Legal Updates for Apr - 2019Singapore
The Government of Malaysia will impose a digital service tax of 6% on foreign digital service providers with effect from 1 January 2020, with the annual threshold being set at RM500,000, according to the Malaysian Deputy Finance Minister after the tabling of the Service Tax (Amendment) Bill 2019 (the "Amendment Bill") on 8 April 2019. The Amendment Bill was subsequently amended and passed by the lower house of the Malaysian Parliament. Upon the Amendment Bill being passed by the upper house of Parliament and receiving the royal assent, foreign digital service providers such as Spotify and Netflix will be taxed commencing 1 January 2020.11 Apr 2019 | Malaysia
For almost 10 years, it is known by many that the Indonesian export service does not encourage competition due to the fact that zero Value Added Tax rate ("0% VAT") is only applicable to limited types of export service, i.e. toll manufacturing service, repair and maintenance service connected to or engaged for movable goods utilized outside of the Indonesian Customs Area, and construction service connected to or for immovable goods located outside of the Indonesian Customs Area. As a result, an export of service outside of Indonesia may be subject to double taxation whenever the service is utilized in other jurisdictions that imposed VAT or GST under their taxation laws.
To improve the Indonesian economic condition by enhancing the export service and improving the competitiveness of the national services industry, the Minister of Finance ("MOF") on 29 March 2019 issued MoF Regulation No. 32/PMK.010/2019 on Limitation of Activities and Types of VAT-able Services whose Export is Subject to Value-Added Tax ("New Regulation"), which expands the types of export service that is subject to 0% VAT.
The New Regulation entered into effect on 29 March 2019 and revokes the previous MoF Reg. No. 70/PMK.03/2010, as amended by MoF Reg. No. 30/PMK.03/2011 which was became effective since 1 April 2010.10 Apr 2019 | Indonesia
The Improver questions were once the bedrock of patent infringement principles. Such foundations have been shaken by the seismic shift in approach taken by the UK Courts in recognising the Doctrine of Equivalents. Closer to home, the effects of these have begun to take root, starting with the High Court’s decision in Kingtime International Limited & Anor v Petrofac E&C Sdn Bhd. This client update explores the merits of this eyebrow raising decision and what may lie in store for the future of Malaysian patent litigation.03 Apr 2019 | Malaysia
Have you Earned the TRUST of MACC? – Practical Measures to Defend Against Corporate Liability Charges
The Malaysian Anti-Corruption Commission issued guidelines on adequate procedures (“Guidelines”) earlier this year. Under the Malaysian Anti-Corruption Commission Act 2009, adequate procedures are a defence against a corporate liability charge. Given the heightened efforts by the authorities to combat corrupt activities in the public and private sector, it is timely for commercial organisations to look inwards and do a stock take of their best practices against the Guidelines. This client update explores the types of adequate procedures a commercial organisation can weave into its existing compliance program.03 Apr 2019 | Malaysia
Independent directors should take note of this move by SGX RegCo, which sends a strong signal that SGX RegCo will not take resignations from independent directors lightly, and will take steps to ensure that their resignation from the Board can be supported by good reasons and do not jeopardise the interests of shareholders. 03 Apr 2019 | Singapore
Non-garment, Textile and Footwear Enterprises and Establishments: The Back Pay of Seniority Payment for Services Rendered Prior to 2019
The Ministry of Labour and Vocational Training has announced the postponement of the implementation of the back pay of seniority payment for any non-garment enterprises and establishments to December 2021 via its Guideline No.042/19 dated 22 March 2019.01 Apr 2019 | Cambodia