The report "Gestione dei Libri Paga in Asia Numero 7 • Gennaio e Febbraio 2014" discusses the importance of tax withholding from salaries (income tax) and social security contributions in the management of payroll procedures in Asian countries. It highlights that these functions are fundamental to governments, and businesses operating in Asia must comply with rules regarding direct withholding from employee salaries and mandatory contributions to social insurance programs.
Given the diversity and complexity of systems implemented by governments in countries like China, Vietnam, Hong Kong, Singapore, and India, the report provides an overview of the functioning of salary and social security management systems in these five countries. This is done to help businesses navigate the intricate Asian payroll landscape and provide a valuable resource for those operating within local regulations.
Key points include:
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Externalization of Payroll Management: The trend towards outsourcing payroll management processes is increasing in Asia.
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Taxation and Social Security Rules: Businesses must carefully manage tax withholding and social security contributions when setting up and managing operations in Asian countries.
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Comparison of Models: The report compares three common models used by companies for payroll management using external providers - country-by-country, managed, and integrated models. It outlines the advantages and disadvantages of each.
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Detailed Analysis: It offers a deep dive into the taxation system in countries like China, Hong Kong, India, Singapore, and Vietnam, comparing income tax rates and social security rules across these regions.
The report aims to assist readers in successfully managing the complex Asian payroll scenario and serve as a reliable resource for companies aiming to operate in accordance with local laws.
