ASEAN Regulatory Brief: Money Lending in the Philippines, Palm Oil Tax in Malaysia, and Visa Policy Review in Indonesia

Posted on by
LOGO-in-ASEAN-1
Philippines: Central bank tightens rules on money lending

In a move to fight money laundering, the Philippines’ central bank Bangko Sentral ng Pilipinas (BSP) tightened rules on money service businesses (MSBs). MSBs include remittance and transfer companies (RTCs), money changers, and foreign exchange dealers. As per the new rules, large payouts of more than US$10,036 (PHP 500,000) or its foreign currency equivalent in any single transaction with customers will only be allowed via check or direct credit to deposit accounts. Money changers and foreign exchange dealers will be allowed to sell foreign currency in an amount not exceeding US$10,000 and not exceeding US$50,000 per month per customer. Exemption will only be given once an application is made to the BSP depending on the nature of the business.

RTCs and MSBs will also need to notify the BSP when they commence operations as well as for new accreditation of remittance of sub-agents. The new rules will limit MSBs’ ability to transact in cash while also placing a cap on the amount of foreign currency that can be sold to money changers. The development comes after anti-money laundering investigators said that around US$81 million stolen from a Bangladesh central bank was transferred by a Philippines remittance company.

Professional Service_CB icons_2015 RELATED: Tax Compliance Services from Dezan Shira & Associates

Malaysia raises palm oil export tax

Malaysia, the second largest palm oil producer after Indonesia, will raise crude palm oil (CPO) export tax to 7.5 percent in February, up from seven percent in January. It had earlier raised the CPO export tax to seven percent from the previous six percent in December. The development comes amid rising concern over CPO supplies despite weak global demand. Analysts say that the higher tax may reduce the export quantity by a small amount but planters will enjoy good prices. CPO prices are reviewed every month. Malaysia’s biggest markets include China and India, as well as Korea and Japan.

Indonesia: Government to review visa free policy

Indonesia’s government plans to review its free 30 day visa policy and plans to revoke the benefits from some countries. Government officials stated that they were evaluating the policy based on how much it was helping tourism versus violations by foreigners from certain countries. Over the past few years the visa free program was expanded to several countries. In March, President Joko Widodo signed a decree making the visa free program available to 169 countries. This was done to increase revenue from tourism activities. Nevertheless, the growing concerns over foreigners staying illegally has prompted the government to take action. Officials stated that some countries have not even made use of the visa policy, with no tourists arriving from those countries.


About
 Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email asean@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

 ‍

Related-Reading-Asean Book Title

Human Resources in ASEANHuman Resources in ASEAN
In this issue of ASEAN Briefing, we discuss the prevailing structure of ASEAN’s labor markets and outline key considerations regarding wages and compliance at all levels of the value chain. We highlight comparative sentiment on labor markets within the region, showcase differences in cost and compliance between markets, and provide insight on the state of statutory social insurance obligations throughout the bloc.

 

2016/17 ASEAN Tax ComparatorThe 2016/17 ASEAN Tax Comparator
In this issue of ASEAN Briefing, we examine regional taxation in ASEAN through a comparison of corporate, indirect, and withholdings taxation. We further present an overview of the compliance environments found across the region and analyze ASEAN’s tax environment in the context of the time and documentation required in each country.

 

The Guide to Manufacturing in IndonesiaThe Guide to Manufacturing in Indonesia
Choosing if, where, and how to establish foreign manufacturing operations in Indonesia can be a significant challenge. While the archipelago’s vast diversity may initially seem daunting, a number of options are available which will allow entry and operations to be conducted in a seamless manner. In this issue of ASEAN Briefing, we discuss Indonesia as a hub for manufacturing within Southeast Asia, and provide guidance on how to select and establish operations within the country.

Leave a Reply

Your email address will not be published. Required fields are marked *

Dezan Shira & Associates

Meet the firm behind our content. Dezan Shira & Associates have been servicing foreign investors in China, India and the ASEAN region since 1992. Click here to visit their professional services website and discover how they can help your business succeed in Asia.

News via PR Newswire

Never Miss an Update

Subscribe to gain even better insights into doing business in ASEAN. Subscribing also lets you to take full advantage of all our website features including customizable searches, favorite, wish list and gift functions and access to otherwise restricted content.

Scroll to top