Tag: Property and Real Estate

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Thailand’s BOI Incentives: Driving Business Competitiveness

Thailand’s Board of Investment (BOI) has introduced targeted incentives aimed at boosting the competitiveness of eligible businesses across various sectors in the local market. Here is a breakdown of the key programs and their benefits:

  • Upgrading Automotive Industry (BOI’s Notification No. 2/2566)

Existing BOI-promoted automotive projects can reapply for a 3-year corporate tax exemption if their previous benefits have expired. They must invest at least 1 million THB in automation and robotics manufacturers (excluding land and working capital). The new investment project must support the domestic industry by 30% of the total automation system and robotics value to qualify for a 3-year corporate income tax exemption.

  • Community and Social Development (BOI’s Notification No. 1/2567)

Active projects and new investment projects must have a minimum capital investment of 5 million THB (excluding land and working capital costs). Additionally, they must invest a minimum of 500,000 THB in supporting local organizations, such as social enterprises and unions, to qualify for a 3-year corporate income tax exemption.

  • Retention and Expansion Program (BOI’s Notification No. 2/2567)

Businesses with a long-standing presence of not less than 15 years and a significant investment history of not less than 10,000 million THB from at least 3 projects can get benefit from this program. Expansion projects with an investment value of at least 500 million THB (excluding land and working capital costs), will receive corporate income tax exemptions of 3 up to 13 years depending on the business’s category. The range of tax exemptions varies depending on the businesses categorized by the BOI office.

person in welding mask while welding a metal bar
  • Comprehensive Relocation Program  (BOI’s Notification No. 3/2567)

To encourage foreign investors in relocating integrated businesses, including manufacturing facilities, regional headquarters, and research and development centers, new investments that are eligible to receive BOI incentives of 3 up to 8 years of corporate income tax exemption under this promotion must submit manufacturing projects applications for investment promotion of the International Business Center (IBC) and an applicant must undertake the substantial functions of regional headquarters and/or R&D centers as indicated.

  • Economic Recovery  (BOI’s Notification No. 4/2567)

The activities categorized in group A such as businesses related to public utilities or the automotive industry are entitled to receive corporate income tax exemption not exceeding 8 years with the additional rights and benefits of 50% reduction from the standard corporate income tax rate applies to net profits derived from the investment for a duration of 5 years after the expiration of the corporate income tax exemption.  

Author: Panisa Suwanmatajarn, Managing Partner.

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Accommodating Foreigners Coming to Thailand: Proposed Amendments to the Immigration Act

The current Immigration Act B.E. 2522 (1979) is considered outdated and in need of revision to better accommodate the needs of foreigners seeking to enter the country. The proposed draft of the Immigration Act (No…) B.E. …. (“Draft”) aims to address these concerns by streamlining procedures and reducing bureaucratic obstacles for foreigners and relevant individuals.

Proposed Amendments

1. Notification Requirements for Foreigners Staying in Thailand

The Draft proposes the elimination of certain notification requirements for foreigners staying in Thailand. Specifically, the requirement for foreigners permitted to temporary stay in Thailand, but not engaged in occupation or employment, to notify the competent officer of their residing address leaving only for foreigners wishing to extend their stay beyond 90 days to notify the competent official at the Immigration Bureau of their residence. additionally, the Chief of the National Police will be granted the authority to specify the procedure, method, and duration for this notification.

2. Residing Notification Duties

Under the Draft, the duties for notifying the address of temporary residents will shift from the owner, possessor of dwelling, or hotel manager to notify a competent official in-person at the local Immigration Bureau or local police station to be by an online mean as an option. This is to facilitate the notification process and reducing the need for in-person visits to immigration offices or local police stations.

low angle photography of high rise building

3. Quota for Annual Residence in Thailand

The Draft includes provisions for amending the quota of foreigners eligible for annual residence in Thailand. The Cabinet will have the authority to specify the number of foreigners permitted to have annual residence in Thailand, not exceeding 100 people per country per year, and 50 people per year for stateless individuals. The determination of the number of foreigners eligible for annual residence will be made in consideration of mutual support principles and the necessity and security of the state.

4. Changes in Liabilities for Non-Compliance

The Draft also include changes to the liabilities for non-compliance with notification requirements. Rather than criminal fines, the draft introduces disciplinary fines for any foreigner, owner, or possessor of a dwelling, or hotel manager who fails to notify the competent officer.

The Draft proposed amendments to the Immigration Act B.E. 2522 (1979) was passed the process of public hearing and will need to be passing the process of consideration by the parliament before becoming into force.  

The proposed amendments to the Immigration Act B.E. 2522 (1979) in Thailand seek to modernize and streamline the immigration process, while also addressing the needs and concerns of foreigners seeking to stay in the country. It is an important step towards ensuring a more efficient and transparent immigration system that aligns with the current realities and requirements of all parties involved.

Author: Panisa Suwanmatajarn, Managing Partner.

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Modernizing Hospitality: An In-Depth Look at the Proposed Amendments to the Hotel Act

Introduction:

The proposed amendments to the current Hotel Act (B.E.2547, 2004) aim to revolutionize the hospitality industry by streamlining and modernizing the responsibilities of hotel managers. These changes primarily focus on the documentation and reporting processes related to guest information, as well as the electronic submission of the lodger registration card. Additionally, the bill includes provisions to establish guidelines for the development of electronic systems. This article delves into the key points of the proposed amendments, shedding light on their potential impact.

Amendment of the Duties of Hotel Managers:

One of the main aspects of the bill involves amending the duties of hotel managers regarding the recording of guest information, as stipulated in Section 35 of the current Hotel Act (B.E.2547, 2004). Specifically, the proposed amendments advocate for the adoption of electronic methods to record guest details, with a primary focus on the “Lodger Registration” (Form Ror. Ror.4). This shift aims to minimize unnecessary burdens on both guests and hotel managers. Additionally, the bill seeks to eliminate the requirement for guests to fill out the “Lodger Registration Card” (Form Ror. Ror.3), which will relieve hotels from completing the lodging registration card within 24 hours and retaining it for at least one year.

man covering face with frame

Electronic Submission of Guest Information to the Registrar:

The bill proposes significant alterations to the responsibilities of hotel managers outlined in Section 36 of the current Hotel Act (B.E.2547, 2004). These changes primarily pertain to the submission of guest information to the Department of Provincial Administration, known as the Registrar. The proposed amendments advocate for the adoption of electronic means to transmit guest data within a 24-hour period. Moreover, the Registrar will be entrusted with forwarding information related to foreign guests to the Immigration Bureau, aiming to simplify legal compliance and promote inter-agency data sharing. This amendment seeks to relieve hotel managers from the direct obligation of sending information regarding foreign guests to the Immigration Bureau. Furthermore, the bill proposes expanding the legal provisions that outline the roles of the Registrar in collecting, aggregating, and disclosing guest information received from hotels. This expansion aims to ensure that the government can effectively utilize the data for security and research purposes related to tourism and the development of the hotel industry, in line with relevant laws and principles set forth by the Digital Government Development Agency (Public Organization) (DGA).

Change of Administrative Fines to Disciplinary Fines:

To streamline the legal framework, the bill also proposes amending the administrative fines associated with Sections 35 and 36 of the Hotel Act (B.E.2547, 2004), replacing them with disciplinary fines.

Conclusion:

In conclusion, the proposed amendments to the Hotel Act (B.E.2547, 2004) place a strong emphasis on leveraging electronic systems, reducing administrative burdens, and promoting efficient data sharing among government agencies. The objective is to enhance the overall effectiveness of the law while aligning it with contemporary technological advancements and administrative practices in the hospitality industry. Furthermore, the bill updates its penalty provisions to include the adoption of disciplinary fines, streamlining the legal process of imposing penalties. As of now, the bill is undergoing a public hearing process until January 31, 2024. These amendments have the potential to shape the future of the hospitality industry, fostering efficiency and innovation while ensuring compliance with relevant laws and regulations.

Author: Panisa Suwanmatajarn, Managing Partner.

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Proposed 4th Revision of the Bangkok Unitary Town Plan and its implications

Introduction

Town planning, a crucial aspect of urban and rural development, plays a significant role in shaping cities and communities. In Thailand, the Town Planning Act B.E. 2562 (2019) (“Town Planning Act”) defines the process of town planning as the formulation and implementation of development plans that align with national, regional, provincial, and local economic and social goals. Its objective is to enhance living conditions, infrastructure, safety, and welfare in both urban and rural areas while preserving cultural and natural assets for sustainable community development. This article explores the implications of the Town Planning Act on the changing landscape of urban planning in Thailand, with a particular focus on the proposed revisions to the Bangkok Unitary Town Plan.

Understanding of Unitary Town Planning

According to the Town Planning Act, unitary town planning encompasses a comprehensive framework for urban development. It involves the formulation of a territorial map that details topography, altitude, and geographic coordinates, along with specific plans categorized by land use, open spaces, communication and transport projects, public utilities, and environmental considerations. Additionally, the unitary town planning provides guidelines for the floor area ratio (FAR) bonus rate. The FAR bonus rate is a zoning incentive that increases the size of individual construction projects by allocating a higher floor area ratio, which reflects the total square footage of the building divided by the area of the lot. The plan also incorporates supplementary particulars and stipulations related to land use, ensuring compliance with the objectives of the Town Planning Act.

aerial shot of road and buildings

The Proposed 4th Revision of the Bangkok Unitary Town Plan

Currently, the 3rd revision of the Bangkok Unitary Town Plan, enforced since 2013 by the virtue of the Ministerial Regulation to Enforce the Unitary Town Plan of the Bangkok Metropolitan Area B.E. 2556 (2013), is being scrutinized for proposed updates. The Bangkok Metropolitan Administration (BMA) has put the 4th revision of the Bangkok Unitary Town Plan, as the existing plan has been in force for over 10 years without necessary updates in many areas. The proposed revision aims to address this issue and adapt to changing urban dynamics.

Notable Changes in the 4th Revision

The 4th revision of the Unitary Town Plan introduces several significant changes. Notably, the Rattanakosin Island area, which encompasses most of the Phra Nakhon District, will be reclassified from a Thai art and cultural conservation zone to a high-density residential zone, commercial zone, and government agency zone. Additionally, the FAR bonus rate is expected to increase by up to 20%. Several areas, such as the Ratchayothin area in the Chatuchak Sub-district/District, where the red, green, and yellow train lines pass through, will transition from a medium-density residential zone to a high-density residential zone.

Status of the Proposed 4th Revision

As of now, the 4th revision of the Bangkok Unitary Town Plan is undergoing a public hearing process until February 29, 2024. The BMA anticipates that the new plan will be enforced by 2025.

Conclusion

In conclusion, town planning in Thailand, guided by the Town Planning Act, is a vital process that involves the formulation and implementation of development plans. The proposed revisions to the Bangkok Unitary Town Plan reflect a proactive approach to adapt to changing of urban dynamics and optimize town planning strategies. By reclassifying areas and modifying density regulations, the plan aims to address the evolving needs of the city. With the proposed 4th revision currently in the public hearing stage, the landscape of urban planning in Thailand is set to undergo significant transformation in the near future.

Author: Panisa Suwanmatajarn, Managing Partner.

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Proposed Rehabilitation Processes for Small and Medium Enterprises (SMEs)

In 2016, the regulation concerning small and medium enterprises (“SMEs”) was initially introduced to aid SME owners in managing their debts through rehabilitation processes that safeguard the interests of both debtors and creditors.

However, as of 2023, there are over 3 million SMEs in Thailand, playing a critical role in driving the country’s economy. Recognizing this, the Legal Execution Department has expressed a keen interest in ensuring the well-being of SMEs. To this end, they have conducted a public hearing on the draft amendment of the Bankruptcy Act B.E. 2483 (1940), specifically focusing on the business rehabilitation processes for SMEs. Consequently, active efforts are underway to formulate regulations.

In the past, debtors seeking to manage their debts through rehabilitation processes were required to adhere to the provisions outlined in the Bankruptcy Act B.E. 2483 (1940). These requirements included being insolvent and indebted to one or multiple creditors. However, the recent introduction of business rehabilitation proceedings for SMEs has brought about a new rule by eliminating the requirement of being an insolvent person. This means that anyone, regardless of their solvency status, can now initiate the rehabilitation processes.

The recent amendment to the Bankruptcy Act B.E. 2483 (1940) aims to simplify the business rehabilitation processes, making it more accessible for small debtors. This simplification is driven by the current economic and social conditions, and it offers several benefits for debtors. Notably, it introduces a new section that includes an accelerated business rehabilitation processes.

The key summary of the amendments is as follows:

  1. Broadening the definition of debtors in Section 90/91: Previously, the term “debtor” was limited to those specifically prescribed by the Office of SMEs Promotion (OSMEP). The amendment expands the definition to include any juristic person, regardless of the legal classification of SMEs. This change provides SMEs business owners with the opportunity to participate in business rehabilitation, enabling them to restructure their debts and maintain the continuity of their businesses.
  • Revision of the debt threshold in Section 90/92: When a debtor is unable to pay one or several creditors in aggregate, they may file a petition with the court for business reorganization. For individual debtors, the debt threshold has been lowered from 2 million baht to 1 million baht. For juristic persons, the threshold has been revised from not less than 3 million baht to not less than 2 million baht, with an upper limit of 50 million baht. These changes apply regardless of the debtor’s financial status or the number of creditors involved. However, both types of debtors must demonstrate a reasonable cause and prospects for the reorganization of their businesses.
  • Extension of the Business Reorganization Plan (“Plan“) period in Section 90/96(9): Recognizing that a 3-year plan may be insufficient, the amendment extends the Plan period from 3 years to 5 years. This extension aims to enhance efficiency and provide debtors with more opportunities to effectively proceed with their reorganization efforts while ensuring that creditors receive full payment of their debts.
  • Removal of certain rehabilitation processes in Section 90/95: Prior to the draft amendment, individuals seeking business reorganization has to wait for a court order granting absolute control over their property and approval of the Plan before filing a petition for reorganization. This process involved strict legal requirements, such as providing reasons for business reorganization, detailed asset information, and principles and methods, as per Section 90/96 of the Bankruptcy Act B.E. 2483 (1940). These requirements often proved time-consuming and costly. The draft amendment has eliminated some of these processes, allowing debtors or legally authorized individuals to initiate the plan. This change allows both debtors and one or several creditors of the debts arising from a business operation to take the necessary steps toward rehabilitation.
low angle photography of glass buildings

However, the recent amendment to the Bankruptcy Law B.E. 2483 (1940) is currently pending approval from the Council of Ministers. After this, the next stage will involve the draft amendment proceedings to the Members of the Parliament for consideration and approval before proceedings to the King’s endorsement and publish in the Royal Gazette.

Author: Panisa Suwanmatajarn, Managing Partner.

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Q&A Statement Issued by Revenue Department Clarifying Taxation Applied on Foreign-Sourced Income

The Revenue Department recently issued an Order no. Por.161/2566 on September 15, 2023, with an official announcement published in the Royal Gazette on October 6, 2023 (“Order”). This Order provides important clarifications regarding the taxation of foreign-sourced income, specifically in relation to Section 41 paragraph 2 of the Revenue Code.

To make these clarifications more accessible, the Revenue Department has also released a Q&A infographic statements, accompanied by practical examples addressing various scenarios that taxpayers may encounter, where the key points are summarized as follows for your reference:

(1) Resident Status Rule: The Order interprets Section 41 paragraph 2 of the Revenue Code, which mandates that a resident of Thailand who earns assessable income from sources outside Thailand or from properties located outside the Thailand must pay personal income tax upon bringing such income into Thailand. A resident of Thailand, in this context, is defined as an individual who spends a total of 180 days or more in Thailand within a given year, regardless of whether such individual resides in Thailand continuously throughout the year, if they accumulate a total of 180 days or more in Thailand, they are still considered a resident for tax purposes. For instance, if Mr. A resides in Thailand only during odd-numbered months, totalling 184 days in Thailand, he is still considered a resident.

calculator and pen on table

(2) Non-Resident Income: The Order explains that if a person is not a resident of Thailand during the year in which they earn income, they do not need to include that income in their tax calculations, even if they bring that income into Thailand in a subsequent year when they are a resident. For example, Mr. B earns income from a rental property abroad in a year when he is not considered a resident of Thailand. Then He brings this income into Thailand in a following year when he is a resident, he is not required to calculate such income as assessable income and shall not be subjected to taxation in the year that those money brought into Thailand.

Interest on Bonds and Debentures: The Order also addresses the taxation of income from buying bonds and debentures from outside Thailand. For example, if Miss C purchases bonds from foreign sources in a year when she is a resident of Thailand and subsequently brings the income into Thailand, she is only required to calculate assessable income from the interest on these bonds, not the principal.

Both conditions must be met for the foreign-sourced income to be taxed in Thailand. However, if such income has already been taxed in the source country and the person later brought the said income into Thailand. Thailand and the source country’s double taxation treaties (if any) will govern and determine whether such paid tax in the source country will be used as tax credits or tax exemptions.

It is important to note that this order applies to all taxpayers living in Thailand or planning to reside in the country. Non-compliance with the Revenue Code may lead to criminal penalties, including fines and imprisonment.

This summary provides an overview of the key points covered in the Q&A infographic issued by the Revenue Department regarding the taxation of foreign-sourced income. As these criteria will become enforced on the 1st July 2024, it is essential for the resident taxpayers to understand and adhere to these regulations to avoid penalty consequences.

Author: Panisa Suwanmatajarn, Managing Partner.

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Royal Decree on VAT Reduction under the Revenue Code

Previously, there was a proposed measure to subsidize elderly people by increasing VAT to 10% back to what specified in the Revenue Code and using 3% of the said VAT to assist elderly citizens in coping with their retirement lives. However, there has been no development on this matter since the Royal Decree regarding VAT reduction in accordance with Revenue Code no. 724/2564 (2021) (“Royal Decree”) is still in effect to extend the period of VAT reduction.

Currently, the Ministry of Finance believes that the Thai economy’s development in 2023 and the following year is vulnerable to risk factors such as volatility and economic slowdown, as the Thai economy is still recovering from the epidemic.  Furthermore, the Office of the National Economic and Social Development Council (“NESDC”) discovered that the Thai economy expanded by 1.8 percent in the second quarter, down from 2.6 percent in the first quarter of 2023. There are also the reduction of product exports and increasing of government spending. The business and household sectors are still struggling with rising expenses due to increasing interest rates and living expenses, as well as the implementation of the annual budget for the fiscal year 2024 is taking longer than usual.

money cash euro pay
Photo by Skitterphoto on Pexels.com

Thus, it is essential to ensure the country’s economic stability, support the recovery of domestic consumer expenditure, allowing the Thai economy to develop as expected, reduce the burden of living costs for the people, and promote trust in the business sector. As a result, the cabinet agreed to prolong the Royal Decree’s timeframe for keeping the VAT rate at 7% (including municipal tax) for another year, from 1 October 2023 to 30 September 2024.  

Author: Panisa Suwanmatajarn, Managing Partner.

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The Building Standard Will be Increased to Meet New Safety Requirements and Usage  

On August 15th, 2023, the cabinet in principle approved the Draft Ministerial Regulation No. .. (B.E. ….) issued by virtue of the Building Control Act B.E. 2522 (1979), where this Draft Ministerial Regulation will amend some provisions as set in the Ministerial Regulation No. 39 (B.E. 2537). The main purpose is to improve certain requirements on fire safety systems as well as requirements on the type and number of bathrooms and toilets to be appropriate in accordance with the current usage of each type of building. Many factors were considered to set new requirements.   New terms and definitions have been established, such as public building, which means a building that individuals can live or use for the benefit of public assembly, for the activities of official, political, educational, religious, social, and so on. In addition, the terms, i.e., separator, sanitary ware, water closet, urinal, bath, toilet, and bathroom also have been set.

The type of building has been revised to be as follows:

  1. Row unit houses, row houses, townhouses, semi-detached houses;
  2. Public building except theatre and service place, assembly building, restaurant, office, government office, factory, and commercial building;
  3. Common residential building with 4 or more units, condominium units, and dormitory;
  4. Warehouse; and
  5. Other kinds of buildings except items 1, 2, 3, and 4 with a height of 3 floors or more.

Several requirements have also been amended and added, and the examples of requirements below may be applied in full or in part to any of the aforementioned buildings as specified in the Draft Ministerial Regulation.

  1. Buildings must have fire prevention procedures.
  2. Buildings must have a portable fire extinguisher or fire extinguisher with component, characteristic, number, type, size, capacity, and installation in accordance with the Announcement of the Ministry of Interior.
  3. Buildings must have an alarm system with the number and location as specified. Furthermore, the buildings, with a total area of 2,000 m3, must have the said alarm system on each floor. (The fire alarm system must be able to detect the smoke and give a signal or sound to warn people in the building of fire and must be the emergency equipment both automatically activated and manually operated.)
  4. Buildings must have the building plan of each floor presented in a spot where it is simple to see and show the location of rooms, fire extinguishers, fire escape ladders, elevators, and the building plan itself. If the buildings have room for storing items, such as fire extinguished materials, or hazardous or flammable materials, such buildings must comply with the standards as specified by Clauses 6/1 and 6/2 of this Draft Ministerial Regulation.

The toilet and bathroom located in the aforementioned buildings are determined to meet the requirements of the building such as required material and equipment, cleanliness, privacy, minimum space of not less than 0.80 meters width, and ventilation system are also designed to be adequate and appropriate for the number of users. Furthermore, this Draft Ministry Regulation also specifies the distance between the bathroom and any location in the building.   The Draft Ministerial Regulation will be submitted to the Council of State for its consideration and after that it will be returned to the cabinet for its final consideration before publishing in the Royal Gazette.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s Carbon Credit Policy: The Push for Business Collateral

As a result of Thailand’s intention to reduce greenhouse gas (GHG) emissions at the 26th UN Climate Change Conference of the Parties, Thailand has established a Voluntary Carbon Market under the supervision of the Thailand Greenhouse Gas Management Organization (Public Organization), or TGO.  The establishment of the market is a result of the cooperation of businesses and organizations to voluntarily participate in the trading of carbon credits. Thailand’s carbon credit policy is under the Thailand Voluntary Emission Reduction Program (T-VER), in which TGO will register T-VER and certify the number of greenhouse gases that can be reduced or stored from T-VER. The amount of greenhouse gas that can be reduced or stored is called “carbon credits”.

Since carbon credits are traded in the market, they can be counted as an asset. This makes it possible to apply carbon credits to the financial services of banks in the form of a factor in environmentally friendly financing projects. Carbon credits can also be pledged as credit enhancement in these transactions, which helps to ensure that the project can meet its financing requirements. Additionally, carbon credits can be used as collateral in loans, particularly those used for climate-resilient investment projects, as they provide a measurable way to assess and manage climate-related risk. However, the specifics of how carbon credits can be used as collateral will depend on the financing agreement and the relevant legal and regulatory framework.

sky clouds building industry

According to the press release 2023 report on the Department of Business Development’s website, the Department of Business Development has discussed with relevant agencies pushing for “carbon credits” as business collateral. The carbon credit will likely be considered collateral in the future, said Mr. Tosapol Tangsubutr, Director-General of the Department of Business Development, who is urging people to plant valuable perennials on their land to create carbon credits. This corresponds to the Ministerial Regulation on Other Assets as Collateral B.E. 2561 (2018), which announced that perennials are assets that can be used as collateral to provide more business collateral. In summary, carbon credits are likely to be business collateral in the future, according to the Business Security Act B.E. 2558 (2015). There are additional issues to be studied, namely, what type of property carbon credits are classified as, valuation, credit granting process or procedure, property supervision, and collateral enforcement process including various minor details relating to the Business Security Act B.E. 2558 (2015) and comparing to foreign laws for more legal integrity.

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Lowering Withholding Tax under Ministerial Regulation no. 389/2566 (2023) issued by virtue of the Revenue Code

Previously, the Ministerial Regulation no. 144/2522 (1979) had been issued to impose conditions of withholding tax, and then the Ministerial Regulation no. 373/2564 (2021) was issued to amend the Ministerial Regulation no. 144/2522 (1979) regarding the rate of withholding tax.

Recently, the Ministerial Regulation no. 389/2566 (2023) has been issued on 10th March 2566 (2023) to amend the previous Ministerial Regulation in regard to withholding tax at a lower rate compared to the one specified in the Ministerial Regulation no. 373/2564 (2021) in order to encourage and support business entities to submit tax via electronic system.

The rate of withholding tax has been reduced from 2.0 to the rate of 1.0 for the taxpayer who pays from 1 January 2566 (2023) to 31 December 2568 (2025) and for the types of assessable income as follows:

  • The payment of assessable income under Section 40 (2) of the Revenue Code to corporations or juristic partnerships, but not include foundations or associations that generate revenue and foundations or associations prescribed by the Minister of Finance in accordance with the Revenue Code Section 47 (7) (b).
  • The payment of assessable income under Section 40 (3) of the Revenue Code which is fees of goodwill, copyright, or any other rights to the corporations or juristic partnerships but does not include foundations or associations that generate revenue and foundations or associations prescribed by the Minister of Finance in accordance with the Revenue Code Section 47 (7) (b).
  • The payment of assessable income under Section 40 (5) (a) of the Revenue Code to individuals or juristic person who are subject to personal or corporate income tax, but not include foundations or associations that generate revenue and foundations or associations prescribed by the Minister of Finance in accordance with the Revenue Code Section 47 (7) (b) and not include the payment of assessable income under Section 40 (5) (a) of the Revenue Code which is the rental fee of a boat in accordance with the law prescribing maritime promotion which is used with an international shipment.
  • The payment of assessable income under Section 40 (6) and (7) of the Revenue Code to individuals or juristic person who are subject to personal or corporate income tax, but do not include foundations or associations that generate revenue and foundations or associations prescribed by the Minister of Finance in accordance with Revenue Code Section 47 (7) (b).
  • The payment of assessable income under Section 40 (8) of the Revenue Code which applies only for the contest, competition, sweepstakes, or anything similar to those of the previously mentioned to individuals or juristic person who are subject to personal or corporate income tax, but not include foundations or associations that generate revenue and foundations or associations prescribed by the Minister of Finance in accordance with Revenue Code Section 47 (7) (b).
  • The payment of assessable income under Section 40 (8) of the Revenue Code which applies only to the payment of performance fees to public performers who are subject to personal income tax and domiciled in Thailand. In this case, ” Public performers ” include actors in drama, film, radio, or television, as well as singers, musicians, professional athletes, entertainers, etc.
  • The payment of assessable income under Section 40 (8) of the Revenue Code applies only to the income from the hire of work contract, reward payment, discounts or other benefits similar to those mentioned above in relation to promotions, advertisements, and other services which are not performance fees paid to public performers, payment for life and non-life insurance premiums,  payment for transportation excluding public transportation and payment for hotel service fees and restaurant service fees to individuals or juristic person who are subject to personal or corporate income tax, but not include foundations or associations that generate revenue and foundations or associations prescribed by the Minister of Finance in accordance with Revenue Code Section 47 (7) (b). In this case, “Services” means any action that may generate value that is not a sale of goods. In this case, “Restaurant” means the business of selling food or beverages of any type, including the business of employing personnel to prepare food or drinks, whether in or from premises that are accessible for the public to consume.

Author: Panisa Suwanmatajarn, Managing Partner.