Tax Newsletter SEPTEMBER 2015

DLO’S Tax Newsletter   Issue 58 – September 2015 Tax Law Update – Tax News Increase of Deduction Expenses on Researching from Double to Triple The Deputy Spokesman of the Prime Minister’s Office has issued a statement that the Cabinet of Thailand has agreed to the draft measure for the exemption on juristic company or partnership income tax for expenses relating to  research and development of technology and innovation for government agencies or individuals, such tax deductions shall be triple that of actual expenditure. However, such exemption  must not  exceed the revenue or circulation to be included in the calculation of net profit prior to the deduction of any expenses in the accounting period according to the criteria which will be further determined. Research and development projects must be examined and certified by agencies prescribed by the Ministry of Finance. […]

Domestic Employment Agencies & the Employment & Job Seeker Protection Act

Domestic Employment Agencies & the Employment & Job Seeker Protection Act In this month’s article, we shall continue examining the Employment & Job Seeker Protection Act (1985) (The ‘Act’) but we shall focus on domestic employment agencies and the law relating to them. We shall begin by explaining the main legal requirements which must be met before a license can be granted to run a local employment agency, thereafter we shall examine various other topics including ongoing compliance requirements as well as rules relating to staffing of an agency and changing license details. Legal Requirements for Granting of a Domestic Employment Service License: According to the Act, an applicant for a domestic employment license must be a Thai National who is at least 20 years of age who isn’t or previously was a person involved in disgraceful conduct or having […]

Examining Employment & Job Seeker Protection Act

Examining Employment & Job Seeker Protection Act In this month’s article, we shall examine certain aspects of the Employment & Job Seeker Protection Act (1985.) We shall begin by explaining the main legal requirements which must be met before a license can be granted to run an overseas employment agency, we shall then move on to explaining aspects of the legal regime which applies when such service providers send Thai nationals to work overseas. We shall then conclude by looking at what legal requirements apply to overseas employment service providers after a job seeker arrives in their country of employment. Legal Requirements for Granting of an Overseas Employment Service License: According to the Act an applicant for the overseas employment license must be a company limited or public company limited. Thai nationals must hold at least 75% of the total […]

Tax Newsletter AUGUST 2015

DLO’S Tax Newsletter   Issue 57 – August 2015 Tax Law Update Inheritance Tax Law The National Legislative Assembly (NLA) has issued the Inheritance Tax Act 2015 that stipulates key criteria for individuals who must pay inheritance tax. An inheritance tax income exceeding 100 million Baht is subject to 10% inheritance tax payment, with exception to an heir who is a parent, child or descendent where the rate required is 5%. Additionally, a key amendment was made in the Revenue Code in consistent with the Act mentioned above. By which: inheritance income received from the transfer of ownership or possessory right of real estate where it is free of charge; inheritance received as a support fund or for the purpose of foster care; or from gifts of value made during an individual’s lifetime, that are made on the basis of […]

Tax Newsletter JULY 2015

DLO’S Tax Newsletter   Issue 56 – July 2015 Tax Law Update Giving the Right of Tax Reduction in Special Economic Zone Royal Decree (No. 584) B.E. 2558 has been issued, it provided a privilege on tax for an ordinary person or a juristic person who earns income from the sale of goods, providing services including the sale of property in Special Economic Zone occurred only from 2015 to 2017. The Director – General of the Revenue Department has issued the Notification of the Director of Revenue Department regarding to Income Tax (No. 254) which prescribes the guidelines and conditions on whether such persons as mentioned above are entitled to such privileges. To do so they need  to inform and submit the required documents in the prescribed form within 60 days from the first day of the tax year or […]

Trade Secrets and How Employers Can Protect Them

Since the commencement of the Trade Secret Act in the middle of 2002 the business community in Thailand has increasingly used non-disclosure agreements and clauses in work rules and employment agreements with their staff. These agreements and clauses generally prohibit employees with access to trade secrets from disclosing such information to other parties. Along with this growth in non-disclosure clauses and contracts, employers are also protecting their trade secrets by using non-compete clauses which aim to stop employees from engaging or working with any employer that competes with their ex-employer’s business. The reason behind this growth in non-compete clauses is that many employers fear that if their employees resign and then join a competitor, their ex-staff will disclose their trade secrets which could cause them significant commercial damage. Meaning of Trade Secret: In order to understand the rationale behind the […]

Amending an Employment Agreement

During the term of an employment contract the working conditions of the employee may undergo significant changes, for instance an employee could be promoted, demoted, have a pay rise, be seconded to a new role or otherwise have their work responsibilities adjusted to fit their employers operational needs. Given that an ongoing employment contract may be in effect for a long period of time, its provisions may need to be amended to reflect these different circumstances, however, this need to amend gives rise to an important legal issue as to how can such changes to an employment contract be compliant with Thai labor law. Background to Employment Contracts and Working Conditions: To begin with, it is necessary to examine the legislative background of employment contracts and working conditions. In relation to work condition agreements, section 5 of the Labour Relations […]