M&A Report (July 2019)

China outbound M&A activities came to a freeze in the second quarter, dragging outbound dealmaking to USD 20.4bn (114 deals) in 1H19, recording the lowest value since 2011 amid uncertainty from the escalating trade war. Even Europe, the all-time most popular destination, saw less Chinese interest with a 64% decrease in deal value in 1H19.

Further to our update on Prakas 443 on Seniority Payments (“Prakas 443”) issued by the Ministry of Labour and Vocational Training (“MLVT”) on 21 September 2018 in this link, the MLVT issued Guideline 042/19 on Payment of Back Pay of Seniority Pay prior to 2019 (“Back Pay”) for Enterprises outside of the Garment, Textile and Footwear Manufacturing Sectors on 22 March 2019 (“Guideline”).

Notification 4908 issued by the General Department of Taxation (GDT) on the 18th of March 2019 requires all registered taxpayers in the self-assessment taxation regime in Cambodia to now provide the total amounts, in tax invoices that they issue to customers, in Khmer Riel (KHR).

Sub-Decree No. 124 R.N.Cr.BK (“SD 124”) that came into effect on the 2nd of October 2018 has introduced important tax incentives for qualifying Small and Medium Enterprises (“SME’s”) operating in defined priority sectors in Cambodia.

On 10 September 2018, the Prime Minister issued Decision No. 39/2018/QD-TTg (“Decision 39”), amending Decision No. 37/2011/QD-TTg of the Prime Minister dated 29 June 2011 on mechanisms to support the development of wind power projects in Vietnam.

Sihanoukville, Cambodia has been chosen to be the host venue of the 14th Global Rubber Conference. This prestigious Conference is hosted and co-organized by the Association for Rubber Development of Cambodia, produced, organized and managed by Confexhub Group and supported by International Rubber Research Development Board (IRRDB) and over 10 international rubber government bodies and associations.

Procedures and Standard Requirements for Registration of Animal Feed, Feed Ingredients and Additives, Prakas № 51 of the Ministry of Agriculture, Forestry and Fisheries (“MAFF”), dated 16 January 2018.

The Ministry of Labour and Vocational Training (“MLVT”) recently issued a second Notification 016/18 on 25 April 2018, in which it extends the period to apply for the renewal of foreign employee work permit applications for 2018 until 31 May 2018.

The Ministry of Commerce of Cambodia (“MOC”) has imposed the business permit requirement for all Cambodian nationals engaging in business, service and commerce activities who are not classified as self-assessment taxpayers as determined under Prakas 025 SHV. BRK.