| Trade Policy Review Thailand : WTO Part V |
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CHAPTER 19 MINING AND PETROLEUM
The Minerals Act B.E. 2519 (1967), as amended in 1979 by the Minerals Act No.3, governs onshore and offshore exploration and mining, trading, dressing, transport and export of hard minerals. The Act is administered by the Ministry of Industry through the Department of Mineral Resources (DMR). Various surface rentals and other fees are charged under the Act; in addition, royalties are assessed in accordance with the Mineral Royalty Rates Act B.E. 2509 (1966). The Atomic Energy for Peace Act B.E. 2504 (1961) regulates the possession, production, import and export of certain nuclear materials and by-products.
Prospecting
Before any exploration may be conducted, a prospecting licence must be obtained. There are three types of prospecting licences; a General Prospecting Licence (GPL), an Exclusive Prospecting Licence (EPL) and a Special Prospecting Licence (SPL). None are transferable, and all require the permission of the owner or possessor of the surface rights before exploration may begin.
General Prospecting Licence
A General Prospecting Licence is a non-exclusive right which entitles the holder to carry out geochemical and geophysical exploration within the jurisdictional boundaries of the Local Mineral Resources Office (LMRO) where the licence has been issued. No holder may possess minerals of any type in excess of two kilograms without a licence from the DMR, except that a holder may possess are for assay or analysis purposes in a larger quantity not exceeding that stated in the GPL; current proctice is to allow 10 kilograms for each type of mineral. A GPL is valid for one year from the date of issue and is not renewable.
Exlusive Prospecting Licence
The general conditions applicable to an EPL are substantially the same as those for a GPL, except that an EPL gives its holder an exclusive right over the area covered and the minerals designated. An EPL holder must also file an exploration report with the applicable LMRO within 200 days from the issue of the EPL. Exploration must commence within 60 days after the ELP is issued and the amount of work undertaken must not be unreasonably lower than the standard expected for that particular type of mineral. The maximum area of an onshore EPL is 2,500 rai (1,000 acres), and it is valid for a period of one year from date of issue. If rights for an area of more than 5,000 rai (under two or more EPL’s) are applied for in a single Province, then the applicant must provide proof that he has the financial means to conduct the exploration and must furnish a detailed exploration plan. The maximum area of an offshore EPL which can be awarded per person in 500,000 rai, and the licence is valid for a maximum of two years from the date of the issue.
Special Prospecting Licence
This exclusive licence is issued only in circumstances where the proposed exploration project requires substantial investment and special technical skills. The applicant for an SPL must specify, inter alia, the amount of money to be expended yearly in prospecting during the term of the SPL and may offer special benefits to the State in the event an SPL is granted. The maximum area of an SPL is 10,000 rai, but there is no limit as to how many SPL applications a person can file. An SPL is valid for three years from the date of issue. If at the end of each obligation year the holder has not fully complied with his prospecting obligations, he must pay a sum equal to the amount of prospecting expenses not yet incurred in such year to the DMR within 30 days after the end of that year. If however, the holder has incurred prospecting expenses in any obligation year in excess of the amount required during such year, the excess may be credited toward the obligations for the subsequent year. A holder must commence prospecting for minerals within 90 days from the date of receiving the SPL and must report the results of prospecting operations to the DMR every 120 days. If the holder meets all his obligations, the SPL may be renewed for a period not exceeding two years. In applying for renewal of an SPL, the holder may relinquish a certain part of the area he does not want to prospect.
Mining
Upon discovery of a commercially feasible ore deposit a person may apply for a Mining Lease (ML) which conveys the exclusive right to exploit the designated mineral within the area covered. While the DMR will issue the Mining Lease to the EPL or SPL holder rather than to the owner or possessor of the land within the prospecting area, the ML applicant must obtain the consent of the owner or possessor for the use of the land before an ML can be issued.
A Mining Lease is granted for a maximum of 300 rai onshore and 50,000 rai offshore. Upon application being made, the Minister may, with the Cabinet’s concurrence, increase the offshore area to more than 50,000 rai. Both types of Mining Lease are valid for a maximum period of 25 years. Pending the issuance of an ML, a Provisional Mining Lease (PML), valid for a period of one year, may be issued. In the event that a PML has been issued previous to the issuance of an ML< the period of validity of the ML is deemed to have commenced on the date the PML was issued. An ML maybe transferred only upon the approval of the DMR; it is not mortgageable nor subject to judicial execution.
Restrictions on Aliens
Alien Business Law:
All mining activities, other than exploration, are regulated by the Alien Business Law (National Executive Council Announcement No. 281). Foreign owned or controlled entities (as defined under the Alien Business Law) wishing to engage in mining must obtain an alien business licence and comply with the various conditions applicable. (See Chapter 5 on Controls on Alien Business).
Minerai Rights Above the 11th parallel:
A 1966 Cabinet policy restricts alien companies from engaging in exploration or production of mineral above the 11th parallel, i.e., areas north of Chumporn Province. Although a Cabinet policy is not law, the Ministry of Industry is bound by it when considering whether to issue prospecting licences or mining leases to alien entities in this “closed area”. In practice, if the proposed project would substantially benefit the country, the Ministry will seek Cabinet clearance to grant the mineral rights sought.
Offshore mining in shallow waters:
In August 1978, the Babinet passed two resolutions concerning offshore mining of minerals at depths not exceeding 200 feet. The resolutions can be summarized as follows:
1. Know Deposits
After the expiration of the maximum mining lease period of 25 years, the foreign mining lease holder may apply for a new mining lease to work the old deposit, provided that it realigns its equity interests so that Thai nationals hold at least 60% of the total equity interest in the venture. (This may require setting up a new joint-venture company).
2 Unknown Deposits
A company with foreign shareholders may apply for a mining lease to exploit a new deposit offshore, provided Thai nationals hold at least 51% of the equity interest initially which interest must be increased to 60% within two years.
The above resolutions constitute administrative guidelines to be followed by the DMR in its consideration on whether or not to grant or renew an offshore mining lease.
Board of Investment Promotion
Promotion privileges are available for exploration, mining, smelting, and metallurgy. Benefits may include exemption from import duty and business tax on machinery and equipment, an income tax holiday (not mormally granted for tin mining or tin ore dressing), a waiver of normal immigration regulations to enable technical experts to be brought into country and guarantees against nationalization and competition from State enterprises.
Promotion of exploration activities requires a minimum registered capital of Baht one million. Applicants for this category of promotion may be mining companies or consulting firms which possess special skills in exploration and testing of substantial mineral deposits. Promotion of mining and ore-dressing activities requires a minimum capital investment of Baht 10 million, excluding the cost of land and working capital. Unless the capital investment is Baht 100 million upwards, the applying company must have Thai nationals holding at least 60% of its registered capital. Promotion of ore smelting activities and production of metals requires a minimum eapital investment of Baht 20 million and 10 million respectively, excluding the cost of land and working capital.
Petroleum
The Petroleum Act B.E. 2514 (1971) as amended by the Petroleum Act (No. 3) B.E. 2522 (1979), and the Petroleum Income Tax Act B.E. 2514 (1971) as amended by the Petroleum Income Tax Act (No. 2) B.E. 2516 (1973), govern the exploration, development, storage, transport, sale and disposal of petroleum and natural gas onshore and offshore. The Petroleum Acts are administered by the Ministry of Industry through the Department of Mineral Resources (DMR) and the Petroleum Committee -- comprised of representatives of various Ministries and Departments. The Petroleum Income Tax Acts are administered by the Revenue Department.
A petroleum Concession permits the holder to carry out exploration and subsequent production. In practice, offshore concessions have been awarded on a sealed bid basis. An applicant for a concession must be a company which commands assets, plant and expertise indication a capability to exploit petroleum, or must have a guarantor with such qualifications.
Exploration
The exploration period under a concession is up to eight years, divided into obligation periods which can be sub-divided in the concession. If the inital exploration period exceeds five years, it may be renewed once for a maximum of four years, subject to expenditure and operational conditions. Cetain work and expenditure requirements, set out in the concession, must be met in each obligation period. If a commercial petroleum deposit is developed during exploration, expenditure towards its development may be counted towards exploration obligations.
In offshore areas where the water depth exceeds 200 metres, an applicant may be awarded a concession over as many blocks as the government may consider appropriate. In other areas, an applicant may be granted a concession of four blocks, an if justified, one additional block may be awarded, provided the total area of all blocks held by the concessionaire does not exceed 50,000 square kilometers. Offshore exploration blocks include any islands located therein and are delineated by the DMR. Onshore blocks must be defined by the applicant and may not exceed 10,000 square kilometers.
For offshore exploration blocks where the water depth exceeds 200 meters, 35% of the area of each block must be relinquished after five years, and the balance at the end of the concession period, unless renewed. If the concession is renewed, a further 40% must be relinquished. For other blocks, 50% relinquishment is required after five years with a further 25% relinquished on renewal of the concession.
The concession expires at the end of the exploration period unless the concessionaire demonstrates that a “commercial” well (defined below) has been found, or definers a production area.
Production
If a concessionaire can demonstrate a commercial well during any exploration period, he is entitled to produce petroleum. In such case the concessionaire may reserve up to 12% of any block where the right to produce is obtained, on payment of a refundable surface reservation fee. A well is considered “commercial” when its estimate productivity is capable of yielding within 12 years a volume of crude oil or natural gas of sufficient value to cover the costs of: drilling and equipping the well for producing; producing and transporting to the point of sale; royalties and fees under the Petroleum Law; and service fees under other laws.
The Production period may not exceed 30 years, but may be renewed for one period of up to 10 years. A concessionaire may with prior ministerial consent join with co-venturers in petroleum production, and all parties will be held jointly and severslly responsible for performance of the concession terms.
Where different concessionaires have production areas covering the same reservoir, they may be required to produce under unitization.
Local supply
A concessionaire may be required to supply petroleum and natural gas for the domestic market at prices not exceeding prescribed prices, in the ratio that his production bears to tatal production in Thailand over the preceding six-months period. For purposes of national security or to ensure adequate local supply, petroleum exports may be temporarily prohibited, or prohibited from export to specific destinations.
Royalties
The rate for eash payment of production from an offshore block where the water depth exceeds 200 meters is 8-3/4% of petroleum sold or disposed of; alternatively, payment in kind is in a volume equivalent to 7/73 of petroleum sold or disposed of. Rates in respect of petroleum produced from other blocks are 12% for cask royalties and 1/7 for royalties in kind. However, in the case of royalty in kind on exported crude oil, the royalty volume must be equivalent to the price of export crude for such royalty volume divided by the “tax reference price” under the Petroleum Acts, i.e., the posted price less certain prescribed discounts.
Taxation
Any accounting method may be utilised which is sound and usual in the petroleum industry. Once adopted, the method must be applied consistently and deviation may be made only with prior approval of the Revenue Department.
Companies are subject to net profit tax of not less than 50% (current rate) and not more than 60%. Royalty, whether in cash or in king, for exported crude is a deductible expense. Other royalty payments any be credited against tax up to the amount of the tax.
Losses may be carried forward for ten fiscal periods. Certain items are specifically excluded as deductible income tax expenses. These include improvements to properties, surface reservation fees and any surcharge.
Guarantees and Privileges
While Board of investment promotion is not available to concessionaires, the privileges and gusrantees summarised briefly below may be granted under the Petroleum Acts and Petroleum Income Tax Acts:
A assurance against nationalization; B no export restrictions unless required in the interest of national security or
to ensure local supplies; C ownership of land necessary for petroleum operations; D exemption from alien business and immigration laws for the concessionaire and its service contractors to bring skilled workers or specialists and their
dependants into Thailand; E exemption from import duty and business tax on machinery, equipment, tools, transport vehicles, accessories, spare parts and other materials, (this privilege extends to contractors which have entered into contracts with the concessionarire); F exemption from all taxes, duties, and levies payable except for income tax under the Petroleum Income Tax Acts, forestry royalties and fees, fees and royalties under the Petroleum Acts and statutory fees under other act; and G the right to retain, take or remit abroad foreign currency.
CHAPTER 20 CONSUMER PROTECTION AND RELATED LEGISLATION
Consumer Protection Act B.E. 2522 (1979)
General
The consumer Protection Act become effective on 5 May 1979. Busically, the law is directed toward truth in advertising and full disclosure in labelling. The responsiblility in administering the Act is entrusted to the Consumer Protection Committee (Committee) which in turn appoints and delegates its authority to various ad hoc committees on advertising, labelling, etc.
The Act is intended to protect consumers form muscrupulous “business operatiors” as well those engaging in the advertising business. The Act supplements rather than supersedes existing statutes on consumer protection. It expressly guarantees the rights of the consumers to receive correct and adequate information and description concerning goods or sevices.
The Act further provides for the freedom to select and safely use goods or services as well as awards for damages.
Advertising
The Act prohibits the use of unconscionable statements, or statements which may have on injurious effect on society, whether such statements relate to the source, nature, quality, description, delivery, acquisition or use of goods or sevices. The following statements are deemed to be unconscionable or injurious to society;
1. False or exaggerated statements;
2. statements which would mislead as to the essential elements of the goods or sevices;
3. statements which directly or indirectly support the violation of law or morals, or which would degrade national culture; or
4. Statements which may cause dissension or disunity among the public. (However, the Act regards statements which are obvious to the general public as not true, are not prohibited under (1) above.)
The Act also prohibits advertising by and method which would be a nuisance or injurious to the physical or mental health of the consumers.
In the event that the Committee On Advertising (COA) considers that certain goods may be injurious to the consumers and the Committee On Labelling (COL) has prescribed such goods as a controlled goods for the purpose of labelling, the COA is empowered to issue instructions to the following effect:
1. Directing that the advertising must be accompanied by instructions or warnings as to the method of use, or the inherent danger of the goods;
2. Limiting the use of a particular advertising medium for the goods; or
3. Prohibiting the advertising of such goods.
In the event that the provisions of this Act are violated, the COA is empowered to issue instructions to the following effect:
1. directing that the statements or method of advertising be corrected;
2. prohibiting the inclusion of certain statements in the advertisement;
3. prohibiting the violator to remove any misunderstanding by advertising among the consu mers in accordance with any requirements of the COA.
If there is any doubt as to the truthfulness of an advertising statement, the COA may order the advertiser to prove it. If the advertiser cannot prove that the statements in the advertisement are true as claimed, the COA is empowered to take corrective measures as provided above.
Business operators who are not certain whether their advertising violates this Act may, for a fee request a writteen opinion from the COA. If the opinion is not issued from the COA within thirty days of the request, it is interpreted that the COA has approved such advertisement.
Lebelling
The Committee On Labelling (COL) has the power to designate the following goods as controlled for the purpose of labelling:
1. Goods the nature or usage of which may endanger physical or mental health; and
2. Goods which are regularly used by the public and the lebelling of which would benefit consumers by enabling them to know essential information concerning such goods.
The labels of the controlled goods must contain the following particulars:
1. Accurate statements which must not mislead as to essential element of the goods; and
2. Statements the absence of which would mislead the consumers as to an essential element of the goods.
In no circumstances may the COL, in the course of stipulating what particulars the label must contain, force the business operators to reveal their manufacturing secrets, unless such information is essential to the health and safety of the consumer.
A written opinion may be requested from the COL in advance concerning a particular label in the same manner and with the same legal effect as provided for advertising.
Other Aspects of Control
If there are grounds to suspect that certain goods may cause danger to the consumers, the Committee may order the business operator to test or examine such goods.
If the business operator delays the testing without justification, the Committee may arrange to have the test or examination made at the expense of the business operator.
If the test or examination reveals that the goods may cause danger to the consumers that cannot be prevented by label control, then the Committee may prohibit the sale of such goods. Furthermore, it may order that such goods be altered. In the event that the goods cannot be altered, or there is cause to suspect that the business operator will maintain the goods for sale in the future, the Committee may order the goods to be destroyed.
If it is suspected that certain goods would endanger consumers, the Committee may temporarily prohibit the sale of such goods until tests have been carried out.
As another means of control, businesses selling certain goods or providing certain sevices may be designated as businesses which will be required to issue special receipts to customers.
Price Control and Anti-Monopoly Act, B.E. 2522 (1979)
The Price Control and Anti-Monopoly Act, which became effective on May 2, 1979 replaces the previous anti-profiteering laws. It was enacted to protect consumers by establishing price-fixing control measures and to prevent monopolies that would hinder free trade competition.
Price Control
The Act provides that in order to prevent price-fixing or unfair trade practices a Central Board has the authority to declare certain goods as being controlled.
It is the duty of the Central Board, which is composed of the Minister of Commerce, the Under Secretary of State for Commerce, and four to eight other appointed persons, after having considered whether buying or selling prices are unjust or not, to declare particular goods to be controlled under the Act.
Under the Act, when a product is declared to be “controlled”, the manufacturer involved must make a report concerning: quantity, storage, manufacturing costs, expenditures, and method of production and distribution of the controlled goods.
Once the Board has issued a price control order concerning any goods, the order cannot be altered without the Central Board Secretary General’s permission. This order will extend to any companies that conspire among themselves or with the company that produces the controlled goods to cause the prices of goods to vary excessively, or to be unstable and fluctuating.
Anti-Monopoly
The Act provides that if a business enterprise is conducted as a monopoly or on a basis that allows limited competition, the Central Board has the power to declare it a controlled business.
Factors which the Board may consider in deciding whether any goods are monopolized or not, can be summarized as follows:
1. The number of producers and sellers;
2. Types of goods that are similar and limited in variety;
3. Abrupt changes in the quantities of the goods on the market; and
4. Ease of product introduction onto the market.
The following evidence may indicate a monopoly or unlawful conspiracy between producers of sellers.
1. If the prices of similar goods are the same or similar then a question may exist as to whether the prices are being set artificially.
2. If the market share of major producers decreases over time, this may indicate that the producer’s price was artificially high as new producers are now able to compete.
3. If the market shares among retailers remain steady despite the fact that the goods, by their nature, should be highly competitive.
4. If prices of the same kind of goods vary from place to place and this phenomenon is economically inexplicable.
5. If the prices of the goods are raised at the same time as the quantity decreases, this might evidence a case of monopoly.
Distributors
Merely having a sole distributor is not prohibited. However, such relationship may be evidence or a monopoly and the Central Board may look at this fact in deciding whether to declare a company as controlled. If the sole distributorship continues after control is ordered criminal penalties may be invoken.
CHAPTER 21 OTHER LEGISLATION
The Civil and Commercial Code is major source of law governing many business transactions, for example, contracts, private limited companies, partnerships, bills of exchange, etc.
There are many special laws for regulation of particular industries, many of which have been recently enacted and are in the process of being implemented. Some of these laws are listed below.
Industrial Products Standard Act B.E. 2511 (1968)
Under this Act a committee is empowered to set standards for industrial products to grant permission to persons meeting such standards to use a standardization symbol on their products, and to ensure continuance of such standards.
Industrial Estate Authority of Thailand Act B.E. 2522 (1979)
This Act now regulates the Industrial Estates Authority of Thailand which was first established in 1972 for the purpose of developing industrial estates and export processing zones, either alone or in joint ventures with private companies.
Commercial Undertakings Affecting Public Safety or Welfare
N.E.C. Announcement No. 58 of 26 January 1972 is the latest of series of general enactments which have authorized appropriate Ministers to regulate certain public utilities and other commercial businesses, subject to such other laws as may be in force.
No person may engage without permission of the appropriate Minister in business of public utility which includes: tramways, digging of canals, airlines, water works, irrigation, electricity and gas. Following a notification by the appropriate Minister, and subject again to specific laws on the subject, no person may engage in any of the following businesses without permisson of the Ministry: insurance, warehousing, banking, savings, credit foncier, bills of exchange, finance and securities.
Commercial Banking. This is a regulated principally by the commercial Banking Act B.E. 2505 (1962), as amended in 1979, and notifications of the Ministry of Finance and Bank of Thailand thereunder.
No one may engage in the commercial banking business or use the name “bank” except a licenced Commercial bank. Banks are subject to regulations concerning, inter alia, capital, reserves liquidity, lending limits, investments and rates of interest and discount, and the nationality of and number of shares that may be help by shareholders.
A licence may be issued to a locally incorporated bank or a branch of a foreign bank but the latter may not have more than one office in Thailand. A new locally incorporated bank would be required to be formed as a public limited company.
Insurance. This is regulated principally by the Life Insurance Act B.E. 2519 (1975) and the Casualty Insurance Act B.E. 2510 (1957), and by notifications and ministerial regulations issued thereunder.
No one may underwrite life or casualty insurance without a licenced. Licenced insurance companies are subject to regulations concerning, inter alia, capital, shareholders, reserves, liquidity, investments, the form and content of policies, premium rates and reinsurance.
Under the Acts an insurance business may be carried out by locally incorporated company or by a branch of foreign company, but the latter may not have more than one office in Thailand without permission. Brokers and insuance agents are also required to be licenced under these Acts and under the Alien Business Law and Alien Employment Law the business or occupation of brokerage or agency is closed to aliens.
Finance Companies. Under the Finance Securities and Credit Foncier Companies Act B.E. 2522 (1979) only licenced finance companies are permitted to engage in the business of “procuring funds from the public” and utilising such funds in the “commercial finance” “development finance”, “consumer finance” or “housing finance” business (as those terms are defined in the Act) or other finance business as may be prescribed by regulation under the Act. If funds are not accepted from the public no licence is needed.
Licenced finance companies are subject to regulations concerning, inter alia, capital, reserves, liquidity, lending limits, and investments and the nationality of and number of shares that may be held by shareholders.
New finance companies licenced after the date of the Act must be incorporated in Thailand as a public limited company and have a registered and paid up capital of Baht 40 million. Existing companies may remain private companies and certain of the Act’s other requirements, including those in relation to capital and shareholders, are less onerous in their case.
Finance companies may be subject to the Alien Business Law to the extent they engage in businesses other than the lending of money.
Securities Companies. By the Finance Securities and Credit Foncier Companies Act B.E. 2522 (1979) no one except a company duly licenced may engage in the following businesses: brokerage for buying and selling securities; trading in securities in one’s name; advising the public on investment in securities; arranging the sale of securities, the management of investments under a mutual fund or unit trust; or other business related to securities as may be prescribed by regulation under the Act.
A licenced securities company must have a registered capital of at least Baht 5 million and a company licenced for arranging the sale of securities must have a capital of Baht 10 million. Securities companies may be subject to the Alien Business Law, and it should be noted that the business of brokerage or agency is prohibited to aliens under Category A of that law. As with licenced finance companies certain of the Act’s requirements are less onerous in the case of licenced securities companies existing on the date of the Act.
Under the Securities Exchange of Thailand Act B.E. 2514 (1974) and regulations thereunder only a licenced securities company may be a member of the Securities Exchange.
Credit Foncier Companies. The “credit foncier” business as defined in the 1979 Act, i.e. mortgage finance and related business, is limited to licenced credit foncier companies, which are subject to regulation under the Act on a basis similar to that applicable to finance companies.
Securities Exchange of Thailand Act B.E. 2517 (1974)
This Act established a new Securities Exchange as a non-profit statutory corporation, on a monopoly basis, replacing the previous Bangkok Stock Exchange which was established as private corporation. Members of the Securities Exchange consist exclusively of securities companies holding a licence issued by the Ministry of Finance. Provision is made for regulation and supervision of the Exchange by government authorities and for a compensation fund to be established, to which members are required to contribute.
Securities may be either “registered” or “authorised”, and may comprise shares or tights to shares or dividends; debentures or tights to debentures; government bonds or other government guaranteed securities; and unit trust or mutual fund shares.
Debentures must be part of an issue of not less than Baht 20 million; each debenture must be not less than Baht 100; redemption must be set for within 3 years of listing; and there must be not less than 150 debenture holders.
A limited company, public company or state enterprise established by a specific law seeking to have securities “registered” for the first time must currently be incorporated in Thailand and have a fully paid up registered capital of not less than Baht 20 million comprised of ordinary name shares having a par value of 100 Baht. There must be at least 300 natural persons as shareholders, each owning not more than 5/100 (0.5%) of the issued ordinary shares and together owning at least 30% thereof. In addition, the business of the company must be beneficial to the national economy and sociely, and financially sound. The Articles of Association of the company may not contain any restrictions on share transfers, except where necessary to comply with other laws, for example, the Alien Business Law.
A Company wishing to register “authorised” securities for the first time must have a minimum registered capital of Baht 10 million, and not less than 200 shareholders, each owning not more than 0.5% of the issued ordinary shares and together owning at least 25% thereof. Other requirements described above for “registered” securities must be complied with.
The Revenue Code exempts from income taxes capital profits arising from the sale of securities on the Securities Exchange. Futher, the first Baht 10,000 of dividends received by an individual holder of “registered” shares or a listed mutual fund is exempt from tax and until the total of such dividends exceed Baht 400,000, 30% of the balance is also exempt. By comparison, where dividends are received from other Thailand companies the exemption is limited to Baht 5,000 and 15% of the excess until total dividends exceed Baht 200,000.
A company whose shares are “registered” is entitled to exclude for tax purposes all dividend income from companies incorporated in Thailand where total dividend income does not exceed 15% of its gross income. The rate of companies income tax payable by “registered” companies is 30% on annual net income. By comparison, any other company incorporated in Thailand (other than a “closely held” company) may exclude 50% of dividend income from other Thai companies, again so long as total dividend income is below 15% of gross income; and the rate of tax is 35%.
Land Transport Act, B.E. 2522 (1979)
This law repeals the previous Transport Acts and provides for general transport operation as well as routing, licencing, registration and other requirements for both private and transport vehicles. It also provides a framework for damages arising out of transport accidents.
Motor-cors Act, B.E. 2522 (1979)
This Act became effective on September 17, 1979 and requires every motorist to carry a photocopy of the registration card of his automobile while driving. This requirement is in addition to that which requires the carrying of a driving licence.
 
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