On Friday 31 March 2023, the Indonesian Competition Commission (Komisi Pengawas Persaingan Usaha or KPPU) enacted the KPPU Regulation No. 2 of 2023 on Procedure for Case Handling. With a newly issued KPPU Regulation No. 6 of 2023 officially repealing the 2019 regulation, the New Case Handling Regulation introduced several breakthroughs including integrating the use of technology, option to enter change of behavior commitment during investigations, and an expedited examination procedure.
The Chairman of the Indonesian Competition Commission (KPPU) has issued two new regulations. The first is on a new approach to defining relevant market, with the aim of addressing dual and multi-sided markets in the digital economy (KPPU Chairman Regulation No. 4 of 2022). The second is on criteria and requirements for paying administrative fines by instalments (KPPU Chairman Regulation No. 1 of 2023). Introducing a legal instrument through a KPPU Chairman Regulation – which arguably should not be binding on parties beyond KPPU itself – is unprecedented, and we may see these two KPPU Chairman regulations challenged in the future.
In December 2022, the Indonesian Minister of Finance issued a new regulation on imported goods for use, i.e., MOF Regulation No. 190/PMK.04/2022, which came into force on 13 January 2023. One of the notable highlights of MOF Regulation 190 is the new import declaration procedure for intangible goods (e.g., digital goods). This is a significant update because the previous regulations did not include provisions on this.
Japan’s 2023 tax reform package announced in December 2022 and submitted to the Diet in February 2023 includes various measures aimed at strengthening the Japanese start-up ecosystem and reorganizing the research and development taxation system. In an article published in Tax Notes International, Luke Tanner provides an overview of the recent tax developments in Japan, including the tax reform package and other legislation, the OECD’s two-pillar proposal, changes to consumption tax, and the transfer pricing regime.
On 31 March 2023, the Japanese Ministry of Economy, Trade and Industry initiated a public comment procedure for the Draft Amendment to Ministerial Ordinance and the Draft Amendment to Circular that is intended to impose new export control requirements on certain sensitive semiconductor manufacturing equipment from Japan. The public comment period is from 31 March 2023 to 29 April 2023. Anyone can submit a comment through either (i) the Japanese government’s website, (ii) email, or (iii) mail.
Post-importation transfer pricing adjustments have always presented great challenge for multinational companies doing business in China due to the lack of formal nationwide mechanism which simultaneously addresses the tax, customs and foreign exchange administration requirements, in order to allow customs valuation adjustment to be made in response to a post-importation TP adjustment.
While a TP and customs aligned approach which was introduced in a pilot program in Shenzhen in 2022 allows retroactive TP adjustment to be made with respect to imported goods, the application of the pilot program is currently limited to companies registered in Shenzhen which have in place advanced pricing arrangements with the China tax authority.
On 4 August 2022, the Consumer Credit Oversight Board Task Force issued the first of a two-part consultation paper to the Consumer Credit Act (CCA) to obtain feedback from interested parties and members of the public on the proposed enactment of the CCA.
The Task Force has now issued the second public consultation paper. The public consultation period on the second paper will close on 15 May 2023.
The feedback from the consultation paper will be considered ahead of the anticipated CCA being passed into law by the end of 2023.
Post-importation transfer pricing adjustments have always presented great challenge for multinational companies doing business in China due to the lack of formal nationwide mechanism which simultaneously addresses the tax, customs and foreign exchange administration requirements, in order to allow customs valuation adjustment to be made in response to a post-importation TP adjustment. A new practice adopted by China Customs piles on additional challenges for companies looking to implement TP adjustments.
On 29 March 2023, Deputy Prime Minister Tran Luu Quang signed Decision No. 319/QD-TTg, which approved the Anti-Counterfeiting and Consumer Protection in e-commerce by 2025 Plan. The Plan is set to increase anti-counterfeiting and consumer protection initiatives, build consumer confidence in online purchasing, and encourage transparent and healthy e-commerce activities in general.
The Anti-Sexual Harassment Act 2022 passed by the Dewan Negara on 11 August 2022. On 28 March 2023, several provisions of the Act came into effect, and it is anticipated that the rest of the Act will come into effect in stages. This is a positive development to be lauded, considering that it is the first to many steps in having an anti-sexual harassment legislation in Malaysia, to increase the prevention and awareness of sexual harassment (in addition to the sexual harassment provisions in the Employment Act).