Download - Doing business in Asia (2)
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DOING BUSINESS IN ASIAKEY INSIGHTS FOR EXPANSION
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APAC remains the fastest growing region in the world.
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It accounts for approximately half of the world’s population.
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APAC – Top 6The top 6 most popular places to do business in APAC?
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APAC – Top 6 China
Singapore
Japan
Hong Kong
India
Australia
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China
Although gradually changing, expect controls on market access and production, restrictions on foreign investment, and tight control over local operations.
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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.
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China
Be mindful of cultural and linguistic differences between China and the West, which can create challenges for management.
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Japan
Japanese consumption tax (Shouhizei) is comparable to Value Added Tax (VAT), and may be considered as such.
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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.
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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.
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SingaporeThere are enhanced tax incentives for intellectual property (IP) investments.
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SingaporeThere is a low threshold for PE exposure in Singapore.
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SingaporeAny expat employees and their employer must file for tax clearance when leaving Singapore permanently.
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SingaporeAll foreign nationals who are not permanent residents must have a valid residence/work permit.
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Hong KongHong Kong is a proven gateway to China’s high-growth markets.
Equally attractive is Hong Kong's simple and competitive tax system.
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Hong KongHowever the HK tax authorities actively police PE issues, so an representative office should only be registered for truly representative activities.
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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.
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Hong KongThe government of HK keeps an eye on contractor relationships and the reported income arising from them.
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Australia
Be aware that the Australian Tax Office (ATO) is actively targeting contractor relationships.
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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.
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Australia
In 2014, significant privacy reforms went into effect in Australia. These tighter regulations impose stiff penalities for non-compliance.
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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.
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IndiaPE risk is real in India, and investigation of liaison offices have been on the rise for the last two years.
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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.
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There are some common challenges across the entire region ...
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Transfer pricing rules are becoming increasingly common and complex.
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Representative offices are tightly policed.
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The shift towards indirect taxation continues – review your obligations and be aware of rigid
documentation requirements.
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As companies continue to expand new and existing operations, local tax authorities may challenge the
commonly adopted cost-plus markup transfer pricing arrangement.
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A detailed review of your transfer pricing arrangements is highly recommended to
ensure compliance with ever changing in-country transfer pricing regulations.
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APAC can be a rewarding place to do business, but it’s
not always plain sailing.
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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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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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