic zones and free ports,such as Subic and Clark,or

273、 Pampanga.These incentives include exemptions from tariffs,customs duties,other taxes and fees,Income Tax Holidays(ITH),and reduced tax rates.Work permits and visasTo promote foreign involvement in the economic development of the country,the Philippine government has liberalised the visa requirement

274、s for certain types of foreigners.The visas that may be granted to foreigners who will work or provide services in the Philippines are as follows:1.Treaty Traders/Investors Visa under Section 9(d)of the Philippine Immigration Act 2.Prearranged Employees Visa under Section 9(g)of the Philippine Immig

275、ration Act 3.Special Non-immigrant Visa under Section 47(a)(2)of the Philippine Immigration Act 4.Special Non-immigrant Visa under Executive Order(E.O.)No.226 5.Special Non-immigrant Visa under Presidential Decree(P.D.)No.1034 6.Special Investor Resident Visa(SIRV)7.Special Work Permit(SWP).8.Provis

276、ional Work Permit(PWP).9.Alien Employment Permit(AEP).10.Special Subic Work Visa.Doing Business in Asia PacificForvis Mazars41TaxationThe main taxes imposed on corporations in the Philippines are corporate income tax,Value-Added Tax(VAT),and Withholding Tax(WT).Other taxes include percentage tax(gen

277、erally for activities not subject to VAT),excise tax,documentary stamp tax,local business tax,and real property tax.Since July 2020,the corporate income tax rate is generally 25%on net taxable income and 20%for corporations with net taxable income not exceeding PHP 5 million and total assets not exc

278、eeding PHP 100 million.VAT returns must be filed and paid within 25 days after the close of the taxable quarter.Audit and accountingPFRS for SMEsAn entity that has total assets between PHP 3 million and PHP 350 million(USD 70,000 to USD 8,000,000)or total liabilities between PHP 3 million and PHP 25

279、0 million(USD 70,000 to USD 5,500,000)must follow these standards.PFRS for SEAn entity that has total assets or total liabilities of over PHP 3 million but not more than PHP 100 million must follow these standards.Country quirks Corporate applications with the SEC are a mix of electronic and manual

280、filing.Company setup is fast,but closure takes an average of 2 years.In the 4th year of operations following the year of registration,corporate tax is either 2%of gross income or 25%of taxable income,whichever is higher.Withholding tax rates range from 1%to 25%,depending on the nature of the payment

281、.Documentary stamp tax applies to documents,instruments,loan agreements,and related papers.Fringe benefit tax is 35%on the grossed-up value of fringe benefits,excluding rank and file employees.Net Operating Loss Carry-Over(NOLCO)allows losses to be carried over as deductions for the next 3 years fol

282、lowing the year of such loss.Personal income tax rates range from 15%to 35%for annual income over PHP 250,000.Certain allowances which are minimal or which are classified as minimum benefits are tax-exempt.A 13th salary and bonuses of up to PHP 90,000 are non-taxable,while amounts over this are taxa

283、ble.All employers and employees must contribute monthly to the government-mandated employee benefits(SSS,PhilHealth,and Pag-IBIG).Eligible female employees are entitled to 105 days of paid maternity leave,with an option for an additional 30 days of unpaid leave,if they have made at least 3 monthly c

284、ontributions in the 12 months before childbirth,miscarriage,or emergency termination of pregnancy(ETP).Forvis Mazars contactJacqueline VillarManaging Partner,Head of OutsourcingPhilippinesjacquie.villarmazars.phDoing Business in Asia PacificForvis Mazars42Doing business in Asia PacificSingaporeDoing

285、 Business in Asia PacificForvis Mazars43Establishing an entityForeign entrepreneurs are free to establish a Singapore entity.There are several types of business structures available in Singapore.These include a limited liability company(often called a private limited company and abbreviated to“Pte.L

286、td.”);a Limited Liability Partnership(LLP),and a Sole Proprietorship(SP),just to name a few.However,setting up a Pte.Ltd.is the preferred incorporation vehicle and the one most widely used by foreign investors.A Pte.Ltd.is the most flexible and advanced type of business entity available.It is a lega

287、l entity,separate from its owners.This means that its liabilities do not extend to its owners.Furthermore,foreigners residing overseas can be 100%owners of a Singapore Pte.Ltd.The required paid-up capital when registering a Singapore company is nominal and the concept of authorised capital no longer

288、 exists.The company should have a minimum of one director,one shareholder,and at least one director must be a local resident(a Singapore citizen,permanent resident,or Employment Pass(EP)holder).The company must have a local registered address and a company secretary.Foreign business restrictionsTher

289、e are no strict rules on establishing and registering a company in Singapore as long as it complies with the minimum requirements mentioned in the preceding paragraphs.A company is required to register with the Accounting and Corporate Regulatory Authority(ACRA)before starting to trade.It may also b

290、e necessary to ensure that appropriate licences have been applied for and obtained.Singapore1.1%4.8%5.9mUSD 84,734GDP growth*Inflation*GDP per head*Population*Data collected from data.worldbank.org based on a 2023 report.Doing Business in Asia PacificForvis Mazars44Investment incentivesForeign busin

291、esses that choose to register a Singapore company are well positioned to take advantage of the countrys pro-business policies.The primary benefits of setting up a business in Singapore include ease of company formation,low taxes,a stable political climate,excellent business infrastructure,and an eff

292、icient regulatory environment,amongst others.The Economic Development Board(EDB)is keen to stimulate business investment in Singapore and offers a number of incentives and development schemes.The schemes are available in the following categories:financial incentives(which are mainly to provide fundi

293、ng for certain business undertakings)and tax incentives(which provide exemptions or reduced tax rates on specific transactions/activities).Incentives are typically assessed and awarded on a case-by-case basis.Work permits and visasForeigners need to apply for relevant work visas to stay and work in

294、Singapore.The most common types are the S Pass and Employment Pass(EPs).These passes are applied for after the incorporation of the company.Obtaining a work visa is subject to review and approval by the government authorities.The S Pass is a work permit designed for mid-level skilled foreigners who

295、have the necessary qualifications and experience to work in Singapore.To be eligible,candidates must have a minimum qualifying salary,which varies depending on the sector and the individuals age.As of 1 September 2024,the minimum qualifying salary for S Pass applicants is:SGD 3,150 per month for mos

296、t sectors(with a higher minimum for older candidates)SGD 3,650 per month for the financial services sector(with a higher minimum for older candidates)Companies are subject to a quota on the number of S Pass holders they can employ,which is based on their industry and the number of local employees.Ad

297、ditionally,employers must pay a monthly levy for each S Pass holder,which currently stands at SGD 550 and is set to increase to SGD 650 on 1 September 2025.The EP is a work visa designed for foreign professionals,managers,and executives seeking employment in Singapore.There is no quota for EPs,but a

298、pplicants must meet certain requirements to qualify.Qualifying salaryAs of 1 September 2023:The minimum qualifying salary is SGD 5,000 per month for most sectors.The minimum qualifying salary is SGD 5,500 per month for the financial services sector.From 1 January 2025:The minimum qualifying salary w

299、ill increase to SGD 5,600 per month for most sectors.The minimum qualifying salary will increase to SGD 6,200 per month for the financial services sector.For EP renewals,the new qualifying salaries will take effect from 1 January 2026.Complementarity Assessment Framework(COMPASS)As of 1 September 20

300、23,new EP applicants must pass a two-stage eligibility framework:Stage 1:Meet the qualifying salary requirement.Stage 2:Pass the COMPASS assessment,a points-based system that evaluates an applicants skills,experience,and contributions to the Singaporean economy.COMPASS applies to all new EP applicat

301、ions from 1 September 2023 and to EP renewals from 1 September 2024.Other requirements:In addition to the qualifying salary and COMPASS assessment,EP applicants must meet other requirements,such as having acceptable qualifications and a job offer from a Singapore-based company.The Entrepreneur Pass(

302、EntrePass)is a work visa designed to attract foreign entrepreneurs with innovative business ideas to Singapore.It offers an opportunity for serial entrepreneurs,high-calibre innovators,and experienced investors to establish and grow their businesses in the country.To be eligible for the EntrePass,yo

303、u must meet the following conditions:1.Business ownership:Applicants must have started or intend to start a private limited company registered with the Accounting and Corporate Regulatory Authority(ACRA).Applicants must also own at least 30%of shares in the company.Doing Business in Asia PacificForv

304、is Mazars452.Innovation or funding:The company must either be venture-backed or own innovative technologies.Alternatively,applicants may qualify if they can demonstrate their entrepreneurial track record and potential,such as raising at least SGD 100,000 in funding.Application timelineOne can apply

305、for an EntrePass either before incorporating a company or within six months of its registration date.Operating from overseasIf a person does not plan to relocate to Singapore,he can still own and operate a Singapore company from overseas.He can then visit Singapore on a visitor visa for business-rel

306、ated activities,such as meetings or conferences.However,a person cannot actively manage or operate the company while on a visitor visa.Such company owners should consider appointing a local director or a local team to handle day-to-day operations in Singapore.TaxationThe companys taxable income for

307、the year is subject to corporate tax in Singapore.The corporate tax rate in Singapore is a flat rate of 17%of chargeable income.Income exemptions and tax rebates are available that make the effective tax rate for taxable income of up to SGD 300,000 less than 6%.For the 2024 fiscal year,a corporate i

308、ncome tax(CIT)rebate of 50%of corporate tax payable will be granted to all taxpaying companies,whether tax resident or not.Companies that have employed at least one local employee in 2023(referred to as“local employee condition”)will receive SGD 2,000 in cash(referred to as a“CIT rebate cash grant”)

309、.Such companies will therefore receive a minimum benefit of SGD 2,000.The total CIT rebates and CIT rebate cash grants that a company can receive is SGD 40,000.It is important to note that,in order to avoid double taxation,Singapore companies can claim a tax credit in Singapore for any tax paid over

310、seas,subject to meeting the necessary conditions.Goods and services tax(GST)in Singapore is a tax on domestic consumption.The tax is paid when money is spent on goods or services,including imports.In general,goods sold or services performed in Singapore are taxable supplies subject to GST.Some of th

311、e exceptions are financial services or the sale or lease of residential property,which are exempt.In Singapore,GST is currently charged and accounted for at a rate of 9%of the value of the supply.The filing deadline is within one month of the end of a quarter(e.g.,March,June,September,December).GST

312、registration can be mandatory or voluntary.Mandatory registration is required when the companys annual turnover exceeds or is expected to exceed SGD 1 million.Companies are required to register for GST in Singapore within 30 days of the last day of the quarter in which they cross the threshold or wi

313、thin 30 days of the date on which they become aware that revenue will exceed the threshold in the coming 12 months.Transfer pricing(TP)is the pricing of goods,services and intangibles between related parties.The Inland Revenue Authority of Singapore(IRAS)endorses the arms-length principle as the sta

314、ndard to guide transfer pricing.While taxpayers apply the arms-length principle when making a transaction with related parties,they should also prepare records as evidence that the pricing is at arms length.Such records are known as transfer-pricing documentation.In Singapore,it is necessary to prep

315、are TP documentation for transactions exceeding certain thresholds.With the adoption of the arms-length principle,taxpayers and tax authorities will have a common basis to deal with related-party transactions.To ensure a consistent and co-ordinated implementation of the BEPS recommendations and to m

316、ake them more inclusive,the OECD/G20 subsequently broadened its BEPS discussion to include more than 135 jurisdictions through a platform called the Inclusive Framework(IF)on BEPS.In October 2021,the IF agreed to a two-pillar solution to address the tax challenges arising from the digitalisation of

317、the economy,commonly known as BEPS 2.0.Under Pillar 1,Singapore will have to give up some taxing rights over profits from economic activities conducted here,but will receive very little in return due to its small domestic market.In response to the GloBE rules under Pillar 2,Singapore announced in Fe

318、bruary 2023 that it would implement the Income Inclusion Rule(IIR)and a Domestic Top-Up Tax(DTT)set out in Pillar 2 from businesses fiscal years starting on or after 1 January 2025.The IIR and DTT will top up a multinational enterprises(MNE)effective tax rate in Singapore to 15%.This will apply to M

319、NEs operating in Singapore that have annual revenue of at least EUR 750 million.Doing Business in Asia PacificForvis Mazars46Audit and accountingA company registered in Singapore is required to keep accounting books and other records that will sufficiently explain the transactions and financial posi

320、tion of the company,and enable true and fair profit and loss accounts and balance sheets to be prepared.If such records are kept outside of Singapore,copies must be kept in Singapore.Under the Singapore Companies Act,a company must file its audited accounts with the ACRA annually unless it is a dorm

321、ant company or a small company exempt from audit requirements.A dormant company is exempt from audit requirements if no accounting transactions,other than transactions as prescribed by the Companies Act,occur during the period from the time of its formation or have occurred since the end of the prev

322、ious fiscal year.A small company qualifies as such if it is a private company in the current fiscal year and meets 2 of the 3 criteria below in each of the two fiscal years immediately preceding the current fiscal year:a.Total annual revenue is equal to or less than SGD 10 million.b.Total assets is

323、equal to or less than SGD 10 million.c.The number of employees is equal to or less than 50.If the company belongs to a group,then the company must be a small company itself and the group must qualify as a small group by meeting at least 2 of the 3 criteria above on a consolidated basis in each of th

324、e two immediately preceding fiscal years.Singapore uses the Singapore Financial Reporting Standards(SFRS),which are formulated by the Accounting Standards Council of Singapore.The SFRS are closely modelled on the International Financial Reporting Standards issued by the International Accounting Stan

325、dards Board.All companies incorporated or registered in Singapore must comply with the SFRS,unless approval other standards is obtained from the ACRA.Compliance with the Code of Corporate Governance(the Code)is not mandatory,but companies listed on the Singapore Exchange(SGX)are required to disclose

326、 their corporate governance practices and give explanations for any deviations from the Code in their annual reports.Annual financial statements must be submitted to the ACRA and the IRAS.For clarification,small companies(with the exception of solvent private companies that are exempt)will need to s

327、ubmit these annual financial statements in XBRL format to the ACRA even if they are exempt from audit if they meet the criteria.All Singapore companies(with the exception of a representative office)must also submit annual tax returns to the IRAS.Country quirks A company secretary must be appointed w

328、ithin 6 months of the incorporation of a company,and must be a resident of Singapore.The company must have at least one local resident director,a local resident company secretary,and a registered office address which is open to the public.Forvis Mazars contactRick ChanManaging PartnerHead of Audit&a

329、mp;Assurance APACS.sg Justin LimPartner,Head of Outsourcing andHead of Corporate secretarial APACS.sgGene KweePartner,Head of Tax APACS.sgDoing Business in Asia PacificForvis Mazars47Doing business in Asia PacificTaiwanDoing Business in Asia PacificForvis Mazars48Establishing an entityIn Taiwan,busi

330、ness organisations include representative offices,branch offices,and subsidiary companies.A subsidiary can take the form of an unlimited company,an unlimited company with limited liability shareholders,a limited company,or a company limited by shares.The most common types are a limited company and a

331、 company limited by shares.A limited company can have one shareholder(an individual or a foreign company)with liability limited to the capital contribution.It can be converted to a company limited by shares with shareholder consent.Shareholders cannot transfer their capital contribution without majo

332、rity consent.A company limited by shares requires at least two individuals or one corporate shareholder.Shareholders liability is limited to their shares,and equity can be transferred without other shareholders consent.A branch office is a simpler form of business than a subsidiary,acting as an exte

333、nsion of the foreign head office without an independent legal identity.It must be capitalised(also known as“working capital”)and have a designated responsible person and branch manager,who can be either a foreigner or a Taiwanese.It is considered a profit-seeking enterprise under the Taiwan Income Tax Act and can perform all permitted business activities.A representative office is for companies needing a presence in Taiwan witho