Summary: The Thai government (“Government”) announced changes to certain regulations under the Thai Revenue Code (“Revenue Code”) to reflect the growth of the Thai economic status and cost of living. Most notably were changes to the rules on deduction of personnel expense, personal allowances and personal income tax rates.
For greater incentive to carry on business, the Government is encouraging business owners to establish a legal entity having only one shareholder by providing additional tax benefits to companies incorporated between 10 August 2016 and 31 December 2017 upon transfer of individual assets as payment in kind for capital payment in such company. → Read more
With the recent break-up between a major US Cola Company and its franchise bottler and sole distributor in Thailand, Company A, the US beverage giant has to maintain its distribution and availability in the Thai market. The cola giant was confronted by this dilemma since its franchise agreement with Company A ended in November 2012 when Company A declared it was not going to sign a new agreement. → Read more
The demand for up-to-date and diversified infrastructure and public services are increasing which mainly comprise of large projects that require high-value investments. The public sector, imposed with the duty to provide adequate infrastructure and public services for the needs of its people, is thus required to establish efficient infrastructure at a minimum of expense. Hence, the plan to allow private sectors to jointly operate in State undertakings for providing infrastructure and public services has been established. → Read more
At present, many businesspersons, especially foreigners, are not aware of or do not understand whether or not they need to allow their employees to have days off on the traditional public holidays such as Visakhabucha Day, Asarnhabucha Day, Chulalongkorn Memorial Day, Chakri Day, etc. as announced by the government, or whether or not they are able to postpone such public holidays and allow their employees to have days off on other days rather than such public holidays. This can cause many problems in the management of a business as employers may be faced with legal proceedings brought upon by their employees and be penalized by relevant laws. Therefore, in order to bring an understanding to the issue of traditional public holidays, details of the same are laid out below. → Read more
On 5 February 2013, the Cabinet approved the resolution regarding the proposal of the Non-Life Insurance Bill and the Life Insurance Bill for amendment of the Non-Life Insurance Act B.E. 2535 (1992) and Life Insurance Act B.E. 2535 (1992) (the “Bills”) to the House of Representatives for deliberation as an urgent matter. On 21 March 2013, the House of Representatives passed the resolution to accept the principle of the Bills, which are currently under consideration of the Ad-hoc Committee. → Read more
Today creative work, the product of its creator’s perseverance which is protected by the copyright law, is created or displayed not only on tangible media like paper, fabric or ceramic but also on intangible media, widely known as digital media, like CD, DVD or the Internet. As Thailand’s current copyright law, which provides protection for the copyright owner’s rights as well as imposes penalty for infringement, is not sufficient to protect those creative work on digital media, infringements on copyrighted work have skyrocketed. → Read more
In November 2002, leaders of the Association of the South East Asian Nations (ASEAN) agreed on the proposed creation of an ASEAN Economic Community (AEC) by 2020. This was followed by the adoption of the AEC Blueprint in 2007 along with the affirmed and strong commitment by leaders to accelerate such economic integration by 2015. It is easy or perhaps deceiving for one to compare the AEC with the European Union (EU) with much excitement and enthusiasm for that the name ‘Economic Community’ itself is suggestive to those of the EU’s experience. However, one must realize the difference between the EU and the AEC as confirmed by the Governor of the Bank of Thailand, Dr. Prasarn Trairatvorakul’s address at Sasin Update-Reunion 2011: “The AEC is not, and has no intention of transforming ASEAN into a European style union. We should refrain from perpetuating any grand, Euro-style visions. ASEAN lacks supranational policy-making bodies like the European Central Bank or the European Commission which are required to make such an entity function properly.” → Read more