Nigeria - Federal Ministry of Finance issues new regulations for deduction of tax at source
The Federal Ministry of Finance in Nigeria has announced new regulations for the deduction of tax at source, effective July 1, 2024. Small companies, unincorporated bodies with Tax ID and transactions under 2 million Nairas are exempt from these new regulations. The regulations are aimed to clarify and streamline the process of tax deduction at source (Withholding) regulation 2024.
The regulations apply to eligible transactions under the Capital Gains Tax Act, Companies Income Tax Act, Petroleum Profits Tax Act, and Personal Income Tax Act. They specify the rates at which deductions shall be made at source (withholding).
The regulations require certain persons, including corporate bodies, government agencies, and payment agents, to deduct tax at source on eligible transactions. Small companies however and unincorporated bodies with equivalent attributes are exempt from this requirement, provided the supplier has a valid Tax Identification Number and the transaction value is 2 million Nairas or less. This is equivalent to GBP 952.15/ EUR 1,129.43 or less.
These regulations supersede any other regulations on deductions at source and aim to promote clarity and efficiency in tax administration.
Vietnam – Regional Minimum Wage is increased by 6%
Effective July 1st, Vietnam has increased workers' minimum monthly salaries increased by 6%, or up to VND 280,000 per region.
According to a governmental decree issued in June, the minimum monthly and hourly salaries of workers in businesses would be increased by 6%, per a proposal by the Ministry of Labor, Invalids and Social Affairs. The adjustment aims to balance the interests of workers and businesses while ensuring minimum living standards by 2025.
In 2022, the rates were between VND 3,250,000 to VND 4,680,000 per month and between VND 15,600 and VND 22,500 per hour depending on the region. This was equivalent to GBP 99.39/ EUR 117.96 to GBP 143.15/ EUR 169.86 per month and between GBP 0.48/ EUR 0.57 to GBP 0.69/ EUR 0.82 per hour.
The new rates for 2024 are between VND 3,450,000 to VND 4,960,00 per month and between V16,600 to VND 23,800 per hour. This is equivalent to GBP 105.53/ EUR 125.20 to GBP 15.17/EUR 18.00 per month and between GBP 0.51/EUR 0.60 to GBP 0.73/EUR 0.86 per hour.
Indonesia - Introduces Digital Nomad Visa to Attract Remote Workers
Indonesia is set to introduce a new digital nomad visa aimed at attracting remote workers to the country. The proposed visa seeks to incentivise digital nomads to work from popular destinations such as the island of Bali.
Sandiaga Uno, Indonesia’s Minister of Tourism, stated that this new permit is part of the country's strategic shift from traditional sunseeker tourism to a more sustainable model. The digital nomad visa, which will be valid for five years, allows remote workers to reside in Indonesia tax-free, provided their income is sourced from businesses based outside of the country.
This special permit is designed to offer a straightforward solution for foreigners wishing to work in Indonesia. To further entice remote workers, the country plans to implement a streamlined application process and increase the frequency of flights to the archipelago.
With a five-year validity, this visa will become the longest digital nomad visa available globally. However, guidelines on the application process and the official launch date have not yet been announced.