Comments Off on Corporate Tax Reduction Options for SMEs
On 31st October 2017 Royal Decree (No. 647) was released offering Thailand registered SMEs the opportunity for 200% corporate tax reduction for costs related to the purchasing or hiring of computer programs for the tax years 2017-2019.
Under this tax measure any valid Thai *SME company can deduct expenses two times for the following items:
1. Purchase computer programs
2. Renting computer programs
This covers the period from 1st January 2017 to 31st December 2019, not exceeding 100,000 Baht.
* SMEs refer to a company registered in Thailand with fixed assets under 200 million Baht and not more than 200 employees. Moreover, the company should also have a maximum of 5 million Baht in paid-up capital and gross sales not higher than 30 million Baht.
Comments Off on Extension of Capital Expenditure Corporate Tax Deduction
Under the Royal Decree No. 604 of 2016 (B.E. 2559), tax benefits were given to companies or partnership’s expenses of domestic investment. On 24th January 2017, the cabinet approved a one year extension of this tax measure, that is for the period from 1st January 2017 until 21st December 2017.
It should be noted that the privileges have been amended, in particular the multiple for the calculation of tax expenditure deduction has been reduced from 2 to 1.5.
Accordingly, under this tax measure, expenses can be deductible 1.5 times if they were incurred for the investment in these following assets: –
Machinery, parts, equipment, tools, appliances, decorations and furniture;
Computer programs;
Vehicle except less than 10 seater cars; and
Permanent building which lands and housing are included.
Eligible for deduction are the following assets:
New assets which are invested in 2017 and will be ready for use within 31st December 2017 (but not including machinery and permanent buildings which may be ready for use afterwards).
Assets which already obtained the 2 times deduction from the Royal Decree no. 604, ifthe assets’ expenses for investment have not been completed and are still carried on in 2017. The multiple of 1.5 will then apply for the deduction under this tax measure.
Please be informed that the company or partnership which applies for this benefit must prepare investment project and expense plans and present these to the Revenue Department.
FRANK Legal & Tax has offset its Corporate Carbon Footprint 2016 by supporting Gold Standard high-quality carbon mitigation projects.
FRANK Legal & Tax takes on responsibility for climate protection and is a climate neutral company. Together with the climate protection partner ARKTIK the CO2 emissions from its corporate activities were calculated and afterwards neutralized by supporting Gold Standard carbon mitigation projects. To ensure complete transparency of reported CO2 emissions, TÜV NORD (TN-CC 002) regularly validates ARKTIK’s management and offset of carbon certificates.
With the offsetting of the CO2 emissions FRANK Legal & Tax supports the carbon mitigation project that promotes renewable energy from wind in Akbük, Turkey. Throughout this mitigation project 67,570 tons of CO2 are mitigated. The Akbük wind farm thereby produces clean electricity for about 35,000 Turkish households. All the carbon mitigation projects from ARKTIK comply with the WWF Gold Standard and their carbon mitigation is certified and controlled on-site by UN-recognized authorities. In addition to offsetting the carbon emissions, the Gold Standard projects always imply green development aid- by offering the chance to partake in green technologies and also by significantly improving the social and environmental conditions of the local population.
FRANK Legal & Tax has offset its Corporate Carbon Footprint 2015 by supporting Gold Standard high-quality carbon mitigation projects.
FRANK Legal & Tax takes on responsibility for climate protection and is a climate
neutral company. Together with the climate protection partner ARKTIK the CO2
emissions from its corporate activities were calculated and afterwards neutralized
by supporting Gold Standard carbon mitigation projects. To ensure complete
transparency of reported CO2 emissions, TÜV NORD (TN-CC 002) regularly validates
ARKTIK’s management and offset of carbon certificates.
With the offsetting of the CO2 emissions FRANK Legal & Tax supports the carbon mitigation project that promotes renewable energy from wind in Akbük, Turkey. Throughout this mitigation project 67,570 tons of CO2 are mitigated. The Akbük wind farm thereby produces clean electricity for about 35,000 Turkish households. All the carbon mitigation projects from ARKTIK comply with the WWF Gold Standard and their carbon mitigation is certified and controlled on-site by UN-recognized authorities. In addition to offsetting the carbon emissions, the Gold Standard projects always imply green development aid- by offering the chance to partake in green technologies and also by significantly improving the social and environmental conditions of the local population.
It is essential for a company to have a bank account to facilitate their financial transactions and for the safety of their money. But sometimes it can be difficult to open an account in a local Thai Bank. The company is a juristic person, and there are specific additional requirements for opening a bank account than for natural persons. To add to the difficulties, various banks have different internal rules related to corporate bank accounts.
In this newsletter, we would like to inform you the requirements to open a company bank account at Siam Commercial Bank (All Season Place Branch), as an example. This bank is the house bank of our law firm, and we offer assistance with the bank account opening at this bank. The requirements are as follows:
Certified copy of company affidavit
Certified copy of Memorandum of Association (Bor.Aor.Jor.2)
Certified copy of the sample of company seal (Bor.Aor.Jor. 3. Page 2)
Certified copy of Articles of Association
Certified copy of the Shareholder list (Bor.Aor.Jor.5)
Note: Documents 1.-5. Must be certified by the Department of Business Development and should not be over a month old.
Minutes of board meeting to open account (specific branch, type of account and term of payment also)
Note: After the company is registered, the company needs to pass a resolution to open a bank account by a meeting of the shareholders or the board of director, depend on the Article of Association of the company. And In case that the company wants to register for internet banking service, please mention this in the minuted as well.
Certified copy of ID card and household registration book of authorized director of the company
Note: In case that the foreigner is an authorized director, please provide a certified copy of passport, visa and work permit.
Certified copy of ID card and household registration book of the shareholder who holds the shares of the company at 25 percent or upward.
Note: In case that the foreigner is the person who holds the share of the company at 25 percent or upward, please provide a certified copy of his passport.
Certified copy of VAT registration Certificate (por.por 20)
Certified copy of Certificate of Business Registration (Phor Kor 0401)
Note: Certified copy means the owner of such documents signs on the copy of the documents himself as the certified as a true copy.
The company documents will be signed as certified by its authorized director.
The personal documents (such as passport) will be signed as certified by the owner himself.
The minimum amount for the first deposit (if possible in cash) as follows:
Saving Account 500 THB
Current Account 10,000 THB
Remark: Directors with authority to open and close the bank account or draw cheques have to attend the bank in person to sign his signature in front of the bank officer. However, the company may authorize a different person to proceed instead.
