Asia Legislation Alert Bulletin
In recent months, governments all over the world have made legislative changes that impact payroll and HR to help organisations support their employees during the COVID-19 global pandemic.
This page outlines the updates for Asia region. The full Asia Legislation Alert Bulletin can be downloaded at the bottom of the page
Commercial use of this document is not allowed unless approved in writing by Ascender. Read Disclaimer
China
Update on Annual Tax Filing Obligations in China
Impact: For employers’ general guidance
Summary: It is required for both Chinese and foreign national who are employed in China to declare their annual individual income tax
before the end of June 2020.
Foreign employees, however, need to obtain a registration code form from the tax bureau. A temporary code will be given
which can be used to log-in the government website to create a permanent log-in. The permanent log-in will be used to login the app that may be downloaded from the website.
The website however is currently only available in Chinese.
Primary Source: https://www.mondaq.com
China Extends Holidays for Workers Amid Coronavirus Outbreak
Impact: For employers’ general guidance
Summary: On 26 January 2020, the Chinese State Council extended the Spring Festival holidays (Chinese New Year) for employees up to 2 February 2020. This is issued to contain the outbreak of the 2019 novel coronavirus, now officially named as COVID-19.
The Spring Festival holidays are originally scheduled to run from 24 to 30 January.
Primary Source: http://english.www.gov.cn
More China Alerts
- Ministry of Human Resources and Social Security on Proper Handling Labour Relations on Prevention and Control of COVID-19
- China Announced Tax Measures to help on the COVID-19 Pandemic
- Policies and Measures for the Steady and Healthy Development of Shanghai’s Full Support for the Prevention and Control of Epidemic Support Service Enterprises
Hong Kong
Hong Kong Discrimination Legislation Ordinance 202
Impact: For employers’ general guidance
Summary: The Discrimination Legislation Ordinance 2020 which brought forward the Equal Opportunities Commission’s Discrimination Law Review recommendation was first announced on 19 June 2020.
Some employment-related key amendments are listed below.
- Expanded the protection against harassment in the workplace to “workplace participants” where there is no
employment relationship such as interns, volunteers. Such workplace participants are likewise required not to
harass others - Protection against race discrimination extends to “associates” of the individual (e.g. spouse or domestic partner,
relative, etc.) and also extends to the “imputation” of a race or racial group - Laws against discriminating breastfeeding employees
- Lack of Intention to discriminate will no longer be a defence against claim for damages
All the changes in the amended legislation took effect immediately except for the breastfeeding employee which will come
into force in 19 June 2021. Details of each can be found in the link below.
Primary Source: https://www.gld.gov.hk/egazette/pdf/20202425/es1202024258.pdf
The 2020-2021 Budget
Impact: For employers’ general guidance
Summary: Hong Kong Financial Secretary delivered the 2020-2021 Budget on 26 February 2020. Below are some highlights:
- Salaries tax and tax under personal assessment for the year of assessment 2019/20 will be reduced by 100 percent, subject to a ceiling of HK$20,000, and will be reflected in the final tax payable for the year of assessment 2019/20.
- Rates in respect of residential properties for four quarters of 2020-21 will be waived, subject to a ceiling of HK$1,500 per quarter for each rateable property.
- Extra allowance will be provided to eligible social security recipients, equal to one month of the standard rate Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to recipients of the Work Incentive Transport Subsidy.
- $10,000 cash payout to Hong Kong permanent residents aged 18 or above
- Low-interest loan (up to $2 million) with a 100% government guarantee for enterprises, which will be open for application for 6 months.
Primary Source: https://www.budget.gov.hk/2020/eng/speech.html
More Hong Kong Alerts
- Hong Kong Government reaches out to help businesses stay afloat amidst Covid-19
- Tax Payment Deadline Extension
India
Legislative Assembly Passes Haryana State Employment of Local Candidates Bill 2020
Impact: For employers’ general guidance
Summary: On 5 November 2020, the Legislative Assembly of Haryana government passed the ‘Haryana State Employment of Local
Candidates Bill, 2020’. The bill provides 75 per cent reservation for jobseekers in the private sector once it becomes a law.
The Bill will apply to companies, societies, trusts, limited liability partnership firms, partnership firms etc. located across the
state.
Primary Source: https://economictimes.indiatimes.com
Pradhan Mantri Garib Kalyan Yojana (PMGKY) Amnesty Scheme
Impact: For employers’ general guidance
Summary: The Central Government has launched the Pradhan Mantri Garib Kalyan Yojana (PMGKY) on 26 March 2020 to help poor fight the battle against Corona Virus.
As part of the PMGKY package, with a view to prevent disruption in the employment of low wage earning EPF members and support EPF covered establishments employing up to one hundred employees, the Central Government proposes to grant relief in form of credit of EPF & EPS contributions (24% of wages) for three months in UANs of contributory EPF members, earning monthly wage of less than Rs.15000/-, who are already employed in EPF covered establishments/factories employing up to one hundred employees with 90% or more of such employees earning monthly wage of less than Rs.15000/-.
Primary Source: https://www.epfindia.gov.in/site_docs/PDFs/Updates/PR_PMGKY.pdf
More India Alerts
- Government to Pay EPFO Contribution
- EPFO puts in place Online Mechanism to credit EPF and EPS Accounts of Subscribers
- Extension of Time or Filing of Returns on Account of COVID-19
- CBDT issues orders u/s 119 of IT Act,1961 to mitigate hardships to taxpayers arising out of compliance of TDS/TCS provisions
- Lockdown Measures for containment of COVID-19 pandemic in the country to continue to remain in force up to May 3, 2020
Indonesia
BPJS Contribution Relaxation
Impact: For employers’ general guidance
Summary: Indonesia released Government Regulation 49 of 2020 which eases the burden on obligations related to Manpower Social Security Programs. Below are salient provisions of GR 49/2020:
- Deferment of the premium payment deadline from the 15th of a month to the 30th of the month
- 99% deductions of the Work-Related Accident Security (Jaminan Kecelakaan Kerja — “JKK”) premium and the Death Security (Jaminan Kematian — “JKM”) premium
- Partial postponement of Pension Security (Jaminan Pensiun “JP”) premium payment
Employers, non-wage recipient participants and wage recipient participants (as applicable) who have registered their Manpower Social Security programs before August 2020 can avail of the relief which is valid from August 2020 until January 2021
Primary Source: https://www.bpjsketenagakerjaan.go.id
New Fiscal Incentives in Relation to COVID-19
Impact: For employers’ general guidance
Summary: Finance Minister of Indonesia announced that the government waives income tax for manufacturing workers. The government will shoulder 100% of Income Tax Article 21 employees’ income for six months (from April to September this year), up to IDR 200 million for employees in certain manufacturing industries.
In addition, there are also other fiscal incentives that will be granted to corporate taxpayers in certain industries.
Primary Source: PT ASA Indonesia
More Indonesia Alerts
- How to Claim BPJAMSOSTEK Through ‘Stall Asik’ while Working at Home
Japan
Extend the Acceptance Period for Special Loans
Impact: For employers’ general guidance
Summary: The application for special loans for emergency small-lot funds and comprehensive support funds for individuals, which was until the end of September 2020 will be extended to the end of December 2020.
Press release which is written in Japanese can be read thru the link below.
Primary Source: https://www.mhlw.go.jp/stf/newpage_13601.html
Extension of Filing and Payment Deadline of Taxes
Impact: For employers’ general guidance
Summary: National Tax Agency Japan announced that filing and payment deadline of individual income tax, will be extended to 16 April 2020.
Primary Source: https://www.nta.go.jp/taxes/shiraberu/kansensho/pdf/faq.pdf
More Japan Alerts
- Ministry of Economy, Trade and Industry support measures
Malaysia
Extension of September – December 2020 Contribution Payment Date
Impact: For employers’ general guidance
Summary: The Employees Provident Fund (EPF) extended the date for employers to remit their mandatory contribution from 15th to 30th of each month for the months of September 2020 until December 2020.
It was previously extended from April 2020 to August 2020 to ease the burden amidst the pandemic. The continuation of this flexibility is in line with the Government’s recent announcement to extend the Recovery Control Movement Order (RMCO) until 31 December 2020.
Contribution payments can be made on the EPF website via the i-Akaun (Employer) portal, Internet banking or by visiting the counter of appointed banks.
Primary Source: https://www.kwsp.gov.my
One-off Cash Assistance for Employees in the Private Sector
Impact: For employers’ general guidance
Summary: Malaysia government, through its Prime Minister has announced a one-off cash assistance with an allocation of RM10 billion (Bantuan Prihatin Nasional). For the first time, this will also be channeled to the M40 group. This includes the employees in the private sector, FELDA settlers, farmers, fishermen, small traders and those categorized in the M40 group and below.
The payments include:
- First: RM1,600 to nearly 4 million households earning less than RM4,000 a month. Payment of RM1,000 will be made in April 2020 and the remaining in May
- Second: RM1,000 to nearly 1.1 million households earning between RM4,000 and RM8,000 a month with RM500 paid in April 2020 while the balance in May 2020.
- Third: RM800 to 3 million single individuals aged 21 and above, earning less than RM2,000 a month. Payment of RM500 will be made in April 2020 and the remaining RM300 in May
- Fourth: RM500 to 400,000 single individuals aged 21 years and above, earning between RM2,000 and RM4,000 per month. The payment of RM250 will be made in April 2020 while the balance in May
In the meantime, the remaining cash transfer under the current Bantuan Sara Hidup (BSH) programme totaling RM3.2 billion will be paid out in July 2020.
Primary Source: https://www.pmo.gov.my/2020/03/speech-text-prihatin-esp/
More Malaysia Alerts
- Employment Retention Program (ERP) for employees who received unpaid leave notice
- Wage Subsidy Programme
- Extension of Movement Control Order
- Further Extension of EPF April 2020 Contribution Payment Date
- Income Tax Filing Extension
- Deadline for filing of the Monthly Tax Deduction and Payment Details (PCB) / CP38 Extension
- Exemption of Human Resources Development Levy Payment for Industries Affected by COVID-19 Pandemic
- Suspension of PTPTN Loan Refund Due to COVID-19
Philippines
Luzon-wide Lockdown Extended Until April 30
Impact: Employers must comply
Summary: President Rodrigo Duterte extended the “enhanced community quarantine” (ECQ) for the entire Luzon until 30 April 2020. The quarantine was originally set to 12 April 2020.
The movement of people will continue to be severely restricted under the extended quarantine, with most only allowed to leave their homes for essential trips such as to buy food or medicine and those who are working for essential services.
A memorandum was released on 7 April 2020.
Primary Source: https://www.officialgazette.gov.ph/downloads/2020/04apr/20200407-MEMORANDUM-FROM-ES-RRD.pdf
More Philippines Alerts
- SSS Moratorium and Extensions on Loan Payments and Contributions
- Deferment of Payment of Holiday Pay for April 2020 Holidays
- Non-inclusion of One-month Enhanced Community Quarantine Period on the Six-month Probationary Period
- Payment of PhilHealth contributions during the Enhanced Community Quarantine
- Tax Incentives for Donations related to COVID-19 response
- Philhealth releases COVID-19 Package Rates starting 15 April
- SEC Issues Guidelines on Filing Companies’ General Information Sheet
- SEC Issues Guidelines on Filing of Reports and other Documents during the Enhanced Community Quarantine
- Small Business Wage Subsidy (SBWS) Program
- Department of Labour and Employment COVID-19 Guide for Employers and Employees
- Revised BIR Deadlines
- BIR RMC 38-2020 – Extension of Deadline of Availment of Tax Amnesty on Delinquencies
- Revenue Regulation 10-2020- Extension of Statutory Deadlines and Timeliness for the Filing and Submission of Document and the Payment of Taxes
- Home Development Mutual Fund offers three-month moratorium on all loans
- How to Apply for Pag-IBIG Multi-Purpose or Calamity Loan Online
- Extension of Periods in Filing Sickness Notification and Sickness Benefit Claims of Members and Employers
Saudi Arabia
Government Implements Measures to Mitigate the Impact of COVID on Private Sector
Impact: For employers’ general guidance
Summary: The government of the Kingdom of Saudi Arabia is moving decisively to address the unprecedented effects and consequences of the coronavirus (COVID-19) global pandemic crisis, and is taking immediate measures to ensure the safety of its citizens and residents, and to address its fiscal, financial and economic impact, the Minister of Finance, Acting Minister of Economy and Planning,, stated that the government has taken precautionary and strong measures to protect citizens and residents in the Kingdom. These initiatives include:
- Exemption from expat levy for those whose Iqama has expired from now until 30 June 2020, by extending their Iqama for a period of three months without charge.
- Enabling employers to refund the fees of issued work visas that were not used during the ban on entry and exit, even if they were stamped in the passport, or extend them for a period of three months without charge.
- Enabling employers to extend exit and re-entry visas that were not used during the ban on entry and exit from the Kingdom for a period of three months without charge.
- Enable business owners, for a period of three months, to postpone the payment of VAT, excise tax, income tax, and the submission of Zakat declarations and the payment of obligations due therefrom.
- Postpone the collection of customs duties on imports for a period of thirty days against the submission of a bank guarantee, for the next three months and setting the necessary criteria for extending the postponement period for the most affected activities as needed.
- Postpone the payment of some government services fees and municipal fees due on private sector for a period of three months (period to be extended for the most affected activities as needed).
- Authorize the Minister of Finance to approve lending and other forms of financing as well as exemption from payment of fees and returns on loans granted until the end of 2020.
Primary Source: https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=2049654#2049654
Singapore
Jobs Growth Incentive
Impact: For employers’ general guidance
Summary: In order to create good and long-term jobs for locals, Jobs Growth Incentive (JGI) supports employers to accelerate their hiring of local workforce over the next six months from September 2020 until February 2021.
JGI will provide one year of salary support for each new local hire by employers that managed to increase their local workforce from September 2020 to February 2021.
Primary Source: https://www.iras.gov.sg/
New Requirements for Work Pass Holders Entering or Returning to Singapore with Travel History to Mainland China
Impact: For employers’ general guidance
Summary: The Ministry of Manpower (MOM) implemented new requirements for work pass holders entering or returning to Singapore with travel history to mainland China within the last 14 days as per a MOM Press Release on 7 February.
Starting 8 February 2020, all work pass holders, regardless of their nationality, is required to obtain MOM’s approval prior to their travel if they have a travel history to mainland China within the last 14 days. This requirement applies to:
- Existing work pass holders currently out of Singapore; and
- In-Principle Approval (IPA) holders who have yet to enter Singapore.
Upon arrival to Singapore, they will be required to take a mandatory 14-day leave of absence.
Primary Source: https://www.mom.gov.sg/newsroom/press-releases/2020/0207-new-requirements-for-employers-with-wph-returning-from-china
More Singapore Alerts
- Update advisory on managing excess manpower and responsible retrenchment in view of COVID-19
- Singapore Budget 2020
- Job Support Scheme (JSS)
- Advisory on Salary and Leave Arrangements During Circuit Breaker
- Employment Pass (EP) Online
South Korea
Minimum Wage Increase for 2021
Impact: For employers’ general guidance
Summary: The South Korean Government announced the increase for the minimum wage next year. The increase which will take effect by 1 January 2021 is from 8,590 won to 8,720 won per hour.
The Ministry of Employment and Labor made a public notice of the new minimum wage set by the Minimum Wage Commission. This will also be uniformly applied to all workplaces regardless of types. The new rate translates into 1,822,480 won for employees who work for 40 hours per week.
Primary Source: https://www.minimumwage.go.kr/
Government Announces Emergency Relief Payment
Impact: For employers’ general guidance
Summary: The government decided to offer emergency relief payments of 9.1 trillion won to households in the bottom 70 percent income bracket at the 3rd Emergency Economic Council Meeting held on March 30. The government will also expand social security contribution reliefs given to those hit hard by the COVID-19 outbreak. The summary of relief plans is as follows:
- Emergency relief payment: Korean households in the bottom 70 percent income bracket will receive the government’s emergency relief payments of up to 1.0 million won.
- Social security contribution reliefs: The government will expand the social security contribution reliefs as it will offer 3-month payment deferrals and 30 percent contribution cuts. The deferrals and cuts will be applied to contributions for March and on:
- National HealthCare contributions
- National Pension contributions
- Unemployment insurance contributions
- Industrial accident compensation insurance contributions
Primary Source: http://english.moef.go.kr/pc/selectTbPressCenterDtl.do?boardCd=N0001&seq=4869
Taiwan
Increase in Minimum Monthly Wage
Impact: For employers’ general guidance
Summary: Taiwan’s minimum monthly wage will be raised to TWD 24,000 and the minimum hourly wage to TWD 160. This will take effect starting on 1 January 2021 as announced by the Ministry of Labor (MOL).
Primary Source: https://www.taiwannews.com.tw/
Taiwan to allow tax payment delays for 1 year due to COVID-19 pandemic
Impact: For employers’ general guidance
Summary: Ministry of Finance released an administrative order which allows taxpayers who suffer from the impact of the COVID-19 pandemic to postpone their tax payments for up to one year or pay their taxes by instalments for up to three years.
Primary Source: https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=3f079639bf5841e6901141ed9bc681ab
More Taiwan Alerts
- Extension of 2019 Annual Income Tax Settlement Declaration and Payment
- Personal Relief Measures to Help People Overcome Difficulties
Thailand
Thai Government Announces Second Phase of Reductions to Social Security Fund Contributions
Impact: For employers’ general guidance
Summary: A second phase of reductions to social security fund contributions has been announced through a new notification from the Government. This will reduce required contributions to 2 per cent of employees’ wages, for both employers and employees, for a period of three months.
Primary Source: http://www.ratchakitcha.soc.go.th
Deadline of 2019 Income Tax Return Filing
Impact: For employers’ general guidance
Summary: The Thai Revenue Department on 28 Feb, announced a deadline extension for taxpayers filing their 2019 income tax returns online. The deadline is extended to 20 June from 31 March and 8 April due to the current pandemic. The announcement includes:
- a three-month instalment option for tax payments; and
- penalties for noncompliance with the instalment conditions.
Primary Source: https://www.rd.go.th/publish/fileadmin/user_upload/kormor/newlaw/mfvexpandpit2562.pdf
More Thailand Alerts
- The Revenue Department has issued tax measures to help alleviate those who are affected by the spread of COVID-19
- COVID-19 Relief Measures – Ministerial Regulation No. 361 on Withholding Tax Reduction
- Social Security Fund Measures in Thailand
UAE
UAE Employment Law Round-Up – September 2020
Impact: For employers’ general guidance
Summary: Key updates in relation to the UAE employment law was released. Below are the details:
- Equal Pay for women which amends the equal pay provisions of the Article 23 of the Labour Law.
- Parental Leave for male private sector workers for the first time.
- The DIFC’s court decision on Covid-19 Rules, which included the imposition of unpaid leave and a reduction in remuneration on a temporary basis, without the consent of the employee.
Primary Source: https://www.arabnews.com
Human Resources and Emiratisation Launches the National Program to Support the Stability of Labour Market in the Private
Impact: For employers’ general guidance
Summary: The Ministry of Human Resources and Emiratisation has launched a “national program to support the stability of the labour market in the private sector” to ensure the continuity of performance of business in the private sector in light of a series of preventive measures and precautionary measures taken at the state level within the federal and local government work system to confront the “emerging corona virus” and limit its spread. The measures are:
- Supporting citizen stability
- Lifting restrictions
- Most Affected Facilities
- Precautionary measures
- A guide to working remotely
Detail of each measure can be read at the below link.
More UAE Alerts
- Procedures to Enable a Foreign Worker to Leave the Country and Return to the Home Country
Vietnam
Suspension of Social Insurance Premium Payment for Businesses
Impact: For employers’ general guidance
Summary: The Social Insurance authority of Hanoi City, Vietnam stated that in case the Covid-19 pandemic has not yet been relieved by the end of June 2020, if the enterprise has requested it, the social insurance authority of Ho Chi Minh City will coordinate with the Department of Labour, War Invalids and Social Affairs and the Department of Finance to report to the People’s Committee of Ha Noi City. Internal to Vietnam Social Insurance to consider and resolve the temporary suspension of contribution to the retirement and survivorship fund till December 2020.
Primary Source: https://baohiemxahoi.gov.vn/tintuc/Pages/linh-vuc-bao-hiem-xa-hoi.aspx?CateID=168&ItemID=14628
More Vietnam Alerts
- Government measures to support people and businesses facing difficulties caused by Covid-19 pandemic
Disclaimer
This interim legislative update consolidates legislations, government guidelines, and policies that various countries in Asia have enacted or implemented to help individuals affected by the global pandemic. Governments across Asia have stepped in to help employees through income support, suspension or extension of some statutory payment obligations, and other financial and non-financial assistance.
Although some of the references may provide comprehensive detail of the economic relief offered by the government agencies, not all updates related to COVID-19, however, are included in this bulletin. For instance, details of the economic relief offered to companies and specific industries affected by the pandemic may have been excluded in the updates contained in this bulletin. Updates such as health guidelines and protocols and border and travel restrictions implemented across the countries were also excluded.
This Legislative Update is for general information purposes only and is not intended to provide legal advice. You are responsible for obtaining your own legal advice on the contents of this Legislative Update and the application of any legislative changes that may impact upon you or your business. Ascender will not be liable for any damage or loss related to the accuracy, completeness or timeliness of the contents of this Legislative Update and you agree that you solely assume the risk and liability of any actions you take in reliance upon the information contained in this Legislative Update.
Commercial use of this document is not allowed unless approved in writing by Ascender.