ASEAN Investment & Tax News | April 2024

Greetings and welcome to the first instalment of ASEAN Investment & Tax News of 2024.

The economic outlook for the ASEAN region in 2024 appears favourable in the near term, sustained by ongoing growth in local demand across key Southeast Asian economies.

According to recent reports, the region's GDP is projected to grow by 4.5% in 2024, building on the momentum from the previous year. This growth is driven by various factors, including robust consumer spending, increased government infrastructure investment, and a rebound in global trade.

Foreign direct investment inflows into ASEAN are also expected to remain strong, with the region continuing to attract significant capital from multinational corporations. According to data published by the United Nations Conference on Trade and Development (UNCTAD), ASEAN was the recipient of over $155 billion in FDI in 2023, making it one of the top destinations for foreign investment globally.

At the beginning of 2024, the ASEAN region witnessed significant developments in investment and tax landscapes. Despite global economic uncertainties, ASEAN remained an attractive destination for foreign investment, particularly in sectors such as technology, renewable energy, and infrastructure development.

The outlook for 2024 appears promising, with regional growth forecasted at 4.5% on the back of increasing tourist inflows, moderating inflation, and an upturn in the global electronics sector. Additionally, FDI inflows and infrastructure projects are expected to sustain momentum, driving investment growth.

This publication, our tax experts provide the latest updates on ASEAN.

In Cambodia, we discuss new merger clearance regulations introduced by the Ministry of Commerce in 14 June 2023, along with a minimum wage increase set by the Ministry of Labor and Vocational Training effective from January 1, 2024.

Meanwhile, in Indonesia, we examine changes to Withholding Tax Article 21 on Employment Income through Government Regulation No. 58/2023, simplifying monthly employee income tax calculation starting 1 January 2024. This impacts both employees' pay and employers' compliance costs.

In Malaysia, we delve into the e-Invoicing initiative with implementation dates set by the Inland Revenue Board of Malaysia, aiming to enhance tax administration efficiency, with penalties for non-compliance.

Meanwhile in Myanmar, we discuss the Law Amending the Union Taxation, 2023, introducing a 10% income tax on total foreign currency income of non-resident citizens, along with rules for paying annual income tax on foreign earnings.

In Singapore, we explore the Refundable Investment Credit (“RIC”) scheme announced in Budget 2024, designed to boost investment and shape capital flows into the country. This scheme offers credits to offset corporate income tax and be refunded in cash, aligning with global tax changes.

Lastly, in Thailand, we examine progress in the Electric Vehicle sector, including incentives for transitioning commercial fleets to battery electric vehicles and tax incentives for promoting carbon emission reduction.

We trust this publication will provide valuable insights for your business and investment strategies in the ASEAN region. BDO offices across ASEAN are ready to assist you with any further information you may require.


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