APAC payroll newsletter 2023 - Vol. 1

As the new fiscal year has recently begun, our APAC payroll newsletter helps to provide important updates on upcoming changes and amendments to payroll regulations for the 2023 year to ensure payroll compliance across APAC.

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

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APAC payroll newsletter 2023 - Q1
APAC payroll newsletter 2023 - Q1