Tax News No. 245 May 2017

Tax News No. 245 May 2017

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Promulgation of Constitution of the Kingdom of Thailand B.E. 2560

The newest Constitution of Thailand is promulgated on 6 April 2017, composing 16 Titles and 279 Sections. This Constitution amends provisions on protection of a person’s rights and freedom more clearly and alters provisions on election and authority in some aspects.

  • Specifying provisions on the protection of rights and freedom, such as
    1. Protection an accused person from criminal punishment since being detained, asking for bailing out until being on trial and judged by the court (Section 29).
    2. Having freedom of speech as long as it does not violate laws and academic freedom as long as it does not conflict morality and not restrain dissenting opinions of others (Section 34).
    3. Participating in political matters by setting up a political party under conditions specified by laws (Section 45) or gathering more than 50,000 to propose the enactment of laws on rights and freedom of citizens, government responsibilities (Section 133).
  • Specifying responsibilities of persons and government relating to tax and tax enactment. The person shall pay tax as prescribed by laws (Section 50) and the government shall keep disciplines on public finance and arrange fair tax system for society (Section 62). In case of necessity to enforce tax laws, His Majesty the King shall enact Emergency Decree to apply in the same legal hierarchy as Acts (Section 174).
  • Amending and adding some provisions as follows:
    1. Appointment of the regent to perform His Majesty the King’s duties, especially vital procedures (Sections 5, 12, 15-17, 19 and 182).
    2. The government shall have ethical standards of public administration (Section 76) and strategies on preventing, checking and eliminating corruption (Sections 63, 78) and the title of government’s responsibilities and revolution of the country are clearly separated.
    3. There shall be an election called Allotted Combination Election. One ballot-paper can be used to vote for both single-member constituency and party-list proportional representation (Sections 85, 91).
    4. According to transitory provisions, any person can be appointed to become Prime Minister during the 5 years as of the date when the first parliament executes (Section 272) and all existing notifications, orders of National Council for Peace and Order are still effective and legitimate (Section 279).

Measures on Promotion of Research and Development of 5 Main Industry Groups under the Project of “Unite Civil State Power”

On 9th May 2017, the cabinet passed the resolution on frameworks regarding promotion of research and development in respects of science, technology and innovation for 5 main industries under the project of “Unite Civil State Power”. It also approved the draft of Royal Decree issued under Revenue Code on Revenue Exemption (No…) B.E. … regarding rights and privileges on tax.

  • The 5 main industry groups which shall be promoted in research and development aspects consist of
    1. Industry groups on food, agriculture and technology
    2. Industry groups on public health, health and medical technology
    3. Industry groups on genius equipment, robots and machine systems which are controlled by electronic systems
    4. Industry groups on digital, internet technology which connects and controls other devices, artificial intelligence and embedded technology
    5. Industry groups on any creativity, culture and service which have high values
  • Furthermore, the following main points of the new Royal Decree are:
    1. A company, juristic partnership, and a group of companies or juristic partnership, which jointly incurs expenses on the research and development and obtains the approval of the United Civil State Power committee, can deduct 3 times such expenses from expenditure, during 3 accounting periods from the accounting period starting in or after 1st January 2017 until 31st December 2019, in order to be exempted from corporate income tax.
    2. The expenses of which each company or juristic partnership pays for the research and development shall not exceed current rights and privileges on tax under Royal Decree issued under Revenue Code on Revenue Exemption (No. 598) B.E. 2559 (2016).
    3. The above company or juristic partnership shall not, directly or indirectly, hold shares and not control, supervise the operation or administration, wholly or partially, of researchers. In addition, it shall not take such expenses to exercise corporate income tax exemption for promotion business under investment promotion law wholly or partially.

Index of legal movement in relation to business

Interested tax news

Supreme Court no. 5316/2559

Tax liability on partner of Joint venture after transferring its equities to others

Revenue Code Amendment Act (No.45) B.E. 2560 (2017)

In case where tax evasion or tax fraud shall be deemed as predicate offense for Anti-Money Laundering Act

Ministerial Regulation No. 325 (B.E. 2560) issued under Revenue Code on Revenue Exemption

Ministerial Regulation No. 326 (B.E. 2560) issued under Revenue Code on Revenue Exemption

Notification of the Department of Business Development

Rules and procedures for request of applying Username & Password and the instruction for user’s identity affirmation for juristic person registration by electronics (e-Registration) B.E. 2560 (2017)

Announcement of Ministry of Labour

Extension of Period of Filing Application for Contribution Remittance And Remitting the Contribution through Electronic System (e – Payment) B.E. 2560

Royal Decree Issued under the Revenue Code on Tax Exemption (No.639) B.E. 2560 (2017)

Notification of the Director-General of the Revenue Department on Income Tax (No. 289)

Rules, procedures, and conditions for the purpose to exempt income tax of an investor in venture capital business

Notification of the Director-General of the Revenue Department on Income Tax (No. 290)

Rules, procedures, and conditions for the purpose to exempt income tax of a company or juristic partnership for an income paid as an expense for hiring an elderly person whose age is more than 60 years old

Notification of the Director-General of the Revenue Department

Extension as to Filing Balance Sheet Accounts, Working Paper Accounts and Profit and Loss Accounts, Revenue and Expenditure Accounts, or Revenue Before Deducting Expenditure Accounts which A Person under Section 3 Septem of Revenue Code Audits and Certifies in an Accounting Period under Section 69 of Revenue Code

Explanation of Revenue Department

Extension as to Filing Balance Sheet Accounts, Working Paper Accounts and Profit and Loss Accounts, Revenue and Expenditure Accounts, or Revenue Before Deducting Expenditure Accounts which A Person under Section 3 Septem of Revenue Code Audits and Certifies in an Accounting Period under Section 69 of Revenue Code

Regulation of Revenue Department

Regarding to Preparation, Delivery, Retention of E-Tax Invoice Through the System of e-Tax Invoice by Email B.E. 2560 (2017)

Departmental Instruction No. Taw. Paw. 274/2559

The Director-General authorized The Deputy Director-General to issue a summons of documents or evidence on bank deposit account of a person liable to tax arrears and evidence on holding securities of a person liable to e-Tax arrears according to Section 12 Ter of the Revenue Code

Revenue Guideline No. Mor Gor 53/2560

Consideration of Justifiable Grounds under Section 67 Ter of Revenue Code

Ruling No.GorKor 0702/10505 Date 14 December B.E.2559 (2016)

Personal income tax and corporate income tax in case of paying employees of a representative office in the Socialist Republic of Vietnam salaries and allowance

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