Tax News No. 280 April 2020

Tax News No. 280 April 2020

  Emergency Decree governing on Electronics Conferencing B.E. 2563 (2020)

    Due to the previous, Meetings through electronic media has prescribed that all attendants must be present in Thailand at the time of the meeting and at least one-third of the participants must be in the same meeting place. Therefore, causing a lack of convenience in practice. However, when the pandemic of the new coronavirus decease (Covid-19) has increased the demand for board of directors meeting and Annual General Shareholders’ Meeting through electronic media. Therefore, issued an Emergency Decree allowing the meeting to be held through electronic media without having to comply with the above conditions since 20 April B.E.2563 (2020) onwards. The conditions under the Emergency

Decree on the Electronics Conferencing B.E.2563 (2020) are as follows: –

1.  To comply with security standards as specified by the Ministry of Information and Communication Technology. (To comply with the current safety standards, a new issue will be issued in May)
2.  Proceed as follows: –

        (1) The attendants have to present themselves to participate in the meeting through electronic media before joining the meeting.
        (2) Arrange for the recording of audio or video and audio, as the case may be, of all attendants during the meeting period as electronic data except secret meetings.
        (3) Electronic traffic data of all meeting attendants shall be kept as evidence.
   
    The rules to consider approving position of the foreigner, placement the foreigner to approved position and extend the period of position and person under Section 25 and Section 26

    To provide convenience and clarity for investors for request position of the foreigner, appoint the foreigner to approved position and extend the period of position and personal under Section 25 and Section 26 of Investment Promotion Act B.E.2520 (1977).
    By virtue of Section 11, Section 13, Section 25, and Section 26 of Investment Promotion Act B.E.2520 (1977). The office of Board of Investment which is authorized by the Board of Investment. Therefore, announced the notification as follows: –

    Clause 1 In this notification
        “Foreigner” means Foreign workman and specialist which are enter to Thailand for working at promoted business.
        “System” means Single Window system of One Stop Service Center for Visa and Work Permit.
         “Executive position” means Executive position such as Chairman, President, CEO, Vice President, Executive Director, Managing Director.
        “Management position” means Department manager position such as Production Manager, Marketing Advisor, Assistant Production Manager, Project Leader.
    “Operation position” means operation position such as Production Supervisor, Project Coordinator, Electrical Engineer, IT Programmer, Injection Mold Technician, Data Analyst.

    Clause 2 Consideration to approve position of the foreigner, placement the foreigner to approved position and extend the period of position and person in the manufacturing business has a condition as follows: –
        2.1 Consideration to approve the position of foreigner
            2.1.1 Consideration to approve the position will consider based on the business such as business activity, amount of investment, number of Thai employees, the level of technology and production process.
            2.1.2 Manufacturing business will allow the position not more than 2 years.
            2.1.3 In case of specialist working as Researcher of science and technology will allow not more than 4 years.
        2.2 Consideration to placement the foreigner to approved position
            2.2.1 Executive level and Management level will allow the foreigner that the age not less than 27 years old and having same experience at least 5 years.
            2.2.2 Operation level will allow the foreigner that the age not less than 22 years old and having same educational background and work experience at least 2 years. In case of educational background is not the same as work, shall have same work experience at least 5 years.
        2.3 Extension the period of approved position and person
            2.3.1 Extension the period of approved position and person will consider from various factors such as business plan, expanding of manufacturing capacity, improving production process, improving efficiency or standard of their products and it is the position that lack of Thai personnel.
            2.3.2 Extension the period of approved position and person will allow the period not more than 2 years.
            2.3.3 Extension the period of approved position and person for Researcher of science and technology will allow not more than 4 years.

    Clause 3 Consideration to approve position of the foreigner, appoint the foreigner to approved position and extend the period of position and person in service business has a condition as follows: –
        3.1 Consideration to approve the position of foreigner
            3.1.1 Consideration to approve the position will consider based on the business such as business activity, amount of investment, number of Thai employees, the level of technology and service process.
            3.1.2 Service business will allow the position not more than 2 years. Except those specified otherwise.
            3.1.3 Software business, Digital technology service business, E-commerce business, which approved to investment promotion since February 2019. The foreigner who is working as digital technology specialist will be considered to approve position only Senior Level which salary is not less than 75,000 Baht.
                Thus, the first placement is consider based on the income specified in the contract. As for extend the period of position and person will consider the income from P.N.D.1.
            3.1.4 International Headquarters: IHQ, International Trading Center: ITC, International Business Center: IBC, Research and Development business, Target technology development business and electronic design business will allow the position not more than 4 years.
            3.1.5 In case of a specialist which working as Researcher in science and technology will allow the position not more than 4 years.
            3.1.6 Trade and Investment Support Office: TISO, Business Process Outsourcing: BPO, International Business Process Outsourcing: IBPO will allow the position not more than 1 year and will allow operator at workstation according to the conditions of the workstation number specified in the BOI certificate.
        3.2 Consideration to placement the foreigner to approved position
            3.2.1 Executive level and Management level will allow the foreigner that the age not less than 27 years old and having same experience at least 5 years.
            3.2.2 Operation level will allow the foreigner that the age not less than 22 years old and having same educational background and work experience at least 2 years. In case of educational background is not the same as work, shall have same work experience at least 5 years.
            3.2.3 Executive level and Management level in software business and Digital technology service business which approved to investment promotion since February 2019 will allow to placement the foreigner which having work experience same as with the position that will be performed at least 5 years.
            3.2.4 Executive level and Management level and Operation level in software business, Digital technology service business, E-commerce business, which approved to investment promotion since February 2019. The foreigner who is working as digital technology specialist will be considered to approve of placement only Senior Level which salary is not less than 75,000 Baht.
                Thus, the first placement is consider based on the income specified in the contract. As for extend the period of position and person will consider the income from P.N.D.1.
            3.2.5 Operator at workstation in Trade and Investment Support Office for the scope of business as International Business Process Outsourcing: IBPO which approved to investment promotion since March 2019 will allow the foreigner that the age not less than 22 years old and having same educational background and work experience at least 2 years or having training experience in related field at least 3 months. For the project that applying for new promotion and the current project which requests to amend only the number of Workstation which has been approved for investment promotion since March 2019 will allow the placement of foreigner with a bachelor’s degree or equivalent or higher with evidence of training in the related field with an income not less than 30,000 baht per month.
                Thus, the first placement is consider based on the income specified in the contract. As for extend the period of position and person will consider the income from P.N.D.1.
            3.2.6 Teacher position will consider the qualification of foreigner under the criteria as operation level and shall attach teacher appointment letter and license from The Teacher’s council of Thailand
            3.2.7 Pilot position will consider the qualification of foreigner under the criteria as operation level and shall attach validation license together with supporting documents from The Civil Aviation Authority of Thailand.

        3.3 Extension the period of approved position and person

            3.3.1 Extension the period of approved position and person will consider from various factors such as business plan, expanding of manufacturing capacity, improving production process, improving efficiency or standard of their products and it is the position that lack of Thai personnel.
            3.3.2 Extension the period of approved position and person will allow the period not more than 2 years. Except those specified otherwise.
            3.3.3 Extension the period of approved position and person of International Headquarters: IHQ, International Trading Center: ITC, International Business Center: IBC, Research and Development business, Target technology development business and electronic design business will allow to extend not more than 4 years.
            3.3.4 Extension of the period of approved position and person for a specialist which working as Researcher in science and technology will extend not more than 4 years.
            3.3.5 Extension the period of approved position and person of Trade and Investment Support Office: TISO, Business Process Outsourcing: BPO, International Business Process Outsourcing: IBPO will extend not more than 1 year.

    Clause 4 When the company has approved to commence business operation, shall reduce the number of foreigners in the operation level down as the Office deems appropriate.

    Clause 5 For requesting permission to bring foreigner into the Kingdom Section 25 and Section 26 in this notification shall proceed under the notification of the Board of Investment No. Por. 3/2560 dated 22 September B.E.2560 (2017) subject: The rules and procedures to bring the foreigner into the Kingdom through electronics system.

    Clause 6 The above criteria will be used as general guidelines. Except in the case of having additional conditions specified in the BOI0 certificate or in the case of reasonable cause The Secretary-General of the Board of Investment may consider waiver on a case-by-case basis.

    Clause 7 In the event that it is not possible to consider and decide by this announcement The Secretary-General of the Board of Investment shall consider.

       
        The Federation of Accounting Professions (FAP) has issued the practical guidelines regarding accounting treatment as measures to temporarily relieve the current situation for 2 issues which are already effective and announced in Gazette. Followings are the contents in briefly.

1.  Practical Guideline no.1: Measures to temporarily relieve for the entity helping their receivables who suffer from circumstances affecting to Thai economy is issued in order to alleviate the difficulties for the financial institutions under the regulation of Bank of Thailand (BOT), the entity who provide credit by any means such as hire purchase, leasing, credit card including other businesses providing assistances to receivables under the method to help financial institution issued by BOT in order to assist receivables having more financial liquidity in domestic economy system. In respect of this matter, FAP issued the relief in accounting treatment regarding AR classification under the basic concept of TFRS 9. For example, classification of Non-NPL receivables to stage 1 receivables can be done immediately without the process of waiting for following up the results, classification of NPL receivables as stage 1 by follow up only 3 months, the exemption in calculation of doubtful debts from unused credit line, etc.

The effective period of Practical Guideline no.1 is January 1, 2020 to December 31, 2021 or until there is any change announced by BOT, the entity has to conform such change.

2.  Practical Guideline no.2: Measures to temporarily relieve for additional accounting options in order to cope with the impact from COVID-19 pandemic is issued in order to alleviate the difficulties for all entities that adopt TFRS 9: Financial Instruments, TFRS 13: Fair Value Measurement, TFRS 16: Leases, TAS 12: Income Taxes, TAS 36: Impairment of Assets, TAS 37: Provisions, Contingent Liabilities and Contingent Assets. The said TFRS and IAS have been impacted by COVID-19, that is still under high uncertainty situation so the entity may need a high level of discretion in estimation.

Therefore, FAP has issued the measure to temporarily relieve in accounting for various topics. For example, Doubtful debt can be calculated with the simple method in order to permit the use of historical data instead of the expected data in the future, fair value measurement of investment in non-marketable equity securities at the end of 1st quarter, 2nd quarter, 3rd quarter and the year ended 2020 can be valued by the fair value measurement as at January 1, 2020 instead, etc.

The effective period of Practical Guideline no.2 is January 1, 2020 to December 31, 2020.