A brief summary of changes in legislation relevant to
companies wishing to do business in Thailand.
In 2016, a royal decree under the Revenue Code was passed,
providing company income tax exemption for 'social enterprises'
defined as follows:
- established under Thai law, with the
objective of operating a business for the sale of goods or
the provision of services;
- aiming to promote employment at the
location of the social enterprise, or solve problems or
develop local communities, societies or the environment;
- at least 70% of the profit of the social
enterprise must be invested back into the business or
invested for the benefit of farmers, the poor, the disabled,
the disadvantaged, and so on.
Investors in and donors to social enterprises are eligible
for tax exemptions of 100% of the amount invested. A juristic
person engaged in a social enterprise may register with the
Department of Business Development (DBD). A Social Enterprise
Promotion Bill has been drafted and is still pending.
Ease of doing business
On April 4 2017, in response to World Bank input, the prime
minister announced an amendment to the laws that facilitate the
operation of business, thus amending the Civil and Commercial
Code (CCC), the Labour Protection Act, the Social Security Act,
the Public Limited Companies Act and the Bankruptcy Act.
- CCC: the amendment allows the
registration of changes to the organisation of private
companies in any district, not only the district of
registration; and to require dividends to be paid within one
month after a resolution of shareholders or board of
- Labour Protection Act: the
amendment eliminates the requirement for companies to file
work rules with the labour protection and welfare department,
but requires employers who employ 10 or more people to
provide work rules with prescribed details.
- Social Security Act: the
amendment requires employers to make more contributions to
pensions from when employees turn 55 years old.
- Public Limited Companies Act: the
amendment allows a lower percentage of shareholders' (no less
than 10%) to call an EGM, to protect small shareholders.
- Bankruptcy Act: the amendment
introduces restrictions on secured creditors' enforcement
rights without the permission of a court; and guidelines for
resolutions approving reorganisation plans.
- The amendment introduces an order to
facilitate obtaining copies of documents issued by government
Licensing Facilitation Act
This Act was enacted in 2015 to facilitate procedures and
shorten the time required for the licensing processes under
various laws. A manual for the public and regulators is to be
produced; timeframes for announcing the results of applications
will be prescribed; and, one-stop service centres are to be
The Office of the Insurance Commission issued new
notifications concerning the criteria, procedures, and
conditions for (1) offering insurance policies for sale through
electronic channels, (2) using electronic means as a method of
sale of policies, (3) issuing policies through electronic
channels, and (4) paying compensation for claims through
electronic channels (notifications). The notifications will
come into effect on August 26 2017 (180 days after publication
in the Government Gazette).
|Albert T Chandler
Chandler MHM Limited
7th-9th, 16th Floor, Bubhajit Building
20 North Sathorn Road, Silom, Bangrak Bangkok 10500,
Tel. +66 2 266-6485
Fax. +66 2 266-6483