Digital Tax in Singapore, India’s Budget 2020 – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
Singapore has issued the Overseas Vendor Registration regime, which obligates foreign digital service providers to register and pay for goods and services tax (GST).
Businesses will need to have a yearly global turnover of more than S$1 million (US$738,000) and sell more than S$100,000 (US$73,800) to be obligated to pay the seven percent GST rate.
The government is also planning to increase the GST rate to nine percent between 2021 and 2025.
We look at the top five issues that foreign investors want to see addressed in the India’s budget for 2020 that is set to be presented in parliament on February 1.
As bilateral trade between Russia and Vietnam is growing fast due to the Vietnam-Eurasian Economic Union Free Trade Agreement, we are seeing an increasing number of Russian businesses looking at Vietnam as a market to sell into.
A Vietnamese Representative Office (RO) offers a low-cost entry for Russian companies seeking to gain a better understanding of the Vietnamese market. As such, this option is among the most common for first-time entrants to the Vietnamese market and often precedes a larger presence within the country.
Belt and Road Initiative projects that Chinese state-owned enterprises have been undertaking overseas are being held up or suspended due to the coronavirus outbreak.
Many of the projects include hundreds if not thousands of Chinese workers, the majority of whom had returned to China for the Lunar New Year festivities.
In Vietnam, customs and tax authorities’ information sharing is continuously being strengthened in part due to better enforcement of Decision No. 2413/QD-BTC (Decision 2413), which allows for further cooperation between the two entities as well as frequent tax inspections and audits.
Businesses such as manufacturing companies and export processing enterprises (EPEs) should ensure they are in compliance with local tax rules and seek professional help for issues that may be complicated.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at firstname.lastname@example.org.
We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, and Thailand in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative.