Greetings and welcome to the fourth and final instalment of the ASEAN Investment & Tax News for 2021.
The COVID-19 pandemic continues to affect ASEAN countries’ growth plans. Based on the Asian Development Outlook 2021 Update (September 2021) by Asian Development Bank, the 2021 growth rate for ASEAN is expected to be lower at 3.1%, compared to its previous forecast of 4.4%.
Vaccination and travel bubbles continue to be key topics. Several ASEAN countries have been working towards establishing travel bubbles between the countries.
More recently, climate change has also topped the agenda at the 35th ASEAN Capital Markets Forum Chairs’ Meeting hosted virtually by the Brunei Darussalam Central Bank. In conjunction with the 26th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (“COP26”), the ASEAN Taxonomy Board (“ATB”) released the ASEAN Taxonomy for Sustainable Finance (ASEAN Taxonomy) – Version 1. This initiative provides a frame for discussions with official sector and private sector stakeholders to work together on the development of the ASEAN Taxonomy.
In this publication, our tax experts continue to analyse and bring you the latest in-depth updates in ASEAN.
Malaysia takes its place as the feature article this month as we discuss the key tax proposals of Budget 2022 which was unveiled on 29 October 2021, which focuses on bolstering economic recovery, resilience and reforms.
We also feature an article from UOB on what to consider when setting up a distribution centre. Companies looking to diversify their supply chains post-pandemic can consider ASEAN countries such as Singapore, Malaysia and Thailand, which offer a good mix of cost effectiveness and competitive business growth.
Over in Cambodia, we look at the Prakas 542 MEF.P on Rules and Procedures for the Implementation of VAT on E-Commerce passed on 8 September 2021 and the Competition Law issued on 5 October 2021.
In Indonesia, we highlight the summary of the Tax Harmonisation bill, which was approved by Parliament on 7 October 2021 and aimed to support tax reforms in Indonesia.
Meanwhile in Myanmar, we discuss the Union Tax Law 2021 which came into effect on 1 October 2021 and its key changes relating to income tax, personal income tax, commercial tax, specific goods tax and gemstone tax.
In Singapore, our colleagues talk about the updated Singapore–Indonesia Double Taxation Agreement which came into effect on 23 July 2021.
Finally, in Thailand, our colleagues provided updates on the new investment incentives designed to accelerate Thailand Industry 4.0 transformation as well as updates on the new regulations of transfer pricing.
Read more as we continue to delve into the latest Investment and Tax news in ASEAN.