AGN Taxpresso: 2024 – Issue 1 (Asia Pacific Tax Publication)

Inside this issue: Richard Ashby, Chairman of the AGN Asia Pacific Tax Committee provides a short message. Helen Wong & Pierre Gargatte at Acclime in China provides insight into the Hong Kong budget 2024-25. Erik Eneddy at DHK in Jakarta shares information on the new Indonesia payroll tax for employees, and Vimala Devi at BSL in Singapore recaps on the Singapore Budget 2024.

A summary of each article follows. Download the publication for a comprehensive read.

Message from the Chairman

Richard Ashby reflects on the year, provides a tax commitee update, and invitates members to attend commitee meetings.

Hong Kong Budget 2024/2025

The Hong Kong budget 2024-25 addressed key measures to strengthen Hong Kong’s competitiveness as the international financial center and advancing the city’s digital footprints. Several measures were aimed to seize business opportunities and to restore the Hong Kong Brand. With the government exercising prudence on the public finance, limited sweeteners were handed out this round, mainly benefitting local residents, homebuyers and property developers.

Indonesia: New Payroll Tax for Employees

Starting from 1 January 2024, the withholding tax for payroll will change. The changes are meant to simplify the calculation that should be done on a monthly basis. While the monthly calculation is simplified, the year end calculation has not changed. Previously, to calculate monthly payroll tax, employer needs to annualize the salary, and in doing so, the employer must separate how much is regular income and how much is non regular income.

Singapore Budget 2024

Some called it an “Election” Budget. The Budget also caters for the transformation of Singapore to withstand the changes that are constant in the volatile world we dwell in. The Budget charted the way forward to reinforce Singapore’s social compact. The Deputy Prime Minister and Finance Minister, Mr Wong, announced the Budget on 16 Feb 2024. Mr Wong will spend $131 billion to strengthen the social safety nets increasing the employability of the senior workforce, allowing mid-career switch by re-skilling and re-training them to compete in the changing technology space.