Doing business in Asia (2)
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DOING BUSINESS IN ASIA KEY INSIGHTS FOR EXPANSION
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DOING BUSINESS IN ASIAKEY INSIGHTS FOR EXPANSION
APAC remains the fastest growing region in the world.
It accounts for approximately half of the world’s population.
APAC – Top 6The top 6 most popular places to do business in APAC?
APAC – Top 6 China
Singapore
Japan
Hong Kong
India
Australia
China
Although gradually changing, expect controls on market access and production, restrictions on foreign investment, and tight control over local operations.
China
Many industries are largely state-owned, but the non-state sector, made of collectively-owned, foreign-owned and private companies, is rapidly gaining importance in the Chinese economy.
China
Be mindful of cultural and linguistic differences between China and the West, which can create challenges for management.
Japan
Japanese consumption tax (Shouhizei) is comparable to Value Added Tax (VAT), and may be considered as such.
Japan
In general, a physical office address leased in the name of the company is required to conduct business operations and employ staff in Japan.
Japan
A points-based immigration system was introduced in May 2012. This system provides highly skilled foreign professionals with preferential immigration treatment in order to promote the entry of highly skilled foreign nationals.
SingaporeThere are enhanced tax incentives for intellectual property (IP) investments.
SingaporeThere is a low threshold for PE exposure in Singapore.
SingaporeAny expat employees and their employer must file for tax clearance when leaving Singapore permanently.
SingaporeAll foreign nationals who are not permanent residents must have a valid residence/work permit.
Hong KongHong Kong is a proven gateway to China’s high-growth markets.
Equally attractive is Hong Kong's simple and competitive tax system.
Hong KongHowever the HK tax authorities actively police PE issues, so an representative office should only be registered for truly representative activities.
Hong KongHK is particularly expensive for employers of expats. Employee expectations related to benefits, coupled with the country’s high real estate rates, can treble employment costs.
Hong KongThe government of HK keeps an eye on contractor relationships and the reported income arising from them.
Australia
Be aware that the Australian Tax Office (ATO) is actively targeting contractor relationships.
Australia
An employment contract comes into existence once an employer offers and the employee accepts employment. While the contract does not have to be in writing, it is highly recommended.
Australia
In 2014, significant privacy reforms went into effect in Australia. These tighter regulations impose stiff penalities for non-compliance.
IndiaIndia’s economy includes a wide range of diverse manufacturing and farming sectors, but the largest growth is seen in the services sector, specifically information technology.
IndiaPE risk is real in India, and investigation of liaison offices have been on the rise for the last two years.
IndiaChallenges to doing business in India include its poor infrastructure, high tariffs and slow pace of economic reforms. However, many opportunities remain for those taking a long-term perspective.
There are some common challenges across the entire region ...
Transfer pricing rules are becoming increasingly common and complex.
Representative offices are tightly policed.
The shift towards indirect taxation continues – review your obligations and be aware of rigid
documentation requirements.
As companies continue to expand new and existing operations, local tax authorities may challenge the
commonly adopted cost-plus markup transfer pricing arrangement.
A detailed review of your transfer pricing arrangements is highly recommended to
ensure compliance with ever changing in-country transfer pricing regulations.
APAC can be a rewarding place to do business, but it’s
not always plain sailing.
Need help with your APAC operations?
Connect with Radius:US: +1 888 881 6576 UK: +44 (0) 203 005 5518
Radius helps companies expand and win globally.
Need help with your APAC operations?
Connect with Radius:US: +1 888 881 6576 UK: +44 (0) 203 005 5518
Radius helps companies expand and win globally.
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