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The draft of Investment Promotion Act (No….) B.E….
- Recently, the Council of Ministers has resolved to approve in principle regarding the draft of Investment Promotion Act (No….) B.E…. as proposed by the Board of Investment, and submit to Office of the Council of State for perusal, and then submit to the Coordination Committee of the National Legislative Assembly for consideration prior to proposing the National Legislative Assembly.
Essence of the draft of Act
- There shall amend that a member or an advisor of the Board of Investment who has already performed the duty in full term, can still be in the position as to perform the duty until new member or advisor will be appointed for replacement by the Board of Investment, however there shall not exceed one hundred and twenty days.
- There shall determine that the Board of Investment has the power to assign a third period replaced the Board of Investment as to perform some duties, such as inspection of machinery, raw materials and necessary equipment, as prescribed by the Board.
- There shall amend regarding the condition of investment promotion in order to comply with the conditions of Word Trade Organization (WTO), such as the cancellation of manufacturing for export to sell in foreign countries, the enforcement of using raw materials in country, and the condition of supporting export that is prohibited.
- There shall amend regarding the right and benefit as to support a promoted person for research and development, for example The Board may permit a promoted person to be granted an import duty exemption for thing, which a promoted person imported for test, research and development upon the Board’s prescription or in the case where any business uses a high technology and innovation including research and development, the Board may permit a promoted person to be granted a corporate income tax exemption from net profit derived from a promoted business for the period not exceeding 13 years since the beginning date of earning income from such business.
- There shall increase the right and benefit of taxation for a promoted person as follow:
- The Board may permit a promoted person to deduct not exceeding an amount double for expenses as paid by a promoted person for such business in accordance with the condition, method and period as prescribed by the Board.
- The Board may permit a promoted person to deduct money as invested for a promoted business form the total of profit, which does not exceed 90 percent of money as invested for such business.
- In order to help a person who receives the dividend, is granted an income tax exemption in case where a promoted person is unable to pay dividend within the period as granted corporate income tax exemption, by extending the period of paying dividend for another 6 months after the expiry of receiving a corporate income tax exemption.
The draft of the Revenue Code Amendment Act (No. …) B.E. …. [Measure of the permanent reduction of corporate income tax rate]
- The Council of Ministers have resolved to approve in principle regarding the draft of the Revenue Code Amendment Act (No. …) B.E. ….. (Measure of the permanent reduction of corporate income tax rate) as proposed by the Ministry of Finance, and there shall send the Office of the Council of State for perusal, then send to the Coordination Committee of National Legislative Assembly for considering prior to proposing the National Legislative Assembly.
Essence of the draft of Act
- There shall permanently reduce a corporate income tax rate from 30 percent to 20 percent of net profit of a juristic company or partnership that there shall be effective from an accounting period starting on or after 1 January 2016 onwards.
- The legislation of the Revenue Code as repealed or amended by this Act shall still be effective onwards only for the practical collection of an outstanding taxable or payable before this Act enforced.
The draft of Royal Decree issued under the Revenue Code governing the reduction of rate and exemption of incomes (No. …) B.E. …. [Measure of the reduction of corporate income tax rate for Small and Medium Enterprises (SMEs)]
- The Council of Ministers have resolved to approve in principle regarding the draft of the Royal Decree issued under the Revenue Code governing the reduction of rate and exemption of incomes (No. ..) B.E. …. [Measure of the reduction of corporate income tax rate for Small and Medium Enterprises (SMEs)] as proposed by the Ministry of Finance, and send to the Office of the Council of State for further undertaking.
Essence of the draft of Royal Decree
- There shall collect corporate income tax from a juristic company or partnership whose paid-up registered capital on the last day of the accounting period does not exceed 5 million baht and the income from the sale of goods or the provision of services for such accounting period does not exceed 30 million baht in particular net profit exceeding 300,000 baht onwards at the rate of 10 percent of net profit for 2 continuous accounting periods: provided for the accounting period begins on or after 1 January 2015 but not over on 31 December 2016.
- For the accounting period following the accounting period under Item 1, there shall collect at the rate, as follows:
- 15 percent of net profit: provided for net profit in particular exceeding three hundred thousand baht but not over three million baht.
- 20 percent of net profit: provided for net profit in particular exceeding three million baht.
Index of legal movement in relation to business
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Supreme Court’s Judgment No 2075-2078/2557
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GorKor 0702 (GorMor.06)/Por./5462 Dated 24 June 2013
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GorKor 0702/6419 Dated 8 September 2014
Corporate income tax and value added tax in case of tax measure for the subsidy scheme of embankment construction as to protect flood occurrence within the industrial estates