The draft of the Ministerial Regulation prescribing service businesses which do not require a Foreign Business License
On the dated 14 May B.E. 2562 (2019) the cabinet has resolution as follows:-
- Approve the principle of the draft of the Ministerial Regulation prescribing service businesses which do not require a Foreign Business License (No…..) B.E….. The essence is to exempt the other service businesses total 3 businesses for being service businesses which do not require a Foreign Business in list 3 (21) in the attachment of Foreign Business Act B.E. 2542 such as (1) Loan service for the domestic affiliated companies (2) Leasing office service and providing the utility for the domestic affiliated companies and (3) Consulting service for the domestic affiliated companies in management, marketing, human resource and technology. Those are proposed by the Ministry of Commence and send to office of the council of state to consider and take action.
- The Ministry of Commerce agree with the opinion of the Ministry of Finance, Ministry of Digital Economy and Society and Bank of Thailand that the competitiveness of Thai entrepreneurs should be follow up consecutively and the financial cost of foreign entrepreneurs should be control not lower than Thai entrepreneurs. It should prescribed the enforcement date of laws clearly and should have opinion from the Thai entrepreneurs who may affect from this cause in order to make a decision to be prudent and clearly. Moreover, it shall be communicate, encourage, support Thai entrepreneurs for understanding in digital knowledge in order to prepare, support the highly competition as well. And it shall be follow up the competitiveness of the loan service for the domestic affiliated companies to be appropriately in order to prevent the effect on other financial services. These opinion is to consider and take action.
The Factory Act (No.2) B.E. 2562 (2019) and The Factory Act (No.3) B.E. 2562 (2019)
On the date 30th April B.E. 2562 (2019) The Factory Act (No.2) B.E. 2562 (2019) and The Factory Act (No.3) B.E. 2562 (2019) were promulgated and published into the Government Gazette which The Factory Act (No.2) B.E. 2562 (2019) shall enforce after passed 180 days from the date of announcement (28th October B.E. 2562 (2019)) and The Factory Act (No.3) B.E. 2562 (2019) shall enforce on the following day from the date of announcement (1st May B.E. 2562 (2019)).
The reason and necessity on the promulgation of this Act is The Factory Act B.E. 2535 (1992) has been in force for a long time. Causing some provisions to be inappropriate and consistent with the current situation especially the rules for controlling the operation of factory that are strict and delay which creates problems and obstacles to factory operations. There should be changed the rules for controlling the operation of the new factory, in order to control the factory operation only the necessity. Resulting in rapidity, saving and reducing the burden on factory operators especially small factory operators by improving the procedures and period of consideration of the licensor and the officer under the law to be clear, reduce discretion, repeal the requirement to renew the factory license. Including amendments, the penalties and official fees to be more suitable and conform with the current economic and social conditions.
1. The Factory Act B.E. 2562 (2019) has an essence as follows:
• There is an amendment to the definition of “factory”, which means that the building, place or vehicle that uses the machine having a total horsepower at not less than fifty horsepower or equivalent power or more, or that uses workers at least fifty or more whether using machines to operate the factory or not.
• Added provisions regarding private inspectors who registered factory inspectors with the Ministry of Industry to be able to verify the accuracy of the business operations and prepare the inspection report for submission to the officer, which will increase the convenience of factory inspection.
• Repeal the time period of factory license and renewal of factory license.
• Factory expansion with the aim to reduce pollution, prevent nuisance, improve machine efficiency or changing the energy used to be more efficient, shall be exempted from requesting permission to expand the factory.
• In case of the factory license holder unable to start the factory operation after receiving the license. Licensee can transfer the license by allowing those wishing to receive the transfer to apply for a transfer to the licensor within 30 days of the transfer of the license. While waiting for approval from the licensor shall be considered as the applicant is a licensee since the date of the license transfer.
• When the factory category 2 and 3 stop the operation for more than 1 year, they must notify in writing to the officer within 7 days from the due date of 1 year. If the factory category 2 will resume the operation, shall notify in writing to the officer before starting business and factory category 3 must be allowed before continuing to operate the factory.
• Amendment the official fee as follows: –
| Item | Official fee | |
| 1. Application | each | 100 Baht |
| 2. Factory license | each | 300,000 Bah |
| 3. Permission of expansion | each | 300,000 Baht |
| 4. Transfer of license | each | 5,000 Baht |
| 5. License substitute | each | 5,000 Baht |
| 6. Notification for change or increase of machinery or operating area which not required the approval to expansion the factory. | each | 15,000 Baht |
| 7. Inspection license | each | 5,000 Baht |
| 8. Renewal of inspection license | each | 5,000 Baht |
| 9. Substitute of inspection license | each | 500 Baht |
| 10. Annual fee of factory operation | Per year | 100,000 Baht |
2. The Factory Act B.E. 2562 (2019) has an essence as follows:
• Transfer of the officer which is responsible to the factory category 1 and category 2 to local administrative organizations.
Industrial Estate Authority of Thailand Act (No. 5) B.E. 2562 (2019)
On the date 16th April B.E.2562 (2019) Industrial Estate Authority of Thailand Act (No. 5) B.E. 2562 was promulgated and published into the Government Gazette which shall enforce from 17th April B.E. 2562. The reason and necessity on the promulgation of this Act is an amendment to the objectives and authority of Industrial Estate Authority of Thailand (IEAT) to cover business that is necessary or beneficial to the operation of Industrial Estate Authority of Thailand. By prescribed the provision regarding to the transfer of land ownership obtained from the enactment of the Royal Decree changing of the public domain clearly included prescribe to grant approval, permits, licenses and registration of any operation or receiving notification according to some laws that are necessary to be the authority of Governor of the Industrial Estate Authority of Thailand for the benefit of facilitating entrepreneurs in the industrial estate and requiring the import of goods or raw materials into the free trade zone for commerce to be more convenient.
Industrial Estate Authority of Thailand Act (No. 5) B.E. 2562 (2019) has an essence as follows:
• Additional authority of the Industrial Estate Authority of Thailand to cover the businesses as follows:
– Carry on industrial port operation and provide the facility which is necessary to the operation and to living well of the industrial entrepreneurs, the commercial entrepreneurs and the other entrepreneurs. And including provide public utility, accommodation, land and water transportation, port, telecommunication, other business that necessary for industrial estate.
– Providing the establishment of the limited company and the public limited company for operating the business or relating business under the objective of the Thailand Industrial Estate Authority of Thailand.
– Cooperate with the other people by being a limited partner in the limited partnership or holding a share in juristic person which has objective or beneficial operation or relating business under the objective of the Thailand Industrial Estate Authority of Thailand both in domestic and international.
• Empowering the Industrial Estate Authority of Thailand about to transfer the land ownership of public domain of state for public use which the industrial estate authority of Thailand was obtained by the enactment of Royal Decree, Change the public property for joint operator of industrial entrepreneurs, the commercial entrepreneurs and the other entrepreneurs.
• Empowering Governor of the Industrial Estate Authority of Thailand or other person who was appointed to grant approval, permits, licenses and registration of any operation or activity of the industrial or commercial that related to the following laws:
– Law on land excavation and land filling
– Law on building control
– Law on public health
– Law on factory
In this regard, the Industrial Estate Authority of Thailand has the power to charge fees and various of expenses as well. In addition, the service fee is an income of the Industrial Estate Authority of Thailand.
Property based on Rights Act B.E. 2562 (2019)
On the date 30th April B.E.2562 (2019) Property based on Rights Act B.E. 2562 (2019)
(the “Act”) was promulgated and published into the Government Gazette which shall enforce within 180 days from the date of announcement (28th October B.E.2562 (2019)) and Ministry of Interior shall issue Ministerial Regulations to prescribed in the subject of the registration of the property based on rights, fees and expenses on operation and registration of the property based on rights within 90 days after the Act enforcer (26th January B.E. 2563 (2020))
The reason and necessity on the promulgation of this Act is due to lease of immovable property under the Civil and Commercial Code has some limitations (such as leasehold estate is an exclusive right of a tenant, leasehold estate couldn’t use as security for the obligation performance of mortgage) and leasing under the Lease of Immovable Property for Commercial and Industrial Purposes B.E. 2542 (1999) Act couldn’t use the leasehold estate in several cases (such as the lessee mortgage the leasehold estate, sub-lease for commercial and industrial purposes only) Therefore, there shall be proper to set out a new asset class called “Property based on Rights” so that the leasehold estate is mortgage as property that could transfer, use as security for the obligation performance of mortgage. Also, the leasehold estate can promote and support investment in the immovable property and pushing for the economic growth in Thailand.
The Property based on Rights Act B.E. 2562 (2019) has an essence as follows:
• Property based on Rights includes the leasehold estate of the land having title deeds, leasehold estate with buildings of the land having title deeds and leasehold condominium under the Condominium law. The Act deems the Property based on Rights as property which is relied on rights from the using benefits of the property as above.
• Owner of immovable property (owner of land, owner of condominium) shall register establishment of property based on rights to a competent official under Land and condominium law. Later, the competent official will issue a certificate of Property based on Rights.
• Property based on Rights shall be no longer than 30 years a term.
• Owner of immovable property shall register for establishment of all Property based on Rights. The land registered for Property based on Rights cannot be separated or combined with other land.
• The holder of Property based on Rights (such as lessor, lessee) could transfer the leasehold estate, sub-lease and could use leasehold estate as security for the obligation performance of mortgage without obtaining permission from the owner of immovable property.
• When the lessee died, Property based on Rights could devolve on his heirs and the heirs deems to the new holder of Property based on Rights.
• The holder of Property based on Rights has rights, duties and liabilities as if he were the owner of immovable property such as transfer, alter, modify the immovable property. However, the holder of Property based on Rights has no rights on following, taking back and preventing the immovable property from any other person who is not entitled to detain it, or illegally uses it.
• All transactions about Property based on Rights shall be made in writing and registered by the competent official and the competent official shall notify to the owner of property to acknowledge.
Published the Labour Protection Act (No.7)
On 5th April B.E. 2562 (2019) The labour Protection Act (No.7) published on Government Gazette which shall enforce in 30 days from published. Please see the detail of this Act in our Tax News No.265 Month January B.E. 2562 (2019)(topic for tax news) the draft of the labour protection Act (No…) B.E.