When applying Value Added Tax (“VAT”), a key consideration is the place of delivery of the goods or services, which is often determined by reference to the place of consumption. If goods are consumed outside of the territory, then they are considered to be export goods, and 0% VAT is usually applied. Likewise, services consumed […]

In June 2019, the Royal Government of Cambodia announced that a double taxation agreement (“DTA”) was signed with the Government of Hong Kong Special Administrative Region of the People’s Republic of China (“Hong Kong”), bringing the number of DTAs signed by Cambodia to seven. A summary of the significant features of the seven DTAs is […]

On 12 June 2019, the Division of Industry and Commerce, Vientiane (“DIC-Vte”) issued Instruction No. 0651 (the “Instruction”) regarding measures to be taken against the illegal operation of businesses by foreigners. The Instruction’s scope covers foreigners who operate unapproved businesses, defined as those who: Operate a business without an enterprise registration certificate (“ERC”) or business […]

On 28 May 2019, the Internal Revenue Department (“IRD”) of the Ministry of Planning and Finance (“MOPF”) announced a change to the income year (formerly from 1 April to 31 March) of private and cooperative sectors (“taxpayers”) to 1 October to 30 September, effective from 1 October 2019. As a result, the taxpayers will have a […]

On 11 April 2019, the Ministry of Economy and Finance issued Circular 003 to confirm the tax treatment of seniority payments introduced by a 2018 amendment to the Labor Law and the issuance of Prakas 443 in September 2018. One of the many uncertainties that had been identified since the introduction of seniority payments as […]

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. We are delighted to report […]

The Royal Government of Cambodia has been working hard to stimulate investment and economic growth. The General Department of Taxation (“GDT”) is playing an important role in this process and many new tax regulations and procedural changes have been introduced to improve transparency and eliminate disincentives to investment. Many companies have not yet fully considered […]

Although the Specific Goods Tax Law (“SGT Law”) which imposes Specific Goods Tax (“SGT”) on certain goods in Myanmar was enacted back in January 2016, the Specific Goods Tax regulations (“SGT regulations”) which provide detailed compliance requirements were only recently enacted in January 2019. SGT is similar to excise tax in other countries and is […]

Never mind the theory. It’s the reality of the tax law that counts. Our tax team has built up a sterling reputation for the ultimate in ground connectivity and outstanding technical excellence. We are recognized as a tier-one tax practice in all of our markets. Our tax principals have trained and advised tax authorities throughout […]

According to the recent Directorate of Investment and Company Administration (“DICA”) announcement issued on 8th March 2019, companies who missed the 31 January deadline now have until March 30 to re-register. However, any companies who fail to re-register by this new deadline will be struck off from the registry, and will not be able to carry on business […]

According to a previous notice of the Ministry of Commerce (“MOC”) dated 22 December 2017, all corporate entities were required to complete their online re-registration with the MOC by 31 December 2018. Recently, the MOC issued another notice, No. 0384, dated 30 January 2019, regarding further extension of the online re-registration deadline to 31 December […]

Financing and tax 2018 saw several changes to the tax regulations. The application of transfer pricing rules in Cambodia is now a reality. Starting from 2018, companies have to comply with the regulations issued in October 2017, which adopt the arm’s length principle in accordance with the OECD’s guidelines. The regulations left many questions unanswered, […]

Looking back, it is evident that 2018 has seen a lot of changes in the Myanmar legal framework. There is also a number of developments that can be expected in the near future. Banking regulations Until early November, foreign bank branches could only provide banking services to foreign companies, i.e., companies incorporated in Myanmar with […]

Further to the amendment in 2018 of the Labor Law and Prakas 443 on seniority payment, which is applicable to all existing unlimited duration contracts (for more details, please see our Cambodia legal update here), the Ministry of Labor and Vocational Training (“MLVT”), through its information declaration on seniority payments dated 28 December 2018, has provided […]

The Internal Revenue Department (“IRD”) has issued clarifications regarding Commercial Tax (“CT”) payment and offset timings. Clarification 2/2018 provides an explanation regarding CT payment timelines. CT charged to customers (“output CT”) is due the earlier of issuing invoice to customers or receiving payments. For example, if an invoice is issued to a customer in June […]

The Ministry of Labour, Immigration and Population published the Leave and Holidays Rules (Notification 69/2018) and the Shops and Establishment Rules (Notification 68/2018) (the “Rules”) which implement the relevant laws. The Rules provide new forms for use by employers in lodgments to labor offices, and clarify entitlements relating to days off, public holidays, leave and […]

On 27 June 2018, the Ministry of Economy and Finance issued Prakas 597 entitled “Recognition and some Tax Obligations of Agents Supplying Goods or Services on behalf of a Principal Enterprise”,the stated objective of which is to establish the rules and procedures related to the recognition of a principal-agent relationship, and the value added tax (“VAT”) […]

Seniority payment On 11 July 2018, the Labor Law was amended by Royal Decree (“Labor Law Amendment”), particularly Articles 89, 90, 91, 94, 110, 120, and 122. One notable amendment is the elimination of the “indemnity for dismissal”, which is equivalent to severance pay and paid upon employment termination only, and the introduction of the […]

Due to the change in financial year, the end of the six-month gap period is approaching and the Union Parliament (“Pyidaungsu Hluttaw”) has announced a draft Union Tax Law 2018–2019 (“Draft UTL”) which will be effective from 1 October 2018. A few interesting points from the Draft UTL are outlined below: Financial year end Under […]

On 20 August 2018, the Ministry of Labor and Vocational Training (“MLVT”) issued notice No. 028 K.B./S.Ch.N (“Notice 028”) regarding approval requests for employing foreign employees (“Quota Approval”) and renewing work permits for 2019. According to Notice 028, employers or managers of any corporate entities employing foreign employees must apply for the 2019 Quota Approval […]