ASEAN Investment & Tax (AITN) News February 2021

Greetings and welcome to the first instalment of the ASEAN Investment & Tax News of 2021.

As we enter 2021 with hopes of a turnaround in the pandemic later this year, our tax experts continue to analyse and bring the latest in-depth updates and reforms from the ASEAN region.

In this issue, our feature articles examines Indonesia’s recent issuance of the Tax Holiday Incentive in Pioneer Industries update as well as the Super Deduction Incentive for Research and Development (“R&D”) activities. This updates continues the Indonesian Government’s efforts to improve the Indonesian investment environment and to encourage companies to innovate and shift to more high technology industries and products.

In Cambodia, our colleagues discuss the recent issued Prakas 346 on New Capital Gains Tax (“CGT”) in 2021. This update highlights the key features of Prakas 346, methods of calculating capital gains, exempt transactions and the consequences of failure to pay CGT.

In Laos, we discuss the recently issued Notification 1559/MLSW on Redundancies in Times of COVID-19 relating to applicable procedures to implement any changes to an employee’s conditions of employment.

Meanwhile in Malaysia, we unpack the key tax proposals of the Malaysian Budget 2021 and Finance Act 2020. The Budget 2021 is an expansionary budget aimed at spurring domestic activity in the face of the Covid-19 pandemic and is anchored on 3 integral goals - the Rakyat’s wellbeing, business continuity and economic resilience.

Finally, in Myanmar, we discuss key updates on Myanmar’s withholding tax implications on offshore services.

Read more as we continue to delve into the latest Investment and Tax news in ASEAN.