Laos has returned its value-added tax rate to 10% from the 7% rate that had been observed for the last two years. The new rate was specified in Ordinance No. 003/PDT, dated March 19, 2024, and announced on the website of the Ministry of Trade and Commerce. Prior to this, the last announcement of an adjustment in the VAT rate came in the last week of December 2021, when the Ministry of Justice published the Law Amending Certain Provisions of the Laws on Tax No. 01/NA, dated August 7, 2021, in the Government Gazette. This law, which entered into force in January 2022, amended the VAT rate from 10% to 7%. Under Lao law, the ordinance is effective from its date of signing by the president of Laos (i.e., March 19, 2024). However, the tax authorities have indicated that the new rate will not be enforced immediately but will be implemented in the near future, such as when it is published in the Lao Official Gazette. This change of the VAT rate to 10% does not come as a surprise. Some international experts and organizations had been recommending that Laos adopt a 10% VAT rate given its current economic challenges, arguing that Laos should prioritize collecting tax and replenishing the state budget. This was, for instance, recommended by the World Bank in the November 2023 Lao PDR Economic Monitor. Tilleke & Gibbins will continue to monitor the situation to determine when the 10% VAT rate will be enforced. For more details on the rate changes, or on any aspect of tax law in Laos, please contact Tilleke & Gibbins at [email protected].

Indonesia’s Ministry of Industry (MOI) has issued a new regulation requiring importers of textiles, textile products, bags, and footwear to furnish applicable trademark certificates when applying for an import permit. This means that a letter of appointment to import from the trademark owner or authorized representative is no longer sufficient to obtain an import permit for these goods. The requirement is detailed in MOI Regulation No. 5 of 2024 concerning Procedures for Issuing Technical Considerations for Imports of Textiles, Textile Products, Bags and Footwear, which took effect on March 10, 2024. Affected Products The new regulation applies to the following products: Textiles: Fiber, thread, fabric Textile products: Carpets, other textile floor coverings, clothing, ready-made clothing accessories, other finished textile goods Bags: Suitcases, wallets, school bags, sports bags, handbags, other bags Footwear: Shoes, sandals, moccasins Import Permits In principle, businesses can import textiles, textile products, bags, and footwear as raw materials, auxiliary materials, or consumer goods (for trading) after obtaining the appropriate import permit from the Ministry of Trade (MOT). There are three categories of import permits: General import permits for consumption (API-U), which are required for parties that conduct import activities for the purpose of trading; Import permits for producers (API-P); and Import permits for suppliers of raw or auxiliary materials (PPBB). Applicants for an import permit must submit an application for general importer verification (VIU), the results of which will inform the MOI’s technical consideration process. If the MOI issues a recommendation or approval based on their technical consideration, applicants will be able to proceed with the submission of their import permit to the MOT. The process of applying for and obtaining an API-U import permit has several steps, as shown in the diagram below. New Trademark Certificate Requirement Under the MOI’s March 2024 regulation, when applying for

Tilleke & Gibbins is pleased to announce the release of Company Directors in Thailand: Guidelines and Q&A on Duties and Liability. This publication is a go-to resource for prospective and existing company directors who need to understand the duties and liabilities that come with assuming this important corporate role. Authored by Kobkit Thienpreecha, partner and director of the firm’s corporate and commercial department, Company Directors in Thailand provides key information topics essential for companies and their directors to know as they engage in the Thailand market. In the guide, Kobkit, who regularly leads training sessions on directors’ liability for directors at many of the top companies in Thailand, gives an overview of directors’ role and responsibilities as well as the civil and criminal liabilities they could potentially face. This is followed by a Q&A section that directors frequently ask regarding their liability and the legal actions that could be brought against them. The full guide can be downloaded as a PDF through the button below.

The newly released Licensing 2024 guide, published by Lexology Panoramic, features a chapter on Vietnam by four licensing specialists from Tilleke & Gibbins. The comparative guide provides companies and other interested readers with information on licensing law and practice in various countries around the world. Licensing 2024 provides detailed information on the following topics: Restrictions, laws and licensing arrangements Intellectual property issues: Paris Convention for the Protection of Industrial Property, contesting the validity of licensor’s IP rights, invalidity and expiry of IP rights, security interests, proceedings against third parties, sublicensing, jointly owned IP, first to file, scope of patent protection, trade secrets, copyright Software licensing: Perpetual licensing, legal requirements, user restrictions Royalties and payments, currency conversion, and taxes: Relevant legislation, restrictions, taxation of foreign licensors Competition law issues: Restrictions on trade, legal restrictions, and IP-related court rulings Indemnification, disclaimers, and damages: Prevalence and enforceability of indemnity provisions and contractual waivers of damages Termination: Right to terminate, impact of termination Bankruptcy: Impact of licensee or licensor bankruptcy Dispute resolution: Governing law, arbitration, enforceability, injunctive relief, contractual waivers The Vietnam chapter was authored by Linh Thi Mai Nguyen, partner and head of Tilleke & Gibbins’ trademark team in Vietnam; Son Thai Hoang, trademark executive; and Chi Lan Dang, associate, of Tilleke & Gibbins’ trademark team, along with corporate and commercial senior associate Tu Ngoc Trinh, who has extensive experience in franchising and competition law. The Vietnam chapter is available below as a PDF. Tilleke & Gibbins also contributed the Thailand chapter to Licensing 2024. Readers can gain 30 days of complementary access to the full Licensing 2024 guide and the rest of Lexology Panoramic’s varied offerings through this link.