Kommunicate Global Newsletter Volume 02 Issue 01 (Jan – Mar 2026)

April 22, 2026
Newsletter
78 min read
Kommunicate our global regulatory newsletter 2026

Our Global Regulatory Newsletter (Q1 2026)

Welcome to the third issue of Lexplosion’s Kommunicate Global, your go-to source for the latest regulatory updates from Singapore, Indonesia, UAE-Dubai, Sri Lanka, Bangladesh, Nepal, United Kingdom and Australia. Follow our Linkedin handle for regulatory changes, blogs and flyers.

Global Regulatory Updates

Click on the location you are interested to know about the regulatory changes that have taken place during 1st Januray 2026 to 31st March 2026.

SINGAPORE

UAE

BANGLADESH

UK

SRI LANKA

NEPAL

AUSTRALIA

INDONESIA

Singapore Regulatory Updates

Ministry of Law in Singapore issued a Guide on Using Generative AI in the Legal Sector to create a framework for ethical and effective adoption of generative AI (GenAI) tools in legal practice
The Ministry of Law in Singapore issued a draft Guide on Using Generative AI in the Legal Sector to create a framework for ethical and effective adoption of generative AI (GenAI) tools in legal practice and invited public feedback. Lexplosion had submitted feedback to the Ministry and also analysed the compliance implications of the draft guide in a blog post.
 
On 6th March 2026, the Ministry released the final version of the Guide with important clarifications and enhancements. Lexplosion was acknowledged in the list of contributors and some of the suggestions we provided were reflected or further clarified in the final Guide, particularly on aspects such as the risk-based approach, greater transparency around data handling and the inclusion of a sample disclosure clause for client communications.
 
Key Compliance Takeaways:
  1. Implement an internal GenAI usage policy with defined approved tools and prohibited use cases.
  2. Review vendor terms on data retention and whether inputs are used for model training.
  3. Train legal teams on GenAI risks (hallucinations, bias), prompt design and verification techniques
 
For more information, please refer to our blog on “Singapore’s Guide on Generative AI in the Legal Sector: What in-house legal teams need to know“.
The Coastal Protection and Other Amendments Bill was passed in Parliament on 6th March 2026. It will amend the Sewerage and Drainage Act 1999 and the Public Utilities Act 2001 and will introduce requirements for coastal protection measures.
 
The Bill will introduce several obligations on owners of prescribed places like reservoirs, drains, and structures.
 
Key Compliance Takeaways are as follows:
  1. Ensure Coastal Protection Measures are maintained according to standards set by the Public Utilities Board.
  2. Obtain a clearance certificate or Board approval before installing, expanding or altering the CPMs.
  3. Keep records and notify the Board of any damage or operational issues.
 
Offences and penalties are specified for failure to comply with requirements, including fines upto SGD 200,000 and imprisonment upto 2 years for serious breaches.
Singapore 2026 Budget Statement was delivered on 12th February 2026 and the Singapore government has introduced several support measures to help businesses stay competitive.
  1. It has announced a 40 percent on Corporate Income Tax rebate for YA 2026, enhanced internationalisation support, enhanced grant support for overseas market access, enhancement of the Market Readiness Assistance grant to 70% for SMEs, expanded tax incentives and higher financing limits under the Enterprise Financing Scheme. These measures aim to help businesses manage cost pressures while accelerating transformation and overseas expansion.
  2. The Budget has also recognised the role of AI in driving growth and has set-up a National AI Council which will focus on advanced manufacturing, connectivity, finance and healthcare. It will also aim to expand enterprise support for AI adoption and improve the upskilling of workforce to ensure that employees remain competitive in an economy being transformed by AI. Moreover, the Enterprise Innovation Scheme will be improved to support businesses undertaking AI transformation, by granting 400 percent tax deductions/allowances on up to SGD 50,000 of qualifying AI expenditures for YA 2027 and 2028.
  3. There will be continued support for workers and families through Skills Future enhancements as well as measures to uplift lower-wage workers, Central Provident Fund CPF top-ups for seniors and continued cost-of-living assistance.
  4. It was also announced that the Ministry of Manpower MOM will revise the minimum qualifying salaries for Employment Pass and S Pass holders in order to maintain a high quality of foreign workforce and create better jobs for locals. The EP minimum qualifying salary for new applications will increase from SGD 5,600 to SGD 6,000. These revised thresholds will apply to new EP applications from 1st January 2027 and to renewal applications from 1st January 2028. The S Pass minimum qualifying salary for new applicants will rise from SGD 3,300 to SGD 3,600, effective from 1st January 2027 and 1st January 2028 for new and renewal applications respectively.
The Ministry of Law announced the commencement of the revamped Simplified Insolvency Programme (SIP 2.0) on 29th January 2026. This has been introduced to replace the Simplified Insolvency Programme of January 2021 which was brought to support eligible micro and small companies that were facing financial difficulties during the COVID-19 pandemic.
 
To be eligible for entry into SIP 2.0, companies must ensure the following:
  1. the total liabilities of the company must be capped at SGD 2 million and
  2. the company must not already be involved in other insolvency actions or disqualified due to any circumstances.
The following are the key changes that have been introduced:
  1. The requirements to enter the programme have been relaxed. Earlier there were limits tied to revenue, workforce size and creditors. These have been removed to make way for a simpler eligibility criteria.
  2. Restructuring and winding up processes are simpler now and are handled outside the courts. Notices will now be published online on the Ministry website instead of in newspapers or official gazettes.
  3. Licensed insolvency professionals will manage the programme instead of government administration.
  4. Creditor safeguards have been improved. Companies that fail to complete the programme will have to face a cooling-off period before reapplying.
The Health Information Act 2026 was passed by the Parliament on 12th January 2026. The Act mandates licensed healthcare providers, including general practitioner clinics and private hospitals, as well as Ministry of Health-approved care providers to contribute selected patients’ health information to the national repository of health information and the National Electronic Health Record system (NEHR) to facilitate shared care and coordination across Singapore’s healthcare ecosystem.
The Act sets out cybersecurity and data protection standards and obligations that healthcare providers contributing to or accessing the NEHR or sharing data must meet and comply with.
 
Key compliance takeaways are as follows:
  1. Implement reasonable safeguards to protect against the unauthorised access, collection, use, disclosure, copying, modification or disposal of health information.
  2. Cease the retention of health information when it is reasonable to assume that the purpose for which the health information was collected is no longer served by the retention of information.
  3. Report cybersecurity incidents or data breaches to MOH.
On 1st April 2026, the Singapore Government notified Retirement and Re‑employment (Prescribed Minimum Retirement Age) Notification 2026 and Retirement and Re-employment (Prescribed Re-employment Age) Notification 2026 to raise the statutory retirement and re-employment age of employees.
 
Currently, the retirement age is 63 while the re-employment age is 68. As per the notifications, from 1st July 2026, the statutory retirement age will be raised to 64 and the re-employment age will be raised to 69. The increase in the retirement age and re-employment age will keep Singapore on track to raise the retirement age to 65 and the re-employment age to 70 by 2030.
 
The Part-Time Re-Employment Grant will also be extended until December 2027. The Part-time Re-employment Grant provides support to employers who offer part-time re-employment, flexible work arrangements and structured career planning to senior workers. These changes will attract and retain senior employees, encouraging them to stay in the workforce.
 
Key compliance takeaway:
  1. Ensure HR policies are assessed to align with the increased retirement age.

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UAE Regulatory Updates

UAE Tax Procedures Tightened: Key Amendments Effective 1st April 2026
The Ministry of Finance (MoF) of the UAE announces amendments to Cabinet Decision No. 74 of 2023 (Executive Regulations of the Tax Procedures Law), effective 1 April 2026. These amendments align the executive regulations with the updated Federal Decree-Law No. 28 of 2022 on Tax Procedures, which came into force on 1 January 2026.
 
Key Compliance Takeaways:
  1. Having clearer rules and procedures for submitting voluntary disclosures, particularly when correcting errors that affect tax refunds.
  2. Refund procedures now explicitly apply to any credit balance in favour of the taxpayer, providing greater certainty for overpaid taxes.
  3. Revised mechanisms for sharing taxpayer information with competent government authorities while strengthening data confidentiality protections and defining strict limits on its use.
  4. Extended record retention period by an additional two years for tax periods linked to pending refund claims (where the Federal Tax Authority has not yet issued a decision).
  5. New flexibility to extend the preservation or seizure of documents and assets during tax audits and examinations.
The Ministry of Human Resources and Emiratisation (MoHRE) of the UAE announced and updated the minimum monthly wage for working nationals who are Emirati in the private sector to AED 6,000, effective since 1 January 2026. This is a part of the UAE’s ongoing phased strategy of Emiratisation, which had previously raised the minimum wage from AED 4,000 to AED 5,000 and now has increased it to AED 6,000.
 
Key Compliance Takeaways:
  1. New & Renewed Permits: The increased minimum wage to AED 6,000 applies immediately to all new Emirati work permits, as well as any renewals or amendments issued on or after 1 January 2026.
  2. Existing Employees: To meet the new minimum wage requirement, employers have a transitional period until 30 June 2026 to adjust salaries of Emiratis hired before 1 January 2026.
  3. Contract Updates: For all Emirati employees, employment contracts must be amended so as to reflect the AED 6,000 minimum salary no later than 30 June 2026.
  4. Enforcement from 1 July 2026: Companies that are non-compliant will be facing strict measures, including the exclusion of underpaid Emirati employees from counting toward Emiratisation targets. Until full compliance is achieved new work permit applications are suspended.
The Government of the UAE introduces key updates that significantly alter compliance requirements for taxable persons under the VAT framework. Taxable persons applying the reverse charge mechanism will no longer be required to issue self-invoices under the updated framework.
 
Key Compliance Takeaways
  1. Taxable persons must retain appropriate supporting documentation as prescribed under the Executive Regulations, shifting the focus from document creation to audit-ready recordkeeping.
  2. Introduction of a 5 year limitation period plan for refund claims under VAT.
  3. Submit refund claims within five years from the end of the relevant tax period following reconciliation, failing which the right to claim lapses.
 
These changes have been introduced through Federal Decree-Law No. (16) of 2025, which amends certain provisions of Federal Decree-Law No. (8) of 2017 on Value Added Tax and has come into force on 1 January 2026.
The Ministry of Finance (MOF) introduces significant changes to the tax procedures framework, primarily impacting refund timelines, audit scope, and transitional relief mechanisms. A key change being the introduction of a clear five-year limitation period for submitting refund applications or utilising credit balances. Previously, the law did not prescribe a definitive statutory deadline in all cases, particularly where credits arose from later adjustments or assessments, leading to uncertainty. The updated framework removes this ambiguity by mandating that taxpayers act within five years from the end of the relevant Tax Period.
 
In addition, the amendments expand the Federal Tax Authority’s (FTA) audit and assessment powers in specific scenarios. Earlier, audits were generally restricted within standard limitation periods. The amendments also introduce transitional relief provisions, which were previously absent. Taxpayers whose refund rights expired before 1 January 2026, or are due to expire within one year from that date, are granted an additional one-year window to submit refund claims. Further, voluntary disclosures relating to such refunds may be submitted within two years from the refund request date, subject to no prior FTA decision.
 
These changes have been implemented through Federal Decree-Law No. (17) of 2025, amending Federal Decree-Law No. (28) of 2022 on Tax Procedures, and has come into force from 1 January 2026
 
Key Compliance Takeaways:
  1. A 5-year limitation period has been introduced for submitting refund applications or utilizing credit balances, starting from the end of the relevant Tax Period.
  2. The Federal Tax Authority (FTA) now has expanded powers to conduct audits and assessments in specific scenarios, beyond the previous limitation periods.
  3. Transitional relief is introduced for taxpayers whose refund rights expired before 1 January 2026 or those expiring within one year from that date, providing an additional one-year window to submit refund claims.
  4. Taxpayers can make voluntary disclosures regarding refunds within two years from the refund request date.
The UAE Ministry of Finance has issued the official Electronic Invoicing Guidelines, giving businesses practical direction on the country’s upcoming eInvoicing framework and how implementation will be rolled out in phases. The guidance is particularly relevant for businesses carrying out transactions that fall within the scope of the UAE electronic invoicing system, especially companies that issue invoices, credit notes, or other commercial tax-related transaction documents in the UAE. This will mainly matter for taxable businesses, VAT-registered entities, and other persons or transactions specifically brought within scope under the eInvoicing framework, while certain transactions and persons will remain excluded as clarified in the guide.
 
The e-Invoicing guide explains the scope, objectives, and structure of the new system and sets out the policy rationale behind the framework. It also defines key concepts, describes eInvoice categories, addresses specific business scenarios, and clarifies the tax codes to apply across different transaction types. In addition, the guide gives businesses visibility on the phased implementation approach, helping in-scope companies understand when they may be required to comply and how they should prepare. It includes practical implementation guidance covering system readiness, process alignment, governance requirements, roles and responsibilities, readiness checklists, and illustrative invoice templates
 
Key Compliance Takeaways:
  1. Businesses involved in issuing invoices, credit notes, or other commercial tax-related documents in the UAE, primarily affecting VAT-registered entities and taxable businesses, are primarily affected by these guidelines.
  2. To help businesses understand when they must implement the system, the e-invoicing system will be rolled out in phases.
  3. Businesses must take note of the applicable penalties for non-compliance that is provided in the guide and ensure system readiness, align processes with the new framework, and meet governance requirements, as outlined in the guidelines. The UAE Ministry of Finance has issued the official Electronic Invoicing Guidelines, giving businesses practical direction on the country’s upcoming eInvoicing framework and how implementation will be rolled out in phases. The guidance is particularly relevant for businesses carrying out transactions that fall within the scope of the UAE electronic invoicing system, especially companies that issue invoices, credit notes, or other commercial tax-related transaction documents in the UAE. This will mainly matter for taxable businesses, VAT-registered entities, and other persons or transactions specifically brought within scope under the eInvoicing framework, while certain transactions and persons will remain excluded as clarified in the guide.
 
The e-Invoicing guide explains the scope, objectives, and structure of the new system and sets out the policy rationale behind the framework. It also defines key concepts, describes eInvoice categories, addresses specific business scenarios, and clarifies the tax codes to apply across different transaction types. In addition, the guide gives businesses visibility on the phased implementation approach, helping in-scope companies understand when they may be required to comply and how they should prepare. It includes practical implementation guidance covering system readiness, process alignment, governance requirements, roles and responsibilities, readiness checklists, and illustrative invoice templates
 
Key Compliance Takeaways:
  1. Businesses involved in issuing invoices, credit notes, or other commercial tax-related documents in the UAE, primarily affecting VAT-registered entities and taxable businesses, are primarily affected by these guidelines.
  2. To help businesses understand when they must implement the system, the e-invoicing system will be rolled out in phases.
  3. Businesses must take note of the applicable penalties for non-compliance that is provided in the guide and ensure system readiness, align processes with the new framework, and meet governance requirements, as outlined in the guidelines.
Bangladesh and its regulations

Bangladesh Regulatory Updates

Bangladesh Private Export Processing Zones Act, 1996 repealed: Private export processing zones now come under the purview of economic zones
The Bangladesh Government has notified the Bangladesh Private Export Processing Zones (Repeal) Ordinance, 2026 effective since 02.02.2026 to repeal the Bangladesh Private Export Processing Zones Act, 1996 and to bring the private export processing zones (PEPZ) under the supervision of one single regulatory authority i.e. Bangladesh Economic Zones Authority (BEZA).
 
Key Highlights:
  1. The Bangladesh Private Export Processing Zones Act, 1996 has been repealed and the matters governed under the Act will be governed by the Bangladesh Economic Zones Act, 2010 (2010 Act).
  2. The PEPZs will be regulated by BEZA according to the rules and regulations of the 2010 Act.
  3. PEPZs already existing are not required to obtain new license under the 2010 Act.
  4. PEPZs will continue to enjoy the opportunities and bonded and concessional benefits available under the repealed law subject to the measures taken by BEZA for smooth operation.
In a recent Notice rolled out by the Ministry of Public Administration, the Bangladesh government has notified the new office timings for government and private offices effective 05.04.2026. The timings are effective till further notice.
 
Key Highlights:
  1. New office timings for government offices and private offices effective 05.04.2026 are as follows:
    • Sunday to Thursday – 9:00 A.M. to 4 P.M.
    • Friday and Saturday – Weekly holiday
  2. Emergency services will remain out of the purview of the new office timings.
  3. Bangladesh Bank will take initiative to determine the timing of Banks and financial institutions from 9:00 A.M. to 4 P.M. and banking services from 10:00 A.M. to 3:00 P.M.
  4. The Ministry of Labor and Employment will issue necessary instructions in accordance with the Bangladesh Labor Act, 2006, regarding the determination of working hours for private sector industrial establishments/factories and institutions.
The Department of Inspection of Factories and Institution, Bangladesh has revised the closing time of shops and market stalls by Notification no. 40.01.0000.000.102.99.0007.16.96 as an initiative to save electricity and energy considering the prevailing global situation and resolve the related crisis. Effective since 05.04.2026, shops and market stalls must close by 6:00 PM every day (earlier 8:00 PM) until further notice.

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UK and its regulatoy environment

UK Regulatory Updates

Information Commissioner’s Office (ICO) introduces streamlined guidance for international transfers of personal data
The United Kingdom’s Information Commissioners Office (ICO) has updated its guidance on cross-border transferring of personal information. This updated guide is a part of the United Kingdom’s General Data Protection Regulation (UK GDPR).
 
The United Kingdom has introduced guidance under the UK GDPR to help businesses determine whether they are transferring personal data internationally in a compliant manner. To simplify this process a straightforward three-step test has been established. The primary object is to provide more straightforward guidelines for all businesses regardless of their size. Additionally, the updated guidance provides clarity on the duties of each party involved which can be complex when multiple stakeholders are involved. It also talks about supplementary resources, including a concise guide, a list of frequently asked questions and a list of key terms which are helpful for businesses having less knowledge on transferring personal information. These tools aim to facilitate the understanding of the UK GDPR and ensure that companies can navigate the complexities of data protection with ease.
 
Key Compliance Takeaways:
  1. Review internal policies and procedures and make them in line with the GDPR rules following the guidelines.
  2. Map all international data flows and embed the ICO’s three-step restricted transfer test into procurement and vendor onboarding workflows.
  3. Verify the necessity and lawful basis for each transfer.
  4. Implement and choose the suitable mechanism (adequacy, safeguards with TRA, or derogation as appropriate).
  5. Revise and review the existing contracts (e.g., incorporating the International Data Transfer Agreements (IDTA) or UK Addendum where required).
  6. Reassess existing TRAs against the “not materially lower” protection standard introduced under the Data (Use and Access) Act 2025.
  7. Ensure Board or senior manager reporting appropriately captures cross-border data risks.
The UK Government has amended the National Minimum Wage and National Living Wage rates under the National Minimum Wage Act. The new rates were introduced through the National Minimum Wage (Amendment) Regulations 2026 and will apply from April 1, 2026.
 
Here are the key highlights:
  1. The National Living Wage for people who’re 21 years old or more has been increased from £12.21 to £12.71 per hour from April 1 2026.
  2. For people who are paid the National Minimum Wage:
    • People who are 18 years old but not 21 years old will get £10.85 per hour instead of £10.00.
    • People who are under 18 years old will get £8.00 per hour instead of £7.55.
    • People who are doing an apprenticeship will also get £8.00 per hour or £7.55.
  3. If employers give their workers a place to live they can subtract up to £11.10 per day from their wages for National Minimum Wage purposes. This used to be £10.66 per day. The National Minimum Wage and National Living Wage rates are very important for workers and employers.
Key Compliance Takeaways:
  1. Make sure that all workers are paid according to the National Minimum Wage and National Living Wage rates.
  2. Update payroll systems away to reflect the new rates that are effective from April 1 2026.
  3. Change employment. Wage structures to match the new National Minimum Wage and National Living Wage structure.
  4. Check if they are following the rules, for all worker categories, including workers and apprentices who are paid the National Minimum Wage.
The Government of United Kingdom introduced paternity leave for employees whose child’s primary carer has died. The new statutory entitlement was introduced by the Bereaved Partner’s Paternity Leave Regulations 2026 effective since 06.04.2026 under the Employment Rights Act 1996.
 
Key Compliance Takeaways:
  1. An employee whose primary child carer has died during the first year following the child’s birth, placement for adoption, or entry into Great Britain in connection with or for the purposes of an adoption from overseas, the employee can take unpaid leave of a continuous 52 weeks from:
    • the child’s birth – including intended parents in a surrogacy, or
    • the child’s adoption placement, or
    • the child’s entry to Great Britain for overseas adoptions.
  2. The entitlement is only available if the following are fulfilled:
    • The person who has died must be one of the following:
      • the mother or parent who gave birth, or
      • the primary adopter, or
      • an intended parent having a baby through surrogacy.
    • The person applying for leave must be:
      • the child’s father, or
      • married to, the civil partner or partner of the mother or parent who gave birth, or
      • married to, the civil partner or partner of the primary adopter. This includes same-sex partners. Someone who separated from their partner can still take this leave. They must have ongoing responsibility for bringing up the child.
  3. The eligible employee willing to avail the leave must inform his/her employer:
    • In case leave is to be taken in the first 8 weeks after the death, before the employee start work on the first day of leave,
    • In case leave is to be taken more than 8 weeks after the death, at least a week before the planned leave.
The Government of United Kingdom has introduced several changes to the employment regime by the Employment Rights Act 2025. This is an initiative to implement the Plan to Make Work Pay (MWP) to bring employment rights legislation into the 21st century, extending employment protections to workers. The amendments are coming into effect in phases. The changes affecting the employers and employees that came into effect till April 2026 are given below
 
Key Compliance Takeaways:
  1. Employers are now prohibited from dismissing an employee who has taken any industrial action (Strike, Picketing, refusal to do work that is optional in employment contract, etc.).
  2. Right to paternity leave and unpaid parental leave is now available to employees from the very day of their joining, which was earlier available to employees who had worked for 1 year (in case of parental leave) or 26 weeks (in case of paternity leave) under the same employer. The leave can be taken even after availing the shared parental leave.
  3. The Statutory Sick Pay (SSP) is now a day 1 right and payable from the first day of sickness absence. Further, lower earners who previously did not qualify will receive SSP calculated as 80% of normal weekly earnings or 118.75 GBP, whichever is lower. Prior to this, SSP was applicable only if an employee’s average earnings met the Lower Earnings Limit. Also, SSP did not start immediately because the first 3 days of sickness were unpaid (the waiting days).
  4. The occurrence of sexual harassment has been added as a protected disclosure. Employees disclosing the occurrence or possibility of such an occurrence cannot be subjected to detriment or any unfair dismissal by the employer.
  5. Employers with a minimum of 250 employees can prepare and publish an equality action plan covering the steps taken by them to address the gender pay gap and support employees going through menopause. This is expected to become an obligation for employers from 2027.
  6. Employers must maintain records of annual leave taken by their employees for a period of 6 years from the date they are made.
  7. Rejection of request to permit flexible working must be justified with reasons in writing to the employee applying for the same.

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Sri Lanka regulatory environment

Sri Lanka Regulatory Updates

Ministry of Labour lifts night work restrictions for female employees in Hospitality and Food & Beverage Sectors
Sri Lanka has amended the Shop and Office Employees (Regulation of Employment and Remuneration) Regulations, 1954, through Extraordinary Gazette No. 2473/25 on 30.1.2026. The amendment empowers an employer or owner of a shop or office in sectors such as hospitality and food and beverage to employ female employees after 6 p.m. or before 6 a.m. of the following day. It obligates such an employer or owner to undertake responsibility for the healthcare, safety, and welfare of such female employees. It also updates the occupational terminology by replacing “ladies lavatory attendant” with “ladies janitorial attendant, or a food and beverage stewardess”.
 
Key Compliance Takeaways:
  1. Adhere to work hours specified for female employees. The violation of this compliance leads to a fine of up to 500 Sri Lankan rupees or imprisonment for up to 6 months or both.
  2. Grant annual leave to employees. The violation of this compliance leads to a fine of up to 500 Sri Lankan rupees or imprisonment for up to 6 months or both.
  3. Display notice of minimum rate of remuneration at a conspicuous place in the office or shop. The violation of this compliance leads to a fine of up to 500 Sri Lankan rupees or imprisonment for up to 6 months or both.
  4. Pay for overtime work. The violation of this compliance leads to a fine of up to 500 Sri Lankan rupees or imprisonment for up to 6 months or both.
The Inland Revenue Department (IRD) has introduced an important Advance Personal Income Tax (APIT) reporting clarification for employers in Sri Lanka. Employers registered under APIT are obligated to report the Tax Identification Number (TIN) of all employees in Schedule 1 of the APIT Annual Statement in the Assessment Year 2025/2026. Additionally, this helps employers to obtain TINs for unregistered employees by submitting a request to the IRD.
The Social Security Contribution Levy (Amendment) Bill, as issued on 03.03.2026, has gained effect on 09.04.2026. The Social Security Contribution Levy (Amendment) Act, No. 9 of 2026 has amended the Social Security Contribution Levy Act, No. 25 of 2022. The threshold for registration for the tax contribution toward the social security levy has been reduced from 60 million Sri Lankan rupees to 36 million Sri Lankan rupees per annum, which is effective from April 1, 2026. Additionally, deregistration rules have undergone significant related changes along with certain exemptions that have been adjusted.
 
Key Compliance Takeaways:
  1. Pay monthly social security contribution levy to the Commissioner General. The violation of the obligation leads to a penalty of 10% on the unpaid amount and an extra 2% penalty if the amount isn’t paid in the following month.
  2. Furnish quarterly returns to Commissioner-General. The violation of the obligation leads to a penalty of 50,000 Sri Lanka rupees.
The Inland Revenue Amendment Bill, issued on 20.03.2026, will amend the Inland Revenue Act, No. 24 of 2017 upon gaining effect. The amendment has tightened the compliances under tax, broadened withholding obligations, refined deductions, and updated numerous other tax rules.
 
Key Compliance Takeaways:
  1. Maintain proper records relating to employees’ remuneration, declarations, pay sheets, receipt. The violation of the obligations puts penalty of 1000 Sri Lankan rupees each day.
  2. Pay income tax on earnings from capital gains. The employer is penalised 25% on the amount in case of late payment. If the employer doesn’t pay income tax, he is liable to fine of 10 million Sri Lankan rupees or imprisonment of 2 years or both.
The implementation date for the new Tax Invoice format has been further postponed to 01.07.2026 via Notice No. SEC/PN/VAT/2026-01. The Inland Revenue Department had specified a new format and specification for tax invoices, which was originally to be effective from 01.01.2026. Upon receiving requests from numerous VAT-registered persons, the implementation date was revised and extended to 01.04.2026 via Notice No. PN/VAT/2025-12/1. The implementation date is now 1 July 2026.
Sri Lanka has introduced Companies (Beneficial Ownership) Regulations,No.01 of 2026 effective from 30.03.2026. This Regulation mandates companies with beneficial owners to notify the Registrar about the details of their beneficial owners during the incorporation or registration of the company and within twenty working days of the issue of shares or the transfer of shares.
Nepal regulatory environment

Nepal Regulatory Updates

Nepal's new Carbon Trading Rules 2082 requires businesses to comply with Project Approval, Registration and Record Keeping Requirement to align Carbon Projects
Nepal’s Carbon Trading Rules, 2082 has laid down guidelines for managing carbon trading projects in the country. The Carbon Trading Rules outline processes for obtaining project approvals, registration, transferring of carbon credits, and sharing of benefits from such carbon trading for Companies involved in carbon trading.
 
Key Compliance Takeaways:
  1. Obtain Project Approval: Obtain approval from the government before introducing any carbon trading projects. This will ensure alignment with national carbon-reduction norms and project eligibility for market participation.
  2. Record Keeping: Establish systems and processes in place to maintain accurate records of project proposals, periodic reports, and environmental impact assessments, as per the set standards of the Regulatory Authorities.
  3. Registration and Transfer Processes: Follow legal procedures for registering carbon credits and transferring them in the carbon market. This will ensure transparency and accountability in carbon credit exchange processes.
  4. Mechanism for sharing benefits: The rules set out a benefit-sharing model aimed at distributing the financial and environmental benefits of carbon trading projects fairly to regulate financial planning and revenue models of companies participating in these markets.
The Ministry of Labour, Employment and Social Security (MoLESS) of Nepal has issued a public notice directing all employers and establishments in the country to fully comply with the minimum wage requirement and related labour benefits as required under the Nepal’s labour laws.
 
Key Compliance Takeaways:
  1. Comply with the Mandatory Minimum Wage Pay – Make sure that all workers, trainees, interns, and contract workers are paid at least the statutory minimum wage set by the government. Failure to comply will attract enforcement action.
  2. Provide labor benefits and social security to employees. Have systems and processes in place to provide benefits such as sick leave, allowances, provident fund contributions, insurance, and social security entitlements as defined under the Labour Act.
  3. Adhere to the Labour Standards to Avoid Inspections and Penalties. Establish processes and systems in place to comply with labour standards to avoid scrutiny and penalties by the authorities. This adherence has to be strictly complied by sectors with reported wage violations. Such sectors include – healthcare institutions, schools, and other establishments. Non-compliance may attract inspections and legal actions.
  4. Conduct timely Awareness and Due Diligence Programmes. Set up mechanisms and processes in place to review employment contracts, payroll and correct HR practices. This will ensure conformity with minimum wage standards and related labour benefits.
The Labour Ministry of Nepal has introduced the Workplace Maximum Temperature Standard, 2082. The Standard aims to safeguard the health and safety of workers in their work environments to prevent heat stress and related health risks for employees.
 
Key Compliance Takeaways:
  1. Comply with the set temperature limits at workplaces. Implement systems in place to ensure that both indoor and outdoor work areas are staying within the prescribed temperature limits at workplaces. This legal requirement applies across sectors where workers are exposed to heat.
  2. Carry out regular risk assessments. Have processes in place to conduct regular risk assessments for identifying gaps and areas of non-compliance at workplaces.
  3. Implement protocols to regulate heat. Provide ventilated areas, systems for cooling, rest areas with shades and lenient work schedules to keep workplace temperatures within the acceptable limits.
  4. Integrate Occupational Health and Safety Measures at workplace. Implement processes in place to facilitate integration of heat-stress prevention mechanisms into the already existing occupational health and safety systems. This includes training workers to recognising heat related illness and emergency preparedness.
  5. Record keeping and maintenance of compliance evidence.
  6. Maintain records reflecting procedures to monitor
    1. workplace temperature
    2. what control measures are in place, and
    3. how they respond to heat related risks.
  7. Keep the records ready during inspections by authority.
The Government of Nepal has introduced the Nepal Vehicle Pollution Standards, 2082. The Standards have been aimed at limiting the air pollutants emitted by motor vehicles by casting an obligation on vehicle manufacturers, importers, dealerships, and fleet operators to comply with the specified emission norms before they are sold, registered, or put into service.
 
Key Compliance Takeaways:
  1. Meet the prescribed pollution limits under the new standards. Non-Compliant vehicles will not be eligible for registration or operation.
  2. As vehicle manufacturers and importers, make sure that the vehicles you bring to the Nepalese market meet the prescribed emission standards and provide technical certification and conformity documentation at the time of supply or import.
  3. As dealers and distributors of vehicles, make sure to verify that vehicles in your inventory comply with the emission norms before sale.
  4. Maintain records of compliance documentation and ensure customers receive compliant vehicles as dealers and distributors of vehicles.
  5. As fleet operators (for example – transport companies, rental services, logistics firms), make sure to comply with the pollution standards throughout the vehicle’s operational life cycle. This includes regular emission testing, maintenance to reduce pollutants, and timely corrective action when vehicles fail to meet norms.
Nepal and India have signed a Memorandum of Understanding (MoU) to share export-related information electronically before goods arrive at the border area. This advanced exchange of customs data between the two customs authorities is intended to support risk-based customs procedures, speed up clearance processes, and make cross-border trade smoother and more efficient for traders and transporters. This development will help both sides assess and process shipments more quickly and accurately. The MOU benefits exporters, logistics companies, and transporters with faster movement of cargo, facilitating greater predictability, manoeuvrability and more efficient customs procedures to lower logistics costs and improve supply chain reliability.
 
Key Compliance Takeaways:
  1. Customs authorities in Nepal and India can now exchange export data electronically before goods reach the border.
  2. The MoU enables customs officials to apply risk-based assessments using pre-arrival data, which can reduce unnecessary inspections while focusing resources on high-risk consignments.
  3. By receiving export information in advance, customs teams can pre-clear documentation and reduce waiting times at border crossings.
  4. The agreement supports smoother cross-border trade between Nepal and India.
Australia regulatory environment

Australia Regulatory Updates

Government of Australia introduces changes to Superannuation guarantee effective 1st July 2026
The Government of Australia has introduced changes to Superannuation Guarantee (SG) rules, effective from 01.07.2026. Employers are now obligated to pay superannuation contributions at the same time they pay employees salary and wages under the new Payday Super framework. This change aims to facilitate regular lodging of super contributions on behalf of employees. Paying SG contributions more frequently would make super money get into employees’ accounts sooner and potentially improve retirement outcomes and reduce the gap between earnings and contributions.
 
Key Compliance Takeaways:
  1. Start making superannuation payments on each pay cycle (e.g., weekly, fortnightly, monthly), aligning contributions with when employees are actually paid. [The quarterly cycle will be phased out for most employers].
  2. Have processes in place to update payroll systems and processes to calculate, withhold and remit SG contributions on each pay cycle accordingly. [This may involve software updates, training payroll teams, and changes in accounting workflows].
  3. Establish systems and processes in place to ensure accuracy in calculating and remitting super on each pay period while considering correct SG rates, employee eligibility and reporting. Non-compliance can attract penalties and scrutiny by the ATO.
The Office of the Australian Information Commissioner (OAIC) has launched the Children’s Online Privacy Code in March 2026 and released the official exposure draft on 31.03.2026. This new code marks a significant development in privacy regulation and targets the apps, games, websites, and other online services that are used by children or that handle children’s personal information. These changes will impact all platforms that are likely to be used by children or handle data relating to them.
 
Key Compliance Takeaways based on the Draft code:
  1. Implement strict privacy measures at place to protect children’s personal information.
  2. Have processes in place to review your online services in compliance with the Children’s Online Privacy Code.
  3. Establish mechanisms in place to obtain accurate consent from children’s parents or guardians before collecting, using, or disclosing any personal information related to children.
  4. Install dynamic and robust systems to verify the age of users to make sure that children’s data is processed in accordance with the Code.
  5. Prepare to demonstrate your efforts to comply with the implementation of necessary privacy policies and procedures at par with the new rules.
Effective since 01.04.2026, private sector companies with 500 or more workers must choose and report on three gender equality objectives according to the Workplace Gender Equality (WGE) framework. These objectives need to be chosen within the yearly reporting timeframe and monitored across a 3-year span. The updated reporting standards intend to foster tangible advancement in achieving gender equality within the workplace.
 
Key Highlights and Compliance Impact on Businesses and Employers:
  1. Identify the 3 gender equality targets to focus on during the annual reporting period as an employer with more than 500 employees. The said targets will be tracked over the next 3 years to enable sustained focus on achieving gender equality outcomes.
  2. Report your gender equality goals each year and update their progress on a timely basis.
  3. Establish processes in place to allocate resources to data monitoring, analytical frameworks, and pertinent staff initiatives to achieve these objectives.
  4. Have systems and procedures to incorporate these new requirements into HR practices to ensure that all necessary systems are available for effective compliance.
AUSTRAC released the AML/CTF Transitional Rules 2026 on 02.04.2026. The Rules provide businesses with limited phased relief as they update their Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) systems along with their compliance programs. Since this transitional relief is not a blanket extension, businesses must assess whether they are eligible based on factors such as their enrollment timing and the designated services they provide.
 
Key Highlights and Impact on Businesses:
  1. Demonstrate continuous progress to benefit from phased relief as businesses update their AML/CTF systems, processes, and compliance programs. This relief helps businesses avoid getting penalised for delays while they implement necessary changes.
  2. Meet all your core AML/CTF compliance obligations even while receiving transitional relief.
  3. Failure to align your systems with the updated requirements can result in penalties or non-compliance.
  4. Adhere to deadlines for completing your system updates, as the transitional relief period is time-bound, and businesses must.
  5. Have systems and processes in place to act promptly to avoid penalties once the relief ends as the relief period will not extend indefinitely.
Australia’s new merger control regime requires the businesses to notify certain acquisitions to the Australian Competition and Consumer Commission (ACCC) before completing the transaction.
 
Key Highlights and Impact on Businesses:
  1. Perform detailed competition assessments to identify whether a proposed acquisition triggers the new thresholds for ACCC notification.
  2. Notify the ACCC and obtain approval before completing certain acquisitions that meet the defined financial or market share thresholds.
  3. Establish mechanisms in place to facilitate timely filings and;
  4. Have systems and processes in place to ensure that you have internal governance systems in place to manage the approval process.
Indonesia regulatory environment

Indonesia Regulatory Updates

Circular of the Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board No. 1.S of 2026 on Provisions for the Issuance of Compliance Permits for Land Space Utilization Activities to Micro-Scale Enterprises
Ministry of Investment and Downstream has issued a guideline on online application for KKPR for micro-scale enterprises. Owners of micro-scale enterprises can now secure the Land Use Activity Compatibility Kesesuaian Kegiatan Pemanfaatan Ruang (KKPR) documents by submitting data and self-declarations directly through the Online Single Submission (OSS) system. To facilitate this simplified process, applicants must provide five specific pieces of information:
  • Administrative location
  • Full address
  • Total land area
  • Single point coordinates
  • A front-view photo of the relevant location
However, if a micro-scale enterprise is categorized as high risk, the self-declaration mechanism alone is insufficient. In these cases, the business actor must coordinate with the local government department responsible for spatial planning to obtain a formal statement of compatibility with the regional spatial plan (Rencana Tata Ruang/RTR).
 
It is important to note that any KKPR applications submitted by micro-scale enterprises that were already in progress before the issuance of this Regulation can be resubmitted in line with these new provisions.
 
Key compliance takeaways are as follows:
  1. This self-declaration facility significantly reduces time and cost for most micro-enterprises, enabling faster NIB issuance and business startup through OSS. However, high-risk microbusinesses must still engage directly with local spatial planning authorities, and inaccurate self-declarations may trigger sanctions, making accurate data submission and risk classification critical for full compliance.
Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) of Indonesia has issued regulation stipulating criteria for the appointment of foreign workers in the banking sector.
 
Key Highlights are as follows:
  1. This Regulation also stipulates that any banks that employ foreign workers are required to assign Indonesian employees to overseas placements as part of their ongoing competency development and talent exchange initiatives.
  2. Said programs may be implemented through employee exchange schemes (intra-corporate transferees) or secondment arrangements, which are organised through head offices, overseas branches or subsidiaries.
  3. For executive officers, specific competency-related positions and experts, the maximum period of engagement has now been extended to five years. Previously, terms were limited to three years with a possible one-time extension, resulting in a maximum total of four years. In addition, the term of service will now be calculated cumulatively if there is a gap of less than three years at the same bank.
  4. Banks having min 25% foreign shareholders can employ foreign workers for the following positions:
    • Board of Directors;
    • Board of Commissioners;
    • Executive Office;
    • Certain positions that require special competencies; and/or
    • Experts or Consultants.
This new framework also establishes a unified framework for the placement of migrant merchant ships’ crews and migrant fishing vessel crews under a single general procedure, including certain specific document requirements, which include possession of a Seafarer’s Book, as well as the use of Seafarers’ Employment Agreements (Perjanjian Kerja Laut/PKL) as a substitute for or as an alternative form of employment agreement.
 
The new Regulation also emphasises that Worker placements should be implemented in line with three stages (i.e. before, during and after employment). In addition, Worker Placement Companies (Perusahaan Penempatan Pekerja Migran Indonesia/P3MI) are required to monitor workers who are stationed abroad at least once during their contract periods and to submit formal reports accordingly.
This Regulation mandates that any persons in charge of animal and/or aquaculture feed businesses that produce wastewater must complete wastewater treatment processes prior to releasing said wastewater into the environment. Meanwhile, any wastewater that is used for primary, supporting and/or by-product activities must be used in accordance with applicable Laws and Regulations. Wastewater treatment processes must simultaneously meet two primary requirements:
  1. specifically wastewater quality standards (i.e. specific limits on the levels of pollutants that are allowed in wastewater) and
  2. technological standards for wastewater treatment (i.e. pre-defined technological standards or series of processes established by the government for the treatment of water).
The wastewater quality standards that must be met are determined by three factors, specifically
  • treatment systems,
  • types of wastewater and
  • release activities.
However, it should be noted that businesses will be exempted from mandatory compliance with these standards if they meet the following conditions:
  1. Channel their waste to a collective processing facility provided by the government or third-party business entity;
  2. Hand over their wastewater to a licensed transportation or processing service; and/or
  3. Utilize their wastewater in direct relation to core or supporting activities or as a side product.
Businesses are also permitted to utilise technologies defined as external to the government standards, provided that they conduct technical studies and are still able to meet the final wastewater quality standards. It should also be noted that any businesses that have already secured environmental approvals or statements of commitment (Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup/SPPL) must update their documentation or bring their monitoring practices into line with the new framework by 26 February 2028.
 
Key Compliance Takeaways:
  1. Utilise technologies defined as external to the government standards to meet the wastewater quality standards.
  2. Businesses that have already secured environmental approvals or statements of commitment (Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup/SPPL) must update their documentation or bring their monitoring practices into line.
  3. Persons in charge of animal and/or aquaculture feed businesses that carry on the following activity must follow the technological standards specified in Attachment VI to the regulations regarding the discharge/use of wastewater:
    • wastewater discharge into water media with a discharge greater than fifty cubic meters per day,
    • discharge of wastewater into drainage and/or irrigation channels with a discharge of greater than three cubic meters per day, or
    • use of wastewater for irrigation and/or washing with a discharge of greater than three cubic meters per day.
  4. Persons in charge of animal and/or aquaculture feed businesses discharging wastewater in quantities of less than or equal to three cubic meters per day must prepare their own technical standards.
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This newsletter is provided for general informational purposes only and does not constitute legal advice or establish an attorney-client relationship. The content herein summarizes recent changes in laws across various jurisdictions based on publicly available information and is not intended to be a comprehensive analysis of all applicable laws or their implications. Legal interpretations and applications vary by jurisdiction, and the information provided may not reflect the most current legal developments at the time of your reading.

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