Incentive Schemes in ASEAN, e-Commerce in Vietnam – China Outbound

Our weekly round up of other news affecting foreign investors throughout Asia.

ASEAN BRIEFING

Governments across ASEAN have been unveiling an array of incentive packages to entice businesses affected by the US-China trade war.

Thailand, the Philippines, Malaysia, and Indonesia have introduced tax breaks and initiatives to improve the ease of doing business whereas Vietnam, Singapore, and Cambodia have accelerated business reforms, such as executing free trade agreements (FTAs) and double taxation agreements (DTAs).

This article briefly discusses the development of each country’s incentives over the past year.

INDIA BRIEFING

Any person in India, whose estimated tax liability is more than Rs 10,000 (US$145) in a financial year, after deducting TDS, must pay income tax in advance. Under the advance tax method, tax liability is distributed in installments within the same financial year.

The advanced income tax is calculated in the same manner as normal income tax and the same tax slabs apply to respective taxpayers. However, the method of filing advance income tax is different. If the total tax paid exceeds the actual tax liability – computed when filing the final tax returns at the end of the year – the excess amount is refundable.

RUSSIA BRIEFING

The Swedish retailer IKEA is going to open several thousand pickup points in Russia over the next couple of years, the head of IKEA’s Customer Order Support Norbert Stepnowski told media this week.

New pickup points will be opened in phases; the exact time-frame and the geography of future points are still under development. The company is currently working with 70 pickup points in Russia, owned by transport companies – partners of IKEA.

SILK ROAD BRIEFING

The New Development Bank has been called upon to make greater contributions to the economic and social development of the BRICS countries, as well as emerging market economies and developing world in general.

Just ahead of the BRICS Summit, the NDB board of directors approved a US$300 million loan to mining conglomerate Vale to support the Brazilian North Region Transportation Infrastructure Improvement Project.

Vale’s northern system includes the Carajas Railway and Ponta da Madeira Port Terminal. The goal is to increase freight throughput by 10 million tons per year by 2023. Vale will contribute US$61 million in equity to the project.

VIETNAM BRIEFING

Vietnam’s e-commerce market is forecast to reach US$15 million by 2025. Vietnam is the second fastest growing e-commerce market behind Indonesia, according to the e-Conomy report by Google and Temasek.

The strong growth has created high demand for e-commerce logistics projected to grow at 42 percent every year until 2022. While the industry has its challenges, its growth is promising, with the government keen to remove regulatory hurdles faced by the industry.

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