ASEAN UNDER COVID-19 WEBINAR LEGAL TRENDS, IMPLICATIONS, AND CONSIDERATIONS FOR BUSINESSES IN SOUTHEAST ASIA CABC-Tractus Webinar ASEAN Under COVID-19: Implications for Canadian Businesses 12 May 2020
A COMPREHENSIVE REACH IN SOUTHEAST & SOUTH ASIA . 9 countries . 12 offices . 170+ legal and tax advisers . 24 nationalities Bangladesh (2011) 3 Partners | 19 Advisers Cambodia* (1995) Philippines* (2015) 7 Partners | 33 Consultants 4 Partners | 6 Advisers Lao PDR (1994) ASEAN Desk in Singapore (2010) 3 Partners | 8 Advisers 1 Adviser Indonesia* (2011) Thailand (2005) 2 Partners | 8 Advisers 7 Partners | 21 Advisers Myanmar (1995) Vietnam (2006) 2 Partners| 15 Advisers 4 Partners | 15 Advisers 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 3
BANKING AND FINANCE BANGLADESH CAMBODIA ▪ No Moratorium to date ▪ Moratorium imposed till 30 June 2020. ▪ Support Response from National Bank of ▪ Borrowers having offshore liabilities with Cambodia (NBC) to provide more liquidity foreign lenders cannot avail the benefit of to Cambodian banks and financial moratorium. institutions. PHILIPPINES MYANMAR INDONESIA ▪ lowering of interest rates; ▪ No Moratorium on debt repayments by ▪ Moratorium on debt service. ▪ borrowers in response to COVID-19. waiver or reduction of penalties, charges ▪ Restriction on creditor demands. and other fees; ▪ Cutting Interest Rates ▪ loan term extension; ▪ Stimulus packages offered to select ▪ industries suspension of collection; ▪ payment holiday; and SINGAPORE ▪ debt consolidation. ▪ Easing Cash flow ▪ Reduce debt THAILAND VIETNAM ▪ ▪ Ensure access to basic banking services Cutting Interest Rates ▪ Deferral of value added tax (“VAT”), ▪ Moratorium on debt repayments corporate income tax (“CIT”), personal ▪ Assistance from State-owned Financial income tax (“PIT”) and land rental fee Institutions payments to support enterprises, individuals and household businesses. ▪ Financial Aid to tourism industry 4
THE LAO PDR: TAX ▪ Three month exemption from personal income tax, income tax for micro enterprises, import duties, taxes and other fees on the import of MYANMAR: all goods (As at 2 April 2020) ▪ Postponement of the payment of taxes ▪ Removal of 2% Advance Income Tax businesses in the tourism sector (“ AIT ”) on exports. ▪ Exemption from penalties for late filings and ▪ Extension of tax payments until 30 payments of taxes excluding VAT deductions September to prioritized industries. and VAT refunds. ▪ Reduction of interest rates by the Central Bank of Myanmar (“ CBM ”). THAILAND: ▪ Withholding tax on certain taxable will be reduced VIETNAM: ▪ Personal income tax filing ▪ Decree 41: Deferral of value added tax extension (“ VAT ”), corporate income tax (“ CIT ”), ▪ Corporate income tax filing personal income tax (“ PIT ”) and land CAMBODIA: extension ▪ Additional tax relief provided for business rental fee payments impacted manufacturing services, credit sectors such as Airline ▪ Delaying payment due dates and reducing fees institutions, branches of foreign banks providing support to their corporate and for rental services. ▪ Temporary tax break for enterprises operating individual clients impacted. in the tourism and garment/footwear and bag manufacturing sectors 2
EMPLOYMENT & LABOUR VIETNAM: ▪ Financial support to employees for at least 1 month and employees ineligible to THE LAO PDR: unemployment benefits. ▪ Exemption of personal income tax ▪ Grant of loans without collateral to (PIT) for salaries of LAK 5 million or employers below for all employees ▪ Minimum salary guaranteed to employees ▪ Three month deferment of subject to mandatory medical isolation. payment of social security contribution for affected businesses. MYANMAR: Three month deferment of payment for monthly social security contributions 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- THAILAND: 19 pandemic, up to 90 days. Compensation of employees insured under the Social Security Fund for unemployment, work suspension or business shutdown
LEGAL TRENDS, IMPLICATIONS, AND OPPORTUNITIES FOR BUSINESSES IN SOUTHEAST ASIA AGRI SUPPLY INFRA FOOD CHAIN 7
SHORT-TERM OPPORTUNITIES C-19 LOCKDOWNS C19 Governmental Measures & Crisis Management Digitalization & Business Continuity 8
MEDIUM TERM OPPORTUNITIES C19 REBOUND? (V, U, W, X, ETC.) Agri-Food – Diversification Supply Chain – Proximity & Diversification Infrastructure – Acceleration & PPP 9
LONG TERM OPPORTUNITIES C19 DISRUPTION? M&A Opportunities – Distressed Assets Operational - Substantial versus Back to Normal 10
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/ 11
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