The draft of Ministerial Regulation on Revenue and Expense Computation with Related
Companies or Juristic Partnership, and the draft of Ministerial Regulation prescribing certain
Companies or Juristic Partnership not subject to Section 71 Ter of Revenue Code
On 18 June 2019, the Cabinet passed resolution on approval of the draft of Ministerial Regulation No… (B.E…) issued under Revenue Code on revenue and expense computation of related companies or juristic partnership, and the draft of Ministerial Regulation No… (B.E…) issued under Revenue Code on prescribing certain companies or juristic partnership not subject to Section 71 Ter of Revenue Code as proposed by Minister of Finance. Both drafts will be submitted to the Office of Council of State to take them into account afterward.
Both drafts of Ministerial Regulations contain the essence as follows:
- The draft of Ministerial Regulation No… (B.E…) issued under Revenue Code on revenue and expense computation with related companies or juristic partnership prescribes rules, procedures, and conditions on auditing transfer pricing. However, since this draft is not yet disclosed, we don’t know further details of this Ministrial Regulation.
- Te draft of Ministerial Regulation No… (B.E…) issued under Revenue Code on prescribing certain companies or juristic partnership not subject to Section 71 Ter of Revenue Code prescribes exemption for a company or juristic partnership, having income derived from carrying on business or as a result of carrying on business in an accounting period not exceeding Two Hundred Million Baht, not be required to report information on related companies or juristic partnership (Disclosure Form) and not be required to submit a document or evidence on necessary information for analysis on transaction requirements of related companies or juristic partnership (Transfer Pricing Documentation). This shall apply for income of the company or juristic partnership, of which an accounting period starts in or after 1 January 2019 onwards.However, since this draft is not yet disclosed, we don’t know further details of this Ministerial Regulation.
Amendment Act on Asset Management Company Law
On 16 April 2019, the Amendment Act of Emergency Decree on Asset Management Company B.E. 2541 (1998) (No.2) B.E. 2562 (2019) (“Amendment Act”) was promulgated and published on Government Gazette. This Amendment Act shall come into force since 17 April 2019 onwards. According to the Amendment Act, the scope of business of Asset Management Company has been expanded, including buying, transferring, managing NPLs (non-performing loans) of financial enterprises who are not financial institutions, and providing advice on debt restructuring for debtors (especially SMEs enterprises), financial institutions, or financial enterprises. As a result, Asset Management Company is capable of managing entire NPLs. In addition, Ministry of Finance and Bank of Thailand, who supervise Asset Management Company, should have practical guidelines or measures on support to resolve the problems of the debtors of the financial institutions or financial enterprises.
The essence of the Amendment Act are as follows:
- Amending the definition of “Asset Management”, “Non-performing Asset” and “Financial Institution” as well as adding the definition of “Financial Enterprises” and “Person in Management Authority”
- Amending the business operation of Asset Management Company. Only when being approved by the Bank of Thailand, the Asset Management Company can undertake to buy, transfer, manage NPLs and also can be a debt restructuring advisor.
- Adding prohibited characteristics of the person who is or acts as a director or Person in Management Authority of Asset Management Company. Also, adding punishment of Asset Management Company when violating or failing to comply with provisions as well as punishment of Person in Management Authority who orders, acts, or omits to do so, causing Asset Management Company to commit an offense.
- Adding the business operation of Asset Management Company that can engage in some business of financial enterprises. And the Asset Management Company shall not be subject to the specific law of the financial enterprises.
- Adding restrictions on transfer of non-performing assets of financial enterprises to Asset Management Company. For example, the asset transfer will not be exempt from fees and tax.
- Adding punishment in case a director or Power in Management Authority of Asset Management Company thrives on illegal exploitation of benefits
Amendment Act on Land code (No.15) B.E.2562(2019) and the Act on concerning Property Valuation for state’s Interest B.E.2562(2019)
On the date 25th May B.E. 2562 (2019) Amendment Act on Land code (No.15) B.E.2562(2019) and the Act on concerning property Valuation for state’s Interest B.E.2562(2019) shall enforce after passed 180 days from the date of announcement (25th May B.E. 2562 (2019)).
The reason and necessity on the promulgation of this Act is to prescribe policy concerning property Valuation at present of Thailand which lack of clarity .As a result , there is no guideline for practice of relearnt agencies as a result control ,Management of concerning property Valuation of Thailand .Moreover Reorganization of Ministry ,Sub – Ministry and Department Act , B.E.2545 commanded Ministry of Finance to have the power and duties relating to proper property valuation and deserve must have the property valuation committee for state’s interest and provincial property valuations committee for state’s interest to have duty of concerning property Valuation and accounting preparation of property Valuation appraisal values used as reference criteria or property tax collation and registration fee under the law or other benefits of any government agencies collection .
- Amendment Act on Land Code (No.15) B.E.2562 (2019) has an essence as follows: There is amendment criteria for calculation of registration fee and juristic act by using new price of concerning property under “accounting of property Valuation under concerning property Valuation for state’s interest law
- The act on concerning property Valuation for state’s interest B.E.2562 (2019)
- Prescribed that an amendment to the definition of “land” and “construction” to be clear. (Section 4)
- Prescribed that objective of concerning property Valuation to be clear and cover of taxation collection, registration fee and justice act under the law include Application for operation of government agencies (Section 5).
- Adjust element of property valuation committee to be Appropriate and consistent with duties of related agencies by Permanent Secretary as Director (Section 6).
- Prescribed that property valuation committee has duties of determine policy of property valuation , Rules or guideline of property valuation and Counseling in business related to property valuation(Section 7).
- Prescribed that the provincial property valuation committee has authority to specify the property valuation which is land, buildings located on this province and provide the list of price of property valuation and maps attached with property valuation. (Section 12-14).
- prescribed that the owner’s property is entitled to oppose of the property valuation to the provincial property valuation committee which the property located on that province according to the prescribed criteria. (Section 18)
- Prescribed that the Minister of Finance has authority to publish for valuate other properties valuation other than the provision in order for economy benefit. (Section 23)
- Government agencies, state enterprises ,or the government agencies can request the treasury department to value property for specific purpose. (Section 25)
- Prescribed that the property valuation committee, the provincial property valuation committee and the competent officer who perform according to this act shall be an officer according to the criminal code. (Section 27)
- Prescribed that when the list of property valuation according to this act has not promulgated yet, there shall apply the list of property valuation for charging of right and juristic act registration fee according to the Land code which having been effective before the enforcement of this act to be as the list of property valuation according to this act until the promulgation of the list of property valuation for the first time all over the country. (Section 28)
- assure that the ministerial regulation, notification , rule, or regulation about the property valuation for charging of right and juristic act registration fee according to the land code has been effective before this act shall enforce until the secondary law according to this act shall be effective. (Section 29)
The Cybersecurity Act B.E. 2562 (2019)
The Cybersecurity Act B.E. 2562 (2019) was promulgated and published into the Government Gazette on 27th May 2019 which shall enforce next to the date that published into the Government Gazette (28th May 2019) (“PDPA”) The reason and necessity on the promulgation of this Act is by currently the service or application of computer networks, internet, telecommunication networks or the normal service of the satellite, there is a risk of cyber threats which may affect the stability of the state and contrary to public order in country. Therefore, to be able to prevent or cope with cyber threats in time, necessary to determine the nature of the mission or service that is important as important information infrastructure both government agencies and private organization that shall be protect, cope and risk reduction with cyber threats, not affect to the security of various aspects including having a unit to be responsible for coordinating operations both government agencies and private organization. Whether, in general situations or situations that serious danger to security as well as set out an action plan and measures to maintain cyber security with unity and continuity which will help to prevent and cope with cyber threats effectively. Therefore, need to enact this Act.
Personal Data Protection Act B.E. 2562 (2019)
On 27 May 2019, Personal Data Protection Act B.E. 2562 (2019) has been promulgated in the Government Gazette which the Personal Data Protection Act B.E. 2562 (2019), in the categories relating to the establishment of the Personal Data Protection Committee and the Office of the Board of Personal Data Protection shall effective from the following date of the date publication in the Government Gazette (28 May 2019) and other parts relating to the protection of personal data shall come into force after past of one year from the date of publication in the Government Gazette onwards (28 May 2020).
The reason and necessity for the promulgation of this Act: The current, violation of privacy rights of personal data is so large that it can cause annoyance or damage to the owner of personal data. In addition, the advancement of technology allows the collection, use or disclosure of personal data more easily, conveniently and quickly, causing damage to the economic as a whole. Should have a law on the protection of personal data to determine the rules, procedures or measures governing on protection personal data as general principles Therefore, need to enact this Act.
Personal Data Protection Act B.E. 2562 (2019) has the essentials as following: –
- Collection, use or disclosure of personal data will not be able to do if the owner of personal data does not give consent before or at that time by requesting consent must be made in writing or made through electronic system together with inform the purpose of collecting, using or disclosing personal data as well.
- Those who have a duty to collect personal data shall provide appropriate security measures to prevent loss, access, use, change, correction or disclosure of personal data without authorities or unlawful.
- The owner of personal data has the right to request that the controller of the personal data to remove or destroy or make such personal data to unable to identify the person who owns the personal data.
- If there is a violation, there will be an imprisonment not exceeding 6 months to 1 year or a fine not exceeding 500,000 to 5 million baht or both.