VDB Loi Insights

30
Apr
2019

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INSIGHTS THIS MONTH
APRIL 2019
 
Highlight of This Month / In This Issue / Recent VDB Loi Work / New Myanmar Laws and Regualtions / Upcoming Events / Recent Publications
HIGHLIGHT OF THIS MONTH
 
2019 edition of the Project Finance Market Intelligence publication by Getting the Deal Through, Southeast Asia

 

As more international sponsors and lenders are entering the active phase of developing their projects, and are thus engaging in discussions with relevant local governments and agencies, it can be expected that the legal framework will continue to evolve rapidly.

IN THIS ISSUE
 
Central Bank of Myanmar    
Recent Directives by Central Bank of Myanmar
[From our Banking and Finance Team] – Myanmar
The Central Bank of Myanmar (the “CBM”) recently published several directives relating to corporate governance aspects of banks’ operation.
     
Trade Mark    
2019 Myanmar Insurance Market Liberalization for Foreign Investments: First Preferred Applicants Announced
[From our Banking and Finance Team] – Myanmar
The Ministry of Planning and Finance of Myanmar has just announced the preferred applicants for the licenses of life insurance business in Myanmar to be operated by 100% wholly-owned subsidiaries of foreign insurers.
Factory    
Celebrating Thingyan and Reflecting on a Successful Year With VDB Loi
With the recent celebration of our seventh anniversary as well as the upcoming Thingyan Festival in Myanmar, we at VDB Loi would like to thank you for your continued support. We are very pleased to share with you some of VDB Loi’s best moments and achievements over the past year.
Projects    
Update on Interest-Free Loans
[From our Cambodia Office]
In a recent Client Alert, we advised that the General Department of Taxation (“GDT”) had verbally indicated that interest-free loans between related parties would again be permitted after having been “banned” following the issuance of the transfer pricing regulations (Prakas 986).
Work Permit    
Tax Audit – Important Update!
[From our Cambodia Office]
On 13 March 2019, the Ministry of Economy and Finance (“MEF”) issued Prakas 270 on Tax Audits (“Prakas 270”), which attempts to streamline the tax audit process, as part of the government’s large-scale economic reforms, to improve transparency in tax payments and collections, and promote a fair and competitive business environment.
Work Permit    
Important Update on Withholding Tax on Dividends
[From our Cambodia Office]
On 5 April 2019, the Ministry of Economy and Finance issued Prakas 372 to introduce new rules on dividend withholding tax (“WHT”). This Prakas replaces Prakas 518, which was issued on 5 May 2017, and expands the definition of what is considered a dividend distribution, and thus subject to WHT.
OUR UPCOMING EVENTS
 

RECENT VDB LOI WORK
Innovative hydropower project: The Energy and Infrastructure team is advising a European company on the structuring of its project in Myanmar, which involves the use of cutting-edge technology to generate hydropower electricity for the country.

Supporting a power supply project for the telecom sector: VDB Loi’s TMT team is providing a leading Japanese multinational with market entry research and advice on telecom power supply and community power projects in Myanmar.
Microfinance loan from DFI: The Banking and Finance team acted as counsel for a development financial institution on its multimillion dollar loan to a Myanmar microfinance institution.

Leading companies choose VDB Loi for its tax expertise: The Tax team has been engaged by a leading international accounting firm to provide tax services for its clients.

Licensing: VDB Loi assists clients with licensing in a range of industry sectors; the Regulatory team successfully obtained a wholesale license for an international FMCG company to do business in Myanmar.

NEW MYANMAR LAWS AND REGULATIONS THIS MONTH
 
  • Law amending the Myanmar Engineer Council Law (Law no:12/2019)
    (25/March/2019)
    Amended on terms and definitions of the original law, and added on the permission of the foreign engineers registration process
     
  • The Boundaries Law 2019 (Law no: 11/2019)
    (25/March/2019)
    Newly enacted in order to replace the old Boundaries Act 1880
     
  • Law amending the Penal Code (Law no: 10/2019)
    (25/March/2019)
    Mainly amended on the sentences of section 376 ” Punishments for Rape”
     
  • Bill related to Aquaculture
    (4/March/2019)
    Newly drafted to replace the old  law dated 1989
     
  • Bill on Urban and Region development planning law
    (18/March/2019)
    Newly drafted for the planning of new urban projects in Myanmar
     
  • Bill on Law amending the Myanmar Investment Law
    (18/March/2019)
    Mainly changed on the name of Ministry ” Ministry of Finance and Planning has replaced by “Ministry of investment and foreign economic relations”
     

RECENT PUBLICATIONS
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