A Comprehensive Assessment of Tax Capacity in Southeast Asia

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• Publisher: Asian Development Bank
• Year: 2021
• Print ISBN: 9789292628345
• eBook ISBN: 9789292628352
• Topic: Law
• Subtopic: Tax Law
• Index: Law

As Southeast Asia reels from the impacts of the coronavirus disease (COVID-19), domestic resource mobilization (DRM) has never been more challenging or more critical. Prior to the pandemic, many countries in the region were not achieving a tax yield of 15% of gross domestic product—the level considered to be the minimum for sustainable development. The pandemic has further reduced tax revenues and public expenditures are facing increasing pressure. This publication identifies technical, policy, and administrative tax capacity issues faced by ten countries in Southeast Asia. It also explores potential policy and administrative measures to strengthen DRM.

APPENDIX

Country Tax Profiles

Brunei Darussalam

Cambodia

Indonesia

Lao People’s Democratic Republic

Malaysia

Philippines

Singapore

Thailand

Timor-Leste

Viet Nam

BRUNEI DARUSSALAM

AT A GLANCE

PRODUCTION STRUCTURE

NPISH = nonprofit institutions serving households.

TAX SYSTEM AND TAX ADMINISTRATION DESIGN FEATURES

Tax Rates, Thresholds, and Overall Revenue Contribution (see Note 6)

Note that Brunei Darussalam does not have local governments. /1. For fiscal year (FY) 2020, unless otherwise indicated. /2. National taxes are shown as a percentage of national tax revenue. /3. There are no personal income tax (PIT), payroll taxes, capital gains taxes, sales taxes, or value-added tax (VAT) in Brunei Darussalam. /4. Applies to approved exports. /5. Excises on alcohol and tobacco are levied at standard rates based on quantity.

Sources: IMF Art. IV reports, Deloitte Country Tax Profiles (https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-bruneihighlights-2019.pdf), OECD Statistics, 2018 Directorate General of Taxes Annual Report.

Tax Administration Setup and Performance

REVENUE

(*) projected/provisional collections.

BROADENING THE TAX BASE

RESPONSIVE TAX ADMINISTRATION

CAMBODIA

AT A GLANCE

PRODUCTION STRUCTURE

NPISH = nonprofit institutions serving households.

TAX SYSTEM AND TAX ADMINISTRATION DESIGN FEATURES

Tax Rates, Thresholds, and Overall Revenue Contribution (see Note 6)

/1. For FY 2020, unless otherwise indicated. /2. Ranges from 0% to 30% depending upon type of income. Certain industries such as oil and gas and exploitation of natural resources (such as gold, timber, and precious stones) are taxed at 30%. Qualified Investment Projects are not taxed during the exemption period. /3. Alternative minimum tax is levied on turnover and applies to businesses that do not keep proper records. It is inclusive of all taxes except VAT. /4. Dividends interest, royalties, branch remittances, and technical service fees. 10%–14% WHT on rent. /5. Excise is referred to as specific tax (SPT) and applies to imported and locally produced goods. /6. Capital gains are taxed as ordinary income at a national level. /7. Other subnational taxes include tax on vehicles and accommodation taxes.

Sources: IMF Art. IV reports; Deloitte Country Tax Profiles; and OECD Statistics, 2018.

Tax Administration Setup and Performance

REVENUE

(2019 projected/provisional collections).

BROADENING THE TAX BASE

RESPONSIVE TAX ADMINISTRATION

INDONESIA

AT A GLANCE

PRODUC...

Table of contents

• Front Cover
• Title Page
• Copyright
• Contents
• List of Figures
• Foreword
• Acknowledgments
• About the Authors
• About This Report
• Abbreviations
• Executive Summary
• Main Observations
• I. Introduction
• II. Tax Administration and Revenue Profile
• III. Strengthening Revenue and Broadening the Tax Base
• IV. Responsive Tax Administration
• V. Conclusion
• Appendix: Country Tax Profiles
• References
• Footnotes
• Back Cover