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Thailand Attorneys Thailand Lawyer USA Visa Thailand Fiance Visa Thailand K-1 Visa Thailand USA Visa Thailand Marriage Visa Thailand	19 June 2002 Board of Investment (BOI) Considers Export Industry Incentives Industries in Bangkok and other developed areas (Zones 1 and 2) may be granted privileges normally afforded only to the less developed area of Thailand (Zone 3) in an effort to increase production and utilization. 19 industries in Zones 1 and 2, which have, according to reports, been operating below capacity since the 1997 economic crisis, would be granted non-tax privileges provided that they meet the following conditions: (1) they export all of their products, (2) they are already existing enterprises and (3) they produce one of the following products: leather, paper, footwear, jewelry packaging, toys, artificial flowers, and stationery. the plans for the extension of privileges are still being considered and may run into opposition from other businesses. In a separate development, BOI privileges were also extended to factories on bonded warehouse sites that occupied at least 200 rai of land. Factories in Samut Prakan producing metal, machinery, and transport equipment; agricultural and related products; electronic and electrical goods; and petrochemicals would be eligible for the same privileges as those in industrial estates or existing BOI promoted zones. According to statistics collected by the BOI there has been an increase in investment application this year as compared to previous years.
	13 June 2002 New Anti-Dumping Measure to Replace Steel Surcharges An official from the Board of Investment has revealed that current surcharges on imported steel will not be extended beyond their July expiry date. The surcharges, intended to temporarily protect local steel makers, will be replaced by new anti-dumping measures. While the import surcharges have generally benefited local steel producers the new measures, which conform to World Trade Organization rules, would allow Commerce Ministry to apply anti-dumping measures more selectively. This would benefit local manufacturers who were restricted access to lower cost supplies while all steel exporters were charged increased duty under the existing surcharges. The new measures would call for certain foreign steel producers to prove they are not selling their products below cost.
	6 June 2002 Office of SME's Promotion Aims to Stimulate Recovery The Office of SME's Promotion, developed in 2001, seeks to boost small and medium size businesses by coordinating and supporting SME development. SME projects desiring capital from any of the ten state banks that provide such funds are now subject to screening from the new office. The office, which is expecting a budget of one billion baht this coming fiscal year, will oversee applications from state agencies regarding SME related issues. TAMC Debt Transparency Could Boost Confidence The Thai government has recently encouraged the Thai Asset Management Corporation (TAMC) to promote public disclosure of debt restructuring. While the TAMC is not directly capable of disclosing such details it has been asked to urge large companies to do so individually. The TAMC, estimated to restructure 500 billion baht in debt by the end of this year, hopes to increase public confidence in its activities. Recently it has set up a public complaints department in order to immediately address the issue. The TAMC has reportedly restructured loans totaling 150 billion bath since October 2002. New Export Service Center to Expedite Food Exports A new multi-agency department has been created within the Export Promotion Department to expedite the process of granting export certificates. The One Stop Export Service Center aims to shorten the application process by one week, granting approval to food exporters within one to three days. By integrating 13 agencies, including the departments of Foreign Trade, Livestock, Fisheries, and Customs, the new center will allow food exporters to have all relevant documents processed in one location. The center will continue to provide licenses and certify food exporters until the Customs' electronic data interchange system is developed to process all this information digitally.
	April / June 2002 Commerce Ministry to Strengthen Copyright Fee Enforcement In an attempt to prevent users of copyrighted works from being unfairly charged and to curtail illegitimate operators from collecting copyright fees, the Commerce Ministry plans to force copyright owners to disclose their rates and the conditions of their licensing agreements. Although the Intellectual Property Department may lack the necessary authority to couple the disclosure of copyright fees and conditions because there is no express provision in the Copyright Act to allow this, the Ministry of Commerce ,may have the ability to force disclosure by means of the Trade and Services Act. The Office on the Committee of Trade and Services currently is empowered to compel disclosure of fee arrangements by various industries and may add copyright to their list. The increase the authority of The Office of the Committee on Trade and Services. The new policies would require copyright owners, who are currently not directly compelled to register information regarding their fees and conditions of copyrights and licensing agreements to disclose such information. By applying the 1999 Trade and Services Act copyright owners and their distributors would need to reveal their costs, prices, standards, and quality of their goods. Allowing the committee to superintend copyright registration would protect the rights of users and consumers of copyrighted materials, as well as the owners of copyrighted materials, especially those who had produced a small number of works and were not currently registered with one of the existing fee collection agencies. The registration aims to prevent illegitimate individuals from claiming to be rights owners and collecting fees from entertainment venues.
	5 June 2002 Tax Deductions Applicable to Local Life Insurance Policies New tax deductions of up to 50,000 baht would be available to life insurance policies underwritten in Thailand, according to an official within the Commerce Ministry. Only savings policies issued during this calendar year that require 10 years to maturity would be eligible. Single premium and lump-sum premium life insurance policies will be granted a one-time deduction. However, policies purchased overseas or on the Internet will not be eligible. In a related development the Revenue Department is seeking to increase its ability to enforce collection of VAT and income tax from insurance sales agents. The effort is aimed at offsetting revenue losses caused by the new tax deductions. Although Thailand is required under the General Agreement on Trade in Services to open its insurance markets, including cross -border sales, there in no requirement to reduce taxes on foreign sourced insurance policies. The tax increase proposal may be submitted to the Cabinet within the next few weeks. Government Encouraged to Support Lifting Restrictions on Pharmaceutical Patents The Thai Health Foundation and the Thailand Research Institute recently presented a study detailing the effects patents on pharmaceutical drugs have had on developing nations. Under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, all patents are to be made available for at least 20 years from the date of filing. However, the study revealed that, in Thailand, only about 5% of AIDS victims have access to the expensive drug treatments. A spokesman of the Thai Health Foundation pointed out that the TRIPS agreement itself provided for two methods for developing nations to acquire the expensive medication and these methods are: (1) "compulsory licensing", that is a country may produce its own generic versions of medicines where there is an urgent need and limited supply, and (2) "parallel imports" where a country can import generic drugs from another country where the patent holder sells the products at a cheaper price. However, the spokesman from the Thai Health Department believes that the government has been too passive in negotiating with international pharmaceutical companies.
	20 May 2002 One Stop Visa Center Speeds up Application Process A cooperative visa processing office, consisting of members of the Board of Investment, the Immigration Bureau, and the Department of Employment, has expedited the visa and work permit application process for foreign investors. In the first quarter of this year, the visa office, operated by the Board of Investment, has processed 13 percent more applications than during the same period last year; providing approval for thoroughly and correctly filed applications within three hours.
	18 May 2002 New Transfer Pricing Rules New and long awaited transfer pricing rules have been issued by the Revenue Department. The rules are intended to avert perceived losses in tax revenues caused by transfer pricing practices of multinational companies. Pursuant to the instructions and consistent with prior policy the Revenue Department confirms that it has the right to adjust companies revenues and losses and will to so where it is determined that any of the following scenarios apply: (1) No revenue is received or the compensation received is below market value; (2) expenses paid out are higher than the market value. Market price is defined as the price pursuant to "arms length transaction" and the guidelines of the Organization for Economic Co-operation and Development is applied. For sales of assets and services and loans, "market price'" is defined as the price at the date of the transaction that would be charged between independent contracting parties for the same or similar assets or services. The instruction sets out four pricing methods that may be used to establish market price: (1) COMPARABLE UNCONTROLLED Pricing method; (2) resale price method; (3) cost plus method ad (4) other internationally accepted methods (provided the first three methods cannot be applied). The instruction also provides for an extensive list of documentation that may be requested of a company in performing a transfer pricing examination. The rule also provides for affected taxpayers to apply for advance pricing agreements with the Revenue Department that would control future transactions.
	15 May 2002 Cabinet Endorses Amendments to Telecom Business Law Major changes to the Telecom Business Law were endorsed by the Cabinet yesterday. Most significant waste proposal to lift the 25% cap on foreign shareholding to allow for 49%. The 5% limit was a source of much contention within the business . Other changes include the banning of the 3,000 baht service deposit that was collected by operators. Refunds are being made to end consumers in the form of services rather than cash refunds. Some operators have asserted that allowing foreign investment actually strengthens the local economy.
	29 April 2002 Tax Incentives to Research and Developers Manufacturers engaged in specified research and development projects stand to gain tax deductions under a new program initiated under the auspices of the National Science and Technology Development Agency and the Revenue Department. A spokesman of the Revenue Department stated that companies would be eligible for tax deduction for up to twice the amount of their expenses. The tax incentives are aimed at increasing the technological skills of manufacturers in Thailand and further stimulating research and development in Thailand.
	17 April 2002 Travelers' Cash Subject to New Limits Next month marks the start of enforcement of a new law on travelers either bringing into or carrying out of Thailand more than 10,000 USD. The new law requires a declaration be made that concerning funds in excess of the stated limited. Travelers risk seizure of said funds if a declaration is not made. The intent of the law is to crack down on money laundering and the law may prove a useful tool for the Anti-money laundering Office. Cabinet approved the change several months ago and the change is in line with an international trend of government cooperation across borders to crack down on international crime syndicates.
	12 April 2002 Turkey Signs Tax Treaty with Thailand Turkey and Thailand have entered into a Treaty for the Avoidance of Double Taxation and tax evasion yesterday. Thailand currently has similar treaties with many nations including the USA. The treaty is intended amounting other things, to boost investment and reduce business costs. Trade between Thailand and Turkey includes, rubber, synthetic products, motor vehicles, machinery, gems, precious metals, jewelry food products, hotels and tourism.
	3 April 2002 E-Law Enters in to Effect The Electronic Transaction Law became effective today ushering in a new era in the legalization of the digital revolution. Under the new law, electronic documents may become admissible in Court proceedings and official recognition will be given to electronic signatures. Except for those transactions disallowed by Royal Decree, in general, civil and commercial transactions by means of a data message will become officially enforceable. A Royal Decree to clarify the details of the Act is currently being drafted by the Electronic Transactions Commission, which is set up under the Ministry of Science, Technology and Environment. Those legal instruments which require a third party signature or witness may be excluded from the Act. Data security which is provided by means of a digital signature issued by a Certification Authority will be necessary for the Act to apply to digital transactions.
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