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India – Implementation of GST

Posted by reloc8apg 
· 27th June 2017 
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India finally has brought reforms to it’s over complicated tax system by adopting the GST system which goes live from 1st July 2017. GST is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level under which no distinction is made between goods and services for levying of tax. It substitutes all indirect taxes including Octroi, Central sales tax, service tax, central excise tax and VAT. Both Central and State Governments will impose GST on goods and services produced and the imports in the country.

One of the main objective of Goods & Service Tax (GST) would be to eliminate the doubly taxation i.e. cascading effects of taxes on production and distribution cost of goods and services. The exclusion of cascading effects i.e. tax on tax till the level of final consumers will significantly improve the competitiveness of original goods and services in market which leads to beneficial impact to the GDP growth of the country.

India’a services sector accounts for the predominant share of GDP, and its performance is critical. The sector in India is characterized by a plethora of small establishments with low value addition, employing large numbers of unskilled persons. The important services sectors from the revenue point of view are banking, insurance, telecom, construction, business support and transportation.

The government has unveiled a four-tier GST rate structure for the services sector — 5 per cent, 12 percent, 18 per cent and 28 per cent.

Currently, services industry attracts 15 per cent tax, which shall shoot up to 18-28 per cent depending on the rate the GST Council agrees on. Consequently, restaurant bills, expenditure on staying at hotels would go up. Similarly, air travel will also turn costlier. Sectors such as commercial vehicles, telecom, print media, cigarettes and jewelry would also be adversely impacted. Business auxiliary services like Relocation and Moving services shall now attract an 18 percent tax from an earlier 15 % service tax. This will impact cost of services from India and will increase costs for corporate customers and RMC partners.

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New Zealand – Important News for Investors

Posted by reloc8apg 
· 19th May 2017 
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New Zealand’s Business and Investor categories have seen constant change since they were introduced in the 1980’s. This has resulted in investors needing to meet different criteria and conditions for their residency requirements.

Currently New Zealand has two categories for investors which are detailed below:

Investor 1 Category

This category is structured for high net worth individuals who are able to invest NZ$10 million in New Zealand for a period of three years, and provides an avenue for them to obtain New Zealand Residence with a reduced criteria which needs to be met.  These include:-

  • No age limit
  • No English language requirement, and
  • No business experience required.

However, care needs to be taken in regards to the investment funds as there are strict requirements which need to be met in terms of:

  • Proving the funds have been legally earned
  • Transfer of funds requirements to New Zealand, and
  • Meeting the investment criteria in New Zealand

There is also a need to spend a minimum of 44 days in New Zealand in the second and third years of the three year investment period, and meet Immigration New Zealand’s health and character requirements.

Investor 2 Category

This Category is structured to encourage high net worth business people to New Zealand who are able to invest a minimum of NZ$1.5 million for a period of four years, with a further NZ$1 million for settlement purposes.

There is a limit of 300 investors under this category per annum, and selection is based on a ‘points’ system and submission of an Expression on Interest, (EOI).  Only those meeting the minimum required number of points are selected and invited to apply.

The points system is based on

  • Age, (Maximum 65)
  • Business Experience, (Min 3 years)
  • English language, (minimum of IELTS overall band score of 3, or equivalent), and
  • Amount of investment, (Min NZ$1.5 million)

Selections are made each fortnight and due to the low number of applicants, it appears all those who have completed an expression of interest, have been invited to apply.  Immigration have selected people with a points total as low as 32 and with 10 points for investing $1.5 million, (the minimum), they have been selected without having to obtain many points within the other required criteria.

There is also a need to spend a minimum of 146 days inNew Zealandin the second, third and fourth years of the four year investment period, and meet Immigration New Zealand’s health and character requirements.

The ownership, transfer and investment criteria remain the same irrespective of the category applied under.

Investments in New Zealand are required to meet certain conditions, including:

  • Capable of earning a commercial return
  • Not used for personal use
  • Invested in New Zealand in New Zealand currency
  • Invested in a lawful enterprise or managed fund
  • Has the potential of contribute to New Zealand’s economy

Is invested in one or more of:

  • NZ Government/Local Authority Bonds
  • Bonds issued by New Zealand firms traded on the New Zealand Debt Securities Market Bonds issued by firms with New Zealand firms with at least a BBB- credit rating
  • Equity in New Zealand firms (Public or Private, including managed funds)
  • Bonds issued by New Zealand registered banks
  • Equities in New Zealand registered banks
  • Residential Property developments
  • Bonds in finance companies

It is important to note that the criterion which needs to be met within these categories is complex and each aspect needs to be met in order to be successful.  At Reloc8 Asia Pacific Group – New Zealand, with in excess of 21 years experience, we can guide you through the process to ensure you will meet the relevant Immigration New Zealand requirements.

Fast Facts about the New Zealand Economy

Did you know that:

  • 97% of enterprises have fewer than 20 employees.
  • 26% of new Zealand’s GPD is estimated to be produced by enterprises with fewer than 20 employees.
  • 96% of enterprises with fewer than 20 employees are independent operations not owned by others.
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Thailand – Holidays and their impact on business

Posted by reloc8apg 
· 25th January 2017 
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In Thailand, the official public holidays are regulated by the government and formally decreed by yearly announcement. The number of annual public holidays averages around 15, but it is not uncommon that additional public holidays are announced by the Cabinet during the course of the year for various reasons. It should be noted that, in addition to the official Thai public holidays, other local or international holidays are observed by Thais and non-Thais across the country to varying degrees.

While restaurants, entertainment venues, shops and tourist attractions are very rarely closed, in general, businesses and government offices, banks etc. are closed on public holidays. To most locals, employed in Bangkok and other cities, the public holidays are an occasion to leave the city for ‘long weekend’ recreation or to visit hometowns and family in the provinces. This normally results in an increased demand on resort accommodation, queues at tourist attractions, and heavy traffic in-and-out of urban centers on the travel days.

Commitment to traditions

It should come as no surprise that the majority of the public holidays observed are Thai (Buddhist) holidays tied to the lunar calendar and, as such, they will not be occurring on fixed dates every year. Some holidays, however, such as the Birthday of the late King Rama IX or Constitution Day are indeed fixed by date (5th and 10th December, respectively).

Many of Thailand’s public holidays are marked by elaborate and colorful festivals and traditions, which are always a spectacle to observe, and partake in, for any visitor or expat resident. The longest – and probably most widely known festival – “Songkhran” in April practically brings all business to a standstill for 3-4 days, while the entire country revels in festive celebration and ‘water fights’ in the streets to usher in the Thai New Year. Alongside the ‘high energy’ and rather noisy festivities, the Songkhran festival is also a time for religious merry making at temples and shrines nationwide.

The Thais are devoted to their cultural heritage, which is reflected in their commitment to traditions surrounding the holidays – tied to religion or the monarchy – that mark out the calendar year. Gradually, and notably in Bangkok and other urban centers, other foreign (Western) holidays are increasingly popular, if nothing else as commercial holidays or occasions to celebrate with friends and family.

For local workplaces and businesses, there normally will be no holidays in connection with, for example, Christmas or Easter for which expats would often be required to plan ahead for annual leave days if needed.

A ‘watershed year’

Following the passing of King Bhumibol Aduljadej (Rama IX) on 13th October 2016, the government has announced a delay in the formal confirmation of the public holiday calendar for 2017, as several holidays are directly related to the monarch. This means, in practice, that as many as 3-4 holidays (dates) may be re-scheduled, pending decision by the Cabinet. Since, at the time of writing, no formal announcement on public holidays for 2017 has yet been made, a confirmed 2017 public holiday calendar can not be provided at this time.

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Taiwan – Holidays and their impact on business

Posted by reloc8apg 
· 25th January 2017 
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Taiwan’s public holidays are provided for by the Ministry of Labor through the Labor Standards Act and its related Enforcement Rules. The Central Personnel Administration in Taipei regulates all non-working national holidays.

In Taiwan, holidays that fall on a Saturday are observed on the previous Friday while holidays fall on a Sunday will be observed on the following Monday.  As such, many of the celebrations enjoyed in Taiwan are multi-day events. Some of the events will have a second date added to them where the entire workforce has a “make-up” day scheduled to work. These make up days are also issued as part of the national holiday list each year. Many of the make-up days occur on a typical rest day such as Saturday or Sunday.

Nonetheless, the Taiwan government has just approved an amendment to the labor law last month, introducing a five-day work week with one compulsory rest day, one flexible day off and eliminating 7 national holidays for year 2017.

Commemorative Days
Taiwan has many commemorative days that are celebrated each year. Some of these commemorative dates are recognized by the government. However, they are not considered a national holiday and employees are not given a day off for these events.

All of the office and government agencies will be closed during the public holidays as to abide the local labor law.  The list of the public holidays celebrated with office closures are below:

Taiwan Holidays

With Chinese New Year around the corner, we would like to wish all our readers lots of happiness, health and success for the Year of the Rooster!

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Singapore – Holidays and their impact on business

Posted by reloc8apg 
· 25th January 2017 
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Singapore has 11 days of gazetted public holidays annually to celebrate various national and religious events:

  • Chinese New Year (2 days)
  • Vesak Day – Buddhist
  • Deepavali – Hindu
  • Hari Raya Puasa and Hari Raya Haji – Islamic
  • Good Friday and Christmas Day – Christian
  • New Year’s Day, Labour Day and National Day – Secular

Voting is compulsory in Singapore and as such Polling Day (for a general election or a presidential election) is a public holiday.  Public holiday falling on a Sunday, the following day is declared as a public holiday if it is not itself already a public holiday.  Employees not required to work on a Saturday are entitled to one day off in lieu or be given one day’s pay if the public holiday falls on that day.  Employer and employee may mutually agree to substitute a public holiday for any other day.

Impact on Business

In multi-racial Singapore, we observe the new year of the three main ethnic groups as well as their religious celebrations.  The streets along the main shopping belt of Orchard Road are brightly decorated for the Christmas season, sometimes as early as in late October.  Chinatown is usually decorated during the month before and after the Lunar New Year.  Little India is decorated for Deepavali (Hindu Festival of Lights)  and Geylang Serai for Hari Raya Puasa (Muslim New Year).  The attractive decorations and bright lights help to bring about a festive mood and encourage consumers to spend on home accessories, new clothes, food, etc. in celebration of the occasion.

There used to be a time when most shops, supermarkets and restaurants were closed over the Lunar New Year period.  However, that has changed with high rents and operational costs forcing many business operators to stay open during the festive seasons. Some services like real estate or renovation may be impacted over the Lunar New Year when realtors take longer holiday break and contractors stop work for 1 to 2 weeks because workers travel back to their home country (mainly Malaysia) for the festive celebrations.  We would usually recommend expatriates to avoid planning their home finding trip or moving in to their rental property during this period.

Some religious holidays such as Easter Monday, Mawlid (Prophet Muhammad’s birthday) and Thaipusam (Indian festival) were removed from the list of public holidays to improve business competitiveness.

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Philippines – Holidays and their impact on business

Posted by reloc8apg 
· 25th January 2017 
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The Philippines is widely known to have a generous number of holidays in a given year. It is the extended, successive holiday that mainly poses a significant effect on various businesses. While holidays are generally renowned for their ability to make people spend more and therefore increase revenues, not all businesses view holidays as positively.

For Destination Service Providers, the impact is clearly evident in various delays encountered by relocation and immigration teams in their daily operations between global management companies and the assignees.

Philippine Immigrations; Customs and other Government Offices – The processing of visas, permits, licenses, approvals; authorizations are placed on hold. Customs release of shipments is postponed. This inevitably creates a backlog. Actual government services and processes decelerate during the week of Easter (in April for 2017) and also in the onset of December.  Whether it be holiday mood, or an increased number of staff on annual leave, activities always slow down and effectiveness decreases. Filing of applications is best planned and arranged either in advance of holidays or right after.

Availability of Property Owners/ Landlords – Majority of owners of the prime properties preferred by expatriates commonly plan their vacations during successive holidays and make use of long weekends to be abroad often times for several weeks.  This is most noticeable in December when they only return to Manila in late January or early February. Delays in negotiations and in contract preparation are unfortunately inevitable.  Signatories are simply unavailable. Major maintenance requirements become a huge challenge due to absent landlords.

DSPs – Timing and planning the travel of potential and incoming assignees to Metro Manila is especially crucial. Relocation and Immigration Teams do all possible to complete requirements of new initiations prior to a successive national holiday period or a long-weekend. Notably, the end of the year usually has the longest set of successive non-working holidays. In this instance, the cut-off for immigration services of new initiations is normally on the 10th of December.

Assignees On-the-Ground – Depending on respective company policy and the type of profession, some expatriates that are already well settled in the Philippines actually enjoy the numerous holidays in the Philippines. Long weekends are definitely the best time to visit places of interest.  On the other hand, assignees in the process of settling-in or those that have major maintenance issues in their units, inexorably get frustrated with the delayed response or prolonged action of vacationing landlords or out-of-office government agencies.  In this regard, awareness of Philippine holidays is an important element in their orientation to the country.

Philippine Holidays for 2017:

Regular Holidays – These are yearly National Holidays defined by Congress.

Philippines Holidays 2017

Special Non-working Holidays – These are national days of observance established in advance by December of the previous year.

Philippines Non-working Holidays 2017

Other Special Non-working Holidays applicable only by Presidential Proclamation – These are also national days of observance that are only declared as non-working holidays upon the discretion of the President. Dissemination to media is only prompted approximately 1 or 2 days prior to the actual date.
Day after New Year’s Day – January 2
Id-ul-Adha (Festival of  Sacrifice) – (mutable, usually in July or August)
Eid’l Adha (Festival of Breaking Fast) – (mutable, usually in August or September)
All Soul’s Day – November 2
Christmas Eve – December 24
Day after Christmas – December 26

All in all, businesses view the influence of excessive holidays on the Philippine economy as rather disruptive to forward progress. On the other hand, in the view of the average employee, holidays promote their well-being, thereby becoming a source of motivation. In this sense, we can expect the influences of Philippine Holidays to always have its advantages and disadvantages.

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New Zealand – Holidays and their impact on business

Posted by reloc8apg 
· 25th January 2017 
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New Zealand’s main holiday season coincides with Christmas/New year and the end of the school year.  Staffing within businesses is usually somewhat reduced from the 20th December through to the end of January.  Majority of companies not including retailors close operations for 1.5 – 2 weeks from Christmas Eve (or closest too) through until the 3rd or 4th January, depending on how the holidays fall.  There are also a number of holidays which fall within January/early February which include regional holidays for Auckland and Wellington (two of NZ’s largest cities), and in early February New Zealand’s national day – Waitangi day.

Property managers generally close for a period of 2.5 weeks of this time from Christmas so home searches are near impossible and schools are shut from mid December until early February making school searches unachievable too.

Public and provincial (Anniversary) holidays 2017:

Public holidays 2017
Sunday 1 January or Tuesday 3 January — New Year’s Day
Monday 2 January — Day after New Year’s Day
Monday 6 February — Waitangi Day
Friday 14 April — Good Friday
Monday 17 April — Easter Monday
Tuesday 25 April — ANZAC Day
Monday 5 June — Queen’s Birthday
Monday 23 October — Labour Day
Monday 25 December — Christmas Day
Tuesday 26 December — Boxing Day

Anniversary days 2017
Monday 30 January — Auckland anniversary day
Monday 25 September — Canterbury (South) anniversary day
Friday 17 November — Canterbury anniversary day
Monday 27 November — Chatham Islands anniversary day
Friday 20 October — Hawke’s Bay anniversary day
Monday 30 October — Marlborough anniversary day
Monday 30 January — Nelson anniversary day
Monday 30 January — Northland anniversary day
Monday 20 March — Otago anniversary day
Tuesday 18 April — Southland anniversary day
Monday 13 March — Taranaki anniversary day
Monday 23 January — Wellington anniversary day
Monday 4 December — Westland anniversary day

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Malaysia – Holidays and their impact on business

Posted by reloc8apg 
· 25th January 2017 
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Public holidays, to most of us, this is what we all look forward to as a time to relax and unwind. To business owners however, this can be a bane or a boon depending on the kinds of business we are referring to.

With Malaysia ranked as one of the countries with the most public holidays (15 in total), and that is not counting state public holidays plus special days granted as holidays for example when the state of Selangor granted an ad-hoc public holiday due to their football team winning the prestigious Malaysia Cup competition.

Due to Malaysia’s multi ethnic and religious make up, there are various religious and cultural celebrations that warrant its own public holiday. This is especially true during Hari Raya Aldilfitri (Eid al-Fitr) and also Chinese New Year which grants 2 days of leave each. These are deemed compulsory public holidays thus employers who require their staff to work on these periods are required to pay their staff extra wages or provide leave in-lieu. There is a danger as well that staff morale could be affected if they are forced to work on public holidays as staff feel “entitled” for these holidays.

Most companies in Malaysia rotate their staff according to those who celebrate the holidays especially. For example, Chinese staff are allowed to take first preference during Chinese New Year, and then Malay staff are then allowed first preference during Hari Raya alternatively.

A careful balancing act is pivotal in allowing better productivity and also taking into consideration the human element. Holidays can truly be a rejuvenating experience whether for customers or businesses.

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Japan – Holidays and their impact on business

Posted by reloc8apg 
· 25th January 2017 
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New Year’s is one of the major holidays in Japan, and Year-end and New Year period have a large impact on business. Consumption of consumer goods and travel soar during major holiday periods. Most businesses, including city/ward offices and banks are usually closed while most stores remain open. Companies and city/ward offices are closed from Dec.29 to Jan 3 while most banks are closed from Dec. 31 to Jan. 3.

Christmas is not a national holiday in Japan but can be a very difficult time to make a reservation at restaurants or hotels as it is a custom to go out at this time.  Most international schools enter winter break from the 3rd Saturday of December and the new term will start from the 3rd week of January while for most Japanese schools winter break starts from the 4th Saturday in December and the new term commences from the 2nd Tuesday in January as 2nd Monday in January is a national holiday called Seijin no Hi (Coming of Age Day).

Another holiday that has a major impact on business in Japan is “Golden Week” which can be the longest vacation of the year for most Japanese.

“Golden Week” runs from April 29 to May 5 during which there are 4 national holidays.(April 29: Greenery Day (Midori-no Hi), May 3: Constitution Memorial Day (Kenpo Kinenbi), May 4: People’s Holiday (Kokumin no Shukujitsu), May 5: Children’s Day (Kodomo no Hi)). Most companies are closed on April 29, May 3, 4, and 5. Many workers add a few days of paid-vacation to take the whole week off.

City/ward offices and banks are closed on Saturdays, Sundays, and holidays. ATM is open for 24hours/365 days. Most international schools do not observe Golden week.
Many Japanese will use these times to take a week or more off to travel. The highways can be very crowded as well as airports and train stations.  The cost of air travel in particular spikes during these holiday periods.  It can also be difficult to make reservations at inns, hot springs and resorts during these times.

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Indonesia – Holidays and their impact on business

Posted by reloc8apg 
· 25th January 2017 
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Indonesia is the world’s largest archipelago and it has diverse cultures and religions which reflect on the number of public holidays we have throughout the year. The government recognizes six official religions, Islam, Protestantism, Catholicism, Hinduism, Buddhism, and Confucianism.

With these different religions across the nation, and the secular democracy within the system, the country has the constitution that guarantees all Indonesian citizen the freedom to worship each religion, therefore Indonesia has many public holidays which are mostly religion-inspired and which cause the nation’s financial market to be closed.

Major holidays are :

Idul Fitri (IED) this is the biggest holiday in Indonesia as being the majority of the population are Muslim, the capital city Jakarta can see and feel the effect of this holiday 2 weeks prior to the actual holiday with many people from lower socio economy start leaving the city to go to the villages. The city of 20 million people with traffic jams is one of the worst in the world, can see the difference several days before Idul Fitri as the city feels empty and traffic is moving well.  This will be felt also till one week after Idul Fitri as many are normally still away in the villages.

Christmas is the second biggest holiday but it doesn’t have the same effect as Idul Fitri.  The actual holiday is only on December 25, as they don’t have Boxing Day as a holiday unless December 25 falls on the weekend.

January 1 is considered a public holiday.  The next one is the Chinese New Year which several years ago, this was not considered a public holiday but with the government being more open towards the Chinese community, they now recognize Chinese New Year as a public holiday.

We also have Hindu holiday, Buddhist holiday, Easter holiday, as well as Independence Day on August 17.

Most businesses, including banks and public offices are closed during public holidays but many shops and restaurants are normally open as usual.

By mid December, it is normally quieter in Jakarta for the expatriate community as most international schools have holidays for about two to three weeks till early January.

IMPACT ON BUSINESS

The most impact we feel for the business is the two major holidays, Idul Fitri (Islam) and Christmas (Christian).  With so many people away a week before and after Idul Fitri, efficiency in the office is also greatly affected.  This will be the same during the Christmas and New Year holiday, with many directors of companies away coincide with school holidays, the efficiency in the offices is also slower than the usual days.

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