Tax News No. 268 April 2019

Tax News No. 268 April 2019

Index of legal movement in relation to business

Topix

    The new labour protection laws was published on the government gazette.


The labour protection laws was published on the government gazette dated 5 April B.E. 2562 (2019) and will become effective on 5 May B.E. 2562 (2019). The purpose for amending this act is to increase the standard of employee protection to be more efficiency. Therefore, the beneficial of employee according to this act shall be as follows:-

  1.   Business leave   The employee shall entitled to take business leave not less 3 days and entitled to receive wages throughout the business leave not more than 3 days
  2.  Maternity leave The female employee shall entitled to take maternity leave not more than ninety-eight days for each pregnancy and the maternity leave includes leave of pregnancy checkup.
  3.  The new rate of Severance pay  If the employee has worked for an uninterrupted period of twenty years or more, he or she shall be entitled to receive payment of not less than his or her last rage of wages for four hundred days.
  4.  Changing of the employer or juristic person  If the employee did not consent to work with the new employer or new juristic person, the employer shall pay special severance pay
  5. Relocated the establishment   If the employee did not want to work in the new location, the employee shall entitled to receive special severance pay according to section 118
  6.  Remuneration  If the employer did not pay the remuneration under this act, the employee shall receive the interest at fifteen percent per year.
  7.   Sex-equality  If male and female employees have the same type, quality and quantity of work, they shall receive the wage in the same rate.


    Use of other currencies, instead of Thai Baht, for computation of values of assets, liabilities and for tax payment

    On 7 April 2019, The Amendment Act on Revenue Code (No. 50) B.E. 2562 (2019) was promulgated in Government Gazette and would be come into force on 8 April 2019 onwards. The reason of the Amendment Act is that since accounting standards are adjusted so as to comply with standards of international financial report, a company making financial transaction with foreign currency can apply the foreign currency for its business. Similarly, the operation of tax imposition shall be set out and comply with the accounting standards. Rules of Revenue Department shall be amended so that the company can apply a foreign currency as the money currency of its business. Also, there shall be amended an exchange rate for computation of values or price of money, assets or liabilities, methods of the computation, and tax payment of the company.
    This Amendment Act has amended and repealed the following provisions of Revenue Code:

    (1)   Section 65 Bis (5) is amended that the net profit or net loss computation of money, assets, liabilities, of which values or price are foreign currencies, shall apply the market price at the date when the company received or paid as the method of converting the values or price to Thai Baht.
    (2)   Section 65 Bis (8) is repealed.
    (3)   Section 76 Ter is added that a company shall notify the Director General of Revenue Department for the use of a foreign currency for preparing a balance sheet, working papers, income statement, statement on revenue before expense deduction, net profit computation, payable tax computation. The use of the foreign currency will start as of the accounting period the company notified. An assessment officer will assess tax, inform of payable or refundable tax, penalty or surcharge computation by using the foreign currency as the company informed.
    (4)    Section 76 Quarter is added and set out how to compute values or price of money, assets, liabilities, other lists of financial statements for the accounting periods before the accounting period when the company applies a foreign currency for its business.
    (5)    Section 76 Quinque is added that the method of computation under Section 65 Bis (5) shall not be applied for the computation of values, price of money, assets, liabilities which the company uses a foreign currency under Section 76 Ter. This section sets out the specific method of computation of the above values, price.
    (6)    Section 76 Sex is added that Thai currency is required for tax payment and tax refund of the company using a foreign currency for its business. An exchange rate shall be an average rate of a commercial bank at the working day before a tax payment date or before the date of tax refund approval.
    (7)    Section 76 Septem is added that gain and loss of the exchange rate when a company starts to use a foreign currency or the conversion of a foreign currency to Thai currency for tax payment under Section 76 Ter shall not be regarded as revenue or expenses for net profit or net loss computation.

Remark: The amendment of above provisions shall apply to the company of which its accounting period starts on or after 1 January 2019.

Interested tax news

  Amendment Act on Revenue Code (No.48) B.E. 2562 (2019)   

  Amendment Act on Revenue Code (No.49) B.E. 2562 (2019)

  Supreme Court Judgment No. 1109/2559

       penalties and surcharges and fines are not the expense for carrying on business.

  Supreme Court Judgment No. 9150/2560

      in case that sales of material by foreign company shall be deemed as a part of hire of work in Thailand by same foreign company

  Royal Decree Issued under the Revenue Code Governing Revenue Exemption (No. 676)
B.E. 2562 (2019)

  Notification of Ministry of Labour

      Prescribed period of time to pay workmen’s compensation, rules and procedures to calculate the monthly wage.

  Ruling No.GorKhor 0702/924  Date 1 April 2018

      stamp duty in case sale elevator, escalator and travellator with installation and maintenance services after installation

    



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