Tax News No. 251 November 2017

Tax News No. 251 November 2017

Index of legal movement in relation to business

Topix

Amendment of Civil and Commercial Code

On 17th October 2017, the Cabinet approved of principles of the following two drafts of Act as proposed by Ministry of Commerce. At the moment, the Office of the Council of State is taking into account and shall ask for approval of Securities and Exchange Commission of Thailand. And, a Representative of the Ad Hoc Committee on the National Legislative Assembly as well as the National Legislative Assembly will consider them afterwards.

  1. The draft of Amendment Act on Civil and Commercial Code (No. …) B.E. … (amending in the fact that a private limited company can carry on a convertible debenture, vesting, employee stock ownership plan (ESOP) and preference shares) as follows:
    • 1.1 A limited company can make public offering pursuant to securities and exchange law.
    • 1.2 A shareholder of a limited company can apply debt equity swap to two cases – (1) through a special resolution of a shareholders’ meeting and according to securities and exchange law, or (2) a limited company engages in debt restructuring under a debt-to-equity conversion project.
    • 1.3 Issued preference shares can be changed, and issued preference shares can convert to ordinary shares.
    • 1.4 A limited company can hold its own shares in case of share redemption through a special resolution of a shareholders’ meeting, and according to securities and exchange law.
    • 1.5 A limited company can offer shares to its executives, its employees, or its creditors and shall not be required to offer the shares to its shareholders first.
    • 1.6 A limited company can issue convertible debenture pursuant to securities and exchange law.
  2. 2. The draft of Amendment Act on Act prescribing offences related to registered partnerships, limited partnerships, limited companies, associations and foundations (No. …) B.E. … shall provide liability and sanction in part of the conversion of preference shares to ordinary shares.

Interested tax news

Supreme Court Judgment No. 4862/2559

Value added tax (VAT) in the case of sales of goods between a head office and a branch office

Royal Decree Issued under the Revenue Code Governing Revenue Exemption (No. 645) B.E. 2560 (2017)

Royal Decree Issued under the Revenue Code Governing Revenue Exemption (No. 646) B.E. 2560 (2017)

Royal Decree Issued under the Revenue Code Governing Revenue Exemption (No. 647) B.E. 2560 (2017)

Ministerial Regulation No. 333 (B.E. 2560) Issued under Revenue Code on Revenue Exemption

Notification of Director-GeneralGoverning Value Added Tax (No.217)

Prescribing the provision of service on other professional under Section 81 (1) (i) of Revenue Code

Director-General NotificationGoverning Income Tax (No. 310)

Rules, Procedures and Conditions on Reduction from Income Tax Rate for income derived from an employment contract of an executive, a specialist or a researcher as an employee in the company or juristic partnership conducting a target industry

Ruling No. GorKhor 0702/Por./4963 Date 2 August 2017

Value added tax in the case of bringing imported products to a free zone and exporting the products to a registrant in abroad

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