东盟营商指南2023-英-278页_11mb

Introduction to Doing Business in ASEAN 2023

The ASEAN region remains an attractive destination for foreign investment, driven by its large population, growing consumer market, and ongoing regulatory reforms. This report provides an overview of the key guidelines for establishing and operating businesses in the ten ASEAN countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The compilation is designed to assist foreign companies and investors in navigating the diverse regulatory environments across the region.

Key Highlights

1. Bureaucratic Reforms: Several countries, including Indonesia and Malaysia, have streamlined business registration processes and reduced corporate tax rates to attract foreign investment.
2. Supply Chain Diversification: Post-COVID, ASEAN has become a hub for manufacturing relocation, particularly from China, with countries like Vietnam and Thailand seeing growth in high-value manufacturing.
3. Digital Economy: Vietnam, Singapore, and Malaysia are leading in digital transformation, with incentives for tech companies and digital service providers.
4. Tax Harmonization: Many countries, including Singapore and Vietnam, are aligning their accounting standards with International Financial Reporting Standards (IFRS) to enhance transparency and comparability.
5. Labor Regulations: Minimum wage policies vary across ASEAN, with Indonesia and Vietnam actively increasing rates, while others, like Singapore, rely on market-based salary determination.

Corporate Establishment

• Establishing a company varies by country, with options such as limited liability companies (LLCs), representative offices, or branches. Requirements include names reservations, stamp duties, and registration processes ranging from electronic submissions to manual filings.
• Special Economic Zones (SEZs) in countries like Vietnam and Cambodia offer tax incentives.

Taxation

• Brunei: Low corporate tax rate of 18.5%. No VAT system.
• Cambodia: CIT ranges from 0% to 20%, with new tax thresholds effective from 2023. Minimum wage increases are in place.
• Indonesia: Corporate tax rate of 20% (previously reduced to 17%). Companies can qualify for tax holidays.
• Laos: Corporate tax at 7-20%. Digital service tax introduced.
• Malaysia: Corporate tax at 24% (reduced from 26% previously). Sales tax at 11%.
• Philippines: Corporate income tax reduced to 25% for foreign companies. Christmas bonuses and 13th-month pay are mandatory for some employees.
• Singapore: Flat CIT of 17%. Emphasis on green investments.
• Thailand: Daily minimum wage increases. Companies must meet specific thresholds for audit obligations.
• Vietnam: Minimum wage based on region. IFRS alignment planned by 2025.

Human Resources and Payroll

• Minimum Wages: Each country has different minimum wage structures, with Indonesia and Vietnam leading increases.
• Foreign Worker Quotas: Countries like Vietnam and Cambodia enforce limits on foreign employment, requiring specific licenses for hiring expatriates.
• Social Insurance: Mandatory contributions in Indonesia, Malaysia, and Singapore vary based on wage brackets and employee categories.

Audit and Compliance

• Annual Reporting: Companies must file annual returns and financial statements within specific periods.
• Auditor Requirements: Independent auditors are mandatory for larger entities, with some smaller businesses and dormant companies exempted.
• Penalties: Non-compliance can result in fines, interest on overdue taxes, or legal sanctions.

The ASEAN region presents significant opportunities for foreign investment, supported by ongoing reforms and targeted incentives in key sectors. Companies can leverage these developments to tap into the region's growing economy, provided they navigate the specific compliance requirements of each country.