2019-05-03

German Investment in ASEAN Part V: Thailand and Vietnam

ASEAN briefing is produced by Dezan Shira & Associates.

The ten member states of the Association of Southeast Asian Nations (ASEAN) have seen a steady inflow of German investment in recent years. Current trends are expected to continue in the coming years. We looked at German investment in Brunei and Cambodia in the first part of this five-part article, covered Indonesia and Laos in the second part, focused on Malaysia and Myanmar in the third part while looking at the Philippines and Singapore in the fourth part. We now focus on Thailand and Vietnam in this concluding part of the article.

Read the complete article here.

 

2019-04-26

Expatriates in India: Visa, Work Culture, Socioeconomic and Payroll Considerations

India is the second most favoured destination for expatriates that want to work in the emerging markets. Over the past few years, India’s rapidly growing infrastructure, industry, and services sectors have opened to greater foreign investments and multinational corporations.

This development has led to numerous employment opportunities for foreign nationals working in skilled and specialized roles in the country. Accordingly, the sectors in India that attract the largest number of foreign professionals are administrative roles in construction and engineering, followed by telecommunications and IT, and financial services.

Read the complete article here

2019-04-26

“Placing the Right Country Manager is Decisive”

Interview with Christian Tegethoff, Managing Director, CT Executive Search.

What steps do European companies typically take when entering the Indian market?

The approach is not very different from that in other countries. Many companies first visit fairs in India to gain an overview of the market. This includes the local customer structure and competition as well as licensing and customs issues.

Especially smaller companies then often decide to work with one or more dealers. These distribution partners usually also act as importers, assuming the transport and customs clearance responsibility for the producer. For the European company, this is a low-risk option because virtually no investment is required.

Read the complete article here

2019-04-25

“Key to Success is Doing Business the Indian Way”

An article by Arjun Erry, Partner and Tavishi Das, Associate, Hunt Partners Mumbai

What characterizes the executive segment of the Indian HR market?

The talent pool in India is shallow for senior and upper middle management. There is an acute shortage of qualified, accomplished managers with the right mix of corporate norms, entrepreneurial zeal, and integrity.

Competition for talent is therefore very high in India. In the current job market, the combination of talent and a global mind-set in a candidate is inadequate. Employers are selective and compete fiercely to hire the right candidate from the limited available pool.

Read the complete article here.

2019-04-22

German FDI in ASEAN Part IV: The Philippines and Singapore

ASEAN briefing is produced by Dezan Shira & Associates

German investment in the ten member states of the Association of Southeast Asian Nations (ASEAN) has been increasing steadily and has the potential to grow further in the coming years. We focused on German investment in Brunei and Cambodia in the first part of this five-part article, covered Indonesia and Laos in the second part, and looked at Malaysia and Myanmar in the third part. We next focus on the Philippines and Singapore.

Read the complete article here

2019-04-22

India Income Tax Calculator for AY 2019-20

In addition to the tax and surcharge, the government levies health and education cess at 4 percent on the total tax computed.

There are separate rates for senior individual residents (above 60 years) and ‘super senior’ individual residents (above 80 years).

The International Payroll and Human Resources team at Dezan Shira & Associates has developed a simple calculator to help taxpayers determine their tax returns against the above rates of tax.

Read the complete article here

2019-04-19

The ‘996’ Work Culture That’s Causing a Burnout in China’s Tech World

Why the 996 work culture will not end anytime soon

The grueling work ethic is both defended and eulogized by employers in China’s technology sector as the very reason for its sudden and accelerated growth over the last 10 years. Jack Ma himself celebrates the constant grind because he believes that it has been integral to the successes of unicorns like Alibaba and Tencent.

Employees at most tech companies are either encouraged or required to put in long, unpaid hours to show their commitment to their jobs and loyalty to the company. Many companies offer their employees a suite of facilities – such as gyms, nap rooms, and laundry services – to further encourage them to spend long hours at the office.

Read the complete article here

2019-04-11

How to Calculate and Withhold IIT for Your Employees in China

To help foreign investors and taxpayers understand how China computes individual income tax (IIT), China Briefing offers a guide outlining how to calculate and withhold IIT for both resident and non-resident individuals.

IIT calculation and withholding for resident individuals

When a company pays wages and salaries to a resident individual, the IIT amount must be computed using the cumulative withholding method, with the IIT withheld on a monthly basis.

Read the complete article here

2019-04-08

Vietnam’s E-visas – Eligibility and Application Process Explained

Vietnam’s pilot e-visa program has been extended for another two years and expanded so that tourists from 80 countries can participate. Vietnam Briefing explains who is eligible and what you need to know to travel to Vietnam on an e-visa.

Vietnam recently extended its electronic visa (e-visa) policy until February 2021 and expanded the list of countries that are eligible to participate. An e-visa is typically applied for online, linked to a passport number, and stored on a computer – with no stamp or label delivered before travel.

On February 1, the government issued Decree no 17/2019/ND-CP, extending the pilot project launched in January 2017 and adding more countries to the list, bringing the total number to 80. The e-visa program is applicable for a single entry and valid for a maximum of 30 days.

Read the complete article here

2019-04-05

German FDI in ASEAN Part III: Malaysia and Myanmar

 

ASEAN briefing is produced by Dezan Shira & Associates

German investment in the ten member states of the Association of Southeast Asian Nations (ASEAN) has been increasing steadily and has the potential to grow further in the coming years. In the first part of this five-part article, we German investment in Brunei and Cambodia, and in the second part, we covered Indonesia and Laos. We next look at Malaysia and Myanmar.

Malaysia

Ranked 28 on the Market Potential Index 2018, Malaysia represents a fast-growing market with a huge potential for German products. The country is also ranked 15 on the World Bank’s Ease of Doing Business Index 2018. Known for its excellent track record in the areas of protection of minority investors and issuance of construction permits, Malaysia has remained an attractive investment destination within ASEAN for German companies, who have invested a total of US$ 481 million in the country in 2017.

Read the complete article here

 

2019-04-04

The Guide to Employment Permits for Foreign Workers in Singapore

ASEAN briefing is produced by Dezan Shira & Associates

For expatriate workers and their employers in Singapore, understanding the process to obtain a valid employment permit is vital. The Singapore government’s Ministry of Manpower (MoM) issues a wide range of work passes and permits to expatriates planning to work in Singapore. Each of these employment permits is designed for a specific purpose and differs across various categories of employees, based on their professional skills and monthly salaries.

Some of the most common employment permits issued by the government of Singapore are discussed below:

Employment Pass

The Employment Pass (EP) is issued to expatriates employed as foreign managers, executives, and skilled professionals in Singapore, for an initial period of 2 years; thereafter, the pass can be renewed for up to three years at a time. The EP is generally issued to individuals with a job offer that includes a minimum monthly salary of SG$3,600. More experienced candidates are required to be offered a higher salary to qualify for the same.

Read the complete article here.

2019-04-02

“Companies embark on hibernation strategy”

An interview with Christian Tegethoff, Managing Director, CT Executive Search.

How has the demand for executive search in Iran developed since 2015?

After the conclusion of the nuclear agreement, the interest of European business in Iran was huge at first, and the euphoria was great. Numerous delegations led by ministers and mayors have subsequently set off to Tehran to explore opportunities for cooperation with the Iranian side.

Many European companies decided in 2016 to set up representative offices and distribution companies. Accordingly, in 2016 and 2017 in particular, we assisted a considerable number of companies with recruitment. The machinery and plant engineering sector was particularly active at the time, but also the pharmaceutical industry, the automotive and the consumer goods sectors.

Read the complete interview here

2019-03-28

“Business policy of banks is illegal”

An interview with Dr. Helmut Gottlieb, member of the management team, Bank Melli Iran, Hamburg.

For what reasons have European banks so far refused to accompany non-sanctioned Iran business of their customers?

Already with the entry into force of the JCPOA agreement in January 2016, the majority of European commercial banks refused to settle Iran-related business. This was regularly justified by a business policy decision of the respective management. An objective justification was never cited.

This business policy has a lasting negative impact on trade between Iran and Europe. 90% of trade between Iran and Europe is from Europe to Iran. Only a tenth of the trade volume is imported from Iran to Europe.

Read the complete interview here

2019-03-27

The automotive parts market in Nigeria

This study was done by africon

The Nigerian automotive industry appears to be an interesting market, as our research on the automotive parts market shows that the market size is worth USD 4.4bn or more.

The total vehicles in operation in Nigeria is currently estimated at 12.7 million, and Nigerian drivers spend an average of USD 350 on automotive parts per year.

Read the complete article here

2019-03-27

“Iran has had a very difficult year”

An interview with Dagmar von Bohnstein, Managing Director, German - Iranian Chamber of Industry and Commerce (AHK)

What is the mood among German companies in Iran? What measures have companies taken to respond to the new situation resulting from the reinstatement of US sanctions?

As could be expected, the mood among German companies is not good. Many of them waited throughout last year to see if there would be any movements on the political level. After this had not happened by November 5, the second stage of US sanctions, most of them have reduced their Iran business to a minimum and withdrew the German executives.

At the same time, hardly any German company has completely given up its engagement in Iran. They are all waiting to intensify business as the political environment improves.

Read the complete interview here

2019-03-14

India Eases E-Visa Rules for Business Travelers

Foreign nationals can now get a business e-visa for one year with multiple entries subject to the number of days of the visit and registration requirements. Previously the visa permitted expatriates only two entries for a period of 60 days.

The notification by the Ministry of Home Affairs also states that nationals of all countries who are eligible for grant of e-visa can visit India on business e-visa for a continuous period of 180 days per visit.

Read the complete article here

2019-03-13

africon publish insights on the african steel industry in the ITA Journal

This article was published by africon

The growing young population together with economic growth on the continent lead to a growing labour force and cities which lead to a significant increase in middle class. Furthermore, the continent is pushing towards manufacturing and automation as this sector remains as the continent weakest link. Also, constant rise in foreign direct investment over the past decades is further boosting the economy not only in financial terms but as well in terms of knowledge, expertise and technology. 

Read the complete article here

2019-03-13

Challenging issues in Russian immigration law

An interview with Thomas Brand, Partner, Brand & Partner in the Trudovye Spory Magazine

The interview tackles challenging issues in Russian immigration law, as well as the primary differences between Russian and German labour laws.

Read the complete interview here.

2019-03-11

German FDI in ASEAN Part II: Indonesia and Laos

ASEAN briefing is produced by Dezan Shira & Associates.

German investment in the ten member states of the Association of Southeast Asian Nations (ASEAN) has been increasing steadily and has the potential to grow further in the coming years.

Several major German brands have already established offices or production facilities in Indonesia. Adidas, Airbus, BASF, Bayer, BMW, Daimler, Bosch, Siemens and ThyssenKrupp are among the major German brands with a presence in Indonesia. Several others have recently established offices or facilities or are on the verge of doing so. In particular, German companies are attracted to Special Economic Zones in Indonesia, which offer the perfect infrastructure for foreign business to set up in the country.

Read the complete article here.

2019-03-05

CHINA: Five Fraud Prevention Strategies

An article by Thibaut Minot, International Business Advisory team, Dezan Shira & Associates in Shanghai.

When starting a new business venture in China, it is vital to embed internal control mechanisms within the company’s governance structure. The corporate governance structure of a wholly foreign-owned enterprise (WFOE) in China is made up of an executive director or alternately several directors constituting a board, one or several supervisor(s), and an authorized representative of the shareholder(s).

Read the complete article here.

2019-03-04

China’s New IIT Rules: A Guide for Employers

China introduced the biggest changes to its individual income tax (IIT) system since at least 2011 with the passing of a new IIT law in 2018. The new law brought forward a host of changes to individual taxation in China, including by revising tax brackets, expanding deductibles, and altering residency rules for foreign workers. ​

In this Issue:

  • What You Need to Know About the IIT Reform
  • The IIT Reform’s Impact on Expatriates
  • How to Calculate and Pay IIT for Your Employees
  • IIT Calculation Methods for Lump-sum Annual Bonuses

View the complete report here

2019-02-27

Half of Client Requests Concern Shanghai

Interview with Christian Tegethoff, Managing Director, CT Executive Search.

In which provinces are you working mainly at the moment?

The majority of our clients’ sales offices is located in Shanghai, from where our Chinese partner company also operates. Around half of the inquiries relate to assignments in Shanghai or the adjacent Yangtze Delta. Other important locations for European companies are the Pearl River Delta, the regions around Beijing and Tianjin, and Jiangsu – they are manufacturing hotspots.

Read the complete interview here

2019-02-26

German FDI in ASEAN Part I: Brunei and Cambodia

ASEAN briefing is produced by Dezan Shira & Associates.

Several German companies have already established a business presence in Brunei. Heidelberg Cement has been present since 2000 supplies 65 percent of the construction market in Brunei. ThyssenKrupp is currently engaged in the construction of a major fertilizer plant in Brunei to support local efforts to diversify the economy. Siemens which is involved in Brunei since 1972, is currently studying the government’s effort towards and is to make large investments in the coming years.

Read the complete article here.

2019-02-25

China is highly innovative

An interview with Silke Besser, Managing Director of the German-Chinese Business Association (DCW) e.V

What opportunities arise for German companies from the Chinese initiative “One Belt, One Road”?

Launched in 2013 by President Xi Jinping, the Belt and Road Initiative already includes over 60 countries in Asia, Europe and Africa. Their gross domestic product adds up to around 21 trillion dollars or nearly 35 percent of global economic output. Around 4.4 billion people are encompassed – that is 60 percent of the world’s population. In about ten years, China wants to more than double its trading volume from 1.1 trillion dollars today to 2.5 trillion dollars. The new Silk Road is thus the largest geostrategic project of our century.

Read the complete interview here

2019-02-18

SANCTIONS: Overview and Recommendations

Contributed by Tanja Galander, Senior Manager, Attorney-at-law (Germany), Head of Russian Business Group, PwC Germany and Lothar Müller, Senior Manager, Forensic Services, 
Sanction Team PwC

Industry related economic sanctions include an arms and military embargo, restrictions for certain areas of oil production, dual-use goods and financial services. The US sanctions are partly broader than the EU sanctions and in particular additionally refer to areas such as metal construction, mining or engineering. With regard to Crimea, the US sanctions prohibit import, export and business activities completely. The EU sanctions prohibit import and tourism services, restrict investment in certain areas and prohibit the delivery of certain listed goods. 

Read the complete article here