Tax News No. 257 May 2018

Tax News No. 257 May 2018

Index of legal movement in relation to business

Topix

Amendment of Workmen’s Compensation Act

A draft of Workmen’s Compensation Act B.E. … has been being considered by National Legislative Assembly in the second agenda. The essential amendment is to

  1.  Extend a scope of employee’s protection in the case of employees of governmental section, employees working for employer’s organizations witn non-economic profit, and employees working for Embassy of other states and international organizations in Thailand.
  2. Amend rules, conditions, and increase a rate of medical expenses, vocational rehabilitation costs, and funeral expenses for the employee who is suffered from danger or is died after being injured. For example, there shall be increase compensation from 60% to 70% of a monthly salary, extension of compensation payment inthe case of a disabled employee to not less than 15 years and in the case of a deceased employee to not less than 10 years, etc.
  3. Amend rules of compensation payment from paying to the employee who cannot work 3 days consecutively to paying to the employee who cannot work since the first day. There shall be increase the amount of funeral expenses paid to a person taking care of a corpse under the rate as specified by Ministerial Regulation.
  4. Decrease surcharges in case where the employee has outstanding contribution from 3% to 2% per month. There shall be rules of surcharge calculation. And the maximum amount of the surcharges shall not exceed the amount of contribution paid by the
    employer.

Amendment of Revenue Code regarding Tax Imposition on Digital Property

On 13 March 2018, the Cabinet passed a
resolution for approval of the draft of Emergency Decree on Amendment of Revenue Code (No…) B.E. … (tax imposition on digital property). At the moment the digital property is applied to business and economic activities, and it tends to rapidly increase.
Therefore, the Cabinet considered to amend Revenue Code so that an income recipient earning the income as a result of digital property and a business person carrying on business on digital property shall pay tax legally and accurately. The essential
amendment is to

  1. Specify the definition of digital property in Section 39 of Revenue Code. That is digital property means (1) cryptocurrency (2) token digital (3) property in a form of other electronic information as prescribed by Ministry of Finance
  2. Add a type of assessable income under Section 40 (4) of Revenue Code.There shall include monetary profit share or other benefits derived from digital property (a draft of Section 40 (4)(h)) and benefits, which is monetary income and is worth more than investment amount, derived from transfer of digital property (a draft of Section 40 (4)(i)).
  3.  Add the rate of personal and corporate income tax for assessable income under the draft of Section 40 (4)(h) and 40(4)(i). A natural person shall be levied on withholding tax in the rate 15% of the above assessable income; whereas, a juristic person shall be levied on withholding tax in the rate as prescribed by Ministerial Regulation and Department Instruction.

Amendment of Escrow Act

On 10 April 2018, the Cabinet passed a resolution for approval of the draft of Escrow Act (No…) B.E. … as proposed by Ministry of Finance. At present, the draft has been being considered by the Office of State Council and shall represent the draft to National Legislative Assembly later. The essential amendment is to

  1.  Add the definition of “Party” so that an escrow agreement shall cover all kinds of agreements. Previously, there is only a party under a non-reciprocate agreement; however, there shall be added a party under a reciprocate agreement to thedraft.
  2.  Amend an escrow agent’s responsibilities, that is, the escrow agent shall (1) carry out the party to perform obligation within a schedule period, (2) retain money, property or evidence and documents delivered by the party (for instance, in any agreement containing a payment term, the escrow agent shall open an account, deposit money to the account, issue a deposit certification letter), and (3) deliver money or transfer ownership, property rights to the party (for instance, in the case of a real estate, the escrow agent shall issue a letter to a legal officer to inform of the delivery of a land title deed or a condominium unit title deed from a party to another party.)
  3.  Authorize the Escrow Supervisory Commission to supervise and support escrow business, and to impose an administrative penalty (a fine) on the escrow agent violating or failing to abide by notifications as prescribed by the Commission.

Extension of Filing Accounting Documents through the Internet System

Director-General issued Notifications of Director-General on 27 April 2018. The subject is to extend the period of filing a balance sheet, a working paper, and profit and loss accounts, income and expenditure accounts or income accounts prior to expenditure deduction which is audited and certified by the person under Section 3 Septem of Revenue Code in the accounting period under Section 69 of Revenue Code “Accounting Documents” (No. 3). A company and juristic partnership who filed a corporate income tax return through the Internet system can have extension of filing Accounting Documents for 8 daysafter the expiration date of filing the Accounting Documents. This extension can be applied to the company or juristic partnership, of which its scheduled last date of the accounting period for filing the Accounting Documents is as of 31 May 2018 until 31 January 2019.

Interested tax news

Ministerial Regulation No.335 B.E. 2561 (2018) Issued under Revenue Code on Revenue Exemption

Ministerial Regulation   No.337  B.E. 2561 (2018) Issued under Revenue Code on Revenue Exemption

Ministerial Regulation

Prescribes the official fee rate, reduction and exemption of official fee for registration, check documents, certified copy of documents and other official fee which related to the company and juristic partnership B.E.2561(2018)

Notification of the Director-General of the Revenue Department Governing Income Tax (No.318)

Prescribing submission of tax return, payment of tax and place of tax return submission

Explanation of the Revenue Department

Regarding to Preparation, Delivery and Retention of e-tax invoice and e-receipt (No.2) B.E.2560 (2017)

Ruling No.Gorkhor 0702/881    Date    31 January 2018

Personal Income Tax; in case of exemption severance pay under Labour Law

Ruling No.Gorkhor 0702/2065   
Date    9 March 2018

Personal and corporate income tax in the case of the employee’s benefits

Ruling No.Gorkhor 0702/2167   Date    14 March 2018

    Corporate income tax in the case of tax refund

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