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1: Specify the data exchange process for compliance with international tax agreement

Ministerial Regulations on specify the data exchange process for compliance with international tax agreement is affected on August 16, 2023 which the main content in the Ministerial Regulations mentioned is to stipulate the criteria and procedures related to duties of persons responsible for reporting financial information that are the financial institutions in Thailand.

The process must comply with the Royal Decree on Exchange of information to comply with international agreements about taxation B.E. 2566 (2023), by reporting financial information of the foreigner clients whom not have the address in Thailand and contracting countries on an annual basis divided into 6 categories: 1) Reporting Person, 2) General Accounting Audit, 3) Individual Person Auditing, 4) Juristic Person Auditing, 5) Special Criteria for Customer Data Auditing, and 6) Miscellaneous. In this regard, the promulgation of such Ministerial Regulations is in accordance with the Royal Decree on Exchange of information to comply with international agreements about taxation, B.E. 2566 (2023) that must have Ministerial Regulations for stipulate the criteria on exchanging data to comply according to multilateral agreement among authorized officials who have authority on exchange automatic financial account data.

2: Formats for the Automatic Transmission of Financial account data according to the multilateral agreement among authorized officials with the authority to exchange automatic financial account data

Revenue Department has issued the Notification of Director-General on Formats for the Automatic Transmission of Financial account data according to the multilateral agreement among authorized officials with the authority to exchange automatic financial account data. The person responsible to reporting must submit the information of the account owner, whether the name, address, state or party of residence taxpayer identification number, date of birth and place of birth in case is an individual, the information of the authority of entity who owns the account such as name, address, state or party of residence taxpayer identification number who owns the account, date of birth and place of birth of each person, account number or other substitute for account number, the name and number used to identify the person responsible for reporting, the account balance or value in the account including cash value insurance contracts or annuity life insurance contracts, which is cash value or policy surrender value on the last day of the relevant calendar year or the account closing date in case the account was closed during the year.

In this case, the person responsible for reporting must report center data, the sum of interest, dividends, and other income arising from assets in the account which has been paid or credited to the account or in connection with the account during the calendar year. Whether it’s a savings account or a custodian account or other accounts. In some cases, the person responsible for reporting may need to submit additional information such as tax identification number information report, date of birth and place of birth. If there are no accounts to be reported in any reporting period the person responsible for reporting will report the absence of such account in the reporting period to the Revenue Department.

In addition, the person responsible for reporting must specify the currency of the account by reporting based on the currency that the person responsible for reporting stores in the database of the person responsible for reporting. In case of storing more than one currency that person must specify only one currency, including the currency used for reporting purposes.

Sending this information those responsible for reporting must submit the report via the Internet to the Revenue Department’s website in accordance with the methods specified in the announcement of the Director-General of the Revenue Department. The submission of information will be complete when the person responsible for reporting receives a notification from the Revenue Department system confirming that the submission of financial account information is complete.

The person responsible for reporting can appoint a representative to submit information about financial accounts to the Director-General of the Revenue Department. This must include documentary evidence showing the appointment of a representative and the agent must notify this appointment to the Director-General of the Revenue Department by entering the said appointment document into the report system specified by the Revenue Department above as well.

Important Judgment and Ruling

1: Obtained consent of the employee to deduct the wage and implicitly change the employment condition(Supreme Court Judgment No. 3017/2561)

Usually, a reduction in wages, benefits or welfare, demotion of position must have the consent of the employee, because it is considered a change in the employment conditions in a way that is not beneficial to the employees. In that consent the labor protection law does not specify the method of consent therefore, employee and employer may agree to make the consent in writing or other methods. When the employee has given consent to change the employment condition. Both parties are bound by the new employment conditions. However, if an agreement on new working conditions arises from a claim under the Labor Relations Act. Employer may not seek consent from employee on an individual basis, but must proceed in accordance with the methods and procedures specifically specified in the law mentioned instead.

The consent of the employee to the reduction of wages implicitly, there was a judgment that decided in the same direction that if the employee does not object to the employer’s wages at the reduced rate as agreed with the employee over a reasonable period of time and employer constantly reposition employee, by calculating benefits and using the reduced wage base in calculating each year’s salary increases, it is considered that the employee and employer have tacitly agreed to change the employment conditions such wage reductions are also legal. It is not considered as a breach of the employment contract as well.

2: What to do for dismissal or voluntary resignation of employee(Supreme Court Judgment No. 312/2564)

Principally, employers are obligated to pay wages in lieu of advance notice, severance pay and damages for unfair dismissal to employee upon termination of the employment contract or dismissal of employ if the employee resigns voluntarily. According to the Civil and Commercial Code Section 386, employee have no right to receive such money, because it is not the case that the employer has to terminate the employment, which make employer has a duty to pay the employee according to the law mentioned.

3: Employee termination structure (Supreme Court Judgment No. 622-623/2564)

The employment termination that will be considered according the meaning of Section 118 paragraph 2 of Labor Protection Act B.E. 2541 (1998) that must be the case where the employer must do something to prevent the employee from continuing to work and not paying wages.

In the event that the employer said something that seems like the employee is likely to receive his final wages and next month employee may not get paid such as if any employee wanted to stay, they can stay but maybe will not get wages and whoever do not want to stay they can find new work. It is merely a forward-looking statement by the employer. It does not look like a specific word said to employees like do not come to work and certainly do not pay wages to employee.