C&T Newsletter No. 42

NEWSLETTER NO. 42

February 28, 2006

The following important legislation was published in the Government Gazette

Act, Account, Alien, Banking, Finance and Securities

1.	The following Acts have been recently enacted:
	1.1	Act Exempting Enforcement of Period of Time and Conditions Under Section 61 of Civil and Commercial Code on Missing Persons from Natural Disaster, B.E. 2548 (for the purpose of managing various activities and for the purpose of clarity in regard to the rights and duties under the laws of the heirs and the persons with interest of the persons whose names appeared in the List of Missing Persons and whose bodies have not been found from the natural disaster of earthquake and giant waves of the Department of Disaster Prevention and Mitigation, Ministry of Interior, it is deemed that the heirs or the persons with interests of the missing persons may request the court to adjudge that the said persons have disappeared, by disregarding the waiting period under the general principle prescribed in the Civil and Commercial Code) (1601/0901).
	1.2	Act Amending Criminal Procedure Code (No. 24), B.E. 2548 (amending the Criminal Procedure Code so that the injured person has the right to file a claim requesting the defendant to pay for indemnification in all categories of criminal cases where the Public Attorney is the plaintiff throughout, and the hearing in the civil case be proceeded quickly, as well as the exemption of the costs for the said court proceedings so as to lessen the burdens of the injured person) (2301/3012).
	1.3	Telecommunication Business Operation Act (No. 2), B.E. 2549 ((1).The applicant of Types Two and Three Licenses must not be an alien under the law governing alien business operation. The Commission may prescribe that the applicants for certain descriptions or categories of business operation that are a juristic person must be subject to any other prohibitions that fall under the description of a takeover of business by aliens (2) The licensee shall not collect guarantee money and other money which is of the description of guaranty money only (3) The Communications Authority of Thailand (CAT) or the Telephone Organization of Thailand (TOT) shall mean the company established by converting the shares of the CAT or TOT into the shares of said company under the law governing state enterprise capitalization for the purpose of telecommunication business operation (2301/2001).
	1.4	Act for the Establishment of Bankruptcy Courts and Bankruptcy Procedures (No. 3), B.E. 2548 (The Bankruptcy Court shall be deemed a special court which can try the criminal case, with special procedure appropriate to the nature of bankruptcy case) (2811).
	1.5	Act Amending Civil and Commercial Code (No. 15), B.E. 2549 amending Sections 1064/1, 1064/2, 1078/1, 1078/2, 1153/1 and 1157 re resignation of managing partner in a registered partnership and a limited partnership as well as resignation of a director of a limited company, the effective date of the resignation, and the registration of change with the Registrar within a prescribed period for the purpose of clarity in term of legal effects, and the reference of such legal effects and facts concerned (2202).
	1.6	Act Prescribing Offences Relating to Registered Partnership, Limited Partnership, Limited Company, Association and Foundation (No. 3), B.E. 2549 adding Section 4/1 re any registered partnership or limited partnership fails to effect the registration under Section 1064/2 or Section 1078/2 of the Civil and Commercial Code shall be punished by fine not exceeding Baht twenty thousand (2202).

2.	Notification of Ministry of Commerce re list of member countries to Convention Governing Protection of Copyrights or Convention Governing Protection of Actor’s Rights shall be as follows: (1201/2712).
	2.1	List of Member Countries to Berne Convention Governing Protection of Works of Literature and Arts (159 countries).
	2.2	List of Member Countries to Agreement Governing Intellectual property Right Concerning Trade (148 countries).

Commerce, Customs, Tax and Duty

Ministerial Regulations No. 257 provides that the income earner who is an ordinary person has the duty to pay personal income tax, therefore, in order to alleviate the tax burdens of the elderly which would help them to have more money for life sustenance, it is deemed suitable to exempt personal income tax on the assessable income for the income earner who is a resident of Thailand and who is not under sixty five years old in the taxable year of earning the income, specifically the portion of income not exceeding one hundred and ninety thousand in the said taxable year (1601/0901).

Royal Decree No. 448 under Revenue Code promoting the persons traveling to the Kingdom to buy goods from the bonded warehouses located at the customs airports in lieu of buying same from abroad, which will increase trade competitiveness and will also preserve foreign currency, it is suitable to exempt value added tax on the sale of goods of the bonded warehouses for displaying and selling goods stored in the said bonded warehouse under the law governing customs which are located at the customs airports (2301/2301).

Royal Decree No. 449 under Revenue Code prescribing the business of the Small and Medium Enterprises Development Bank of Thailand as a business that is exempted from specific business tax (2301/2301).

Royal Decree No. 450 under Revenue Code exempting stamp duty for the Small and Medium Enterprises Development Bank of Thailand (2301/2301).

Ministerial Regulations designating Suvarnabhumi Airport as Customs Airport (2701/1701).

Notification of Ministry of Finance re reduction of rates of duty and exemption of customs duty under Section 12 of Royal Proclamation on Customs Tariff B.E. 2530 (No. 29) (2701/2912).

Notification of Ministry of Finance re reduction of rates of duty and exemption of customs duty under Section 12 of Royal Proclamation on Customs Tariff (No. 31) (0802/2401.

Energy, Environment, Food & Drug and Health

Notification of Ministry of Public Health No. 40 describing cosmetics prohibited from manufacturing, importation or selling (0202/3012).

Notification of Food and Drug Administration re evidences and supporting documents for submission of application for using labels of food supplements and qualities or standards of microorganisms that caused diseases (0202/1001).

Notification of Ministry of Public Health (No. 38) prescribing of specially controlled cosmetics (1602/0901).

Notification of Ministry of Public Health (No. 39) re articles prohibited to be used as ingredients in manufacturing cosmetics (1602/0901).

Notification of Cosmetics Board (No. 14) re display of warning in label of specially controlled cosmetics (No. 7) (0901).

Notification of Ministry of Public Health (No. 15) re prescription of smoking zone and non-smoking zone signs (0202).

Notification of Ministry of Public Health (No. 16) re prescription of names or categories of public places where non-smokers’ health must be protected, and designating said areas as smoking zones or non-smoking zones (0202).

Immigration, Industry, Insurance and Investment

Notification of Ministry of Industry designating interference sound level and sound level caused by factory business operation (0102/2501).

Notification of Ministry of Natural Resources and Environments designating standards of opacity of smokes from place of business using steam boiler (0102/0912).

Notification of Ministry of Natural Resources and Environments designating place of business using steam boiler as point source pollution which must be subject to control on the release of polluted air into the atmosphere (0102/1310).

Miscellaneous

Ministerial Regulations prescribing the descriptions, sizes or capacity of engines and of vehicles to be registered as various categories of vehicles are not suitable to the present situation and are not in line with the development of the motorcar manufacturing industry. Hence, it is deemed appropriate to revise the said prescription so that it is more suitable (1901/0601).

Notice of National Telecommunication Business Commission re use of communication radio of radio frequency identification (2701/2401).

Notice of National Telecommunication Business Commission re application for license to provide international internet gateway service and internet exchange service (1002/2912).

Notice of National Telecommunication Business Commission re providing voice over internet protocol service (1002/1001.

Notice of Central Board Governing Prices of Goods and Services re prescription of controlled goods and services (1002/0702).

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

Approval of the following bills:

1.1

Bill Amending Probation Act by appointing Probation Committee and its power and duty; power and duty of probation officer; investigation and consideration procedures; social services, etc. (0702).

1.2

Bill Amending Revenue Code (No…) exempting the personal income tax for selling investment units of mutual fund to be in line with the law development plan of Ministry of Finance (0702).

1.3

Bill Amending Criminal Procedure Code (No. 21) extending the period for post mortem inquest from 5 years to 10 years (2802).

1.4

Bill Amending Consumer Protection Act re measures for recalling the goods causing injury to consumers from the market (2802).

Approval of draft ministerial regulations re application for registration, issuance of registration certificate and withdrawal of registration of private land which is the origin of herb or land to be used for herb planting (0702).

Approval of the increase of budgetary amount for purchase of 112 wagons and 7 diesel locomotives of the State Railway of Thailand from Baht 903.46 Million to Baht 1,031.14 Million (0702).

Approval of the following special holidays to celebrate the 60th Anniversary of His Majesty the King’s Coronation: (0702).

4.1

June 9, 2006 is not a holiday but state and private sectors are requested to cooperate by allowing their staff to join the royal ceremony.

4.2

June 12-13, 2006 are the special holidays for the work units located in Bangkok and nearby (Samutprakarn, Nonthaburi, Pathumthani and Nakorn Pathom).

Approval of area of 16,000 rai located in Sri Donchai and Satharn Sub-districts, Chiang Khong District, Chiangmai for development as industrial estate in border economic zone by obtaining the following rights and benefits: (0702)

5.1

Right and benefit from the Industrial Estate Authority of Thailand.

5.2

Tax incentives for investors from Office of the Board of Investment.

5.3

Import and export tax on free trade zone from the Customs Department.

Approval of establishment of Agence Francaise de Development (AFD) in Thailand for supporting the development cooperation, especially the cooperation of Tri-party Thailand-France under the joint operation of Thailand-France (Plan d’ Action) to assist the nearby countries. The right and benefit to be granted to the Office of AFD will be according to the Agreement made between the Governments of two countries (1402).

Approval of the following five bills as proposed by the Ministry of Commerce: (1402)

7.1

Bill Amending Civil and Commercial Code, Book 3, Title XXII with the following essential provisions:

7.1.1

Reduction of number of promoters from seven to three.

7.1.2

The registration of company limited can be completed within one day.

7.1.3

Reduction of the period for the creditor to protest in case of capital decrease and company merger to one month.

7.1.4

Amendment to the criteria and procedures of special resolution which previously required two consecutive meetings to be only one meeting.

7.1.5

Revocation of issuance of certificate of registration of limited partnership.

7.1.6

Amendment to the criteria and procedures for withdrawal of the limited partnership and company limited whose businesses are defunct.

7.2

Bill Amending Act Prescribing Offences Relating to Registered Partnership, Limited Partnership, Company Limited, Association and Foundation (No…) with the following essential provisions:

7.2.1

Offences and penalties imposing on the registered partnership and limited partnership which converted to the company limited without compliance with the law specified.

7.2.2

Offences and penalty for the registered partnership, limited partnership and company limited which have been crossed out from the registry but violate by continuing their operation. The managing partner of limited partnership, director of company or any person responsible for the operation thereof, who connives at such offence, shall be liable for penalty as the juristic person.

7.2.3

The Director-General of Department of Business Development or the person assigned is authorized to settle the case by imposing a fine for the offence.

7.3

Bill Amending Public Limited Company Act (No…) with the following essential provisions:

7.3.1

The registrar shall not be required to summarize the registration particulars for publishing in the Government Gazette. The registration shall become known by the public upon the completion of registration.

7.3.2

The Director-General of Department of Business Development or the person assigned is authorized to settle the case by imposing a fine for the offence.

7.3.3

The fee for issuance of certificate of registration or its substitute shall be repealed.

7.4

Bill Amending Chamber of Commerce Act (No….) with the following essential provisions:

7.4.1

The definition “Chamber of Commerce” shall include institution established for promoting the operation of services business.

7.4.2

Amendment to criteria for establishment and application for membership.

7.4.3

The qualifications of promoter and director which require in good standing shall be repealed.

7.4.4

The Board of Chamber of Commerce can assign the administrative officer to operate the business of the Chamber.

7.4.5

The Donator to the Chamber can use the donated amount for deduction of income tax as specified by the Revenue Department.

7.5

Bill Amending Trade Association Act (No….) with the following essential provisions:

7.5.1

The Central Registrar of Trade Association and the Registrar of Bangkok Trade Association shall mean the person assigned by the Director-General of Department of Business Development and the Registrar of Provincial Trade Association shall mean the provincial governor.

7.5.2

The qualifications of promoter and director which require in good standing shall be repealed.

7.5.3

The power of the Registrar to revoke the resolution of the general meeting shall be cancelled and such power shall belong to the Court.

7.5.4

The Trade Association shall be amended to be able to purchase debt instrument or to hold shares in the company listed on the Stock Exchange of Thailand as specified in the ministerial regulations.

7.5.5

The Director-General of Department of Business Development or the person assigned is authorized to settle the case by imposing a fine for the offence.

Approval of the Memorandum of Understanding on Cooperation on Civil Aviation Training between the General Civil Aviation Directorate, Ministry for Infrastructure Transport, Tourism and the Sea, the Republic of France and the Commission on Higher Education (2102)

Approval of Trust for Capital Market Transaction Bill and Bill Amending Civil and Commercial Code (No…) (2102)

10.

Approval of tax measures and fees for supporting the business merger under financial institution system development plan by approving a royal decree and four notices of Ministry of Interior: (2102)

10.1

Draft royal decree issued under Revenue Code (No…) with the following essential provisions:

10.1.1

Exemption of personal and corporate income tax to the shareholders of financial institution for the interest derived from the merger or transfer of financial institution.

10.1.2

Exemption of corporate income tax, special business tax and stamp duty to the financial institution for the assessable income, earning or instruments arisen from the merger or transfer of financial institution made from January 6, 2004 to July 31, 2006.

10.1.3

Exemption of value added tax, special business tax and stamp duty to the financial institution for the tax base, earning or instruments arisen form the merger or transfer of financial institution.

10.2

Draft royal decree issued under Revenue Code (No…) with the following essential provisions:

10.2.1

Reduction of corporate income tax to the commercial banks for the income derived from the depository of foreign currency-end money for oversea loan.

10.2.2

Exemption of corporate income tax, special business tax and stamp duty to the commercial banks for the income derived from depository of foreign currency-end money for overseas loan.

10.2.3

Exemption of personal income tax to the person whose nationality is not Thai and has no residence in Thailand and exemption of corporate income tax for the company or juristic partnership established under the foreign law and has not operated its business in Thailand, for the assessable income from saving or lending interest receivable from the commercial banks for the depository or borrowing of foreign currency-end money for overseas loan.

10.3

Draft Notification of Ministry of Interior re collection of fee for registration of right and juristic act under Land Code by collecting fee for transfer and registration of mortgage of condominium at the rate of 0.01% for the financial institution which merges or transfers all or certain parts of business, under the financial institution system development plan, made between January 6, 2004 to July 31, 2006.

11.

Approval of the draft ministerial regulations re safety measure for electricity systems under Factory Act with the essential provisions as follows: (2102)

11.1

The factory operator must make the drawing of installation of electricity systems certified by the engineer and kept in the factory for inspection.

11.2

The equipment of electricity system must be according to the acceptable standard.

11.3

The usage of electricity system must be according to the acceptable technical.

11.4

The electricity system of the factory must be inspected and certified by the engineer every year.

11.5

The operator of factory whose business is operated prior to the effective date of this ministerial regulation shall comply with Clause 3 thereof within 3 years from the effective date.

Copyright © 2010 by Chandler and Thong-Ek Law Offices Limited

All rights reserved.

email: