Tax News No. 260 August 2018

Tax News No. 260 August 2018

Index of legal movement in relation to business

Topix

The draft of Act of the Revenue Department making analysis on tax avoidance
(National e-Payment Master Plan)

Revenue Department is in process to enact “the draft of Amendment Act on Revenue Code (No….) B.E……” for support tax system and e-Payment according to the National e-Payment Master Plan for improvement in the provision under the Revenue Code to cope with electronic documents which is related to tax system and increase more system of the deduction on withholding tax, including more e-Payment method, the draft Act has essential parts as follows: –

1.    To prescribe the rules, procedures and conditions on the filing tax return to be made by electronic method under the law on electronic transactions.

2.    To appoint a person who has duty to deduct and remit withholding tax and pay an assessable income to the bank under the law on banking or the person who is appointed by the Ministerial Regulation on transaction method or any other method can deduct and remit tax through the bank or the above person. In addition, Director-General has authority to make exception for filing withhold personal tax return to a person, partnership or company which deducts and remits such tax through the bank or the above person.

3.    To appoint the bank or the above person as mentioned receiving the money to deliver to the Revenue Department and appoint the bank or the above person be liable for tax in the amount as received or incompletely remitted and pay surcharges as 1.5 percent per month or a fraction of month of such tax which received or incompletely remitted.

4.    To prepare for a tax invoice, debit note, credit note or receipt made in forms of electronic data under the law on electronic transactions.

5.    The Director-General of Revenue Department shall specify other statement on the receipt to be different from the Section 105 Bis, summon a person to submit the account, document, evidence or information related to taxation. In case such information was collected as electronic data or computer traffic data, the Director-General has the power to inspect and access to such data.

Public hearing on a draft of Amendment on Revenue Code regarding exchange of information as per international request and exchange of international automatic information.

During 25 July – 9 August 2018, Revenue Department opens public hearing on the amendment of some provisions of Revenue Code. There shall be added new provisions on the exchange of international information, reflecting that Thailand as a member of Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) is ready to cooperate with OECD for protection of tax evasion and tax avoidance. Thailand also exchanges tax information in compliance with global standards in the same as those of other countries; therefore, there shall be efficiency and transparency of its tax management and imposition.

The draft of Amendment Act on Revenue Code shall add the following new provisions on Revenue Code:
1.    There shall be added Section 3 Quindecim to authorize the Director-General to command an in-charge person gather and remit tax and other information as requested by an in-charge official, or according to an agreement made by Thailand and foreign countries or international organization, or according to an agreement made by Thai Trade and Economic Office and foreign agencies.
2.    There shall be added Section 3 Sedecim to authorize the Director-General to disclose and exchange information which he received in accordance with the agreements made by Thailand and foreign countries or international organization, or made by Thai Trade and Economic Office and foreign agencies, or in accordance with the authority as prescribed by law.
3.    There shall be added Section 3 Septendecim that any person who knows information on the exchange of international information is prohibited from divulging such information to anyone or in any method unless he discloses as per the agreements made by Thailand and foreign countries or international organization or made by Thai Trade and Economic Office and foreign agencies, or as per the authority as prescribed by law.
4.    There shall be added sanction under Section 35 Ter that if the in-charge person does not follow the command of the official to gather and remit the information under Section 3 Quindecim, the official shall give him an administrative punishment not exceeding 100,000 Baht and shall fine not exceeding 10,000 Bath a day during the violation period or until he takes correct action.
5.    There shall be added sanction under Section 35 Quarter that if the in-charge person having known or having intention notifies false information on gathering and remitting the information under Section 3 Quindecim, he shall be imprisoned from 3 months to 7 years or be fined from 2,000 to 200,000 Baht or both.
6.    There shall be added sanction under Section 35 Quinque that the person having known information to be reported or from abroad divulges or exchanges such information with any other person under Section 3 Septendecim, he shall be imprisoned not exceeding 1 year or be fined not exceeding 100,000 Baht or both.

Amendment of Labour Protection Act regarding the receipt of severance pay 400 days.

As Cabinet Resolutions on dated 15 August B.E 2560 (2017), the Cabinet had approved the principle of the draft of Labor Protection Act (No…….) B.E.…… and shall submit to office of the Council of state to consider and enter into the agenda 1 of National Legislative Assembly on 28 August 2018. The draft of this act has essential parts as follows: –
  1.   There shall be amended Section 9 to determine the interest rate as 15 percent of Remuneration in lieu of advance notice and the money in case of the employer suspends of business which an employee has the right to receiving the interest rate as 15 percent.
  2.   There shall be amended Section 13 to change of an employer must be consented by an employee and the new employer shall be transferred all rights and duties.
  3.   There shall be added Section 17/1, stating that the employer may pay the remuneration in lieu of advance notice to the employee when termination of employment without advance notice.
  4.   There shall be amended Section 34 to the employee who shall be entitled to take a necessary business leave in one year not less than 3 working days and shall be added Section 57/1 the employer shall pay wage to the employee while the employee takes a necessary business leave for one time not less than 3 working days.
  5.   There shall be amended Section 41 and Section 59 to a female employee who is pregnant and is entitled to maternity leave for pregnancy test. And when includes such leave in the leave for childbirth, the total leave shall not be exceeding 90 days per each pregnancy. The employer shall pay wages to female employee who is pregnant during the period of leave for pregnancy test and childbirth as the wages on working days but not exceeding 45 days.
  6.   There shall be amended Section 53 stating that an employee shall provide wages, overtime pay, holiday pay, overtime pay on holiday work equally both male and female employees. Also, there shall be amended Section 70 to determine the schedule period of the payment of wages, overtime pay, holiday pay, overtime pay on holiday work.
  7.   There shal be amended Section 75 to determine the payment in case where an employee cease whole or part of his business temporarily.
  8.   There shall be amended Section 118 (5) to determine an additional severance pay rate in case the employer terminates the employment of employee who had worked continuously for 10 years but not exceeding 20 years; the employee is entitled to receive the severance pay not less than the last wage rate of the employee for 300 days. As for amended Section 118 (6), the employee who had worked continuously for 20 years or more is entitled to receive the severance pay not less than the last wage rate of the employee for 400 days.
  9.   There shall be amended Section 93 (5) and Section 120 regarding informing of relocation of an establishment as well as payment of special severance pay in lieu of advance notice or special severance pay.
  10.   There shall be amended Section 120 /1 regarding the Order of the Welfare Committee.
  11.    There shall be amended Section 120/2 and Section 125/1 the criminal proceedings against the employer shall be lapsed, in case the employer abides by an order of the Labour Inspector within a specified period.
  12.    There shall be amended relevant provisions in Section 144, Section 145, Section 146, Section 151 and there shall be amended Section 155/1 to repeal the procedure of the Labour Inspector to issue a warning letter to the employer, in case the employer who fails to submit or declare the collective form of employment and working condition to the officer.

Interested tax news

Supreme Court Judgment No. 5564/2559

Applying “Customs Practice Codes” by Revenue Department for the value-added tax case

Royal Decree Issued under the Revenue Code Governing the Specification of Business Granted an Exemption from Specific Business Tax (No.660) B.E. 2561 (2018)

Royal Decree Issued under the Revenue Code on Revenue Reduction and Exemption (No.661) B.E. 2561 (2018)

Royal Decree Issued under the Revenue Code Governing Revenue Exemption (No. 662) B.E. 2561 (2018)

Notification Director-General of the Revenue of the Department

Specification of additional tourist areas tourist province for training seminar and travel and accommodation to secondary provinces 

Notification of Director-General of the Revenue Department (No. 7)

Rules, Procedures and Conditions on Exception Income Tax, Value Added Tax, Special Business Tax, and Stamp Duty for Donation to Educational Institutes pursuant to Royal Decree issued under Revenue Code governing Revenue Exemption (No. 654)

Regulation of Office of the Central Company and Partnership RegistryGoverning the registration of partnership and company (No.17)B.E.2561 (2018)

Ruling No. Gokkhor 0702/Paw.3540   Date 4 May 2018

Value Added Tax in the case of providing service in the Kingdom for the establishment located in free zone

Ruling of Foreign Business Administration Division on March 2018 Subject no. 1

A foreign company carrying on business of decoration export and printing patterned in artificial decorations as client demands without service charges.

Ruling of Foreign Business Administration Division on March 2018 Subject no. 3

A foreign company incorporating in a foreign country and wishing to carry on a regional office in Thailand

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