New Emergency Decree on Alien Working Management
Emergency Decree on Alien Working Management B.E. 2560 (2017) has promulgated on 22 June 2017, be effective as from 23 June 2017 onwards and repealed Alien Working Act B.E. 2551 (2008) and Emergency Decree on Bringing Alien to Work with an Employer in a Country B.E. 2559 (2016) so that both laws will have provisions under the same law. This new Emergency Decree provides alien protection rules, employer facilitation and amendment on punishment of alien and the employer.
- In general provisions, there is amendment on authority of Minister of Labour. The Minister shall announce notification on alien working, such as types of work, areas of residence, etc., a permit fee and permission on working in the Kingdom.
- The Committee on Policy, Working Management of Alien shall establishes and substitute the Committee on Alien Working Consideration. This new Committee shall propose policy and supervise alien working management.
- There shall be rules on being a licensee who brings alien to work with an employer in Thailand, requesting a permit on bringing alien to work, placing a guarantee, having cards of a manager acting on behalf of the licensee and alien, making a contract with alien, making a report to the Director-General of Department of Employment.
- There shall be rules on an employer who bring alien to work with him in the country, together with placing a guarantee, function and responsibility for alien.
- Alien has rights to request the Director-General to order the employer or a licensee bring the alien to work to make compensation for the damage resulting from unreasonable termination, denial of working admission, etc.
- Rules on alien working, such as request of a work permit, have similar provisions as Alien Working Act B.E. 2551 (2008). However, the new Emergency Decree provisions are more clear and precise.
- The fund for alien working management shall establish and substitute the fund for transmission alien to a place outside the Kingdom. This new fund is responsible for money and asset management and has a scope of work wider than the previous Act, especially in alien assistance.
- Administrative measures shall enforce the licensee bringing alien to work and violating specified laws, rules or notifications.
- The scope of authority and function of a registrar and an officer is designated particularly in this Emergency Decree, such as inspection, the use of criminal measures.
- In provisions of punishment, the rate of punishment in this Emergency Decree is higher than the previous Act and Emergency Decree. For example, alien who works without a work permit or works in an illegal job shall be imprisoned not exceeding 5 years or fined 2,000 – 100,000 Baht, or an employer who do not inform of alien employment shall be fined not exceeding 100,000 per one alien.
- In transitional provisions coming into force during the new Emergency Decree has not enforced, a licensee bringing alien to work, an employer and alien can be entitled to the previous Act and Emergency Decree. In addition, any offense committed prior to this new Emergency Decree can be made comparison and paid in a fine.
New Regulation on Electronic Tax Invoice and Electronic Receipt
The Director-General has issued Regulation of Revenue Department regarding preparing, delivering and retaining an electronic tax invoice and an electronic receipt B.E. 2560 (2017) on June 19, 2017. This regulation repeals the previous Regulation of Revenue Department issued in the same subject in 2012, be effective as from June 20, 2017 onwards and provides important rules for support a system of electronic payment as follows:
A registrant who desires to prepare, deliver and retain an electronic tax invoice or an electronic receipt shall file an application to the Director-General so as to describe that he meets the qualifications of an issuer of electronic tax invoice and receipt. The main qualifications are the following:
- Having a Certificate Authority, which is electronic information that Certification Authority issues to confirm Digital Signature of the owner and electronic information he creates.
- Having hardware and software systems which are security, reliability and can control accessibility of the electronic information. In addition, the issuer of electronic tax invoice and receipt shall abide by rules providing that
- In preparation, contents of electronic tax invoice, tax invoice (abb), debit note, credit note shall comply with Sections 86/4, 86/6, 86/9, 86/10 of Revenue Code respectively. And contents of an electronic receipt shall comply with Section 105 Ter.
- Electronic tax invoice and receipt shall be delivered to a buyer or a user according to Electronic Transaction Act B.E. 2544 (2001).
- The electronic tax invoice and receipt shall be submitted, with digital signature, to Revenue Department every tax month through an electronic system of Revenue Department within the 15th day of the next tax month.
- Such electronic information shall be retained in the electronic form which is accessible, usable and can retrieve sources of the information.
- The electronic tax invoice and receipt can be cancelled by making new electronic information with the remark that this new information cancels the previous on and it shall refers to number and date of the previous electronic tax invoice and receipt.
2017 Corporate Income Tax for SMEs and General Business
Revenue Department provides new rules on net profit and tax rates for corporate income tax computation in 2017 and divides them into 3 categories:
- A company or juristic partnership having registered capital not exceeding 5 million Baht and income not exceeding 30 million Baht in a given accounting period (called “SMEs”) and being notified of one account enterprise can still be exempt from corporate income tax if its net profits are not exceeding 300,000 Baht. If SMEs notified of one account enterprise obtains net profits 300,001 Baht or more, it shall be liable for a new tax rate (10%) which is increased when compared with the exempted tax rate in 2016.
- In case of other SMEs, such SMEs obtaining net profits not exceeding 300,000 Baht cam still be exempt from corporate income tax. However, if SMEs obtains net profits from 300,001 to 3,000,000 Baht, it shall be liable for a new tax rate (15%). And if its net profits are 3,000,001 Baht or more, it shall be liable for a new tax rate (20%). The 15% and 20% rates are increasingly adjusted from the rate in 2016 because the net profits in 2016 since 300,001 Baht or more was imposed on corporate income tax in the rate of 10%.
- Corporate income tax for general business in 2016 and 2017 has still used the same amount of net profits and rate of tax. The total net profits are imposed on corporate income tax in the rate of 20%.
The Revocation of TFRS for SMEs Draft
On 5 July 2017, the Board of Committee of Federation of Accounting Professions (FAP) held the Meeting No.2/2560-2563 (2/2560) and passed the resolution on revocation of the draft of Thai Financial Reporting Standards for Small and Medium-Sized Entities (TFRS for SMEs) and drafts of accounting guidelines relevant to all of TFRS for SMEs. The reason of the revocation is that FAP would like to revise the drafts of TFR for SMEs and accounting guidelines as well as amend their contents and scope to be commensurate with Thai circumstances.
Royal Decree No. 643 on Income Tax Exemption for Property Investment
This Royal Decree regarding revenue exemption for income paid for expenses of property investment issued on 10 July 2017 and be effective on 11 July 2017 adds a type of property which can be exempted from income tax. Such property is “Machine” defined as a thing assembled by several parts and using water, stream, fuel, electricity for energy generation, conversion, or transmission, including belts, shafts or gears. However, this Machine does not include registered vehicles.
Project on e-Tax Invoice/ e-Receipt System
Revenue Department issues a policy on e-Tax Invoice/ e-Receipt system for a business person who is interested in this electronic system. There has been no law enacted for this matter, so the business person is not required by any current law to do so.
Large, medium entrepreneur having income more than 30 million Baht, or all government sectors, or public charity organization (Section 47(7)(b) of Revenue Code) can sign in this electronic system as of 1 January 2018. In the case of small and very small entrepreneur, he can sign in the system as of 1 January 2020 and 1 January 2022 respectively.
Comparison of a Current Tax Invoice and e-Tax Invoice
At present, a tax invoice or a debit note or a credit note is made in a paper form and shall be retained in this form for 5 years at the place of a seller or a buyer. On the other hand, e-Tax Invoice is a system that a tax invoice or a debit note or a credit note can be made and retained in an electronic form. This electronic information can be recorded by a seller’s computer, a buyer’s computer, or a system of Revenue Department (a tax issuer shall send the electronic information to Revenue Department within 3 working days as of the tax invoice date.)
The contents and issuance period of a tax invoice or a debit note or a credit note for the current tax invoice and e-Tax Invoice are similar.
Risk on Providing Tax Advice of Accounting Firms
In the seminar on cooperating with accounting firms for quality tax advice held on 18 July 2017 by Revenue Department (RD). The Director-General raised issues on guidelines of taxable administration and roles of accounting firms that RD has developed risk based audit system (RBA). The RBA system is beneficial to selection of risked tax payers and selection of inspection tools matching with taxpayers’ behavior. Internal and external information are required for risk assessment so that the RBA system will be impartial, transparent, and standardized. Initially, RD shall invite accounting firms to provide some suggestions so that RD can improve and amend the RBA system. When the National e-Payment system is completed, accounting firms will play important roles in accounting information analysis and tax counsel for a business person, such as preparing/delivering/retaining e-tax invoice or e-receipt.
Moreover, in the issue of risk on providing tax advice for a business person, any accounting firm intends to conceal facts, create false expenses, participate in issuing or using forged tax invoices, and request false tax refund shall be considered committing criminal offenses. Also, the accounting firm shall be punished or fined under Accounting Act B.E. 2543 (2000) and certificates of the
0auditors or accounting professionals of such firm shall be revoked.
Index of legal movement in relation to business
Interested tax news
Supreme Court Judgment No. 13253/2558
Royal Decree Issued under the Revenue Code on Tax Exemption (No.640) B.E. 2560 (2017)
Prescribing a Form and Procedures for Informing of Business Dissolution or Moving an Office or an Establishment of a Foreigner (No.2) B.E. 2560 (2017)
Prescribing Service Business not subject to Application for Foreign Business Permission (No.3) B.E. 2560
Ministerial Regulation No. 328 (B.E. 2560) issued under the Revenue Code on Income Tax
Ministerial Regulation No. 329 (B.E. 2560) issued under the Revenue Code on Income Tax
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 (No.2)
Director-General Notification Regarding Inheritance Tax (No.5)
Application form for the payment of inheritance tax by installations
Notification of the Director-General of the Revenue Department on Income Tax (No. 294)
Rules, Procedures, and Conditions to Reduce a Rate and Exempt Income Tax of a Company Carrying on Business in a Special Development Zone
Notification of the Director-General of the Revenue Department on Income Tax (No. 295)
Rules, procedures, and conditions for the purpose to exempt income tax for money or any benefits that the director, the executive, the instructors, or the educational staffs of the private school derive when leaving a job because of being aging, disability, or death
Notification of the Director-General of the Revenue Department on Income Tax (No.296)
Prescribing submission of tax return, payment of tax and place of tax return submission
Notification of the Director-General of the Revenue Department on Income Tax (No.297)
Prescribing submission of tax return, payment of tax and place of tax return submission
Notification of the Director-General of the Revenue Department on Income Tax (No.300)
Rules, Procedures and Conditions of Exemption from Corporate Income Tax on Income Paid for Investment or Additional, Change, Expansion or Improvement of an Asset but not for Repair in order to maintain its Present Condition under Section 65 Ter (5) of the Revenue Code
Department Instruction No.Taw.Paw 280/2560
Ordering payers of assessable income under Section 40 of the Revenue Code having the duty to deduct withholding tax
Notification of the Customs Department No. 47/2560
Methods on Receiving a Petition and Consideration of Claimed Matters of Customs Department
Ruling No. 0702/ 935 Date Dated 9 February 2017
Personal income tax in case of dispatching an employee to work overseas
Ruling No. GorKor 0702/8591 Date 23 September 2015
Withholding tax in case of tax refund
Ruling No. GorKor 0702/9205 Date 8 October 2015
Withholding tax in case of tax refund