APAC payroll newsletter 2023 - Vol. 1

Keywords: Mazars, Vietnam, Payroll, APAC

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