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INSIGHTS THIS MONTH

April 2024

HIGHLIGHT OF THIS MONTH

Cambodia Poised to Clarify Profit Attribution and Transfer Pricing of Cross Border Shipping Income

The determination and taxation of the Cambodian sourced income of international shipping liners has long posed problems in this dynamic Southeast Asian country. As a longstanding manufacturing hub, imports...

IN THIS ISSUE

New Sub-Decree on Value Added Tax in Cambodia

[From our Cambodia Office]

The promulgation of Sub-Decree 49 ANKr. BK (referred to as the “New Sub-Decree”) on Value Added Tax (“VAT”) marks a positive update to the... 

The Ministry of Land Management, Urban Planning and Construction Officially Launches Online Public Services

[From our Cambodia Office]

On 9 April 2024, the Ministry of Land Management, Urban Planning and Construction (“MLMUPC”) officially rolled out its new digital public services, aimed at... 

The New 10% Value Added Tax Rate is Going to Be Effective Shortly! Are You Ready for It?

[From our Laos Office]

The Ministry of Finance issued Notice No. 1360/MOF dated 23 April 2024 stating that effective from 1 May 2024, the 10% value added tax... 

FDA’s New Order on Vegetable Oil as Blended Oil

[From our Myanmar Office]

On 29 March 2024, the Food and Drug Board of Authority (“FDA”) issued Order No. 2/2024 addressing the production, storage, transportation, distribution, and sale... 

Internal or External Comparables? Some Comparative Notes on Vietnam Decree 132 and the OECD Transfer Pricing Guidelines

[From our Vietnam Office]

When a taxpayer has engaged in similar transactions with both related and unrelated parties, the use of the price or profit margin of the... 

Bangladesh Bank Announces Interest Rate Adjustments for SREUP Pre-Finance Facilities

[From our Bangladesh Office]

The Bangladesh Bank has adjusted the interest rates for pre-finance facilities within the framework of the support safety retrofits and environmental upgrades program (“SREUP”).... 

Regulatory Directive Impacts Industrial Establishment Access to Utilities and Financial Support

[From our Bangladesh Office]

The circular states that industrial establishments planned outside designated economic or industrial zones will not receive electricity and gas connections. Furthermore, non-bank financial institutions... 

Stimulating Foreign Currency Reserves: Tax Breaks for Offshore Banking in Bangladesh

[From our Bangladesh Office]

In an effort to enhance the foreign currency reserves of the country, the government’s revenue board has decided to exempt from tax any interest... 

RECENT VDB LOI WORK

Local law advisory for a multinational chain franchisee in Bangladesh: VDB Loi is advising a franchisee of a multinational restaurant chain on all local law issues, including permitting, licensing, and regulatory issues.

Bidding for tourist port in Cambodia under a PPP: VDB Loi has been engaged to assist with the bidding process for a major tourist port project in Cambodia organized under a public-private partnership.

Assistance with a telco tower project in the Lao PDR: A leading regional telecommunications company has engaged the Lao team to provide support to the project company executing its telco tower project in the country, including negotiating with the government authorities, and drafting corporate and project documentation and agreements.

Legal and regulatory advice on a power project in Myanmar: VDB Loi is assisting in connection with a large-scale power project in Myanmar, including company establishment, licensing, contract review, and legal and tax advice.

Acquisition of a greenfield wind development project in Vietnam: The Vietnam team is advising the buyer, a large international renewables developer, on all aspects of the acquisition, including structuring, regulatory aspects, and land aspects.

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