ASEAN INVESTMENT & TAX NEWS

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1 ISSUE 2/ ASEAN INVESTMENT & TAX FEATURE ARTICLE READ MORE Page 2-3 READ MORE Page 3-8 FOREWORD Welcome to the second issue of BDO s ASEAN Investment & Tax News, a quarterly newsletter introduced in January this year to bring you updates on topics of interest and tax developments within the ASEAN region. In this issue, Wawat Sutanto, Managing Partner of BDO Indonesia comments on the tax incentives under the four packages of economic policy announced by the Indonesian Government at the end of We also arranged for a compilation of recent tax and business news from around the region, including the first listing of a private company on the Cambodia Stock Exchange, for which BDO acted as the Reporting Accountants. I am proud to note that BDO was one of the first three of the world s Big 5 professional services firms to be approved by the Securities and Exchange Commission of Cambodia (SECC) as independent auditors back in Earlier this month, I was invited to address a group of businesspeople and professionals at a forum organised by ZicoLAW themed AEC Implications for the Private Sector in Yangon. I shared my views on the topic Challenges and Opportunities for the Private Sector with the AEC. Those in attendance, while recognising the road bumps in the journey towards forming the ASEAN Economic Community (AEC), also agreed that closer co-operation in the region presents tremendous opportunities economically and socially. ASEAN has been designated as a priority region by BDO International. The Managing Partners and Senior Partners of ASEAN member firms have been meeting regularly to discuss strategies and ways of working closer to serve our clients in light of the formation of the AEC targeted by One such meeting is the ASEAN Strategy Workshop in early April, which will be attended by Martin van Roekel, CEO of BDO International. We also work closely with BDO s CEO Asia Pacific, Stephen Darley, as well as members of the Asia Pacific Board with representation from countries such as Australia, China, India, Hong Kong and Japan. All these underline our commitment to bolster our capabilities to continue providing exceptional client service to you. We recognise that ASEAN is an important market for business, and that having presence in all 10 ASEAN countries is vital. We are in the process of setting up an office in Lao PDR, and we continually train our human capital through interoffice staff secondment and participation as Approved Employer under the ICAEW Regional Centre of Excellence. Till the next issue of BDO s ASEAN Investment & Tax News, happy reading and as always, you are welcome to contact us if you would like in-depth advice on the topics covered herein. CONTENTS P1 FOREWORD P2 FEATURE ARTICLE u Indonesia Economic Policy Tax Incentives & Investment P3 u Encouraging Progress Of The CSX u Tax Reduction In Brunei u Improvement To Efficiency Of Public Services In Philippines u Indonesia s GDP & Currency Movement u Taking The Cue From Singapore s Budget 2014 u Thailand Reduces Tax In Preparation For AEC 2015 u Surge In Foreign District Investment (FDI) In Myanmar u Favourable FDI Numbers For Vietnam u Japanese Investments Pour In To Lao PDR u Malaysia IRB Updates Public Ruling On Withholding Tax DATO GAN AH TEE Regional Senior Partner

2 2 ASEAN INVESTMENT & TAX FEATURE INDONESIA ECONOMIC POLICY TAX INCENTIVES AND INVESTMENT by Wawat Sutanto Managing Partner, BDO Indonesia At the end of 2013, the Indonesian Government announced four packages of economic policy to strengthen Indonesia s economic growth and reduce the sharp depreciation of the rupiah by providing various attractive tax incentives (tax holiday and tax allowance) to foreign investors. These economic policies involved Bank Indonesia and the Financial Services Authorities outlined the importance of boosting Indonesia s current business environment and investment potential. The four packages cover the current account deficit, rupiah performance, economic growth, purchasing power, inflation and investment. The discussion below is focused on the tax incentives and investment point of view. I. Cross-border transactions Tax deduction and tax payment facilities for certain industries The Minister of Finance (MoF) announced the tax deduction and tax payment facilities through its Regulation No.124/PMK.011/2013 applicable for five industries: textile, garment, footwear, furniture and toys. Taxpayers in these industries are entitled for 25% (nonexport oriented) to 50% (export oriented) deduction of corporate income tax (CIT) instalment for tax periods commencing September through December Further, the CIT payable is deferred for an additional three months beyond the normal CIT due date with no late penalties imposed. Reducing import of oil & gas by increasing the mandatory use of biodiesel The Minister of Energy and Mineral Resources has recently issued Regulation No. 25/2013 as an implementation of the mandatory policy of 10% biofuels applicable for the transport, generator and industrial sectors. The use of biofuels has been increased in recent years from 5% to 7.5% in early Increasing import duty on luxury goods such as completely built-up cars and branded products The new import tariffs will be 125% to 150% (previously 75%). Stimulating export of minerals by relaxing export quotas This includes relaxation of procedures and export permits for processed minerals and mineral concentrates. II. Sustaining economic growth Tax deduction for labour intensive industries In light of the implementation of the new provincial minimum wage, taxpayers in labour intensive industries that cannot afford the new minimum wage are entitled for the tax deduction and tax payment facilities under MoF Regulation No. 124/PMK.011/2013, provided no employment termination occurs during the periods. Relaxation of tax facilities in bonded zones Under MoF Regulation No. 120/ PMK.04/2013, the threshold of sales to the local market by companies in bonded zones has been increased from 25% to 50%, calculated from the preceding actual cumulative sales of export and sales to other bonded zones/free trade zones/economic areas. Companies in bonded zones will be served as well as monitored by the authorities based on their risk profiles, which are divided into green, yellow and red categories. Companies under green and yellow categories can perform chains of subcontracting works within bonded zones, which provide much greater flexibility in a company s operating activities (previously, no such subcontract chain was provided). Further, the green category enables the use of a corporate guarantee (instead of money guarantee) for the flows of inventories and capital goods between a bonded zone and the customs area (previously, corporate guarantee was not recognised). In addition, subcontractors can provide materials that form part of subcontracting work. (Previously, subcontract work was limited only to parts of operating activities that do not form the company s main activities or additional materials.) Value added tax (VAT) exemption on certain books Under the new MoF Regulation No. 122/PMK.011/2013, a tax exemption letter is no longer required for import or delivery of general education and religious books (not including excluded books that are later approved as general education books). This implies simplification of the procedures. Luxury sales tax (LST) relief for certain goods that formerly were included as luxury products This includes certain electronic devices and appliances, footwear and leather (genuine and imitation) goods with particular size or capacity threshold. Accordingly, the aforesaid products will have a lower market price, which in turn will increase consumers purchasing power. Determine the agreed limits of provincial minimum wage increase, taking into account productivity, economic growth, and labour- or capital-intensive industries This step provides liaison and co-operation between governments and business associations in view of mutual benefits.

3 ASEAN INVESTMENT & TAX 3 FEATURE INDONESIA ECONOMIC POLICY TAX INCENTIVES AND INVESTMENT (continued) Tax deduction for research and development (R&D) activities This is conducted through double deduction of R&D-related expenses in a taxpayer s annual corporate income tax. Moreover, scholarship and internship expenses will be included under the definition. Optimisation of tax allowance for investment in certain industries The Indonesian Government is revisiting the current requirements of tax holiday and tax allowance to enhance investment conditions in Indonesia. Special considerations are focused on the size of investment, serving periods, workforce and bureaucracy. Under the amendment, the tax holiday is expected to be provided to investments below IDR1 trillion, considering, inter alia, a significant utilisation of local workforce. III. Maintaining purchasing power and controlling inflation The Government will amend the trading system of beef and horticultural products from a quota system to a price mechanism system to reduce inflation and price volatility. IV. Investment This package is aimed at boosting investment conditions in Indonesia. The Government s actions are focused on the following: simplifying permits to speed up realisation of investment for example, potential simplification of investment permits for the upstream oil & gas industry to 8 permits (previously 69 permits); revising the current negative investment list to a more investorfriendly list the recent revision contains only 14 fields closed to foreign investment (previously, 20 fields). The upcoming list will potentially reduce foreign ownership restrictions on certain industries such as pharmaceuticals, advertising agencies and power plants; accelerating the investment programmes on agro-based business including crude palm oil, cocoa, rattan, minerals, metal, bauxite, nickel and copper through fiscal incentives as well as accelerating renegotiations of Contracts of Work and Coal Contracts of Work. CAMBODIA ENCOURAGING PROGRESS OF THE CSX According to the World Bank, Cambodia s economy grew rapidly, at more than 8% per year, between 2004 and The economy had sustained its growth in 2013, estimated at around 7%, driven by strong exports, private investment and agriculture, and underpinned by a solid macroeconomic position. Against the backdrop of positive economic indicators,the Cambodia Stock Exchange (CSX) is set to see more companies getting listed after the first listing in April 2012 of the state-owned Phnom Penh Water Supply Authority. Grand Twins International (GTI), an audit client of BDO Cambodia, has recently announced that it is planning to go public in May 2014 and start trading on the CSX. This marks the first private Cambodian company to be listed on the CSX, of which BDO Cambodia were also the IPO reporting accountants. GTI, one of the top three garment manufacturers in Cambodia based on number of employees (Source: Phnom Penh Securities), was set up in It has since come a long way and currently produces for world-renowned brands like Adidas and Reebok. It has about 5,600 employees working within its factories, spread among 65 different product lines. The garment industry in Cambodia is the largest non-agricultural industry and the largest employer in the country. It also accounts for more than 80% of its exports, with Europe and the United States of America being the main buyers of Cambodian-made garments. With the eventual listing of GTI, the CSX expects more Cambodian companies to follow suit and this is expected to provide a healthy boost to the local capital market. The CSX was launched in July 2011 with the following mission: To facilitate the raising of capital by companies in Cambodia; To establish investor-friendly environment for securities trading for investors in and outside of Cambodia; To offer a variety of state-of-the-art products and services to all market participants; and To operate a self-sustaining public enterprise under the guidance of the Royal Government of Cambodia. BDO Cambodia was one of the first three among the Big 5 accounting firms to be approved by the Securities and Exchange Commission of Cambodia (SECC) as independent auditors providing professional services in the securities sector in Cambodia (or more commonly known as reporting accountants). BDO is also the auditor of Nagacorp, which is listed on the Hong Kong Stock Exchange and is the largest gaming operator in Cambodia. At the time of writing, Nagacorp has a market capitalisation of approximately HKD19 billion (USD2.5 billion).

4 4 ASEAN INVESTMENT & TAX BRUNEI TAX REDUCTION The Minister of Finance II announced that the corporate tax rate for companies not engaged in petroleum operations will be reduced to 18.5% from the current tax rate of 20% in In addition, companies with profits not exceeding BND250,000 will enjoy lower taxes, tax credits for investments in new technologies to improve operational efficiency, and for employment and training of locals. GOVERNMENT TENDERS To encourage local firms to be competitive in bidding for government tenders, the Government has revised the conditions relating to banker s guarantee and performance bond. Under the revision, construction or service contracts of less than BND1 million will not be required to have banker s guarantee or performance bonds. For construction or service contracts valued between BND1 million and BND5 million, the rate charged for the banker s guarantee or performance bond will not exceed 3%. Lastly, for contracts for construction or services exceeding BND5 million, the rate charged will not exceed 5%. PHILIPPINES IMPROVEMENT TO EFFICIENCY OF PUBLIC SERVICES The President of the Philippines, Benigno S. Aquino III, on 18 December 2013 signed Executive Order (EO) No.155 amending Executive Order No.160 as part of his administration s continuous effort to eradicate corruption and improve the quality and efficiency of public service. In this new EO, the Department of Finance (DoF) will be responsible for the sound and efficient management of financial resources of the Government, its subdivisions, agencies and instrumentalities. The new EO will implement reform measures within the Bureau of Customs (BoC) under the purview of the Department of Finance. In the new EO, the functions of post-entry audit will no longer be part of BoC and are now assumed by the newly established Fiscal Intelligence Unit (FIU) to ensure independence and impartiality of the audit functions. The FIU is a new unit under the DoF answerable to the Finance Secretary Cesar Purisima to identify potential revenue sources and leakages by analysing data from the Bureau of Internal Revenue (BIR), BoC, Bureau of Local Government Finance and other revenue-generating agencies attached to the DoF and comparing these with third party information (Source: The Philippine Star, 1 January 2014). This change has resulted in higher revenues for the BoC and has contributed to President Aquino s anti-corruption programme as well as stamping out tax evasion and smuggling. It is hoped that with the continuous efforts of the President, more investors will be motivated to come to the Philippines. INDONESIA GDP AND CURRENCY MOVEMENTS The World Bank states in its most recent quarterly review of the Indonesian economy that growth is likely to slow in 2014 to 5.3% down from 5.6% in The Indonesian Rupiah (IDR) fell to a fiveyear low of IDR12,189 against the USD on 31 December On 25 February 2014 it had strengthened to IDR11,620. The recent appreciating trend of the IDR is caused by international investors renewed confidence in Indonesia s macroeconomic fundamentals. Indonesia s current account deficit eased much faster than expected. On 13 February 2014, Bank Indonesia issued a press release in which it stated that the deficit was equivalent to 1.98% of Indonesia s GDP in the fourth quarter of Previously, the central bank had estimated that the deficit would ease to around 3% of GDP by end of the year. INFRASTRUCTURE According to the World Bank, Indonesia s infrastructure needs are the third greatest in Asia after China and India with USD450 billion in capital expenditure needed between 2010 and These figures broadly correlate with the Government s development plan, which identifies IDR4.012 trillion (USD440 billion) of investment, of which IDR1.786 trillion is assigned for basic infrastructure. Under the nation s shorter term economic plan, the infrastructure investment target is up to USD191 billion for the economy to grow at its full potential.

5 ASEAN INVESTMENT & TAX 5 One third of this will come from the Government, in partnership with the private sector. Foreign investors will be able to take larger stakes in Indonesia s power, advertising and pharmaceutical sectors as part of efforts to boost the country s slowing economy. However, the changes require formal presidential endorsement before they can come into effect. There are modifications in the Negative Investment List which specifies investment areas that are closed or restricted to foreign participation as well as the limit of investment. The changes consist of the following. Pharmaceuticals sector The limit on foreign investment in pharmaceutical companies will rise from 75% to 85%. Power plant projects Foreign investors are now eligible for full ownership of power plant projects constructed as public-private partnerships, where participation was previously capped at 95%. Advertising agencies Investment in advertising agencies by groups from ASEAN member countries will increase from 49% to 51%. SINGAPORE BUSINESS RESTRUCTURING TAKING THE CUE FROM BUDGET 2014 Singapore Deputy Prime Minister and Finance Minister Mr Tharman Shanmugaratnam delivered the 2014 Budget Speech on 21 February The emphasis continues to be restructuring the economy to create quality growth with enhancement of productivity and innovation capabilities. Productivity and innovation credit (PIC) scheme The PIC Scheme, to encourage businesses to invest in productivity and innovation activities, provides for enhanced tax deductions or cash payouts. The Scheme, which started in Year of Assessment (YA) 2011 and is due to end in YA2015, will be extended for three years until YA2018. Businesses will be able to claim PIC benefits for training expenses incurred on individuals hired under centralised hiring arrangements with effect from YA2014. To reinforce the condition that cash payouts are made to businesses with active operations, businesses will have to meet the three local employees condition for a consecutive period of at least three months prior to claiming the cash payout. This will be effective for PIC cash payout applications from YA2016. New PIC+ scheme A PIC+ Scheme will be introduced for qualifying SMEs. This will increase the expenditure cap from SGD400,000 to SGD600,000 per year in each of the six qualifying activities from YA2015 to YA2018. An entity will be a qualifying SME if its annual turnover is not more than SGD100 million or its employment size is not more than 200 workers. The combined expenditure cap under the PIC+ Scheme will be up to SGD1.4 million for YA2015, and up to SGD1.8 million for YA2016 to YA2018. The expenditure cap for PIC cash payouts will remain at SGD100,000 of qualifying expenditure per YA. Extending research and development (R&D) tax measures To continue encouraging R&D activities, the additional 50% tax deduction on qualifying expenditure will be extended for 10 years until YA2025. Businesses can continue to claim tax deductions/ allowances on R&D expenditure incurred for R&D in areas unrelated to their existing trade or business, as long as the R&D is conducted in Singapore. The further deduction of up to 300% on qualifying expenditure will also be available to businesses until YA2018, in line with the extension of the PIC Scheme, as mentioned above. Further tax deductions for expenditure incurred on R&D projects approved by the Economic Development Board will also be extended for five years until 31 March Extending and refining the writing down allowance (WDA) scheme To build Singapore as an intellectual property hub, the WDA on the acquisition of qualifying Intellectual Property Rights (IPR) will be extended for five years until YA2020. The accelerated WDA for Media and Digital Entertainment (MDE) companies will be extended for three years until YA2018. The two categories of information: (i) customer-based intangibles, and (ii) documentation of work processes will be excluded as qualifying IPRs through a negative list. The negative list will be published on the IRAS website by the end of April Extending the tax deduction scheme for registration costs of IP The 100% tax deduction scheme for registration costs of IP will be extended for five years until YA2020. The further deduction of up to 300% on qualifying costs will also be available to businesses until YA2018, in line with the extension of the PIC Scheme. It is heartening to see tax measures in place to assist businesses, especially SMEs to manage cost, raise productivity and invest in innovation. There are also non-tax measures to help businesses to upgrade through R&D, business process automation, adoption of new technology and productivity solutions. There is no better time for business transformation and upgrading than in this fast-moving economy.

6 6 ASEAN INVESTMENT & TAX THAILAND TAX REDUCTION IN PREPARATION FOR AEC 2015 With the coming of ASEAN Economic Community (AEC) in 2015, the number of businesses in ASEAN engaged in cross border trade and investment is expected to increase significantly. Whilst one of the core elements underpinning the AEC is the free flow of investment and the lifting of restrictions on ASEAN businesses trading in the region, the AEC blueprint does not contain action points to harmonise national tax policies. Member nations are free to use tax policies to compete for investment and trade within ASEAN. In the case of Thailand, it reduced its corporate tax rate to 20% and lowered personal tax rates, as part of its efforts to improve the kingdom s competitiveness. The 20% corporate tax rate applies for accounting periods commencing on or after 1 January 2013 and by 31 December 2014 and is expected to be extended to later years. For small and medium enterprises (SMEs), the first Thai Baht (THB) 300,000 of net profit is exempt from income tax and the next THB700,000 subject to 15% tax. Net profits exceeding THB1 million are subject to 20% tax. To be eligible for the SME rates, the following conditions must be met: the company s paid-up share capital must not exceed THB5 million on the last day of the accounting period; and the income derived from the sale of goods or provision of services during the accounting period must not exceed THB30 million. The reduced tax rate signals Thailand s move from a nation with one of the highest corporate tax rates in ASEAN to one of the lowest (Singapore has the lowest at 17%). Thailand also recently amended its personal tax rates, which take effect retrospectively from 1 January The new personal tax rate scales are as follows. Net Income (THB) Marginal Tax Rate 1-150, , , , , , , ,001-1,000,000 1,000,001-2,000,000 2,000,001-4,000,000 4,000,001 and above Exempt 5% 10% 15% 20% 25% 30% 35% The top personal tax rate is reduced from 37% to 35% and the tax bands have been increased. As an example, net income from THB1 million to THB4 million was previously taxed at 30%, whereas the new scales tax net income from THB 1 million to THB2 million at only 25% and then tax net income from THB2 million to THB4 million at 30%. MYANMAR SURGE IN FOREIGN DIRECT INVESTMENTS (FDI) Myanmar is expected to achieve a total FDI of not less than USD3.5 billion in the fiscal year ending 31 March 2014, more than doubling its FDI numbers for the preceding year. The manufacturing and telecommunications sectors attracted about 50% and 20% of the investments respectively. The FDI trend is set to continue, with a projection of USD4 billion in the next fiscal year. Based on a survey undertaken by the United Overseas Bank of Singapore and disclosed at an investors conference held in Yangon in February 2014, half of large Asian enterprises view Myanmar as an opportunity to expand their business. According to Myanmar s Directorate of Investment and Company Administration, FDI in January 2014 was about USD1 billion with Singapore being the largest foreign investor, followed by Hong Kong, South Korea and Japan. Myanmar expects to establish its stock exchange in Meanwhile, the Myanmar Ministry of Finance and the EU Commission have commenced negotiations to conclude a new international arbitration agreement that would give greater confidence to European investors in the Myanmar markets.

7 ASEAN INVESTMENT & TAX 7 VIETNAM GOOD START TO THE YEAR OF THE HORSE Favourable investment numbers have been released recently by the Foreign Investment Agency (FIA) of Vietnam. According to the FIA, total foreign direct investments (FDI) commitment to Vietnam in 2013 amounted to USD22.3 billion, a 36% increase compared with the previous year and the highest figure since During the first two months of 2014, 122 new projects with a total registered capital of USD831 million were granted investment certificates and 41 projects increased their investment capital by a total of USD709 million. The northern province of Thai Nguyen was the most attractive investment location for foreign investors, followed by the central province of Thanh Hoa and the port city of Hai Phong in the north. Recent FDI trends show that the sectors preferred by foreign investors include manufacturing and processing, power and water supply, real estate, transport and warehousing. A total of 29 countries have invested into Vietnam thus far in 2014, led by South Korea (30%), Singapore (17%) and Japan (17%). In 2013, Vietnam s exports and imports were estimated to be USD132.2 billion and USD131.3 billion respectively, giving rise to a trade surplus of almost USD900 million. FDI enterprises have contributed significantly to Vietnam s exports in 2013 as they attained a total turnover of USD88.4 billion, a 22.4% increase over the previous year. LAO PDR JAPANESE INVESTMENTS POUR IN Japanese investments in Lao PDR in 2013 reached a record high of USD405.7 million, a 15% jump over Currently Japan is ranked 6th in terms of investment value in Lao PDR but is expected to become the 4th largest investor in 2 years, after China, Vietnam and Thailand, according to an official of the Ministry of Planning and Investment. Among the reasons cited for heightened interest among Japanese businesses in Lao PDR are the rising labour costs in the larger cities in China and the political turmoil in Thailand. Foreign investors have tended to focus more on golf courses and real estate, but Japanese investors are likely to have keener interest in manufacturing, services and agroforestry, observed the official. In view of the significant increase in the number of Japanese investors coming to Lao PDR, the Japan External Trade Organisation (JETRO) intends to open an office in Vientiane in MALAYSIA IRB UPDATES PUBLIC RULING ON WITHHOLDING TAX The Inland Revenue Board of Malaysia (IRB) in January 2014 updated its Public Ruling (PR) on Withholding Tax on Special Classes of Income. The PR (titled PR No. 1/2014) sets out the interpretation of the IRB in respect of the tax law, policy and procedure applicable to the subject under consideration. The PR explains that the income of a nonresident derived from Malaysia from the following special classes of income is liable to Malaysian withholding tax: amounts paid in consideration of services rendered in Malaysia by the non-resident or his employee in connection with the use of property/ rights belonging to him or the installation or operation of any plant, machinery or other apparatus purchased from him; amounts paid in consideration of technical advice, assistance or services rendered in Malaysia in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, scheme; or rent or other payments for the use of any moveable property. Where the services stated above are performed by the non-resident both within and outside Malaysia, a reasonable apportionment of the income is required as only the income attributable to services performed in Malaysia is subject to Malaysian withholding tax. The apportionment could be based on the value of services performed in Malaysia. The withholding tax rate applicable is generally 10% unless otherwise stipulated in the double tax treaty between Malaysia and the country of residence of the nonresident person. The payer is required to deduct and remit the withholding tax to the IRB and pay the non-resident the net amount. The withholding tax must be remitted within one month upon paying or crediting the non-resident. The payer will be subject to penalties for failure to remit the withholding tax; additionally, the payment to the non-resident will be treated as a disallowable expense for the payer s tax purposes.

8 8 ASEAN INVESTMENT & TAX Where the withholding tax on a payment to a non-resident is paid and borne by the payer, the PR clarifies that the payment received by the non-resident is considered to be net of tax and has to be regrossed to determine the amount of income on which withholding tax should be applied. The PR further clarifies that certain payments to non-residents are not liable to withholding tax stated above. These include: commission paid to a non-resident general commission agent for deals transacted overseas on behalf of the Malaysian payer; guarantee fees connected with any loan/ indebtedness; commission for letters of credit; deposit paid on the signing of an agreement for technical services if it is refundable upon completion of the service; fee for testing services for the provision of test results on finished products to meet required standards which do not involve technical advice or consultation; and income for providing technical advice or technical services to an approved Multimedia Super Corridor (MSC) status company. CONTACTS BRUNEI Tel: Fax: info@bdo-bn.com CAMBODIA Tel: Fax: info@bdo.com.kh INDONESIA Tel: Fax: bdoidn@bdo.co.id MALAYSIA Tel: Fax: bdo@bdo.my MYANMAR Tel: +95(0) Fax: +95(0) myanmar@bdo.my PHILIPPINES Tel: Fax: cpas@bdo.net.ph SINGAPORE Tel: Fax: info@bdo.com.sg THAILAND Tel: Fax: bdo@bdo.co.th VIETNAM Tel: +84 (0) Fax: +84 (0) bdo@bdo.vn This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Tax Services to discuss these matters in the context of your particular circumstances. BDO Tax Services, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO International Limited is a UK company limited by guarantee. It is the governing entity of the international BDO network of independent member firms ( the BDO network ). Service provision within the BDO network is coordinated by Brussels Worldwide Services BVBA, a limited liability company incorporated in Belgium with its statutory seat in Brussels. Each of BDO International Limited, Brussels Worldwide Services BVBA and the member firms of the BDO network is a separate legal entity and has no liability for another such entity s acts or omissions. Nothing in the arrangements or rules of the BDO network shall constitute or imply an agency relationship or a partnership between BDO International Limited, Brussels Worldwide Services BVBA and/or the member firms of the BDO network. BDO is the brand name for the BDO network and for each of the BDO member firms.