Thailand is working out a new investment promotion strategy which will focus on industrial restructuring toward knowledge-based or high-technology industries.

Five seminars have been prepared to offer opportunities for business operators across the country to express their opinions. Suggestions and recommendations offered at the seminars will be included in the proposal on the new investment promotion strategy to be presented to the Board of Investment’s board meeting. The new investment promotion policy under this new strategy is likely to be implemented in June 2013 and is believed to push for the development of Thailand as a leading production base I the world.

It is expected that BOI would place more emphasis on investment which promoted a good balance between economic growth and social and environmental development, as well as a balance between agricultural, industrial and service sectors. This includes the industries in which Thailand has good potential, such as those involved with food processing, rubber products, health care and creative industries. Other industries to receive greater attention are those related to future global trends, such as alternative energy, biotechnology and high-value-added services.

While basic incentives will be minimized, BOI will offer additional incentives for companies that have more investment in research and development, human resource training and environmental protection. It will also adjust investment rules and regulations on non-tax benefits and services to improve the business environment while encouraging Thai investors to invest more in other countries.

Interested in doing business in Thailand? ThaiLawyers can help you in business set up, work permit application and Thai visa extension. Contact now for further consultation.

A Tax Clearance Certificate is a certificate issued by the Director-General of the Thai Revenue Department or the Provincial Governor or the delegated authority to a foreigner who is leaving Thailand to indicate that he has already paid taxes or that he has provided a guarantor or securities as guarantee for tax liabilities and tax payable.

According to Section 4 quarter of the Revenue Code, a foreigner leaving Thailand shall apply for a Tax Clearance Certificate in the form prescribed by the Director-General within 15 days before leaving the country, whether or not there is any tax payable.

A foreigner leaving Thailand is required to file an application for Tax Clearance Certificate (Form P.1) and supporting documents if:

1) He is liable to payment of tax or tax arrears before leaving Thailand.

2) He has duty to file a tax return and pay tax on behalf of a company or juristic partnership incorporated under foreign laws and has been carrying on business in Thailand.

3) He has taxable income whether or not in Thailand from being a “public performer” in Thailand. (The word “public performer” means a drama, movie film, radio and television performer, singer, musician, professional sportsperson or performer of any kind of entertainment).

Departing Thailand? Consult with MSNA Tax Advisors to know if you are required to get a Tax Clearance Certificate.

Foreigners can be employed as journalists in Thailand provided that proper visa and work permit will be obtained so they can be allowed to work legally.

Usually, the required documents for the approval of temporary permit of stay within the Kingdom of a foreigner who works as a journalist with government authorization are as follows:

1. An application for extension of temporary stay (form Tor Mor 7) and two photos (2 inches)
2. Photocopies of passport and work permit
3. An acknowledgment letter from the Department of Information, Ministry of Foreign Affairs
4. A photocopy of press card
5. Latest personal income tax form (Por Ngor Dor 91) of the foreigner (if he/she has been working in the Kingdom)

For the approval of the work permit of a foreigner who works as a journalist in Thailand, the following documents are required:

1. An application for work permit (form Tor Thor 2) and three 3×4 cm photos (taken within the past six months)
2. A photocopy of passport with a valid visa
3. A letter of employment (form specified by Department of Labor)
4. A medical certificate stating the applicant is free from prohibited diseases (issued within the past six months)
5. An acknowledgement letter from the Department of Information, Ministry of Foreign Affairs
6. A photocopy of press card

As Immigration policies and work permit rules tend to change from time to time, it is advisable to seek legal assistance in obtaining a proper visa and work permit in Thailand. Consult with ThaiLawyers for Thai visa and work permit application.

In view of the increase in the minimum daily wage which took effect on January 1, 2013 nationwide, the Thai government has recently approved tax relief measures for the affected small-and-medium enterprises (SMEs). These measures are expected to help SMEs with annual income not exceeding Baht 50 million a year.

Under these measures, the income tax exemption limit for SMEs will be raised from Baht 150,000 to Baht 300,000 a year. SMEs declaring income between Baht 300,000 and Baht 1 million will be taxed at 15% and those with over Baht 1 million profit will pay tax at 20% on the difference.

The withholding tax rates for SMEs will also be cut from 3% to 2% and they will be allowed to claim 100% depreciation on machinery for the first year of purchase until the end of 2013, an extension of one year from the year end of 2012.

Contact MSNA for your accounting, tax and other business needs.

One of our payroll clients has asked us about the Social Security Fund reimbursement for dental treatment.

“As a member of the Social Security Fund, can I claim back the amount that I have paid to a dentist in a private clinic when I have my tooth extracted? I’ll appreciate your advice. Thanks.”

Answer:

Yes, as one of the insured person, you are entitled to receive medical treatment service at any hospital or clinic in the case of tooth extraction, filling and removing dental plaque. You can advance the expense and can later apply for the reimbursement at the rate of not exceeding Baht 300 per each dental service or not more than Baht 600 per year.

Additionally, you shall further be entitled to be fitted with any acrylic-based over denture from 1 to 5 teeth at the cost of not exceeding 1,200 Baht and an over denture for more than 5 teeth, at the cost of not more than Baht 1,400 within a period of 5 years effective from the date of fitting the acrylic-based over denture.

When applying for dental service cost reimbursement, you are required to submit these evidences to the Social Security Office:

– Application Form for Compensation Payment in Case of Dental Service (2-16).

– A medical certificate and a receipt from the dentist.

– A copy of Thai ID card or passport and a copy of the Certified Entitlement Card.

– In case you would like to receive the payment through the Bank, you should prepare a copy of the first page of the Bank Savings Account book showing the Name of Account and Account Number or either Bank of Ayudhya PLC or Krung Thai Bank PLC.

Contact MSNA for your questions about Thailand Social Security and its benefits.

Not all diseases and medical services can be entitled to claim Thailand social security fund benefits. Insured persons cannot claim the medical compensation for such diseases and medical services follows:

1. Psychosis except in case of acute psychosis which requires immediate treatment and for a period of not more than 15 days.

2. Disorders or injury due to the use of narcotic substance under the law governing narcotic drugs.

3. The same disease which requires hospitalization period of more than 180 days in one year.

4. Hemodialysis except:

a. In the case of acute kidney failure which requires hospitalization period of not more than 60 days shall be entitled to medical service benefits.

b. In the case of chronic kidney failure of final stage for which medical service benefits shall be granted by means of hemodialysis with the use of dialyzer; by means of the Chronic Peritoneal Dialysis (CPD) and by kidney transplant according to the criteria, the terms and conditions and rates prescribed in the Notification of the Zone Office of Social Security.

5. Any action taken for beautifying purpose with absence of medical indications.

6. Treatment in the course of doing researches and experiments.

7. Infertility

8. Examination of mucus membrane for organ transplant except bone stem cell transplant.

9. Any examination that is exceeding the needs for curing such disease.

10. Organ transplant operation except the bone stem cell transplant according to the established criteria.

11. The sex change.

12. Artificial insemination.

13. Service provided in the course of recuperation.

14. Dental service except in the case of tooth extraction, filing and removal of dental plaque.

15. Spectacles.

Learn more about Thailand social security. Consult with MSNA for registration and contribution to receive social security fund benefits.

For the convenience of applicants for Re-Entry Permit in Bangkok, the Immigration Division 1 of the Immigration Bureau is now open for queue online booking service on their website. However, this service is exclusively available for Immigration Division 1, the Government Complex branch at Chaengwattana Road only.

In this queue online, the officer will check the information of the re-entry permit applicant in advance. Then the applicant could take the passport for Re-Entry Permit stamp and pay the fee on the booking time and date.

The form TM.8 will be printed out and the applicant’s photo will be taken by the system. This “One Stop Service” will be finished within 5 minutes under the conditions of correct and complete documents.

Consult with MSNA Legal Team for further details on how to queue online and obtaining a re-entry permit before departing Thailand.

If you are a visitor to Thailand, you shall be qualified to a VAT refund on goods that you purchased from retailers participating in the VAT refund scheme provided that you meet all the eligibility criteria and conditions as stated below.

Before departing Thailand, travelers will be eligible for a VAT refund if the following conditions are met:

• You are a non-Thai resident and not staying in Thailand up to 180 days in a current tax year;
• You are not a pilot or a cabin crew of any airline departing Thailand on duty;
• You purchased goods from stores displaying “VAT Refund for Tourists” sign;
• VAT refund only applies to goods taken out of Thailand with the eligible traveler within 60 days from the date of purchase; and
• You leave Thailand via an international airport.

If you wish to claim a refund of the tax paid on eligible goods, a proof of export is required. To claim for a VAT refund, contact Customs officials at the airport before checking in. The following documents must be available for inspection by Customs officials:

1. A valid passport;
2. VAT Refund Application Form (VAT Form 10);
3. An original receipt/tax invoice;
4. Goods that go with the original receipts.

If the declarations for VAT refund are correct, Customs officials will sign and stamp the VAT Refund Application Form, affix a sticker to the luggage containing the eligible goods, and return everything to you. After clearing Immigration for a VAT refund, the VAT Application Form approved by the Customs must be presented to the Revenue Department officials. If a claim is for small and expensive items such as jewelry, gold, watches, pens, glasses, etc, these items must be available for inspection at the VAT Refund Office again.

Thai Customs also remind travelers to allow extra time at the airport to have application stamped and eligible goods verified, keeping in mind that other passengers are also requesting these services. You should arrive at the airport even earlier than the time recommended by your airline to be at your boarding gate on time.

Contact MSNA, Tax Advisors for consultation on Thai taxation and further information about Tourist VAT Refund.

The Thai government has recently approved a new personal income tax structure which reduces the existing maximum rate of 37% to 35%. The new rates will take effect in the 2013 tax year.

The recently approved starting tax rate is 5%-10%. For more information, the new tax rates are summarized as follows:

Yearly net income (Baht) Personal Income Tax rate

Existing rate NEW rate

• 0-150,000 Exempt Exempt
• 150,001-300,000 10% 5%
• 300,001-500,000 10% 10%
• 500,001-750,000 20% 15%
• 750,001-1,000,000 20% 20%
• 1,000,001-2,000,000 30% 25%
• 2,000,001-4,000,000 30% 30%
• 4,000,001 upward 37% 35%

Please note that implementation of the above new tax rates are yet to be announced by the Thai Revenue Department. Old existing tax rates will still be applied until further notice. Contact MSNA Tax Advisors for Personal Income Tax computation and submission.

In the event of sickness or injury, if it is necessary that the insured person (patient) may be taken to other hospital for continuing diagnosis or treatment, reimbursement for transportation costs and further expenses of medical treatment may be allowed by the Social Security Office.

When the insured patient is in the same provincial area, if a motor car or an ambulance is used, additional reimbursement for actual expenses may be reimbursed but not exceeding Baht 500 per reimbursement. However, if a hired vehicle, a private transport or other vehicle is used, a lump sum reimbursement at the rate of Baht 300 per reimbursement may be paid. And if it is in other province, the Zone Office of Social Security may pay an extra reimbursement at Baht 6 per kilometer.

Know more about Thailand Social Security Fund and its benefits. Contact MSNA for social security registration and monthly contribution submission.