TFA
Calls for Establishment of Legal Framework
20 March 2006 |
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The
Thai Factor Association (TFA) has urged the Finance
Ministry to set up a legal framework to guide and set
service standards for the factoring business in Thailand.
Currently, factoring is governed by the commercial and
civil code. Although the Commerce Ministry supervises
the factoring business as a general trading service,
the Revenue Department collects a 3.3% specific business
tax from the business as it considers factoring a financial
service. At present, each Thailand company registration offering factoring
business manages its own risks and sets its own interest
rates. The TFA spokesperson believes that the new law
should set interest-rate limits in ownership rights
transfer concerning assets and reclassify the factoring
business as a financial service. The new law should
also encourage clear standards in terms of the capital
and reserves required for factoring providers to account
for all risks and losses, the spokesperson added. |
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Five
- Year Disappearance Period for Tsunami Victims
20 March 2006 |
The
Government Gazette has announced that for any person
who has disappeared during the Tsunami disaster in December
2004 and whose existence is in doubt, any interested
party or public solicitor may request for a court order
to declare this person as having disappeared. However,
this is applicable only if the person in question has
disappeared for five years. |
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Prohibition
of Importation of Refrigeration Devices Using CFCS
13 March 2006 |
HM
the King issued a Royal Decree banning the importation
of refrigerators, water coolers, and freezers which use
chlorofluorocarbons (CFC) for cooling. |
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Revenue
Code Amended
3 March 2006 |
Acting
under the authority of the Revenue Code Amendment Act,
H.M. the King issued Royal Decrees to exempt the Forward
Agricultural Market of Thailand and the International
Para Rubber Joint Venture Company Limited from business
tax and income tax respectively. Forward Agricultural
Market of Thailand was exempted from paying business
tax so that prices will reflect the general agricultural
market and therefore boost business and the economy.
The International Para Rubber Joint Venture Company
is a venture of the Malaysian, Indonesian and Thai governments.
The International Para Rubber Joint Venture Company
is exempted from income tax as was agreed in the Memorandum
of Understanding establishing the joint venture between
the countries. |
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Compensation
Benefits for Employees Terminated After Tsunami
3 March 2006 |
A
Royal Decree issued by H.M. the King Bhumibol Adulyadej
entitles former employees at places of business affected
by the 26 December 2004 Tsunami to compensation benefits
for injury, sickness, child delivery, disability and
death. If employees terminated from 26 December 2004
to 30 June 2005 were eligible for compensation benefits
at the time of the Tsunami, they are entitled to compensation
benefits for a period of 12 months after their termination. |
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Amendments to the Credit Information Business Act
3 March 2006 |
The
credit information business act which was first enacted
in 2002 has recently been amended. Under this amended
act, a Credit Information Protection Committee will
be set up. Members of the credit information company
will now have to notify their customers within a 30-day
period if information pertaining to the customers is
sent to the credit information company. Failure to do
so will incur a fine not exceeding Bt500,000, in addition
to a daily fine not exceeding Bt10,000 throughout the
period of violation. A written consent must be obtained
from any information owner if such information is disclosed
by the credit information company for purpose of credit
analysis and issuance of credit card. The penalty for
not doing so is imprisonment not exceeding one year,
or fine not exceeding Bt100,000 or both. |
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New
Tariff Structure for Steel and Petrochemical Imports
15 February 2006 |
A
spokesperson from the Fiscal Policy Office has disclosed
that import tariffs on steel and petrochemicals will
be incorporated into a new simplified tariff structure
for industrial goods by next year. Currently, tariffs
on raw materials and finished products for both industries
averaged around 6-7 per cent. Authorities said that
tariff protection is affecting downstream industries
dependent on steel and petrochemical products adversely.
Talks between the Finance Ministry and producers in
both industries will be scheduled to discuss the new
tariff rates and the need for tariff reforms to stimulate
the country’s competitiveness in the long run.
The Ministry would also implement tax cuts aimed at
reducing average tariffs by up to 2% starting from this
year. A new tax-structure framework for the next 10
years is also being drafted by the Ministry. |
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Four Royal
Decrees for Internet Trading
13 February 2006 |
Four
Royal Decrees will be released by the National Electronics
and Computer Technology Centre (Nectec) this year in
its bid to encourage electronic transactions, internet
security and electronic commerce in Thailand. The first
decree, which has been sent to the Cabinet for approval,
covers electronic transactions in the private sector.
The second decree, which will be ready by the third
quarter of the year, involves electronic payment service
providers. The Certification Authority Decree is the
third decree which will give businesses the authority
to certify electronic transactions. The last decree
is the Information Security Decree which aims to create
trust and security in internet transactions.
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Government
Tax Incentives for Used-Home Buyers
3 February 2006 |
The
government’s move to grant a series of property
tax incentives is set to boost the demand for used houses
by 20 per cent this year. These incentives include the
exemption of the three-per-cent special business tax
on home sales and the reduction in mortgage fees for
buyers, from 1% to 0.01%. The transfer fees paid by
buyers or sellers are also cut from 2% to 0.01%. In
order to qualify for the tax and fee reductions, a homeowner
must own the property for at least one year before selling
the property. Home-sellers can also deduct up to bt50,000
of the capital gain from their taxable income if they
buy another home within one year. The used-home market
is expected to be worth a total of bt85 billion this
year. |
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Kwao
Krua Patent Delay Hinders Potential
30 January 2006 |
An
associate professor from the Department of Biology at
the Chulalongkorn University has commented that the
time involved in registering a patent in Thailand is
having a damaging effect on local innovators. Mr Wichai
Cherdshewasart, who has been involved in the scientific
development of Kwao Krua, has submitted three patent
applications relating to the development of Kwao Krua
to the Intellectual Property Department since 1998.
He has yet to receive any decision from the Department.
Kwao Krua is a herb well used by traditional Thai medicinal
practitioners for its various properties, including
breast-firming and treatment of erectile dysfunction.
In the recent years, some Japanese companies have already
patented Kwao Krua products in Japan and two US companies
are also waiting for patent registrations to use Kwao
Krua in their country. A source from the Intellectual
Property Department has disclosed that it takes a minimum
of three years for a patent to be processed on average.
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Thailand
and Burma Signed Regional Treaty on Crime
18 January 2006 |
Thailand
and Burma joined eight other Asean countries in January
in a regional treaty to combat transnational crime including
terrorism. This treaty provides members of the Association
of Southeast Asian Nations (ASEAN) with the right to
request and provide assistance in evidence collection
for criminal investigations
and proceedings. The idea of a regional treaty was first
mooted by Malaysia, at a time where transnational crimes
such as drug trafficking and migrant smuggling are increasingly
prevalent in the Asean region. |
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Plea-Bargain
Allowed in Draft Amendment of Emergency Act
17 January 2006 |
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A
draft amendment to the emergency act which includes
plea-bargaining has been completed, said the Deputy
Prime Minister. The amendment would provide for reduced
penalties for southern rebels who have confessed and
thereby contributing to the peace-building process of
the South. The emergency law has been in force in the
violence-stricken southern region for the last six months
and the National Security Council is seeking cabinet
approval to extend the enforcement of the law by another
three months. |
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US-Thailand
6th Round FTA Talks
12 January 2006 |
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A
75-member delegation from the US met their Thai counterparts
in Chiang Mai for the sixth round of FTA talks, amidst
massive protests from the affected parties. A spokesperson
from the Thai Foreign Ministry said that both countries
are making progress in the talks, such as agreeing
on the approach to determine the location of origin
for export items including ceramics, glassware and
jewelry. The US also agreed to remove the tariffs
for 74 per cent of all Thai imports totaling USD1.28
billion (bt51 billion) once the FTA has been implemented,
and this will increase to 85 per cent over the next
five years. Items such as canned tuna, rice, sugar,
processed fruit, shoes and auto parts will be part
of the 97 per cent of total Thai imports with tariffs
removed over the next 10 years, totaling USD1.6 billion.
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Legal
Amendments Give Wives Right to Demand Compensation
12 January 2006 |
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Wives
of philandering husbands can now demand civil punitive
damage payment from other women involved in extra-marital
affairs with their husbands - a result of a series
of landmark legal amendments approved by a government
committee chaired by the Deputy Prime Minister. The
new amendments would also widen the provision of the
crime of rape to include sexual violations by men
against men, women against women and women against
each other. Currently, the civil code allows only
the husband to demand compensation from the male party
who has an extra-marital affair with his wife, in
addition to filing for divorce. Thai wives have no
right to demand such compensation up till now. |
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New
Citizenship Plan Approved by Cabinet
11 January 2006 |
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Around
two million stateless people living in Thailand could
become naturalized Thais under a new citizenship plan
approved by the Cabinet in January this year. This
plan aims to curb problems relating to the lack of
legal rights and status of stateless people. People
who fall under the plan include children studying
in schools located in Thailand and immigrants who
have been residing in Thailand for a period of 10
consecutive years or more. However, citizens of this
plan would not be entitled to the government’s
Bt30-per-visit medical scheme. |
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