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BOI launches investment promotion measures to mitigate the impact of the new taxation approach

BOI issued investment promotion measures to support the new taxation for Global minimum taxation agreed among the OECD/G20 “Inclusive Framework on BEPS”. According to the Global minimum taxation, Multi-national Enterprise Group having not less than 750,000 million Euro gross revenue in a year may be assessed additional corporate income tax at difference amount between tax at 15% and effective tax rate by tax authority in resident country of ultimate parent company or head office if foreign subsidiary company or branch office shall be imposed effective corporate income tax rate at less than 15%.

In case of companies having corporate income tax exemption privilege under BOI promotion, effective corporate tax rate of such companies should be zero or quiet low tax rate. The parent company of such companies may be assessed additional tax as the Global minimum taxation by tax authority in resident country of the parent company. Resulting that, tax incentive under BOI promotion may not work well. Therefore, BOI issued the following investment promotion measures: –

1. Must be a promoter belonging to a multinational group of companies with total gross income for the accounting period before submitting an application for promotion under this measure, in either of the following cases:

1. (1.1) not less than 28,000 million Bath
2. (1.2) not less than the average amount of 28,000 million Baht calculated from the based total
   days of the accounting period, in case that accounting period is less than 12 months
3. (1.3) Eligible to be the person who submits the statement according to the Country-by-
   Country Report according to the notification of the Director-General of the Revenue Department.

2. This measure is a modification of the rights and benefits of the former right of corporate income tax exemption to be corporate income tax deduction for net profit derived from investment at the rate of 50% of the normal rate, not exceeding 2 times from the period of Corporate Income Tax exemption for a total not exceed 10 years

This measure has no end period.

BOI allows foreign juristic persons that granted investment promotion can own land for office and residential premises in order to operate BOI businesses

BOI announced the criteria on allowing foreign companies that granted investment promotion to own land for office and residential premises for businesses that granted investment promotion, which it will be considered by the land size in each juristic person basis, not each BOI certificate, The condition is as follows:

1. 1. Must have a paid-up capital of not less than 50 million Bath throughout the period of permission to own land for office and residential premises for BOI business.
2. 2. Land size used for executives or specialists and construction workers, can own the land for residence of from 100 Square wah – 20 Rai (400 Square meters – 32,000 Square meters).
3. 3. If the residence is not in the same area as the business premises. Land sought for residential use shall be within 50 kilometers of the funded establishment along the main public road.
4. 4. Prohibited to use the land for misused, contrary to the morals, customs, or good way of life of the local community.
5. 5. If company violates the conditions stipulated by BOI, the rights and benefits of land ownership will be revoked and the land must be disposed within 1 year from the date of notification from the office.

Important Judgment and Ruling

Dismissal of the employment in case of serious violation of work regulations

Business of employer shall use machinery to manufacture, employee is supervisor to have the important duty and awareness. If such employee brings liquor into the production area during working hours and played loud musicit is considered a serious violation of work regulations. The employer can terminate the employment without waiting for damages to the employer and without paying severance pay, compensation of advance notice and damages for unfair dismissal.

Dismissal of employee that guilty with the warning from the employer second time

If employees violate the work regulations or lawful orders of the employer in a non-serious case and the employer has given a written warning, the employee continues to repeat the same offense within 1 year of the first offense warning. The employer can terminate the employment without paying severance pay, no wages for annual vacations, and it is not an unfair dismissal.

The authority of the employer to control the personality of the employee to suit the job position

In case that the employer controls the personality of the flight attendant by using the body mask index and waist circumference that does not exceed the specified value for the flight on domestic or round-trip routes on the same day, it is a lawful order and does not contradict the agreement on employment conditions. The reason is that it has been used for flight attendants before and does not penalize each employee, and it does not harm the employees. It is also generally mandatory for every employee. It is the right of management services of the employer who has the authority to act in accordance with the employment contract and work regulations.

What the Human Resources can do when the employee “Delete the Data in the employer computer?”

In case that the employee deletes or destroys data on the employer’s computer that is under the employee’s responsibility, it is deemed as the employee intends to violated the lawful and fair order of the employer, even if such data can be obtained from another employee’s computer and delivered to the customer on time, and the employer has not suffered damages. Therefore, it is considered that the employee intends to act damage to the employer according to Section 119 (1) of the Labor Protection Act B.E. 2541 (1998), the employer has the right to terminate employment without payment of compensation.

Moreover, it is also an offence under Section 9 of the Computer Crime Act B.E. 2560. Although the recovery program was successful, it did not make the offense innocent. When an employee deletes or destroys the employer’s computer data, it is deemed as a substantive offense.