Payroll and HR in Asia

Why Expand Your Business to Asia?

Asia is home to some of the most diverse continents in the world, each with their own differing landscapes, cultures and markets. Because of its breadth and diversity, Asia is one of the most sought-after consumer markets for global businesses.

However, this diversity between countries means it can be extremely difficult to decide where to take your business expansion. For instance, in south-east Asia, most countries are home to growing economies. Indonesia, Cambodia, Philippines, Vietnam and Thailand offer up a number of opportunities due to their economic growth. Whereas, in East Asia, countries like Japan and South Korea are already home to well-developed economies and markets.

No matter where you’re expanding your business to in Asia, challenges can arise. There can be a lot to manage when tackling a global expansion to Asia, not to mention the different legislation and tax considerations.

Challenges

Differing Employment Laws

Employment law differs throughout Asia, so it’s important you work closely with country-specific employment law experts to ensure your business remains compliant and law abiding at all times.

Take for example, differing employment statuses. In Asia, individuals will benefit from different rights depending on their status:

– In Indonesia, there are two types of employment status – definite period employment and indefinite period employment.  Definite period employment would cover jobs that will be completed in a set period or are temporary, whereas indefinite would be more permanent employment.

– In Vietnam, you are not classified as an ‘employee’ if you provide services for service fees (for instance consultants or contractors).

– In India, individuals benefit from different rights depending on whether they are classified as workmen, managerial employees, consultants, or contract-labourers.

Differing Tax Rules

Maintaining compliance with differing tax rules across Asia can be a challenge. FMP Global’s experts understand this, which is why FMP Global are here to help. We have the in-country experience you need to make your payroll and HR management easy and compliant.

 

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Employer Must-Dos

In Asia, the following reports must be submitted to strict deadlines.

  • Corporate Tax Returns
  • VAT Tax Returns
  • Withholding Tax Reports

Payroll in Asia

Taxes

Asia’s taxation rules are as diverse as its cultures and markets. From Malaysia’s territorial tax system to Japan’s three levels of income tax, it’s important to get a handle on different country’s individual rules. Corporate income tax, social security contributions and VAT can vary quite significantly between Asian countries as well.

Wages

Much like taxes, minimum wage varies significantly across Asia. Therefore, it’s critical you understand the minimum requirements laid out by the country to intend to expand into.  Ensuring your staff are paid correctly is critical.

Payslips

There are also a number of payslip requirements employers must adhere to in Asia, including what is necessary to display on payslips, as well as the legal requirements of paper and e-payslips to protect employee data.

HR in Asia

Employment Contracts & Terms

In Asia, most countries provide legal protection for full time contracts (equally part time contracts), which means employees can enjoy job stability and security. However, one of the major challenges in Asian countries is fixed and non-fixed term contracts. This is something to be aware of, as challenges have arisen in instances where there is no legislation in place pertaining to employment for fixed and non-fixed terms.

Annual Leave

The length of annual leave employees are entitled to is very different between Asian countries. Sometimes it can increase after a number of years’ service, sometimes it is proportionate to total working life, and sometimes employees are entitled to additional paid leave days for special events, e.g weddings.

Find Out More About International Payroll

Download our international payroll guide for more information on international payroll and discover key considerations.

Download Our Guide

FMP’s European Payroll and HR Solutions

No matter if you are looking for payroll and HR services in the UK, Germany, France or The Netherlands, FMP can help ensure your business is compliant. Our services include but are not limited to:

  • Employment Contracts
  • Payroll Processing
  • Year End Income Tax Reconciliation
  • Coordinating with the Company HR Department
  • Regulatory Compliance
  • Benefits Administration
  • Multi-currency Salary Payments and Bonuses
  • Withholding tax payments to respective authorities
  • Payroll Audit Services
  • Email Payslip Services
  • Pension Administration
  • Employee Local Tax Administration
  • Tax and Labor Consulting
  • Legal representation / Assistance
  • Handling of confidential Payroll
  • Translation Services

Maintain Compliance with Your Asian Payroll & HR

No matter where you’re expanding to, international payroll and HR will have a number of considerations. Make sure you have a handle on employment law, contracts and your employee’s pay – speak to an international payroll and HR expert today at FMP Global.

Start your International Expansion Today