Tax News No. 271 July 2019

Tax News No. 271 July 2019

Index of legal movement
in relation to business

Topix

Amendment of Electronic Transaction Act

        The
Electronic Transactions Act (No. 4) B.E. 2562
(2019) “Act” was promulgated on 22 May 2019 and
shall come into force since 23 May 2019 onwards.
The purpose of amendment of this Act is that
identity proof and verification of a user
providing for a service provider will be
convenient and will not cause a burden to the
user. This Act sets out that the service provider
can prove and verify the identity through a system
of digital identity proof and verification. Also,
there shall be mechanism to supervise and control
a relevant service enterprise creating the system
of digital identity proof and verification so that
the service enterprise will generate the reliable
and safe system and there will be beneficial to an
economic system and consumer protection.

The essence of the amendment of this Act is as
follows: 
  
   

  1.  Adding words “Identity proof and
    verification” and “System of digital identity
    proof and verification”. That is the proof and
    verification of an individual and entity can
    perform via an electronic network connected
    with information between individuals,
    entitles, government agencies.
  2.  Adding Chapter 3/1 – The System of
    Digital Identity Proof and Verification and
    adding Sections 34/3 and 34/4. The Sections
    set out that a service provider shall inform
    of conditions on reliable digital identity
    proof and verification to a user in advance.
    The conditions shall meet at least the minimum
    standards of Royal Decree announced by the
    Electronic Transaction Commission. Whenever
    the user has executed the digital identity
    proof and verification as per the conditions,
    it shall assume that the user, whose identity
    has already proved and verified, is the actual
    individual or entity.
  3.  The service enterprise who provide
    service on the system of digital identity
    proof and verification before this Act
    enforces has been able to carry on the service
    business. In addition, if the service business
    is subjected to the business as set forth in
    Royal Decree pursuant to Section 34/4, the
    service enterprise shall submit an application
    for request of a permit within 90 days as of
    the enforcement of the Royal Decree.
  4.  Adding a sanction pursuant to Section
    45/1. In the event that the service enterprise
    provides service on the system of digital
    identity proof and verification without a
    permit, or provides the service during a
    permit suspension or after a permit
    revocation, the service enterprise shall be
    imprisoned not exceeding 3 years, be fined not
    exceeding 300,000 Baht or both.

Interested tax news

  Supreme Court Judgment No. 4587/2546
 

       Whether
Revenue Department can rely on Memorandum of
Associations for tax assessment of a business.

  Supreme Court
Judgment No. 2673/2560  

       Whether an
Owner under the Time Charter Party is imposed
on VAT.

  Royal Decree
Issued under the Revenue Code Governing
Revenue Exemption (No. 681)
B.E. 2562 (2019)
  

  Ministerial
Regulation Prescribing Service Business not
being granted for Foreign Business
Permission  (No.4) B.E. 2562

   

  Notification of
the Director-General of Revenue Department
(No.13)  

       Regarding on
rules, procedures and conditions of reduction
and exemption of income tax rate specific
business tax only on International Business
Center.

  Notification of
the Director-General of the Revenue Department
Governing on Income Tax
(No. 347)

       Prescribing
the rules, procedures and conditions exempt
income tax for income which is actually paid
by an income recipient paid for purchasing
product related to education and sport.

  Notification of
the Director-General of the Revenue Department
Governing on Income Tax
 (No. 348)

       Prescribing
the rules, procedures and conditions exempt
income tax for income which is paid by an
income recipient paid for purchasing One
Tambon One Product (OTOP)

 
Notification of the Director-General of the
Revenue Department Governing on Income Tax
(No.349)

       Prescribing
rules, procedures and conditions on Income Tax
Exemption for an income which is actually paid
for service fee and accommodation fee for
traveling in secondary tourist province or any
other traveling area prescribed by the
Director-General.

 
Notification of the Director-General of the
Revenue Department Governing on Income Tax
(No.350) 

      Prescribing rules,
procedures and conditions on Income Tax
Exemption for an income which is actually paid
for purchasing all types of books or service
fees for all types books in the form of
electronic information via internet.

 
Ruling of Foreign Business Administration
Division an March B.E. 2562

      In case foreigner
operates the retail and wholesale of all goods
without applying for foreign business license.

 
Ruling of Foreign Business Administration
Division an April B.E. 2562

      The scope of
business operation under the foreign business
certificate and license,  including the
definition of retail and wholesale.



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