Tax Cuts in the Philippines, Profit Repatriation from Vietnam – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
On September 16, 2019, lawmakers reformed the Philippines’ corporate tax system by introducing the Corporate Income Tax and Incentives Rationalization Act (CITIRA). CITIRA sets out to gradually reduce the corporate income tax (CIT) rate and rationalize specific tax incentives.
Through CITIRIA, the government aims to attract greater foreign direct investment (FDI) and stimulate job growth.
Russia’s System for Transfer of Financial Messages (SPFS) has gone global this week with the introduction of the system into banks in the Eurasian Economic Union. SPFS is an alternative to the US backed SWIFT network of financial transactions.
The current trade and tariff tensions between China and the US has seen a resurgence of Chinese interest in developing free trade routes, and especially along the Belt and Road Initiative. Staple items including energy resources, food, and other consumables will increasingly be sourced from markets closer to home.
Remitting profits from Vietnam can prove to be a complex and time-consuming process. Businesses that seek out up-to-date information and plan accordingly are more ready to ensure that profits from their business in Vietnam are distributed abroad in a seamless manner.
The article lists the government bodies and general restrictions on investment that should be noted with regard to remittances and compliance procedures for outbound payments.
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