Newsletter SEPTEMBER 2021

DLO’S Tax Newsletter Issue No. 122, September 2021 Tax Law Update 1. The extension period of the reduction of value-added tax (“VAT”) rate for all sales, services or importation 2. The withholding tax (“WHT”) refund for the interest obtained from savings bond issued by the Ministry of Finance 3. VAT operation for the operator providing a service via electronic from foreign country 4. The extension period of WHT reduction for the payment of assessable income via e-Withholding Tax Tax News 1. Establish the criteria for the tax refund of WHT for the interest via electronic system Interesting Supreme Court Judgment Supreme Court Judgment No. 3874/2560 (2017) Between     Thai Revenue Department               Plaintiff           A limited company Aor. and eight people     Defendant Subject:     Claim of tax arrears creditor for the unpaid shares including interest Tax Law Update 1. The extension period of the reduction of VAT rate […]

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Tax Judgment EP5 Tax Lawsuit

Q : Can the bankrupt file a tax lawsuit with the Tax Court? A : No, the bankrupt cannot due to the fact that the power to file a lawsuit belongs to the official receiver pursuant to Section 22 (3) of the Bankruptcy Act B.E. 2483 (1940). The Supreme Court Judgment No. 13989/2558 (2015) The Plaintiff filed a lawsuit with the Tax Court to revoke the personal income tax assessment as per the notification letter and revoke an appeal decision on such assessment. In this case, a dispute is about the Plaintiff’s property. Therefore, when the Plaintiff filed this lawsuit, the plaintiff already became bankrupt. The power to file this lawsuit belongs to the official receiver according to Section 22 (3) of the Bankruptcy Act B.E. 2483 (1940). Despite the fact that the Plaintiff filed a request with the official […]

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Tax Judgment EP4 Value-Added Tax Credit

Q : Is the value-added tax (“VAT”) registrant entitled to use the remaining VAT credit for the VAT payment in the month that is not the following month? If not, what liability will a VAT registrant receive? A : The VAT registrant is not entitled to use the carried forward remaining tax credit to pay VAT in any other tax month other than the following tax month. If the VAT registrant wrongly utilizes the remaining tax credit to pay VAT in the month that is not the following month, insufficient tax payment in such tax month can result. Consequently, the VAT registrant shall be liable for the remaining amount of tax payable together with a surcharge of 1.5 percent of the payable tax per month or fraction thereof, excluding fine, in accordance with Sections 84 and 89/1 of the Thai […]

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Key Issues to Consider about Foreign Business Licenses under the Foreign Business Act B.E. 2542 (1999)

Applying for a Foreign Business License (FBL) under Thailand’s Foreign Business Act B.E. 2542 (1999) (FBA) is one option for foreigner’s to be able to have majority ownership of a company limited which is involved in business activities listed in List 3 of the FBA. Before applying for a FBL there are a number of important details which foreign investors should be aware of so that they can avoid problems and delays and be better prepared for the process. This article shall provide a brief overview of several key issues which foreign investors should be aware of before they apply for a FBL. Permitted Business Activities under List 3 of the FBA One of the most important things which should be considered at the beginning is whether the applying company will be able to apply for a FBL. In order […]

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Tax Judgment EP3 The Submission of Request for the Tax Refund

Q : Whether a non-taxable person who has already filed the tax return to Revenue Department is entitled to submit a request for the tax refund. If applicable, how long is the period of refund? A : A non-taxable person who has already filed the tax return is entitled to claim for the tax refund by submitting the request for the tax refund within three years from the due date of the filing of tax return. In the case where the tax return is filed after the due date stipulated by Thai Revenue Code (“TRC”) or within the due date extended or postponed by the Minister or Director-General, a non-taxable person shall submit a request for tax refund within three years after the filing date. Furthermore, in the case where a non-taxable person has appealed or has a case in […]

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Tax Judgment EP2 Tax Offset

Q : Is Revenue Department officer allowed to offset tax liability and surcharge from a tax refund eligibly received for the tax payment? A : No, the Revenue Department officer (“Officer”) is not entitled to do so. Due to the fact that the function of tax surcharge is to punish a taxpayer for the non-performance or incomplete payment of tax, the tax surcharge is not regarded as a kind of interest pursuant to the Civil and Commercial Code (“CCC”). As a result, the Officer is not entitled to offset the tax surcharge from a tax refund prior to offsetting from the tax liability (Principle obligation) pursuant to Section 329 paragraph 1 of the CCC. Nevertheless, the Officer is required to offset the tax liability from the tax refund at first. If there is a remaining amount of the aforesaid tax […]

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Key Issues to Consider about Foreign Business Licenses under the Foreign Business Act B.E. 2542 (1999)

Applying for a Foreign Business License (FBL) under Thailand’s Foreign Business Act B.E. 2542 (1999) (FBA) is one option for foreigner’s to be able to have majority ownership of a company limited which is involved in business activities listed in List 3 of the FBA. Before applying for a FBL there are a number of important details which foreign investors should be aware of so that they can avoid problems and delays and be better prepared for the process. This article shall provide a brief overview of several key issues which foreign investors should be aware of before they apply for a FBL. Permitted Business Activities under List 3 of the FBA One of the most important things which should be considered at the beginning is whether the applying company will be able to apply for a FBL. In order […]

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Changing a Company Limited’s Name in Thailand – A Legal Overview

After a company limited is legally formed, its shareholders or directors may wish to change its name for any number of reasons such as for branding purposes, to reflect a change in ownership or because the name is unsuitable or outdated. Before taking such a step, the shareholders and directors of a company should be mindful of several important matters including the process to implement such change as well as other tasks that will need to be done following the name change process. This article shall provide a general overview of the name change process (according to Thai law) as well as other relevant matters which the company’s key stakeholders should consider. Company Limited Name Change Process For a normal company limited with no specific name change restrictions in its Articles of Association, the process to amend its name is […]

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Knowledge Tips on the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018)

Currently, cryptocurrencies and digital tokens are being used as a fundraising tool through digital token offerings. As a medium of exchange, they can also be traded in cryptocurrency and digital token exchanges. In Thailand, the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018) (the ‘Emergency Decree”) was passed to provide a legal mechanism to control this emerging sector of the economy given its significant growth and the risks it posed to the public from money laundering and fraud. This article shall provide a brief overview of the Emergency Decree and some key matters it covers. According to Section 3 of the Emergency Decree the terms ‘cryptocurrency’ and ‘digital token’ are defined as follows: ‘Cryptocurrency’ means “an electronic data unit created on an electronic system or network for the purpose of being used as a medium of exchange for the […]

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Merger & Acquisitions in Thailand – An Overview

In the current economic environment, many investors are looking at buying or selling a company or its assets in Thailand. In relation to such transactions, there are a number of key steps which the parties should ordinarily follow. This article provides a basic overview of the main steps and key matters which buyers and sellers should be aware of at each stage. Step 1 – Parties to enter into a MOU or Letter of Intent The Buyer and Target Company enter into a MOU or preliminary arrangement such as a Letter of Intent (LOI) to discuss the purchase of the company/ asset and initial issues such as:      1. Due diligence by the buyer of the Target Company/ asset (through its lawyers, accountants and financiers) and the sharing of access with such parties and how such information shall be shared. Tip: […]

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DLO Update Regarding Changes to the Annual General Meeting (AGM) of a Company Limited

Ordinarily a company limited must hold its shareholder AGM within 4 months from the end of its financial year. Thus, for most companies with their financial year ending on 31 December, this means that they must hold their 2021 AGM by Friday April, 30. However, the Department of Business Development (DBD) has recently issued an announcement which gives more time for the holding of an AGM, the key details of this update are as follows: The permitted delay applies to juristic persons (including private limited companies) with their fiscal year ending between 26 December 2020 and 31 December 2020. Under this announcement an AGM can be adjourned for up to one month counting from the date originally specified for the original AGM, provided that the company submits a letter of explanation detailing the reason behind the delay, such as the […]

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DLO Attends AMCHAM Monthly Luncheon – 22 August 2018

AMCHAM Monthly Luncheon to hear an address given by Thailand’s Minister of Industry

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Table on Changes & Updates in the Copyright Act B.E. 2558 (2015)

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“Knowledge Tips : Company Legal Compliance” (Visa & Work Permit, Corporate Law, Labour Law)

“Knowledge Tips : Company Legal Compliance” (Visa & Work Permit, Corporate Law, Labour Law)

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Dharmniti Law Office conducts a training course for management staff of Bangkok Dusit Medical Services on “Legal principles for developing employee relations in an organization”

Dharmniti Law Office was honored to be invited by Dr. Duangjai Sinthusung, Senior Vice President of Bangkok Dusit Medical Services (BDMS) PLC to conduct an online training course for management staff of BDMS. The training course was held on February 24, 2020 and provided training on legal principles for developing employee relations in the organization. The course was run by one of DLO’s Alternate Directors, Mr. Wanvisa Silathong at the TeleHealth Center conference room located at Bangkok Hospital’s Headquarters. During the course, Mr. Wanvisa Silathong provided attendees with basic information on principles of criminal law which are relevant to developing employee relations in an organization. The training focused on work practices involving documents, property, information and relations between personnel.

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Royally Sponsored Cremation for Adjunct Professor Preecha Panichwong

On the 27th of February 2021, a royally sponsored cremation was held for Adjunct Professor Preecha Panichwong, the former Chairman of the Board of Dharmniti Public Company Limited at Wat That Thong. All Dharmniti staff humbly bid farewell to the spirit of Ajarn Preecha. Adjunct Professor Preecha Panichwong was born on the 1st of January 1926. He served as a judge in the the courts of justice and during his distinguished legal career he was appointed as the Deputy Chief Justice of the Supreme Court in 1985 and the Deputy Chief Justice of the Supreme Administrative Court in 2003. Adjunct Professor Preecha Panichwong was the Chairman of the Board of Directors for Dharmniti Law Office Co., Ltd. since 1990, in addition to being Chairman of the Board of Directors for Dharmniti Public Company Limited from 1994 until his death on the 9th of […]

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DLO Corporate Social Responsibility (CSR) Activity for 2020

On Saturday, December 19, 2020, executive directors & staff of DLO participated in a Corporate Social Responsibility (CSR) activity at Kung Krabaen Bay Royal Development Study Center located in Chantaburi province. The aim of this activity was to benefit nature and learn about maintaining balance in the ecosystem. DLO’s staff initially attended a lecture given by the Study Centre and then observed a demonstration of a fish habitat and a crab bank. Thereafter, DLO staff constructed a fish house/habitat by themselves. Following this, DLO’s staff walked around the facility to better understand the philosophy of sufficiency economy.

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Tax Judgment EP5 Tax Lawsuit

Q : Can the bankrupt file a tax lawsuit with the Tax Court? A : No, the bankrupt cannot due to the fact that the power to file a lawsuit belongs to the official receiver pursuant to Section 22 (3) of the Bankruptcy Act B.E. 2483 (1940). The Supreme Court Judgment No. 13989/2558 (2015) The Plaintiff filed a lawsuit with the Tax Court to revoke the personal income tax assessment as per the notification letter and revoke an appeal decision on such assessment. In this case, a dispute is about the Plaintiff’s property. Therefore, when the Plaintiff filed this lawsuit, the plaintiff already became bankrupt. The power to file this lawsuit belongs to the official receiver according to Section 22 (3) of the Bankruptcy Act B.E. 2483 (1940). Despite the fact that the Plaintiff filed a request with the official […]

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Tax Judgment EP4 Value-Added Tax Credit

Q : Is the value-added tax (“VAT”) registrant entitled to use the remaining VAT credit for the VAT payment in the month that is not the following month? If not, what liability will a VAT registrant receive? A : The VAT registrant is not entitled to use the carried forward remaining tax credit to pay VAT in any other tax month other than the following tax month. If the VAT registrant wrongly utilizes the remaining tax credit to pay VAT in the month that is not the following month, insufficient tax payment in such tax month can result. Consequently, the VAT registrant shall be liable for the remaining amount of tax payable together with a surcharge of 1.5 percent of the payable tax per month or fraction thereof, excluding fine, in accordance with Sections 84 and 89/1 of the Thai […]

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Tax Judgment EP3 The Submission of Request for the Tax Refund

Q : Whether a non-taxable person who has already filed the tax return to Revenue Department is entitled to submit a request for the tax refund. If applicable, how long is the period of refund? A : A non-taxable person who has already filed the tax return is entitled to claim for the tax refund by submitting the request for the tax refund within three years from the due date of the filing of tax return. In the case where the tax return is filed after the due date stipulated by Thai Revenue Code (“TRC”) or within the due date extended or postponed by the Minister or Director-General, a non-taxable person shall submit a request for tax refund within three years after the filing date. Furthermore, in the case where a non-taxable person has appealed or has a case in […]

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Tax Judgment EP2 Tax Offset

Q : Is Revenue Department officer allowed to offset tax liability and surcharge from a tax refund eligibly received for the tax payment? A : No, the Revenue Department officer (“Officer”) is not entitled to do so. Due to the fact that the function of tax surcharge is to punish a taxpayer for the non-performance or incomplete payment of tax, the tax surcharge is not regarded as a kind of interest pursuant to the Civil and Commercial Code (“CCC”). As a result, the Officer is not entitled to offset the tax surcharge from a tax refund prior to offsetting from the tax liability (Principle obligation) pursuant to Section 329 paragraph 1 of the CCC. Nevertheless, the Officer is required to offset the tax liability from the tax refund at first. If there is a remaining amount of the aforesaid tax […]

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Bill amending personal income tax rate

Cabinet approves a new personal income tax rate which decreases revenue by 27,000 million Baht.

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Tax Law Updates (March)

 Exemption on income  tax, VAT , specific business tax and stamp duty for income donated to support sporting  activities

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Tax Law Updates (February)

Exemptions on income tax for supporting educational institutions

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Thai BOI board expand investment promotion to cover 6 new industries

Mr. Aphsit Vejjajiva,Prime Minister,chairman of the Board of Investment (BOI) today announced the resolutions to promote 6 new  industries with the special measures .

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Newsletter SEPTEMBER 2021

DLO’S Tax Newsletter Issue No. 122, September 2021 Tax Law Update 1. The extension period of the reduction of value-added tax (“VAT”) rate for all sales, services or importation 2. The withholding tax (“WHT”) refund for the interest obtained from savings bond issued by the Ministry of Finance 3. VAT operation for the operator providing a service via electronic from foreign country 4. The extension period of WHT reduction for the payment of assessable income via e-Withholding Tax Tax News 1. Establish the criteria for the tax refund of WHT for the interest via electronic system Interesting Supreme Court Judgment Supreme Court Judgment No. 3874/2560 (2017) Between     Thai Revenue Department               Plaintiff           A limited company Aor. and eight people     Defendant Subject:     Claim of tax arrears creditor for the unpaid shares including interest Tax Law Update 1. The extension period of the reduction of VAT rate […]

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Newsletter NOVEMBER 2021

DLO’S Tax Newsletter Issue 124 November 2021 Tax Law Update 1. Income Tax exemption for compensation received from the government for the official and third party who works relating to the pandemic of the Coronavirus Disease 2019 2. Regulation regarding documents or evidence showing the necessary information for the analysis of the terms of transactions between related companies or juristic partnerships 3. Regulation regarding the rules, procedures, and conditions for Income Tax and VAT exemption for a donation made to the Office of the Permanent Secretary, the Prime Minister’s Office to support resolving the Coronavirus Disease 2019 4. Regulation for a person who files a return to notify information according to the Country-by-Country Report 5. Stipulating the additional charitable organizations or institutions or medical institutions and educational institutions which are charitable organizations or institutions or medical institutions and educational institutions […]

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Newsletter OCTOBER 2021

DLO’S Tax Newsletter Issue 123 October 2021 Tax Law Update 1. CIT exemption in the amount of the expenses paid for the electronic system for preparing, receiving data, remitting taxes system and the expenses which is a service fee paid to the service providers for preparing, delivering electronic data, and remitting taxes 2. Extension of the VAT filing period for the electronic services provided from foreign country 3. Income tax exemption to the Stock Exchange of Thailand for a subsidy income received from the Thailand Capital Market Development Fund 4. Income tax and VAT Exemption to the persons, company and juristic partnership for the money or assets donated for the Prime Minister’s Office in some cases Tax News 1. SBT exemption to the juristic persons for an income of compensation received according to the real estate expropriation law and stamp […]

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Newsletter AUGUST 2021

DLO’S Tax Newsletter Issue 121 August 2564 Tax Law Update 1. Income Tax & value-add tax (“VAT”) exemption for a donation to National Vaccine Institute. 2. Extension of income tax & VAT exemption for importing COVID-19 prevention products for donations. 3. Tax measures to support a transfer of collateral assets for debt repayment. 4. Improvement on the criteria to write off bad debts from receivable account Tax News 1. Stipulating the criteria for a refund of withholding tax from interest through Electronic Withholding Tax systems Interesting Deka Deka (Supreme Court Judgement) No. 8376/2563 Between     Company Wor         Plaintiff           Customs Department     Defendant Issue: Power to sue in case the plaintiff appeal against the assessment of import duty and value added tax separately Tax Law update 1. Income Tax & VAT exemption for a donation to National Vaccine Institute.      The Royal Decree (No. 719) B.E. 2564 […]

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