APAC payroll newsletter 2023 Vol.1

16 February 2023

Key highlights:

• Australia
  • 2022-23 Labour Federal budget highlights
  • New ATO draft ruling on individual tax residency
  • Payroll tax for medical centres – QLD Revenue Office takes the lead
• China
  • The implementation of the Private Pensions in China - What enterprises shall know

• Hong Kong
  • Statutory Minimum Wage (SMW) will be increased in May 2023

• India
  • Income Tax Deduction from Salaries during the Financial year 2022-23
• Indonesia
  • Implementation Rules on the Income Tax Law for Benefits-in-Kind
• Japan
  • Change of Health Insurance Premiums (provided by Japan Health Insurance Association)
  • Change of Employment Insurance Premiums
  • Change in Overtime pay rate
  • Childcare Leave at time of birth
  • Change in the social insurance exemption during Childcare Leave
  • Application of Dependent Deductions on taxable income for family dependents living outside of Japan
• Korea
  • Modification of the application period for Flat tax rate for foreign workers (applicable from 1 January 2023 employment income)
  • Changes in income tax reduction for foreign engineers (applicable from 1 January 2023)
  • Income tax rate adjustment (applicable from 1 January 2023)
  • Shortening the submission cycle of simplified statement (applicable to the employment income from 1 January 2024)
  • Reducing the burden of housing expenses (applicable from 2022 year-end tax settlement)
  • Increase of the limit of non-taxable meal allowance (applicable from 1 January 2023)
  • Increase of retirement pension account tax credit (applicable from 1 January 2023)
  • Increase of Minimum Wage (from 1 January 2023)
  • Increase of Employment Insurance Contribution Rate (from 1 January 2023)
  • Increase Scope for Foreign Workers to the Employment Insurance (from 1 January 2023)
• Malaysia
  • Extended coverage to all employees irrespective of wages
  • Employment of foreign employees
  • Change in maximum working hours
  • Maternity leaves
  • Paternity leaves
  • Awareness on sexual harassment
  • Presumptions of employment
  • Flexible working arrangement
• Philippines
  • Philhealth suspends Premium Rate Hike for 2023
  • New SSS contribution rates for 2023
  • Revised Income Tax Table for 2023
• Singapore
  • Increase in CPF rates for 55+ year olds to help save more for retirement.
  • Changes to S Pass quota
• Taiwan
  • Revision of basic wage (minimum wage)
  • Revision of Labour Insurance premium rate
  • Revision in National Health Insurance for employer and government contributions
• Thailand
  • A tax deduction for individual taxpayers of up to 40,000 baht when purchasing goods or services between 1 January and 15 February 2023
• Vietnam
  • Change in the practice of applying for work-permit in Vietnam
  • Sudden change in practice of using explanation form
  • Reasons for enterprises’ recruitment of foreign employees are considered more strictly (the enterprises have to prioritize recruiting Vietnamese employees)
  • Time for processing an application is prolonged