[Vietnam] Policy Note on Decree 35/2020/ND-CP on Competition Law
Over a year after the passage of the Competition Law, the highly anticipated Decree No. 35/2020/ND-CP on detailed regulations for a few provisions of the Competition Law (“Decree 35”) was finally passed by the Vietnam Government on 24 March 2020. Decree 35 will take effect on 15 May 2020. This Decree provides detailed guidance on, among other things, the specific threshold figures for merger control notification, the definition of “control or influence” for merger control purposes, assessing the significant anti-competitive effects, and measuring market dominance based on “significant market power”.
[Singapore] AIC Releases Toolkit on Addressing Online Misinformation Through Legislation – POFMA
AIC Releases Industry Paper “Beyond BEPS New Taxing Rights and Minimum Corporate Taxes” (December 2019)
The International Monetary Fund (IMF) has reduced its global economic growth projections for the year 2019. It attributes the broad-based slowdown in the world economy to policy uncertainty stemming from factors such as trade tensions, higher oil prices and the increased incidence of natural disasters. Small open economies such as Singapore are particularly susceptible to global uncertainties. The IMF calls for multilateral cooperation to arrest the downward trend.
The OECD emphasises simplicity over precision in order to minimise costs of compliance and administration. It also seeks to minimise the risk of double taxation and proposes mandatory and time-bound dispute resolution. The technicalities of the proposals are yet to be determined and many important aspects depend on the agreement between countries. Regardless of the particulars, large MNEs should expect to pay more taxes in more jurisdictions.
It is critical that a successful long-term solution to address the taxation of the evolving international economy should be consistent with the following key tenets:
- It should be levied on profits/losses and not revenue. VAT/GST is a tax that applies to revenue.
- It should apply in an economically principled way to both loss-making and profit- making companies/businesses.
- It should be proportionate, neutral, equitable, and enforceable so that, on an overall basis, it is applicable to all types of businesses such that the new tax rules do not ring-fence the digital economy, do not result in different tax rates for foreign and domestic taxpayers, and do not create market distortions.
- It should be a direct tax measure only and should have no impact for indirect tax purposes.
- It should achieve consensus and maximize consistency in its application, with sufficient detail to foster consistent application and avoid multi-layer taxation.
- The new framework must not undermine the existing tax treaty network and not lead to double taxation.
- It must include mechanisms for effective dispute resolution, including mandatory binding arbitration.
- The measures must be easy to comply with and provide collaboration on transition relief. Simplicity for taxpayers will be preferable to precision in measurement.
New AIC report: Digital Platforms and Services: A development opportunity for ASEAN (3 July 2019)
The Internet economy is driving new growth and market opportunities, globally as well as in ASEAN. In this context, the AIC has commissioned a new report from The Economist Intelligence Unit (EIU) that examines the opportunities and challenges facing digital platform providers in the region. The Report on Digital Platforms and Services: A development opportunity for ASEAN assesses what countries can do to ensure they capture value from the digital economy. It also makes six (6) key recommendations for governments and enterprise to consider, based on research and interviews with private and public sector experts.
AIC and Thammasat University Report launch: Value of OTT to the Thai Economy (7 Sept 2018)
AIC and Thammasat University’s Consulting Networking and Coaching
Center (CONC Thammasat) have launched a joint report, which examines the value that Over-the-Top platforms and services (OTTs) have brought to Thailand. A key finding includes that OTTs contribute as much as THB 36 billion and 30,000 jobs to Thailand’s economy. The report also makes specific policy recommendations in line with Thailand’s digital economy ambitions.
You can download the report here.
Digital Nations Report
Countries across the Asia-Pacific region are benefiting from the rapid digitization of the business world, which boosts their productivity and growth. But some countries are benefiting more than others, as their economies become more digital. These countries are making the transition from being a passive recipient of digitization to actively reaping its benefits: they are becoming Digital Nations.
This report is centred around the key assumption that countries need a thriving digital economy to be globally competitive and fully exploit their economic potential. It has three main objectives: first, outline the most critical policy levers to boost growth and investment in the digital economy; second, measure how well countries across the Asia Pacific currently perform when extracting benefits from the digital economy; third, give concrete recommendations to policymakers.
The Cost of Data Localisation
This paper aims to quantify the losses that result from data localisation requirements and related data privacy and security laws that discriminate against foreign suppliers of data, and downstream goods and services providers, using GTAP8. The study looks at the effects of recently proposed or enacted legislation in seven jurisdictions, namely Brazil, China, the European Union (EU), India, Indonesia, South Korea and Vietnam.
Coalition for Cross-Border Data Flows
Data is driving innovation, creating economic opportunity, and improving standards of living around the world. Private companies, governments, and non-governmental organizations are using data to improve efficiency, develop new products, and deliver goods and services to their customers, taxpayers, and members. This data is collected, analyzed, processed, stored, and transmitted on a global network, without regard to national boundaries.
Breaking the Web: Data Localization vs. the Global Internet
A BRICS Internet, the Euro Cloud, the Iranian Internet. Governments across the world eager to increase control over the World Wide Web are tearing it apart. Iran seeks to develop an Internet free of Western influences or domestic dissent. The Australian government places restrictions on health data leaving the country. South Korea requires mapping data to be stored domestically. Vietnam insists on a local copy of all Vietnamese data. The nations of the world are erecting Schengen zones for data, undermining the possibility of global services. The last century’s non-tariff barriers to goods have reappeared as firewalls blocking international services.