eOasis is Rajah & Tann Asia’s legal publications portal, where you can view updates on the latest key legal and regulatory developments in Asia, prepared from a practitioner's viewpoint.
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Amidst the long-awaited amendment of the Indonesian Competition Law, (Komisi Pengawas Persaingan Usah or “KPPU”) published KPPU Regulation No. 1 of 2019 on Case Handling Procedure ("New Regulation") early this week. This New Regulation entirely supersedes the previous regulation on case handling procedure. It is important to note that cases commenced prior to 4 February 2019 that have not been decided yet will continue to be subject to the previous regulation.
The most notable feature under the New Regulation is the introduction of behavioural remedy, which allows a defendant to plead guilty at the beginning of a hearing and to agree to change its behaviour in order to stop the case.18 Apr 2019 | Indonesia first issue of the year, we discuss various developments, including the potential retaliation by the Indonesian government against the European Union if it curbs the use of palm oil in its biofuels, and the unusual trend of increasing volumes of shipments of US ethanol into Malaysia. The palm oil issue is also big in Malaysia. We also note developments in several of the South East Asian countries, relating to the anti-circumvention laws, tweaks in anti-dumping issues, managing of rules of origin given the new CPTPP and on sanctions, amongst others. 15 Apr 2019 | Singapore
The Government of Malaysia will impose a digital service tax of 6% on foreign digital service providers with effect from 1 January 2020, with the annual threshold being set at RM500,000, according to the Malaysian Deputy Finance Minister after the tabling of the Service Tax (Amendment) Bill 2019 (the "Amendment Bill") on 8 April 2019. The Amendment Bill was subsequently amended and passed by the lower house of the Malaysian Parliament. Upon the Amendment Bill being passed by the upper house of Parliament and receiving the royal assent, foreign digital service providers such as Spotify and Netflix will be taxed commencing 1 January 2020.11 Apr 2019 | Malaysia Update will explain what these Guidelines mean for employers and how employers can protect themselves against wrongful dismissal claims. 10 Apr 2019 | Singapore
For almost 10 years, it is known by many that the Indonesian export service does not encourage competition due to the fact that zero Value Added Tax rate ("0% VAT") is only applicable to limited types of export service, i.e. toll manufacturing service, repair and maintenance service connected to or engaged for movable goods utilized outside of the Indonesian Customs Area, and construction service connected to or for immovable goods located outside of the Indonesian Customs Area. As a result, an export of service outside of Indonesia may be subject to double taxation whenever the service is utilized in other jurisdictions that imposed VAT or GST under their taxation laws.
To improve the Indonesian economic condition by enhancing the export service and improving the competitiveness of the national services industry, the Minister of Finance ("MOF") on 29 March 2019 issued MoF Regulation No. 32/PMK.010/2019 on Limitation of Activities and Types of VAT-able Services whose Export is Subject to Value-Added Tax ("New Regulation"), which expands the types of export service that is subject to 0% VAT.
The New Regulation entered into effect on 29 March 2019 and revokes the previous MoF Reg. No. 70/PMK.03/2010, as amended by MoF Reg. No. 30/PMK.03/2011 which was became effective since 1 April 2010.10 Apr 2019 | Indonesia