On January 26, 2021, the Thai government passed a resolution to reduce the government fees that are generally collected for the registration of a sale and mortgage of immovable property. The details of this were subsequently set out in two notifications issued by the Ministry of Interior and published in the Government Gazette on February 2, 2021, taking effect the following day. The notifications will remain in effect through December 31, 2021. These two notifications, which are part of the government’s relief efforts to soften the economic fallout of the COVID-19 pandemic, specify that government fees for the registration of a sale and mortgage of immovable property are reduced to 0.01% of the official assessed sale price (reduced from 2%) and 0.01% of the mortgage amount (reduced from 1%). In order to qualify for the reduced rates, the sale and mortgage must be registered at the same time, and the sale price and mortgage amount must not exceed THB 3 million (approximately USD 100,000). The reduced rates only apply to the sale and mortgage of detached houses, semi-detached houses, row houses, commercial buildings, and condominium units, and they must be sold by a licensed developer or authorized government authority. For more information on these notifications, or on any aspect of the Thai government’s COVID-19 relief measures, please contact Tilleke & Gibbins at [email protected] or +66 2056 5555.

On January 20, 2021, the Securities and Exchange Commission of Thailand (SEC) and the Securities & Futures Commission of Hong Kong (SFC) entered into a memorandum of understanding (MOU) on mutual recognition of funds. The MOU aims to facilitate the process for eligible funds set up in one country to be marketed and offered to investors in the other country by streamlining qualifications and processes for registration with the regulators. The key elements of the MOU are outlined below. Covered Funds The MOU generally only covers funds in the form of collective investment schemes (CIS), set up in Thailand or Hong Kong and managed by a covered management company that is authorized or licensed in its home country, (i.e., Thailand or Hong Kong) that is seeking approval to offer these funds to the public in the other country (the “host country”). Apart from the regulatory requirements prescribed by the regulator of the home country, the covered funds must also meet certain eligibility requirements, dependent on the type of fund offering, set by the regulator of the inbound jurisdiction (i.e. the SEC or the SFC). These funds must fall within one or more fund types specified in the MOU, including general equity funds, bond funds, mixed funds, feeder funds, unlisted index funds, and exchange-traded funds. Note that the SEC has agreed to expedite approval for Thai feeder funds that invest in Hong Kong master funds by streamlining certain processes. Covered Management Companies Generally, an asset management company that is authorized in its home jurisdiction (i.e., Thailand or Hong Kong) will be able to conduct cross-border marketing and fund offering activities under this MOU. Requirements for Fund Offerings Apart from meeting certain qualifications prescribed by the host country, fund offerings must be conducted in accordance with the host country’s requirements. In

The Royal Decree on Land and Building Tax Reduction (No. 2) B.E. 2564, which we previously noted was under consideration, has been officially promulgated. The royal decree, which was announced and published in Thailand’s Government Gazette on January 31, 2021, and came into effect the following day, will effectively reduce land and building tax payments by 90% in 2021 for the following types of land and buildings: Land or buildings used for agricultural purposes; Land or buildings used for residential purposes; Land or buildings used for other purposes; and Vacant or unused land or buildings. Owners of the above types of land or buildings are therefore only required to pay 10% of the land and building tax normally owed for 2021. The royal decree follows the Ministry of Interior’s recent announcement of an extension for the payment of land and building tax in 2021, which will now be due by June 30, 2021 (extended from April 30, 2021). For more details on these measures, or on any aspect relating to Thailand’s land and building tax, please contact Chaiwat Keratisuthisathorn at [email protected] or +66 2056 5507.

On January 26, 2021, the Central Bank of Myanmar (CBM) published Notification 1/2021 in relation to non-banking financial institutions (NBFIs). This notification, which took immediate effect and has far-reaching implications for NBFI operations in Myanmar, applies to NBFIs wishing to conduct finance company business, leasing business, or factoring business, which are defined in the Financial Institutions Law (2016) (FIL) as follows: Finance company business is “business engaging primarily in financing the purchase of goods or services with funding other than deposits from the public.” Interest would be charged on such finance. Leasing business is “the business of letting or sub-letting movable property on hire, regardless whether the letting is with or without an option to purchase the property.” An obvious example would be vehicle leasing. Factoring business is “the business of financing accounts receivables.” This is when a business sells its accounts receivable at a discount. The key provisions of the notification are summarized below. NBFI Registration To conduct any of the above businesses, an individual or company must apply for a registration certificate from the CBM by submitting the documents specified in the notification. The registration certificate may come with terms and conditions prescribed by the CBM on a case-by-case basis. It seems likely that these terms and conditions could include minimum capital requirements, but this remains to be seen. Trading as an NBFI without a CBM certificate is punishable by two to five years imprisonment and a fine of MMK 500 million (approx. USD 375,000). NBFI Certificate Revocation The CBM has extensive powers to revoke the NBFI certificate in certain circumstances, including failure to comply with the terms and conditions of the registration certificate; conducting non-NBFI business; conducting business in a manner detrimental to the interests of consumers; failure to comply with anti-money laundering or counter terrorism