12 May Thailand Business & Legal News 29 April 2016 Jus Laws & Consult J&C

66 Key Infrastructure projects in Thailand

During the period 2015-19 there will be 66 key infrastructure projects with an investment of Bt1.58 trillion. With a growing GDP and a population that today is 68 million people, the infrastructure sector will be key for the economy of Thailand according to the Asian Development Bank. The World Bank indicates that this growth can reach 3,5% in 2016. Our construction lawyers and project finance team will support EPC and PPP projects

Fashion industry in Thailand and forecast

Historically Thailand has been a big producer of silk and cotton. Today the garment and textile sectors, with 4.000 companies, are two of the top revenue generating industries, ranking 15th in the World in terms of exports and employing 1 million workers. The opportunities within the Thai Fashion Industry are unique. According Department of Industrial Promotion (DIP) within the next 3 years the fashion industry in Thailand is expected to reach US$28 billion. The exports of Thai Fashion garments to United States, Japan and UK account 54% of the exports. Thailand due to its historical reputation of textiles and its strategic location among Laos, Malaysia, Myanmar and Cambodia has real opportunities to become the hub of the Fashion industry in Asean.

2016 Board of Investment of Thailand positive data

Board of Investment of Thailand BOI announced that the value of foreign investment during March 2016 was 54 billion baht, what means 420% above the same month last year. Japanese and Netherlands were the largest investors in the automotive parts, contact lenses and environmental friendly polymer sectors with a total of 311 approved projects.

Juslaws & Consult become member of Thai Hotel Association

We feel glad to announce that Juslaws & Consult has become member of the Thai Hotel Association. This entity, established in 1963 with 848 members, works to protect the hospitality industry. Our membership starts in a positive context for the industry with a growth of passengers in Thai airports of 13,73% and a record of 32.32 million people. Due to our Phuket and Bangkok office’s strong practice working for foreign companies in the hospitality and real estate segment, our membership in this organism was more than a logical consequence.

11 Oct Legal comments on the Land and Building Tax Act in Thailand

Last 7^th of June 2016, the draft of the Land and Building Tax Act was approved by the Thai government. This Act will become effective in January 2017 and will be replace the existing and old Building and Land Tax Act B.E. 2475 (1932) and the Local Development Tax B.E. 2508 (1965).

The new tax regulation emerge in a political context of fast implementation of very ambitious infrastructure projects such as the 20 megaprojects announced by the Cabinet including transportations hubs, new BTS lines, upgrade of existing airports and implementation of railway systems. Under the new regulation it is considered that the price of the land will increase due to the proximity of some of these infrastructure projects.

The Taxpayer will be Individual or juristic person who own land or building or Individual or juristic person who are in possession or pedal possession on land or building which belongs to the state. The taxable Property will be Land, Building and Condominium

The Tax base is assessed on the total value of land and building by calculating from the appraised value of land, building and condominium as well as the depreciation rate which specified by the Treasury Department.

Tax rate

The purpose of use	Rate
For agriculture
– Value ≤ 50 M	–
– Value › 50-100 M	0.05%
– Value › 100 M	0.10%
For residential
– The first residence which the value ≤ 50 M	–
– The first residence which the value › 50 -100 M	0.05%
– The first residence which the value › 100 M	0.10%
– The second residence which the value ≤ 5 M	0.03%
– The second residence which the value › 5 -10 M	0.05%
– The second residence which the value › 10 -20 M	0.10%
– The second residence which the value › 30 -50 M	0.20%
– The second residence which the value › 50 -100 M	0.25%
– The second residence which the value › 100 M	0.30%
For commercial or industry
– Value ≤ 20 M	0.3%
– Value › 20-50 M	0.5%
– Value › 50-100 M	0.7%
– Value › 100-1,000 M	0.9%
– Value › 1,000-3,000 M	1.2%
– Value › 3,000 M	1.5%
Unused properties
1^st – 3^rd year	1%
4^th – 6^th year	2%
≥ 7^th year	3%

According to the Thai Government the law is targeting land speculators and the Finance Minister has confirmed that the new law will help to generate THB 64,3 billion in the first fiscal year. In the private sector the opinions are quite different, on one hand some well know developers such as SET-listed developer Pruksa have confirmed that the new regulation will implement the sale of many land plots and in contrast on the other hand international real estate consultants such as Knight Frank denied that the tax will affect at all the price of the land in Bangkok’s prime locations.

We do not believe that the REITS with assets on retail, office or factories will perceive much the effects of the new regulation but perhaps the Hotel Property Funds will suffer the consequences of this new tax in a difficult context of oversupply of rooms due to AirBnB business model implementation in cities such as Bangkok or Phuket.

Phorn Patimon, Senior Associate at Juslaws & Consult

Jose Herrera, Partner at Juslaws & Consult

14 Sep Tax Incentive for New Start Up business in Thailand

On 21^st April 2016, Royal Decree (No. 602), by the Government’s resolution, was promulgated in order to support and promote the Small and Medium Enterprises (“SMEs”) which uses technology and innovation in the target activities for driving an economy, building a strength and increasing the competitive ability of Thailand.

Thus, a corporate income tax exemption on profit derived from target activities for the five accounting periods will be provided to the company or juristic partnership which established between 1^st October 2015 and 31^stDecember 2016 with the registered paid-up capital on the last day of the accounting period of not more than THB 5 million and its income for the sale of goods and service must not exceed THB 30 million, moreover, not less than 80% of its total income must derive from the sales of goods and/or service in “New Engine of Growth” business or from the connected business thereof.

To be eligible for this exemption, the operator must register to be “New Start Up” with Revenue Department within 31^stDecember 2017.

What is New Engine of Growth business?

New Engine of Growth business is the industrial business which technological base will be used for producing and providing service and those business shall be certified by National Science and Technology Development Agency (“NSTDA”). The following are the industrial businesses which are entitled to obtain the tax incentives.

Food and Agriculture
Saving energy, Producing of alternative and clean energies
Biotechnology Base
Medical and Public Health
Tourism, Service and Creative Economy
Advanced Materials
Textile, Garment and Decorations
Automotive and Parts
Electronic, Computer, Software and Information Service
Research, Development and Innovation or New Industrial

Below is the example of “technologies” which are based for producing and providing service in the target activities.

No.	Technology	Type of business which can be applied
1	3D Printing Technology/ Rapid Prototyoing	– Medical and Public Health – Tourism, Service and Creative Economy – Advanced Materials – Automotive and Parts – Research, Development and Innovation or New Industrial
2	Adsorption Technology	– Saving energy, Producing of alternative and clean energies – Automotive and Parts
3	Advanced Bioprocessing Technology	– Food and Agriculture – Saving energy, Producing of alternative and clean energies – Biotechnology Base – Medical and Public Health
4	Advanced Catalyst Technology	– Saving energy, Producing of alternative and clean energies – Advanced Materials
5	Advanced Materials Forming Process	– Advanced Materials – Electronic, Computer, Software and Information Service – Automotive and Parts
6	Artificial Intelligence Technology	– Tourism, Service and Creative Economy – Electronic, Computer, Software and Information Service
7	Automation Technology	– Medical and Public Health – Automotive and Parts – Food and Agriculture – Electronic, Computer, Software and Information Service
8	Big Data Analytics Technology	– Biotechnology Base – Electronic, Computer, Software and Information Service
9	Bio-Analytical	– Medical and Public Health – Biotechnology Base
10	Biodegradable Materials Technology	– Advanced Materials – Medical and Public Health
11	Bioinformatics	– Food and Agriculture – Biotechnology Base
12	Biomaterial Production Technology	– Medical and Public Health – Biotechnology Base
13	Cell Culture and Tissue Engineering Technology	– Medical and Public Health – Biotechnology Base
14	Cleaner Technology	– Saving energy, Producing of alternative and clean energies
15	Composite Materials Technology	– Advanced Materials – Automotive and Parts
16	Decentralized Sequential Transaction Database	– Tourism, Service and Creative Economy – Electronic, Computer, Software and Information Service
17	Digital Engineering and Manufacturing Technology	– Advanced Materials – Automotive and Parts – Research, Development and Innovation or New Industrial
18	Drug Delivery System	– Medical and Public Health – Food and Agriculture
19	Electric Vehicle Technology	– Automotive and Parts – Saving energy, Producing of alternative and clean energies
20	Embedded Technology	– Electronic, Computer, Software and Information Service
21	Energy Storage	– Saving energy, Producing of alternative and clean energies
22	Functional Materials Technology	– Textile, Garment and Decorations – Automotive and Parts – Electronic, Computer, Software and Information Service – Food and Agriculture
23	Gene and Molecular Technology	– Food and Agriculture – Medical and Public Health – Biotechnology Base
24	Genetic Engineering Technology	– Food and Agriculture – Biotechnology Base
25	Human Computer Interaction Technology/ Brian Computer Interface	– Electronic, Computer, Software and Information Service – Medical and Public Health – Tourism, Service and Creative Economy
26	Internet of things Technology	– Food and Agriculture – Saving energy, Producing of alternative and clean energies
27	Material Characterization Technology	– Medical and Public Health – Food and Agriculture – Research, Development and Innovation or New Industrial
28	Membrane Technology	– Saving energy, Producing of alternative and clean energies – Medical and Public Health – Food and Agriculture
29	Metrology, Standardization, Testing Quality Assurance (MSTQ) related Technology	– Research, Development and Innovation or New Industrial
30	Nano-Characterization and Testing	– Medical and Public Health – Food and Agriculture – Research, Development and Innovation or New Industrial – Electronic, Computer, Software and Information Service
31	Nano-encapsulation	– Medical and Public Health – Food and Agriculture
32	Nanofiber Technology	– Textile, Garment and Decorations – Advanced Materials
33	Nanomaterials Syntheses	– Saving energy, Producing of alternative and clean energies – Medical and Public Health – Food and Agriculture
34	Nanostructure Fabrication (Top down, Bottom up)	– Advanced Materials – Electronic, Computer, Software and Information Service – Saving energy, Producing of alternative and clean energies – Research, Development and Innovation or New Industrial
35	Natural Language Processing Technology	– Electronic, Computer, Software and Information Service
36	Omics Technology	– Medical and Public Health – Food and Agriculture – Biotechnology Base
37	Photonics & Optical Technology	– Electronic, Computer, Software and Information Service
38	Pre-Clinical & Clinical Testing Technology	– Medical and Public Health – Research, Development and Innovation or New Industrial
39	Photovoltic Technology	– Saving energy, Producing of alternative and clean energies
40	Printed Electronics and Organic Electronics	– Medical and Public Health – Food and Agriculture – Electronic, Computer, Software and Information Service – Textile, Garment and Decorations
41	Robotics Technology	– Medical and Public Health – Food and Agriculture – Electronic, Computer, Software and Information Service – Automotive and Parts
42	Sensor Technology	– Medical and Public Health – Food and Agriculture – Electronic, Computer, Software and Information Service – Automotive and Parts – Saving energy, Producing of alternative and clean energies
43	Smart Grid	– Electronic, Computer, Software and Information Service – Automotive and Parts – Saving energy, Producing of alternative and clean energies
44	Software Testing Technology	– Electronic, Computer, Software and Information Service – Tourism, Service and Creative Economy
45	Surface Coating/ Surface Engineering Technology	– Food and Agriculture – Electronic, Computer, Software and Information Service – Automotive and Parts – Textile, Garment and Decorations
46	Thermal Solar Technology	– Saving energy, Producing of alternative and clean energies
47	Virtual & Augmented Reality Technology	– Electronic, Computer, Software and Information Service – Tourism, Service and Creative Economy
48	Waste Treatment Technology	– Saving energy, Producing of alternative and clean energies
49	Werable Technology	– Medical and Public Health – Electronic, Computer, Software and Information Service
50	Wind Energy Technology	– Saving energy, Producing of alternative and clean energies

Please contact Juslaws & Consult at bangkok@juslaws.com for further information and details.

Thailand visa

As there are a growing number of expats in Thailand, it is important to remember how it is that you can actually reside in Thailand legally. There a few permanent visas’ that are
available to those who wish to remain in Thailand for a long period of time.

There are generally three categories of visa’s in which foreigners can be on in order to reside in Thailand for up to a year with extensions that may be granted:

1. Marriage Visa: a marriage visa is a type of visa that can be obtained when an individual is married to a Thai national. The requirements and characteristics of a the
visa are as follows:

Must have been married to a Thai national and registered your marriage here in Thailand.
You may first enter on non-immigrant b visa or another 1 year visa, and can have the visa converted.
Initial 90 day period granted but can be extended
90 day reporting to the Immigration Department to ensure you are within the country.
Permitted to work in Thailand
Permitted to open a savings account in Thailand.

2. Non-Immigrant B Visa: a type of visa that is applicable if you wish to work for a company in Thailand, or you are applying for your own company in Thailand. The requirements and characteristics of the visa are as follows:

Must be able to provide relevant company documents from the employer or your own company including but not limited to:
1. Company Affidavit
2. List of Shareholders
3. Company Objectives
4. Memorandum of Association
5. Articles of Association
Must have an employment offer letter
If applying for your own company- must be able to show your position in the company.
Visa validity of 3 months up to one year however can be extended
Permitted to work in Thailand
Permitted to open a saving account in Thailand

3. Retirement Visa:

type of visa which can be used to retire in Thailand a. Must be at least the age of 50 years old
Must have at least 65,000 baht on a monthly basis from a pension with a proven pension statement OR
Must have at least 800,000 baht in an account untouched for at least three months.
If applying outside the country- must provide a police clearance and a health certificate.
Permitted to open a savings account
Not permitted to work in Thailand

As you can see from the above long term visas there are quite a few. Aside from those mentioned above, there is are visas that allow you to stay for a short visit. If you wish to find out more about various types of visas in order to visit or stay in Thailand, contact us today at our Bangkok office or at our Phuket office for a free basic consultation!