Law Affects Work Permit Procedure
Labor Department issued an announcement in mid-May of this
year concerning changes in the work permit procedure. Under
the new law, foreign employees applying for a work permit
must meet one of five (requirements): (1) 2,000,000 baht as
shown in a bank statement for each foreigner; (2) proof of
income tax paid following for the company of 5,000,000 baht
for last 3 years; (3) proof of 50 or more Thai employees;
(4) proof of exports of 3,000,000 baht for the previous year;
or (5) proof of paid income tax for the individual foreign
employee in the amount of 18,000 baht or more for the previous
are an additional twelve categories of inquiry that the Labor
Department may use in granting or extending a work permit
in cases where the major five requirements cannot be met,
or in companies where there are more than one foreign employee.
Enters in to Effect
Electronic Transaction Law became effective in early April
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.
for those transactions disallowed by Royal Decree, 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.
legal instruments which require a third party signature or
witness may be excluded from the Act.
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.
Transfer Pricing Rules
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.
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 do 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 are 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.