Monday, January 23, 2023

How do Law Firms help a Franchisee Business in Thailand?

 


Are you planning to start a Franchisee Business in Thailand? It is a good idea indeed for both Thai and Foreign Investors. With the growth of the eCommerce industry in Thailand, your franchisee business will surely be able to address online orders and yield profit. Additionally, International Procurement Offices in Thailand are now Board of Investment eligible activities. So, international franchising won’t be an issue related to this. 

To help you plan your business more effectively, let us help you with some facts about Franchisee Business in Thailand.

What are the Specific Laws for Franchisees in Thailand?

The establishment and operation of a franchise, or more particularly, the operating system, are governed by distinct laws because Thailand lacks its own comprehensive franchising legislation. Depending on the sort of business, a typical franchise in Thailand could need to review more than 10 different Acts and rules. The Civil and Commercial Code, numerous Trademark Acts, the Trade Secrets Act B.E. 2545, and the Unfair Contract Terms Act B.E. 2540 are among the most significant.

Because of this, franchising in Thailand may seem to be a very difficult structure to pursue. Additionally, violations and breaches of Intellectual property rights are other concerns. Generally speaking, contract freedom is king in Thailand. However, to ensure the protection of both the franchisor and franchisees, a foolproof contract is very crucial. Therefore, a skilled franchise attorney must comprehend the various concerns that each party must take into account in order to strike a fair balance. Here is where you need a reliable law firm in Thailand!

How do Law Firms help Franchisee Businesses in Thailand?

If you are going to start a franchise business in Thailand, you will need a seasoned law firm or professional to undertake those activities that you may not be apt or comfortable with. These activities can be related to tax regulations, statutory compliances, or legal grounds. Continue reading to know them all.

Drafting or Reviewing Master Franchise Agreements

Thai law is relatively liberal since it is a civil law country, allowing the courts to evaluate the regulation’s meaning rather than its specific terms of operation. Due to this, other general rules governing contracts and commercial operations govern franchisee relationships in the absence of an express law of franchise.

Therefore, to review or draft a franchise agreement in Thailand, you will typically need to be conversant with the following legal sources:

  • Civil and Commercial Code 
  • Thailand Trade Mark Act B.E. 2534 (1991), as amended by the Trade Mark Act (Number 2) B.E. 2543 (2000) 
  • Thailand Patent Act B.E. 2522 (1979), as amended by the Patent Act (Number 2) B.E. 2535 (1992) and Patent Act (Number 3) B.E. 2542 (1999)
  • Thailand Copyright Act B.E. 2537 (1994)
  • Trade Secrets Act B.E. 2545 (2002)
  • Unfair Contract Terms Act B.E. 2540 (1997)
  • Trade Competition Act B.E. 2542 (1999)
  • Act Relating to Price of Merchandise and Service B.E. 2542 (1999)
  • Revenue Code B.E. 2481 (1938)
  • Direct Sales and Direct Marketing Act B.E. 2545 (2002)
  • Product Liability Act B.E. 2551 (2008)

When creating and reviewing franchise agreements and franchise development agreements, it is also important to take into account the different Ministerial Regulations that implement and further develop these Acts.

Due Diligence for Franchisors/ Franchisees

Due diligence on a possible franchisee is crucial, not only to ensure that they are reliable and will properly establish a business in Thailand but also to ensure that they have the necessary skills and experience to operate the company as the franchisor would instruct. Additionally, some essential due diligence measures include:

  • To verify directors, shareholding, and company debt, the Ministry of Commerce conducts searches on the corporate organization.
  • Court searches in the relevant areas to find litigation or other disputes that note the parties involved, the nature of the conflict, the court’s jurisdiction, the cause or causes of action, and the stage at which any actual, threatened, or pending litigation, administrative action, or settlements are in.
  • The list of all necessary regulatory approvals for food, drink, pharmaceuticals, nutrition, medical devices, and cosmetics, together with documents of these approvals.
  • Knowledge of takeover procedures and any necessary transitional plans.

Get the Pitfalls Covered

So, to reassure you that you need a law firm to set up your franchisee business in Thailand, let us cover the common pitfalls that can trap you anytime during the course of the business.

There are prohibitions in some clauses in franchise agreements by Thai law, notwithstanding the propensity of some franchise agreement drafters to overdo it in an effort to offer the franchisor significant protection.

For instance, it is against the law for an agreement to be struck in advance that absolves a debtor of his own deception or egregious carelessness. Additionally, other terms that can violate the Thai Unfair Contract Terms Act include:

  • a clause that limits or excludes liability for contract breach.
  • any clause that permits contract termination without cause or without the opposing party has committed a substantial breach.
  • a clause that permits one party to postpone or refuse to carry out its duties under a contract without providing justification.
  • a clause that permits one party to impose additional duties on the other party beyond those reached at the time the contract was executed.

Don’t you think that these pitfalls can turn grave for your franchisee business in Thailand? Therefore, instead of running the horses of your brain, consult with Konrad Legal today. Email us at officer@konradlegal.com to meet all your legal requirements for your Franchisee Business in Thailand.


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Friday, January 20, 2023

International Procurement Offices for BOI Promotions in Thailand

 

International Procurement Offices have consistently ranked high on the promotional categories list of the Board of Investment Thailand. The BOI wants to develop Thailand’s supply chains and promote Thailand as a top global hub for industrial component sourcing and distribution through this category. BOI Promotions in Thailand for eligible activities facilitate this intent of the kingdom.

It also intends to improve the technical skills of the Thai labor force by utilizing experts from other countries, as well as to introduce technological innovation and industry best practices to Thailand.

The International Headquarters and International Trading Centers categories initially took the place of this promotional category, but the BOI reintroduced it on November 4, 2020, in an effort to promote foreign investment and commerce in the face of the COVID-19 epidemic. However, it was not finally included in the list of eligible activities. But now the Board of Investment in Thailand declares that IPOs are eligible for BOI Promotions.

Therefore, if you are a foreign investor and want to start your business in Thailand, an IPO can be a good form of business institution. But would your venture support the IPO form of business structure? Read to know more!

What is an International Procurement Office?

International Procurement is the process that allows businesses from all over the world to submit bids for contracts for goods and services. The idea has become more well-known as shipping and transportation expenses have fallen as a result of an abundance of inexpensive, easily accessible fuel. Large firms now enjoy lower labor and material costs while maintaining the same level of quality and output. This is because of globalization. 

International procurement offers three main advantages: lower costs, increased consumer base, and encouragement of the global economy. In a free market, as more goods and services are imported from other nations, their economies become richer. As a result, more money can be spent, enabling both consumers and businesses to buy goods and services.

What is the International Procurement Office in Thailand?

In the previous section, you read about the International Procurement Office in a general sense. If you are planning to set up an International Procurement Office in Thailand, you must know how the Board of Investment of Thailand takes an IPO to be. This section will guide you throughout the BOI Conception.

Classification of an IPO according to BOI Thailand

Board of Investment, Thailand identifies an organization to be an IPO when it carries out the following activities in Thailand – 

  • The organization procures raw materials, parts, and components used in manufacturing industries and does not deal with finished products. For example, it can deal in blots, nuts, and spare parts for the automobile industry, but cannot sell cars or automobiles.
  • It must own or rent a warehouse and manage inventory with an IT-based system exclusive for warehouse management. The process flow must follow the In-In, In-Out, Out-In, Out-In-Out sequence. It cannot go with an Out-Out sequence.
  • It must have appropriate activities of merchandise procurement and management like trained and qualified staff for Quality Inspection and Packaging or repackaging of goods.
  • The organization must have several procurement resources, at least including a domestic resource. 
  • It can only engage in domestic wholesale and export of goods. By no means, the firm should carry on direct selling to end-users.
  • The organization must have at least 10 million paid-up capital before the issuance of the BOI Certificate.

So, if you qualify for the above conditions, you will be eligible for BOI Promotions as an International Procurement Office in Thailand.

How Should an International Procurement Office in Thailand Function?

A Thai-incorporated business that exclusively purchases and distributes raw materials, parts, and components for manufacture must be an International Procurement Office. They should effectively serve as a middleman between Thai and foreign suppliers and manufacturers.

However, the BOI distinguishes between sourcing agencies and international procurement offices. An International Procurement Office must carry out tasks beyond those of an agent in order to be eligible for BOI advancement, including purchasing, reselling, and storing raw materials, parts, and components.

The BOI also makes it clear that an International Procurement Office may only acquire raw materials or components required to manufacture completed goods under its conditions for a promotion. They must include components made in Thailand as part of their procurement offerings rather than buying full goods.

The role of an International Procurement Office is illustrated below:

New BOI Announcements for IPOs in Thailand

The “IPO” (international procurement office) will once more be an acceptable activity. The IPO’s duties include sourcing components, semi-finished items, and raw materials from both Thailand and beyond.

Along with other non-tax advantages, a company operating in the promoted activity under the IPO will primarily benefit from import duty exemptions on machinery and raw materials used in export manufacturing.

Please note that the applicant must own or lease warehouse space as one of the most crucial requirements of the IPO in the past (s). Therefore, to meet this requirement in the past, the majority of trading enterprises had to buy or rent the warehouse from logistic providers, which could not be very convenient. Recent International Commerce Center (IBC) technology, however, enables a trading organization to conduct wholesale business without the need for a warehouse (although there are other specific restrictions in addition to the IPO). On the basis of the available data, this point isn’t yet clear. As soon as the official BOI notification is out, we’ll let you know.

What are the Board of Investment Privileges for IPOs in Thailand?

A business is eligible for B1 privileges if it engages in activities that fall under the purview of purchasing and selling raw materials, parts, and components to and from manufacturers or distributors in Thailand and overseas, under the Announcement of the Board of Investment No. Sor. 1/2564. Several non-tax benefits are also included in these privileges, such as exemptions from import duties.

Tax Incentives 

  • Exemption of import duties on machinery 
  • Import tax exemption on raw materials used in the production of goods for export.

Non-Tax Incentives

  • 100% Foreign Ownership 
  • Permission to own land 
  • Permission to bring skilled workers and professionals to work in Thailand
  • Easy process in the issuance of Visa and Work Permit

Permitted Activities for an International Procurement Office in Thailand

  • Now you are well aware of the fact that it is easier to get a BOI Promotion for an IPO than other business structures. Therefore, let us rewind you well with the activities that your IPO in Thailand can perform. 
  • Coordinating the procurement of raw materials, parts, and components between suppliers, manufacturers, and distributors. 
  • Overseeing the logistics of acquiring and delivering the manufacturing components. Inspecting the quality of raw materials, parts, and components to be sold to manufacturers. 
  • Packaging or repackaging of raw materials, parts, and components. 
  • Storing or turning over an inventory of raw materials, parts, or components. 
  • Developing innovative IT systems used in warehouse/inventory management and goods fulfillment.

Therefore, now as you know all about the IPO business category in Thailand, you can align your business idea with this type of formation. Ideation is completely your task, but when it comes to implementation, you will need legal help. There is nothing better than a local Thai Law firm with more than a decade of experience in forming IPOs to take up your case. Starting from Company Registration in Thailand to regular Accounting and Taxation tasks, Konrad Legal leads the league in Bangkok. Write to us at officer@konradlegal.com.


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Thursday, January 19, 2023

Doing Business in Thailand in 2023: BOI Updates



Doing business in Thailand in 2023 is now having a broader horizon in Thailand. It is because the Board of Investment of Thailand has included some more lines of business activities to be eligible for the promotion. This is great news for foreign investors willing to start their business in Thailand. 

Now, what makes the Board of Investment (BOI) of Thailand so crucial for investors? If you are already knowing about BOI Thailand, then it is needless to explain. You can straight jump to the section of the article that explains the “New Eligible Activities for BOI Thailand Promotion in 2023”. But if you are not aware, this article will guide you through the benefits of getting BOI Promotion for doing business in Thailand in 2023.

What is the Board of Investment of Thailand?

A government organization within the Office of the Prime Minister is the Office of the Board of Investment. Promoting worthwhile investment, both in Thailand and abroad, is one of its primary functions and responsibilities.

In order to increase Thailand’s competitiveness, escape the “Middle Income Trap,” and achieve sustainable growth in line with the sufficiency economic theory, it is important to encourage worthwhile investment, both domestically and internationally. With this vision, the BOI keeps on formulating strategies to help foreign investors with various tax and non-tax benefits. 

What are the Investment Promotion Policies of BOI Thailand?

BOI Thailand operates on multiple grounds when it comes to the promotion of investments. The organization keeps a balance between the trades of national strategic importance along with that of the incoming FDI intent. All the schemes and policies that the Board of Investment announces primarily revolve around the following strategic points:

  • Encourage investment that increases national competitiveness by fostering R&D, innovation, value creation in the industrial, commercial, and service sectors, SMEs, fair competition, and reducing social and economic inequality.
  • To encourage balanced and sustainable growth, encourage eco-friendly, energy-saving, or alternative energy activities.
  • Encourage the formation of clusters to focus investment in accordance with regional potential and to bolster value chains.
  • To encourage investment in border provinces in Southern Thailand to promote local economic growth and initiatives to improve local security.
  • Encourage the establishment of special economic zones, particularly in border regions, both inside and outside of industrial estates, in order to foster economic ties with other nations and to get ready for joining the ASEAN Economic Community (AEC).
  • Encourage foreign direct investments in Thailand to boost the nation’s economy and the competitiveness of Thai companies.

What are the Incentives covered by the BOI Promotions?

BOI Thailand helps with both tax and non-tax incentives for eligible projects and investors. The classification is as follows:

Tax Incentives of BOI Thailand

  • Up to 13 years of corporate income tax exemption (According to activity & conditions).
  • 50% cut in corporate income tax for five years (only in special investment promotion zones).
  • machinery imports are exempt from duties.
  • duty-free imports of raw materials or components utilized in export-oriented manufacture.
  • Import taxes on raw or necessary goods used for research and development are exempt.

Non-tax Incentives of BOI Thailand

How BOI will help Investors Doing Business in Thailand in 2023?

  • Offer guidance and details on the BOI investment promotion laws and regulations as well as investment opportunities.
  • To make commercial operations easier, like company formation and work permit application processes, connect investors with government organizations and the private sector.
  • Support the sourcing of local suppliers and establishing industrial ties.
  • support for locating possible investors is provided.
  • BOI Strategic Talent Center to assist in locating and recognizing international experts or researchers in science and technology (STC).
  • Give Thai investors advice on investing abroad and offer them training courses in doing so.

New BOI-eligible activities for Doing Business in Thailand in 2023

Updates on the BOI measures can be divided into three (3) different categories as follows:

New BOI Eligible Activities

The following businesses will be added to the list of those that qualify for BOI incentives:

Senior Care Hospitals and Services

According to predictions in 2021, there will be at least 13 million people in Thailand over the age of 60 or 20% of the country’s whole population. The following two (2) businesses will be introduced as qualifying businesses, with the specific incentives noted, in order to prepare for the upcoming aging society:

  • Senior care hospitals: entitled to a five (5) year CIT exemption; and
  • Senior or dependent care services: entitled to a three (3) year CIT exemption.

Clinical Research

The BOI wants to persuade top medical researchers to conduct their medical research in Thailand, creating the opportunity for medical institutions or personnel in Thailand to obtain expertise and knowledge therefrom. This is part of the plan to increase Thailand’s competitiveness in the medical industry and to promote Thailand as an international medical hub. Thereby, it is a goal of priority and a great opportunity for investors in the Medical Industry of Thailand. The two (2) additional companies listed below will be made eligible for the BOI program offering an unlimited eight-year CIT exemption incentive:

  • Contract Research Organizations; and
  • Clinical Research Centers.

However, please note that to be eligible for the promotions the following relevant requirements must be fulfilled:

  1. A total annual salary of not less than 1,500,000 THB for newly hired researchers who are Thai nationals; or
  2. Investment capital of not less than 1,000,000 THB (excluding the cost of land, working capital, and vehicles).

Inclusion of Previously Delisted BOI Eligible Activities

Due to various strategic and regulatory issues, some of the eligible activities were delisted from the list earlier. As the BOI plays a crucial role in maintaining the foreign direct investment volume as well as the GDP of Thailand, it keeps on amending policies. That may include the inclusion or exclusion of eligible activities whenever applicable. Following is the list of some of the re-included activities:

Manufacture of Electric Vehicles

Following the exclusion of the former packages in 2018, the BOI re-welcomes applications for new incentive packages for the business of manufacturing electric vehicles (“EVs”). The investment packages will cover all kinds of EVs, i.e. four-wheelers, motorcycles, three-wheelers, buses, trucks, and ships (the former investment package covered only EV cars and EV buses).

Various requirements and incentives will apply to each form of EV, and they can be summed up as follows:

Additionally, the BOI approved incentives for four (4) more categories in respect of the manufacture of EV parts, namely: 

i) high voltage harnesses; 

ii) reduction gear; 

iii) battery cooling systems; and 

iv) regenerative braking systems.

Additionally, the BOI also granted an additional incentive for the production of battery modules and battery cells in order to support local EV battery manufacturing. This incentive entails offering a 90% decrease in import duties for a period of two (2) years on raw materials or necessities.

International Procurement Office (IPOs)

The “IPO” (international procurement office) will once more be an acceptable activity. The IPO’s duties include sourcing components, semi-finished items, and raw materials from both Thailand and abroad.

In addition to additional non-tax benefits, a company operating in the encouraged business under the IPO will primarily benefit from exemptions on import duty on machinery and raw materials to be used in manufacturing for exports.

Please be aware that the applicant must own or lease warehouse space as one of the most crucial requirements of the IPO in the past (s). Therefore, to meet this requirement in the past, the majority of trading enterprises had to buy or rent the warehouse from logistic providers, which could not be very convenient. 

However, recent International Commerce Center (IBC) technology enables a trading organization to conduct wholesale business without the need for a warehouse (although there are other specific restrictions in addition to the IPO). On the basis of the available data, this point isn’t yet clear. As soon as the official BOI notification is out, you will get updates in our periodicals.

Extension and Amendment of Productivity Improvement Measure – a Great Privilege for Doing Business in Thailand in 2023

The BOI will extend the application deadline for investors who intend to pursue the advantages of what was once known as the Production Improvement Measure and is now referred to as the “Productivity Improvement Measure” until the end of 2022. (“Measure”). However, the advantages of the Measure—a 50% CIT exemption for three (3) years and an exemption from import duty for machinery—remain the same.

The Production Improvement Measure in Thailand was started to encourage involvement in R&D and advanced engineering design in order to increase production efficiency, as well as to promote and upgrade technology and machinery for energy conservation, alternative energy utilization, or reduction of environmental impacts. For both of the above, the Productivity Improvement Measure is applicable:

Any existing businesses (whether or not they are currently involved in a promoted project); however, if they are not, they must at the very least be eligible for BOI promotions; and Promoted Projects for which the CIT exemption or reduction privilege has already expired or for which the specific Promoted Project is not eligible for the CIT exemption.

The Measure includes the following four (4) sub-measures:

  1. Energy conservation and alternative energy utilization;
  2. Production efficiency improvement through the upgrading of machinery for manufacturing;
  3. R&D and advanced engineering designs for efficiency improvement; and
  4. Sustainable development for agriculture.

According to this Measure, you must:

  1. A minimum investment capital of not less than 1,000,000 THB (excluding the cost of land and working capital); and
  2. Submission of the application by the end of 2022 and implementation of the BOI-promoted project within three (3) years from the date of issue of the BOI certificate.

The Bottomline

So, there is already an active list of activities that are eligible for BOI Promotions. Additionally, some new activities are flashing in the list along with the inclusion of previously delisted activities. It will be commendable if you can identify whether your is eligible for BOI promotions or not. However, if you cannot, go through the following steps:

  • Identify the particular industry that your business belongs to.
  • Check the verticals of the industry that your business will probably tap upon.
  • Cross-check whether your business is going to be useful for the Thai Market.
  • Go to the BOI Website and check the list of eligible activities.
  • Check the list of eligible businesses and see if your business matches any of the criteria.

If you are able to judge your eligibility for the BOI promotion for doing business in Thailand in 2023, then it is great. If not, we are here to help you. Book your free round of consultation with us by emailing us at officer@konradlegal.com. The most efficient and professional team will be there to assist you in the complete process of BOI-promoted business registration in Thailand.

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Saturday, January 14, 2023

Shop Dee Mee Kuen for Tax Deduction in Thailand in 2023

Tax Season in Thailand is going to start very soon. So, if you have already made the calculations to file your Personal Income Tax this year, you need to hold back and check once. Have you made a deduction for the shopping you did this year? If not, let us explain to you the “Shop Dee Mee Kuen” Scheme which grants Personal Income Tax deduction for purchasing goods and services in Thailand.

What is Shop Dee Mee Kuen?

The Thai Cabinet gave approval to a new stimulus plan on December 20, 2022, to support the nation’s economy in 2023 as tourism will improve drastically. Please note that customers who spend money on goods and services in Thailand will be able to deduct up to THB 30,000 in taxes due to the “Shop Dee Mee Kuen” program. Additionally, note that “Shop Dee Mee Kuen” means “Shop and Payback”.

The initiative will run from January 1 through February 15, 2023. Meaningfully, it will create more than THB 56,000 million in cash flow for the nation. Furthermore, according to the estimates from the Ministry of Finance, is going to cost the Revenue Department THB 8,200 million in lost tax revenue. However, the program has the potential to increase Thailand’s GDP by 0.1-0.2% in 2023.

Shop Dee Mee Kuen Scheme: Background

To promote consumer spending in the final two months of the year, the Thai Retailers Association has suggested that the government resurrect the “Shop Dee Mee Kuen” program in November 2022.

According to Chairman Yon Pokesap, the weeks before the New Year are the perfect time to encourage people to spend. Additionally, it was noteworthy that spending has already begun to increase as a result of the relaxation of lockdown regulations.

Therefore, now was a good time to use this spending behavior of consumers for a tax deduction. Furthermore, he advised that the optimal period to introduce the program would be between November 15 and the end of December.

He said that other consumer groups would be included in the program. Additionally, this will include individuals who have signed up for previous government stimulus programs like the “Ying Chai Ying Dai” (the more you spend, the more you get) and 50:50 co-payment programs.

Note that, Yon added that the government should raise the cap on personal spending under this scheme from 30,000 to 200,000 baht. Furthermore, he estimates that this will increase annual shopping expenditures by about 400 billion baht in the final two months of the year, which could increase Thailand’s growth rate by 0.7 to 1%.

Additionally, Yon asserts that by doing this the government stands to lose 15-20 billion baht in tax revenue. But, the immediate benefits from more money moving in the economy will accelerate economic recovery. Furthermore, it will make up for the loss in tax revenue.

Who will benefit from “Shop Dee Mee Kuen”?

According to market research, customers who earn at least THB500,00 per year, or roughly THB42,000 per month, will certainly profit from the stimulus program known as “Shop Dee Mee Kuen”. Furthermore, 70% of all respondents to this research survey plan to take part in this stimulus program. However, the majority of consumers, who make less than THB 500,000 annually, do not intend to do this. It is because they continue to worry about future expenses. Furthermore, they don’t need to spend more on tax deductions because their personal income tax rates are relatively low.

Note that, the “Shop Dee Mee Kuen” stimulus campaign is to encourage customers to spend more on dining out, IT products (such as smartphones, smartwatches, and computers), and personal care items (namely shampoos, liquid soaps, and toothpaste). However, because customers frequently eat out and buy certain personal care products anyhow, such expenditure during the implementation of this effort may not increase much over a typical period (when there is no stimulus program). Furthermore, it’s expected that more young people and adults will buy IT devices. Meanwhile, the majority of customers plan to eat at restaurants and shop in malls. It is because the e-marketplace is the preferred purchasing platform for the younger generation. However, these offline channels provide a full range of goods and services.

Personal Income Tax Deduction: Scheme Details

The Mandates:

  • Scheme valid on purchases made between January 1, 2023 – February 15, 2023.
  • Deductions will be done only on purchases made from VAT-registered sellers.
  • All purchase receipts showing the VAT Number of the seller must be preserved till filing Income Tax.

Who is Eligible for the Deduction?

All taxpayers in Thailand with an annual income of above 150,000 THB are eligible for this deduction. However, Ordinary Partnerships and non-juristic bodies are not in the scope of this income tax deduction. Please take note, that you should consult with a professional Tax Consultant in Thailand to check your eligibility.

Shop Dee Mee Kuen Slab

Annual Income Range (in THB)Income Tax Rate (%)Tax Deduction (in THB)
0 – 150,0000Not Eligible for Deduction
150,000 – 300,0005Upto 1,500
300,001 – 500,00010Upto 3,000
500,001 – 750,00015Upto 4,500
750,001 – 1,000,00020Upto 6,000
1,000,001 – 2,000,00025Upto 7,500
2,000,001 – 5,000,00030Upto 9,000
Above 5,000,00035Upto 10,500

Are any Goods Exempted from Shop Dee Mee Kuen Tax Deductions?

The scheme is applicable on all purchases from January 01 – February 15, 2023. However, the following expenditures do not fall in the classification to get the eligible deduction:

  • Purchase of liquor, beer, wine, and tobacco products
  • On the purchase of motor vehicles, motorcycles, and boats
  • Purchase of newspapers and magazines
  • Subscription of e- newspaper and online magazine services
  • Tourism services and hotel accommodation
  • Utility, water, electricity, telephone, and internet service charges
  • Service fees paid for services that can be used after 15 February 2023 (e.g. club membership fees)
  • Non-life insurance premiums

The Bottomline

By now, we hope that you have understood the concept of Shop Dee Mee Kuen for tax deduction thoroughly. However, it is advisable that to claim your tax rights, you must consult with an expert tax consultant. Furthermore, there are many vital factors that you must keep in mind before you pay taxes, which are, although not limited to, the following:

There are many more small factors and considerations that are very much case-specific. Apart from the tax slab, deduction rates, and incentive figures, nothing is absolute when it comes to paying taxes. Therefore, you must have a reliable tax firm by your side in Thailand. For professional support and complete guidance along with documentation support, you can consult with Konrad Legal. Email your requirements to officer@konradlegal.com.

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