1 Law update during May 2023, 2 Additional amendment the types of businesses that the Board of Investment that does not grant rights and benefits under announcement No. POR .4/2022, 3 Reduce land and building tax in 2023 down 15%, 4 Increasing the expenses entitled to deduction from actual expenses of juristic persons, 5 Provisions under employment contracts prohibit employees from resigning before the expiration term. │ Legal Service of Thailand

1 Law update during May 2023, 2 Additional amendment the types of businesses that the Board of Investment that does not grant rights and benefits under announcement No. POR .4/2022, 3 Reduce land and building tax in 2023 down 15%, 4 Increasing the expenses entitled to deduction from actual expenses of juristic persons, 5 Provisions under employment contracts prohibit employees from resigning before the expiration term.

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NewsLetter vol.8

1 Law update during May 2023,
2 Additional amendment the types of businesses that the Board of Investment that does not grant rights and benefits under announcement No. POR .4/2022,
3 Reduce land and building tax in 2023 down 15%,
4 Increasing the expenses entitled to deduction from actual expenses of juristic persons,
5 Provisions under employment contracts prohibit employees from resigning before the expiration term.

Law update during May 2023

Updated Business laws published on Thai Government Gazette are as follows;

Competent Agency	Subject	Date of Announcement	Effective date
Revenue Department	Department of Notification：Subject：Preparation, maintain or submission of tax invoice affixed time stamp	May 12, 2023	June 1, 2023

※We investigated update business law related to Revenue department, BOI, Custom department, Ministry of Finance, Ministry of Interior(only related to business field), Bank of Thailand, Ministry of Digital Economy and Society

Additional amendment the types of businesses that the Board of Investment that does not grant rights and benefits under announcement No. POR .4/2022

The Board of Investment has announced (1) an amendment in the types of business that does not grant rights and benefits under the efficiency improvement measures in machinery modification and automation (in case of using automation or robotics) Measures to upgrade the industry in the implementation of automation and robotics in production or services Measures to improve efficiency in upgrading to Industry 4.0 and measures to upgrade industries to Industry 4.0, and (2) businesses that received investment promotion at the time of applying for promotion under the measure, will not be grants rights and benefits according to the efficiency improvement measures in machinery modification and automation (in case of not using automation or robotics).

Which it can be categorized as follows,

(1)The business that will not be grating the rights and benefits according to the efficiency improvement measures in machinery modification and automation (in case of using automation or robotics) measures to upgrade the industry in the implementation of automation and robotics in production or services Measures to improve efficiency in upgrading to Industry 4.0 and measures to upgrade industries to Industry 4.0

Business type No. 2.2.2.2 Health Rehabilitation Center business	Business type No. 3.6 General Automotive Manufacturing business	Business type No. 3.7 Manufacture of motor locomotives (except those with displacement less than 248 cc)
Business type No. 3.8 Battery Electric Vehicle (BEV)	Business type No. 5.24.2 Cement manufacturing business	Business type No. 5.4.10 Metal cutting business
Business type No. 8.3.3 Co-working Space business	Business type No. 10.1.1 Trade and Investment Support Business (TISO)	Business type No. 10.1.2 International Business Center (IBC)
Business type No.10.1.3 International Procurement Office (IPO)

(2)Businesses that received investment promotion at the time of applying for promotion under the measure, will not be grants rights and benefits according to the efficiency improvement measures in machinery modification and automation (in case of not using automation or robotics).

Business type No. 3.7 Manufacture of motor locomotives (except those with displacement less than 248 cc)	Business type No. 3.8 Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV), (BEV Platform) Plug-in Hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV)	Business in Group B

Reduce land and building tax in 2023 down 15%

The Royal Gazette has announced the Royal Decree on Reducing Taxes on Certain Types of Land and Buildings (No. 3) 2023 by reducing land and building taxes down by 15% by the calculated tax amount, for the collection of land tax in the tax year 2023, taxpayers must pay land and building tax within June 2023 as follows:

In case of land and buildings used for business such as barber, factory, building, office 15% tax reduction
In case of land or buildings receiving tax reduction at the rate of 50% of the calculated tax amount, such as electricity factory, dams, etc., the tax will be reduced at the rate of 15% of the calculated tax amount after receiving a tax reduction of 50%.
Land or buildings that have received 90% tax deduction, such as zoo, park, sports venues, etc., will not receive tax reduction under this land tax reduction measure.

Increasing the expenses entitled to deduction from actual expenses of juristic persons

In fact, from every year in May, many juristic persons ha are required to file corporate income tax. Therefore, we have summarized the expenses that are entitled to deduction in P.N.D. 50 from the actual expenses to help juristic persons in tax planning as follows:

Percentage	The expenses that can deduct
150%	High Technical development of company personal expenses
100%	Expenditures for research and development of technology and innovation for public or private agencies Expenditures of purchase or hiring, Computer program services fees Expenditures for sending employees for education and training Expenditures entitled to investment promotion – Transportation, electricity, water supply fees – Installation or construction of facilities for business operations that receive investment promotion Expenditures for hiring disabilities people Expenditures for hiring persons with disabilities exceed 60% of employees. Expenses for providing equipment to persons with disabilities Expenditures for the provision of books or electronic media of the business Expenditures to promote and support the electronic tax system Investment expenses in ordinary shares of social enterprises Purchase and installation of CCTV system Expenditures for investment in assets in special development zones such as Narathiwat, Pattani and Yala Province Expenditures for employment of the elderly aged 60 years and over Expenditures for investment in machinery and computer programs that connect machines in automation
50%	Expenditures for hiring an acquitted person released from prison for a period not exceeding 3 years Expenditures for hiring highly skilled personnel in science, technology, engineering or mathematics Expenditures for Covid-19 self-test (ATK) kits
25%	Purchase expenses for biodegradable plastic products
2%	Capital expenditure for establishing a company in the Special Economic Corridor Expenditures for renting out space
1 ‒ 2 %	Expenses from Bank Merger Expenditures for sending employees to training seminars within the country

Provisions under employment contracts prohibit employees from resigning before the expiration term.

The provisions of the employment contract prohibit the employee from resigning before the expiration of the term. If an employee breaches the contract, the employee agrees to indemnify the employer in the amount agreed upon, the contract is an agreement that defines damages for default in advance payment, or what we call a penalty. The court has the power to reduce the fine to a reasonable amount. However, the court has no power to award this part of the damages because there is no provision in the Civil and Commercial Code that gives the power to waive all fines. (Supreme Court Judgment No. 7620/2559)

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