NEWSLETTER NO. 41

January 31, 2006

Commerce, Customs, Tax and Duty

1.

Revenue Department/Revenue Code:

1.1

Regulation governing appeals and consideration of appeals under Revenue Code (No.2) (2909)

1.2

Royal Decree No. 437 exemption of income tax for the company or juristic partnership that has sent his employees to receive education or training or has trained his own employees, etc. (1810)

1.3

Royal Decree No. 438 exemption of income tax for the income of the company or juristic partnership at fifty percent of the expenditure paid as additional special allowance to the employees of the company or juristic person (1810)

1.4

Royal Decree No. 441 exemption of juristic person income tax for the business of the special purpose vehicle for securitization in order to attract the securitization which would render good results to the mobilization of funds of various businesses in the country (2311)

1.5

Royal Decree No. 442 tax measures for increasing the country competitive capacity by amending Royal Decree No. 10 as follows: (2311)

1.5.1

Reduction of term of shareholding in the small and medium size enterprises

1.5.2

Exemption of corporate income tax to the company limited or public company limited established under Thai law for the dividend received from holding the shares in the company limited or juristic partnership established under foreign law

 1.5.3

Exemption of specific business tax to the company or juristic partnership for selling immovable property which is factory with land in order to move the business premises to the industrial estate under law of Industrial Estate Authority of Thailand

1.6

Royal Decree No. 443 exemption of juristic person income tax for the said companies or juristic partnerships on the indemnification received from the company operating insurance business, specifically the part in excess of the value of the cost of the property remaining from wear and tear and depreciation (2911)

1.7

Royal Decree No. 444 exemption of stamp duty for the seller, specifically the execution of instruments owing to the sale of immovable property that the seller thereof has used as his/her own major dwelling place, whereby his/her name must have been listed in the house register under the law governing citizen registration for a period of not less than one year from the date of acquiring of ownership or right of possession of such immovable property, and the seller must have bought a new immovable property as his/her own dwelling place as well (2911)

1.8

Royal Decree No. 445 to exemption of specific business tax for the business of the Islamic Bank of Thailand, specifically transfer of ownership of immovable property to transferee owing to hire-purchase of immovable property of the Islamic Bank of Thailand (3012)

2.

Regulations of Central Board Governing Prices of Goods and Services re bases and procedures for price setting and change of particulars or price report (2308)

3.

Ministerial regulations fixing rates of tobacco stamp and liquor tax in bonded warehouses located at Customs Airports to encourage the person traveling into the Kingdom to buy goods from a bonded warehouse in lieu of buying goods from abroad (1312)

4.

Notice of the Director-General of Revenue Department (No. 141) specifying the criteria, procedures and conditions for exemption of income tax to the Borrower and Lender of securities (1011)

5.

Regulation of Ministry of Commerce specifying the form of certificate for obtaining the right of exemption of all or certain parts of taxes under Free Trade Agreement or agreements with same nature in different name (2511)

Energy, Environment, Food & Drug and Health

1.

Notification of Ministry of Public Health re prescription of foods prohibited for production, import or distribution (0712)

2.

Notice of PTT Public Company limited re exploration for construction of petroleum pipeline system and natural gas pipeline project to Suksawad Road Industrial Group (1609)

3.

Notice of PTT Public Company Limited re exploration for construction of petroleum pipeline system and natural gas pipeline project to Ratchburi Power Co., Ltd. (1010)

Immigration, Industry, Insurance and Investment

1.

Ministerial regulations re exemption of fees for factories located in localities of Narathiwat, Pattani and Yala Provinces (2510)

2.

 Notices of Board of Investment:

 2.1

No. 5/2548 re exemption of import duty on energy saving machinery (0111)

 2.2

No. Sor. 3/2548 re amendment to category of business 4.23: motor car manufacturing business (0111)

 2.3

No. Sor. 4/2548 re granting promotion to business relating to production of substitute energy (0111)

 2.4

No. Sor. 5/2548 re granting promotion to business relating to usage of natural gas in transportation sector (0111)

3.

Ministerial regulation fixing fees for licenses and substitute licenses concerning industrial products to be in line with the Industrial Product Standard Act (0912)

4.

Regulations of the Industrial Estate Authority of Thailand governing the system standard of public utilities, facilities and services in the industrial estate (1609)

5.

Regulations of the Industrial Estate Authority of Thailand governing the criteria, procedures and conditions for allotment of land to become industrial estate (1609)

6.

Notice of the Registrar of Insurance Department designating the names of state enterprises which are company limited and can be invested by the life insurance companies (2909)

Land, Labor and Mining

1.

Notification of Ministry of Labor re minimum wage rate (No. 6); basic minimum wage rate = Baht 140/day; Baht 184/day in Bangkok, Nonthaburi, Nakhon Pathom, Pathum Thani, Samut Prakarn and Samut Sakorn; Baht 180/day in Phuket; Baht 166/day in Chonburi and Baht 155/day in Chiang Mai, Pang Nga, Phra Nakhon Si Ayutthaya, Ranong and Rayong, (1412)

2.

Notification of Ministry of Interior re collection of registration fee of rights and juristic acts under law governing condominium and land in case of transfer and mortgage of condominium under measures of assistance to three southern border provinces (3112)

Miscellaneous

1.

Ministerial regulations prescribing type of building requiring an engineering inspector or an architectural inspector, whichever the case may be, for carrying out an inspection of the conditions, structure and various equipment of the building for safety purpose (2510)

2.

Ministerial regulations prescribing bases, procedures and conditions re application for driver license and its renewal (1910)

3.

Ministerial regulations No. 45 under Motor Car Act prescribing equipment which is necessary for a public motorcycle (0612)

4.

Regulation of Anti-Money Laundering Commission re property auction (No. 2) (3108)

Summary of Laws and General Matters Approved by the Resolutions of Cabinet during October 2005 – January 2006

1.

Approval of the following bills:

1.1

Public Organization Bill (No…) (0410)

1.2

Computer Offences Bill (0111)

1.3

Bill Governing Certain Offences against the Air Navigation (0811)

1.4

Thai Vessel Amendment Bill (1511)

1.5

Bill Amending Protection for Persons Injured by Automobile Act (1511)

1.6

Bill Amending Navigation in Thai Water (2211)

1.7

Bill Amending Building Control Act (0612)

1.8

Bill Amending Land Code (land trading) (2712)

2.

Preparation of Exchange of Letters on Moving the United Nations Office for Project Services (UNOPS) from Malaysia to be established in Thailand. (0410)

3.

Approval of compensation for appropriation of immovable property for highway project for the connection of Charunsanitwong Road and Phuttamonthol 4 (0410)

4.

Approval of signing Memorandum of Understanding on Cooperation in Information System and the Broadcasting Network between Thailand and Cambodia (1110)

5.

Draft ministerial regulations issued under the land transportation for transport safety measure, such as, prohibit of use of mobile phone while driving (1110)

6.

Draft ministerial regulations re criteria, procedures and conditions under the excise tax bill by amending the 21 ministerial regulations and combining into one ministerial regulation (1810)

7.

Approval of the bilateral swap agreement between Thailand and Korea (1810)

8.

Approval of the Ministry of Foreign Affairs’ proposal on the joint committee member and MOU relating to Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACEMES) single visa (2510)

9.

Acknowledgment of changing the status of Thai Bond Selling Center to be Thai Bond Market Association (0111)

10.

Acknowledgment of progress of investment project on electricity and energy of EGAT Public Company Limited, PTT Public Company Limited, Metropolitan Electricity Authority and Provincial Electricity Authority (0111)

11.

Acknowledgment of progress of mega projects of CAT Telecommunication Co., Ltd. and TOT Public Company Limited (0111)

12.

Approval of guideline of distribution of shares of EGAT Public Co., Ltd. to the public (0111)

13.

Approval of Mass Rapid Transit Authority of Thailand to make additional loan of 287.5 Million Baht for purchasing shares of Bangkok Metro Public Co., Ltd. (2401)

14.

Approval of double tax treaty between Thailand and Brunei (0811)

15.

Approval of 4 ministerial regulations issued under the Multi Connecting Transportation Act re registration of the operator of this business, appointment of agent, criteria and procedures to obtain the license for establishment of branch office (1511)

16.

Acknowledgement of the summary of the progress of electricity and energy projects invested by EGAT Plc., PTT Plc., Metropolitan Electricity Authority and Provincial Electricity Authority (1511)

17.

Acknowledgement of the summary of the progress of mega project of Ministry of Information and Communications Technology; 4 mega projects of CAT Telecommunication Plc., and 3 mega projects of TOT Plc. (1511)

18.

Approval of the establishment of joint venture between Thai Maritime Navigation Co., Ltd., and Group of 23 companies owning Thai vessels at the ratio of 30% and 70%; Thai Maritime Navigation Co., Ltd., invested in the amount of Baht 200 Million (1511)

19.

Approval of Memorandum of Understanding on investment promotion and protection between Thailand and Singapore (2211)

20.

Approval of water resources investment project for urgent period in 2006 under mega project on water resources (2012)

21.

Approval of the transfer of the assets of the Financial Institution’s Asset Management Corporation (AMC) to Bangkok Commercial Asset Management Co., Ltd., for further management; dissolution of the AMC and approval of the Bill Amending the Emergency Decree on the Financial Institution’s Asset Management Corporation, B.E. 2540 (2012)

22.

Acknowledgement of the progress of Memorandum of Understanding between the Ministry of Energy of Thailand and the Ministry of Electric Power of the Union of Myanmar on cooperation in the development of hydropower projects in Salween and Tenasserim Basins as proposed by Ministry of Energy (1001)

23.

Approval of royal decree extending the period for obtaining the right and benefit on tax for the aliens who work in the regional office from two year to four years (1001)

24.

Approval of royal decree using the medium price of land for assessment of local development tax for B.E. 2521 to 2524 for the assessment of same for B.E. 2549 (1001)

25.

Approval of the royal decree re reduction and exemption of personal and corporate income tax for the expenses spent for supporting the sport (1701)

26.

Approval of granting petroleum concession according to notice of invitation to file application for petroleum concessions No. 19. The Cabinet approved 3 petroleum concessions as follows:

(1)

Block No. G4/48 in the Gulf of Thailand to Unocal Andaman Co., Ltd.

(2)

Block No. G9/48 in the Gulf of Thailand to PTT Exploration and Production (Thailand) Co., Ltd. and Unocal Andaman Co., Ltd.

(3)

Block No. G12/48 in the Gulf of Thailand to PTT Exploration and Production (Thailand) Co., Ltd., Total E&P Thailand Co., Ltd. and Thai Energy Co., Ltd. (2401)

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