Tax News No. 264 December 2018
Topix
The End of sellers and buyers illegal issuing tax invoices.
The Revenue Department has continously and seriously cracked down on sellers and buyers who had issued llegal tax invoices. On 26 June 2018, the Criminal Court judged guilty against the defendants who have jointly committed fraud by issuing illegal tax invoices for output tax to companies, stores, and shops which actually not carrying on business. According to the judgement, such action violated Section 86/13 of the Revenue Code and the defendants were sentenced to one year in prison per one case under Section 90/4 (3) of the Revenue Code, totally eight years in prison foreight cases. The defendants confessed and had their sentences to be commuted in half to four years in prison while the exhibits were seized (one illegal invoice equals one case).
Mr. Pinsai Suraswadi, Acting Principal Advisor on Strategic Tax Administration (Finance and Banking) as spokesman of the Revenue Department, said that, “Buyers of illegal tax invoices shall be charged with civil and criminal penalties. The penalty is twice as the tax amount on the invoice and the surcharge is 1.5 percent per month or a fraction of the month of the tax amount. The criminal penalties are imprisonment for three months to seven years and fine 2,000 to 200,000 Baht.
For further inquiries, please contact officers at any Area Revenue Office nationwide or RD Intelligence Center at 1161. To report any tax avoidance cases, please go to www.rd.go.th > Menu “Report Tax Issues”.
Permission to use unskilled foreign worker in promoted project.
Previously, the Board of Investment issued the Notification No. Paw 1/2559 dated 29 April B.E. 2559 (2016) Subject Permission to use unskilled foreigner worker in promoted project which has the essential for extend the time limit on use of unskilled foreign worker in promoted project until 31 December B.E. 2561 (2018) and after 1 January B.E. 2562 (2019) allow to use unskilled foreign worker under the Memorandum of Understanding: MOU only according to the rule and conditions prescribed by the Ministry of Labor.
Recently, the Board of Investment issued the Notification No. Paw 11/2561 (2018) dated 4 December B.E. 2561 (2018) in the same subject to repealed the Notification No. Paw 1/2559 (2016) for reduce the problem of worker shortage and control the number of immigrant worker in promoted project to be consistent with the present situation which has the essentail on permission to use legally unskilled foreign worker in promoted project which is not nessessary to be the worker under the Memorandum of Understanding between Thai Government and Foreign Government only. Nevertheless, there have to abided by the law and regulation on use of unskilled foreign worker which issued by the related government agency.
The Promotion for International Business Center: IBC
The government have policy support for create increased Business Center in Thailand made Thailand is the center of investment in Asia and world class .The Board of Investment of Thailand (BOI) has announced a new International Business Center (IBC) initiative. This was ushered in by Regulation No. Sor. 6/2561 on 11 December 2018 subject support International Business and The Board of Investment of Thailand (BOI) has announced Gor 1/2561 brought an end to the previous International Headquarters (IHQ) and International Trade Center (ITC) effective since notification date as a result promoted person in International Headquarters (IHQ) and International Trade Center (ITC) end to the previous International Headquarters but this still support investment unit last day of Investment Promotion under BOI certificate .For person shall submit Investment Promotion after 11 December B.E2561 (2018) onwards From now on, investors may only apply for the IBC initiative subject to meeting the relevant criteria and conditions.
Conditions
- The promoted entity must provide services engaging in the following business activities to affiliates:
(1.1) Organizational administration and management, business planning and business coordination;
(1.2) Procurement of raw materials and parts;
(1.3) Research and development;
(1.4) Technical support;
(1.5) Marketing and sales promotion;
(1.6) Human resources and training;
(1.7) Financial advisory;
(1.8) Economic and investment strategic analysis;
(1.9) Credit management and control;
(1.10) Treasury center;
(1.11) International trade activities; and
(1.12) Other services as announced by the Revenue Department.
(2) The promoted entity must have registered capital of at least THB 10 million;
(3) The promoted entity must permanently hire at least 10 knowledgeable and skilled staff members for the IBC. This excluded credit management and control activities where only at least 5 similarly competent employees must be permanently employed;
(4) For international trade activities, the promoted entity must engage in at least one of the activities listed from (1.1) to (1.10) above;
(5) Duty exemptions on raw and essential materials imported for manufacturing and export are not granted; and
(6) The promoted entity is not eligible for merit-based privileges.
IBC category receiving incentives from the BOI will be granted “B1 privileges” (Import duty exemptions on equipment used for research, development and training)
The most of type of business of International Business Center (IBC) similar of scope of business get the promotion of International Headquarters (IHQ) and International Trade Center (ITC) except business advise and recommend in business such as Financial advisory, Marketing and account system ,there are support type of business in IHQ , There will support investment in type IBC ,Specially only Financial advisory.
