ASEAN UNDER COVID-19 WEBINAR LEGAL TRENDS, IMPLICATIONS, AND - - PowerPoint PPT Presentation

ASEAN UNDER COVID-19

LEGAL TRENDS, IMPLICATIONS, AND CONSIDERATIONS FOR BUSINESSES IN SOUTHEAST ASIA CABC-Tractus Webinar ASEAN Under COVID-19: Implications for Canadian Businesses 12 May 2020

WEBINAR

A COMPREHENSIVE REACH IN SOUTHEAST & SOUTH ASIA

Bangladesh (2011) 3 Partners | 19 Advisers Cambodia* (1995) 7 Partners | 33 Consultants Lao PDR (1994) 3 Partners | 8 Advisers Indonesia* (2011) 2 Partners | 8 Advisers Myanmar (1995) 2 Partners| 15 Advisers Philippines* (2015) 4 Partners | 6 Advisers ASEAN Desk in Singapore (2010) 1 Adviser Thailand (2005) 7 Partners | 21 Advisers Vietnam (2006) 4 Partners | 15 Advisers

. 9 countries . 12 offices . 170+ legal and tax advisers . 24 nationalities

In Cambodia, DFDL works in commercial cooperation with Sarin & Associates. In Indonesia, DFDL works in association with Mataram Partners. DFDL collaborates with Philippine law firm, Ocampo & Suralvo Law Offices for local legal advice. DFDL in Singapore is qualified as a foreign law practice and is not licensed to practice Singapore law.

GOVERNMENT RESPONSE TO COVID-19 IN SOUTHEAST ASIA

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BANKING AND FINANCE

INDONESIA ▪ Moratorium on debt service. ▪ Restriction on creditor demands. CAMBODIA ▪ No Moratorium to date ▪ Support Response from National Bank of Cambodia (NBC) to provide more liquidity to Cambodian banks and financial institutions. BANGLADESH ▪ Moratorium imposed till 30 June 2020. ▪ Borrowers having offshore liabilities with foreign lenders cannot avail the benefit of moratorium. SINGAPORE ▪ Easing Cash flow ▪ Reduce debt ▪ Ensure access to basic banking services PHILIPPINES ▪ lowering of interest rates; ▪ waiver or reduction of penalties, charges and other fees; ▪ loan term extension; ▪ suspension of collection; ▪ payment holiday; and ▪ debt consolidation. MYANMAR ▪ No Moratorium on debt repayments by borrowers in response to COVID-19. ▪ Cutting Interest Rates ▪ Stimulus packages offered to select industries VIETNAM ▪ Deferral of value added tax (“VAT”), corporate income tax (“CIT”), personal income tax (“PIT”) and land rental fee payments to support enterprises, individuals and household businesses. THAILAND ▪ Cutting Interest Rates ▪ Moratorium on debt repayments ▪ Assistance from State-owned Financial Institutions ▪ Financial Aid to tourism industry

CAMBODIA: ▪ Additional tax relief provided for business sectors such as Airline ▪ Delaying payment due dates and reducing fees for rental services. ▪ Temporary tax break for enterprises operating in the tourism and garment/footwear and bag manufacturing sectors THAILAND: ▪ Withholding tax on certain taxable will be reduced ▪ Personal income tax filing extension ▪ Corporate income tax filing extension MYANMAR: (As at 2 April 2020) ▪ Removal of 2% Advance Income Tax (“AIT”) on exports. ▪ Extension of tax payments until 30 September to prioritized industries. ▪ Reduction of interest rates by the Central Bank of Myanmar (“CBM”). THE LAO PDR: ▪ Three month exemption from personal income tax, income tax for micro enterprises, import duties, taxes and other fees on the import of all goods ▪ Postponement of the payment of taxes businesses in the tourism sector ▪ Exemption from penalties for late filings and payments of taxes excluding VAT deductions and VAT refunds. VIETNAM: ▪ Decree 41: Deferral of value added tax (“VAT”), corporate income tax (“CIT”), personal income tax (“PIT”) and land rental fee payments impacted manufacturing services, credit institutions, branches of foreign banks providing support to their corporate and individual clients impacted.

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TAX

MYANMAR: Three month deferment of payment for monthly social security contributions VIETNAM: ▪ Financial support to employees for at least 1 month and employees ineligible to unemployment benefits. ▪ Grant of loans without collateral to employers ▪ Minimum salary guaranteed to employees subject to mandatory medical isolation. CAMBODIA: Compensation of employees insured under the Social Security Fund for unemployment, work suspension or business shutdown due to force majeure resulting from the Covid- 19 pandemic, up to 90 days. THAILAND: Compensation of employees insured under the Social Security Fund for unemployment, work suspension

• r business shutdown

THE LAO PDR: ▪ Exemption of personal income tax (PIT) for salaries of LAK 5 million or below for all employees ▪ Three month deferment of payment of social security contribution for affected businesses.

EMPLOYMENT & LABOUR

LEGAL TRENDS, IMPLICATIONS, AND OPPORTUNITIES FOR BUSINESSES IN SOUTHEAST ASIA

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INFRA AGRI FOOD SUPPLY CHAIN

SHORT-TERM OPPORTUNITIES

C-19 LOCKDOWNS

C19 Governmental Measures & Crisis Management

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Digitalization & Business Continuity

MEDIUM TERM OPPORTUNITIES

C19 REBOUND? (V, U, W, X, ETC.)

Agri-Food – Diversification

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Supply Chain – Proximity & Diversification Infrastructure – Acceleration & PPP

LONG TERM OPPORTUNITIES

C19 DISRUPTION?

M&A Opportunities – Distressed Assets

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Operational - Substantial versus Back to Normal

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Thank You

For the full details and latest updates on Government Initiatives in Southeast Asia, go to DFDL COVID-19 Resource Hub: https://www.dfdl.com/resources/ covid-19-hub/