In May and June 2024, Cambodia’s General Department of Taxation (GDT) issued two notable tax incentive packages that aim to encourage business growth in the country. The details of these incentives are outlined below. Tax Incentives for Expansion of Qualified Investment Projects The GDT’s May 10, 2024, regulation (Prakas No. 313 MEF. PrK. PD) provides income tax incentives for expansion of qualified investment projects (QIPs), including an income tax exemption for the following types of expansion: Expansion of existing production. Expansion through product line diversification within the same lines. Implementation of new technologies that enhance productivity or protect the environment. Other forms of expansion set out in future sub-decrees. The number of years for the income tax exemption depends on the investment activities of the QIP, in accordance with the business groupings provided in the Sub-Decree on the Implementation of the Investment Law in Cambodia—9 years for group 1, 6 years for group 2, and 3 years for group 3. After receiving approval for the QIP expansion from the Council for the Development of Cambodia (CDC) or one of its Provincial-Municipal Investment Sub-Committees (PMISs), the GDT will certify the income tax exemption period. The exemption begins on the date the enterprise first receives income from the QIP expansion. QIPs seeking this tax exemption need to declare the amount of money that they intend to use for the expansion. Once allowed, the company must use that money for construction materials or new production equipment before the expiration of the tax exemption period. The income tax exemption can be revoked if: The enterprise does not use the capital to expand the QIP by purchasing the construction material and new production equipment as requested for the expansion. The enterprise fails to invest the prescribed amount before the expiration of the tax exemption

On June 28, 2024, Thailand’s Ministry of Interior issued the Ministerial Regulation Re: Exemption from the Government Fee for Hotel Business Operators B.E. 2567 (2024). The ministerial regulation, which was published in the Government Gazette on June 30, 2024, lifts the annual government fee for hotel business operations from July 1, 2024, to June 30, 2026. This extends the previous annual fee exemption period, which had been set to expire on June 30, 2024, in accordance with similar ministerial regulations in 2022. This measure aims to alleviate the financial burden on hotel business operators that may be affected by insufficient tourist revenue. For more information on this exemption, or on any aspect of Thailand’s legal and regulatory environment for hotel business operations, please contact Chaiwat Keratisuthisathorn at [email protected] or Chanchai Jhongsathit at [email protected].

On January 18, 2024, Vietnam’s National Assembly passed a new Land Law (“Land Law 2024”) that is scheduled to take effect on January 1, 2025, replacing the current Land Law 2013. To mitigate challenges faced by the real estate market, in late May 2024, the government proposed amendments to the Land Law that would move the effective date up five months, to August 1, 2024, pending approval by the National Assembly. One of the key sectors to be impacted by the Land Law 2024 is the energy sector, which requires large land areas for power plants and infrastructure, especially given Vietnam’s 2050 net zero emissions commitment. Below are highlights of how the new Land Law 2024 will affect Vietnam’s energy sector. Annual payment of land rental Under the Land Law 2013, investors implementing energy projects (e.g., solar power projects) are entitled to choose to lease land with either (i) an annual rental payment or (ii) a single upfront payment for the entire term of use. Under the Land Law 2024, these investors are only allowed to use land in the form of an annual rental payment. As the annual land rental is calculated in five-year cycles, based on the land price table decided by the state, this new restriction means that investors in energy projects will face an additional risk of a sudden increase in land rental, disrupting their financial planning. Investors using land sites leased with annual rental payments are also not allowed to mortgage their land-use rights, but can only mortgage assets attached to the land, at credit institutions licensed to operate in Vietnam. Accordingly, this may affect the ability of energy projects to obtain financing during the development stage, because they no longer have assets that can be mortgaged. Obtaining land Under the Land Law 2024,

Thailand’s Board of Investment (BOI) has issued a notification granting investment privileges to qualified new residential projects for low-income individuals. Notification No. Sor. 1/2567 Re: Promotion of Residential Activities for Low-Income People was published in the Government Gazette on May 3, 2024, and came into effect the following day. To be eligible for BOI promotion, at least 80% of the total residences in a project must meet the requirements for usable area and price. The minimum usable area is 24 square meters for condominium units and 70 square meters for town houses and detached houses. The residences can only be sold to individuals, and the sale price for each of these condominium units or houses (including the price of any land) must not exceed THB 1.5 million. Projects must also meet the following criteria: Projects must include a car park, closed circuit television (CCTV) throughout the project, a 24-hour security guard, cleaning staff, a common area, and other facilities in an appropriate proportion. The building plan and layout must be approved by the BOI. A permit for the construction of a building under building control laws and other relevant laws must be obtained. Approval must also be obtained from the Government Housing Bank prior to submission of the application to the BOI. However, ISO 9000, ISO 14000, or other similar international standard certification is not required. Under the notification, applications for such promotion must be submitted to the BOI by the end of 2025. New low-income residential projects promoted by the BOI will be granted a corporate income tax exemption for a period granted for A4-promoted activities (typically three years). For corporate income tax exemptions, the investment will only be calculated based on the construction costs for roads, other facilities, or public utilities that are commonly used within the