Thailand has continued to face economic challenges since the COVID-19 pandemic, and some businesses have struggled to survive. One of most important measures that indebted businesses in Thailand can take is to file a business rehabilitation petition with the Bankruptcy Court. The Bankruptcy Act B.E. 2483 (1940) provides “automatic stay” measures to protect the debtors that have entered the business rehabilitation process, and during this time creditors have duties and rights under the Bankruptcy Act as well. Once Thailand’s Bankruptcy Court accepts a rehabilitation petition and issues an order for rehabilitation, the debtor is under this automatic stay protection against actions from the creditor to seek debt repayments, and the creditors are only allowed to pursue their debt repayments by submitting a debt repayment application to the official receiver within one month of publication of the plan preparer’s appointment in the Government Gazette. These are general conditions specified in the Bankruptcy Act. However, there are several practical precautions that are not specified in the Bankruptcy Act but that creditors should take during rehabilitation. Below are several steps creditors need to consider taking at various stages of the rehabilitation process. 1. Appointing a local Thai representative to act on behalf of the creditor in the rehabilitation The rehabilitation process requires much more than just submitting the debt repayment application within the fixed one-month period and then waiting for the result. It also involves contacting, meeting, and discussing with the official receiver, plan preparer, other creditors, or debtor representative to investigate or settle any arguments on the debt. Moreover, the language used in all the processes and documents is usually Thai. In practice, creditors—especially foreign creditors—should authorize a Thai attorney or representative through a valid power of attorney (POA) to represent them during all the rehabilitation proceedings. This includes the investigative hearing by the official

On June 28, 2024, Thailand’s Board of Investment (BOI) updated its list of promoted activities to include data hosting, which is listed as “Activity 8.2.4 Data Hosting Services.” Qualifying data hosting services are eligible for a corporate income tax exemption (capped) for eight years, along with other tax and nontax incentives, such as import duty exemption on imported machinery to be used in the project, the right for foreigners to own land, and work permit and visa facilitation for expats, among others. To be eligible for these BOI incentives, projects must: Provide services for leasing host servers for data storage (data hosting); Have at least two data centers located in Thailand that meet or exceed the ISO/IEC 27001 data center standards; and Have an investment amount (excluding cost of land and working capital) of at least THB 5 billion. Apart from the above specific criteria, projects also need to comply with the general BOI criteria, such as a debt-to-equity ratio no higher than 3:1, submission of a feasibility study report, and use of new machinery, among others. For more details on BOI incentives for software and data center activities, or on any aspect of investment promotion in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected], Nopparat Lalitkomon at [email protected], or Napassorn Lertussavavivat at [email protected].

On July 17, 2024, Thailand issued the Ministerial Regulation under the Revenue Code regarding Revenue Tax No. 394 (B.E. 2567) to increase the personal income tax exemption amount on severance pay for terminated employees. Under this ministerial regulation, terminated employees are exempt from personal income tax on their severance pay up to a severance pay amount equivalent to their last 400 days’ wages, capped at THB 600,000. This tax exemption does not apply to severance pay relating to retirement or the expiration of a fixed-term employment agreement. Previously, this exemption, which has been in effect since 1998, only applied to an amount equivalent to their last 300 days’ wages, capped at THB 300,000. This aligned with the maximum severance pay rate specified in the Labour Protection Act B.E. 2541 (LPA). However, when the LPA was amended in 2019, the maximum severance pay rate was increased from a rate equal to employees’ last 300 days’ wages for those who have worked for 10 years or more, to a rate equal to employees’ last 400 days’ wages for those who have worked for 20 years or more. The recent ministerial regulation was enacted accordingly to align with the updated severance pay rate and account for Thailand’s rising inflation rate. The new exemption rate applies to assessable income received from January 1, 2023, onward. For any excess severance pay withheld in 2023 and filed in 2024, individuals may request a tax refund from the Revenue Department, according to Revenue Department clarification. This should be done according to the applicable procedure within three years of the income tax return filing deadline. For more information on severance pay exemptions, or any aspect of employment law in Thailand, please contact Pimvimol (June) Vipamaneerut at [email protected], Ketnut Pukahuta at [email protected], Dusita Khanijou at [email protected], or Chomanut Arif at [email protected].

On the afternoon of 19 April 2024, a cramped courtroom at the People’s Court of Hanoi was the setting for the first criminal trial of a case of copyright and related rights infringement in Vietnam, regarding the act of illegal streaming of English Premier League football matches on online platforms. This case is expected to open the door for the criminal prosecution of other cases of copyright and related rights infringement on the internet, an area that has faced numerous difficulties over the past two decades. First criminal case of illegal streaming Vietnamese criminal law has long had provisions in place for criminal handling of copyright infringement crimes, specifically in Article 131 of the 1999 Penal Code. However, more than 20 years after this law took effect, and even though Vietnam enacted the 2015 Penal Code with subsequent amendments, these regulations have remained mainly a law on paper only, and many significant and serious cases causing great frustration for rights holders and society have not been criminally prosecuted. The case in question was initiated by a denunciation of the BestBuyIPTV subscription service by the Football Association Premier League Limited (the “Premier League”) and the Alliance for Creativity and Entertainment (“ACE”), a coalition of global entertainment companies and film studios dedicated to combating digital piracy and copyright infringement. BestBuyIPTV had illegally streamed Premier League matches and other protected works without authorization of the rights holders. In 2023, after an extensive investigation, the Cybersecurity and High-Tech Crime Prevention Division (PA05) and the Police Department for Investigating Corruption, Smuggling, and Economic Crimes (PC03) of the Hanoi police brought a case for criminal copyright infringement, pursuant to Article 225 of the 2015 Penal Code, against the offender, an individual named Le Hai Nam, consolidating the dossiers for the People’s Procuracy to indict this defendant before the

On July 18. 2024, Vietnam’s Ministry of Health issued Circular No. 12/2024/TT-BYT promulgating National Technical Regulation QCVN 20-1:2024/BYT on the limits of contaminants for health supplements (“Circular 12”). The new national technical regulation is the very first relating to health supplements, and is expected to have a great impact on the control of health supplement quality in Vietnam. Circular 12 will take effect on August 1, 2025. Contents of Circular 12 The new circular prescribes limits of contaminants (heavy metals and microorganisms), testing samples and testing methods, management requirements, and responsibilities of entities manufacturing and trading in health supplements. Supplemented alcohol products which are declared as health supplements are notably excluded from the scope of the regulation. Transitional Provisions Health supplements which (i) have been granted a declaration registration certificate, and (ii) are manufactured before August 1, 2025, are allowed to continue to be imported, traded, and circulated until the expiry date of the product, even if it is not aligned with Circular 12, except when there is food safety warning. Declaration registration dossiers for health supplements submitted before August 1, 2025, will continue to be handled in accordance with the prevailing regulations at the time of submission. From August 1, 2025, if a health supplement with a granted declaration registration certificate has a manufacturer’s standard that does not comply with Circular 12, the party manufacturing/trading in the product must adjust the product standard to conform to Circular 12 and notify the authority of this adjustment.

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 period. The enterprise does not fulfill its other tax obligations as required by

Experts from Tilleke & Gibbins’ intellectual property team have contributed an updated Intellectual Property Transactions in Vietnam to Thomson Reuters Practical Law, a high-level comparative overview of  laws and regulations across multiple jurisdictions. Intellectual Property Transactions focuses on business-related aspects of intellectual property, such as the value of intellectual assets in M&A transactions, and the licensing of IP portfolios. Key topics covered in the chapter include: IP assignment: Basis and formalities for assignments of patents, utility models, trademarks, copyright, design rights, trade secrets, confidential information, and domain names. IP licensing: Scope and formalities for licensing patents, utility models, trademarks, copyright, design rights, and trade secrets. Research and development collaborations. IP audits. IP aspects of M&A: Due diligence, warranties/indemnities, and transfer of IPRs. Employee and consultant agreements. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The Intellectual Property Transactions Global Guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the Intellectual Property Transactions in Vietnam overview, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.

Intellectual property specialists from Tilleke & Gibbins in Thailand have contributed an updated Intellectual Property Transactions in Thailand overview for Thomson Reuters Practical Law, an online publication that provides comprehensive legal guides for jurisdictions worldwide. The Thailand overview was authored by Darani Vachanavuttivong, managing partner of Tilleke & Gibbins and managing director of the firm’s regional IP practice; Titikaan Ungbhakorn, senior associate and patent agent; and San Chaithiraphant, senior associate. The chapter delivers a high-level examination of critical aspects of IP law, including IP assignment and licensing, research and development collaborations, IP in mergers and acquisitions (M&A), securing loans with intellectual property rights, settlement agreements, employee-related IP issues, competition law, taxation, and non-tariff trade barriers. Key topics covered in the chapter include: IP assignment: Basis and formalities for assignments of patents, utility models, trademarks, copyright, design rights, trade secrets, confidential information, and domain names. IP licensing: Scope and formalities for licensing patents, utility models, trademarks, copyright, design rights, and trade secrets. Research and development collaborations: Management of improvements, derivatives, and joint ownership of IP. IP aspects of M&A: Due diligence and critical considerations during mergers and acquisitions. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The Intellectual Property Transactions Global Guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the Intellectual Property Transactions in Thailand overview, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.