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New Law Update

Topic 1. Latest Law Update

Interesting News

1. Minimum wage 2024 (2567)

Following that, on April 2, 2567, the Cabinet approved an increase in the minimum wage for the tourism industry in leading areas of 10 provinces to 400 Baht per day, as proposed by the Ministry of Labor, effective from April 13, 2567.

• Bangkok: Specifically, Pathum Wan and Wattana districts
• Krabi province: Specifically, Ao Nang sub-district municipality
• Chonburi province: Specifically, Pattaya City municipality
• Chiang Mai province: Specifically, Chiang Mai municipality
• Prachuap Khiri Khan province: Specifically, Hua Hin municipality
• Phang Nga province: Specifically, Khuek Khak sub-district municipality
• Phuket province
• Rayong province: Specifically, Ban Phe sub-district
• Songkhla province: Specifically, Hat Yai municipality
• Surat Thani province: Specifically, Ko Samui district

Additionally, there were adjustments made to the initial salary rates for civil servants and government officials, as well as professionals in other fields. The government plans to gradually adjust the initial salary rates based on qualifications:

• Those working in positions requiring a bachelor’s degree will have a minimum salary of 18,000 Baht.
• Those working in positions requiring a vocational certificate (Vocational Certificate or equivalent) will have a minimum salary of 11,000 Baht within 2 years.

On May 14th, 2024, there will be a meeting to consider increasing the minimum wage rate across the country. This meeting aims to clarify which careers or provinces will see an increase in the minimum wage rate. The intention is for the adjusted minimum wage rate to take effect from October 1st, 2024, they think it will be smoothly, without any issues. This adjustment is necessary due to the already increased prices of goods, reflecting the current economic situation. It is imperative for the government to raise the minimum wage to align with the announced policy (by pheu Thai Party) , which stipulates a minimum wage rate of 600 baht. Additionally, that bachelor’s degree graduates receive a minimum salary of 25,000 baht by 2027 (2570).

2. Draft Ministerial Regulation on Employer-Paid Healthcare Costs (Version …) B.E.…

The Cabinet has approved the draft Ministerial Regulation on Employer-Paid Healthcare Costs (Version …) B.E. … as proposed by the Ministry of Labor, and authorized further action, as evaluated by Office of the Juridical Council. The key provisions of the aforementioned draft regulation are as follows:

Resolution of the Meeting of the National Electric Vehicle Policy Committee 1/2566

Key Points:

1. Amendment of Criteria under the Early Electric Vehicle Support Scheme (EV3)

   (1)Extend the timeframe for providing subsidies to electric vehicles (EVs) of the same model as those entitled under the EV3 scheme, in cases imported before January 1, 2565, to include EVs imported since November 1, 2564, and sold to consumers after receiving EV3 entitlement.

   (2)Extend the deadline for registering electric vehicles entitled under the scheme from the previous “registration by December 31, 2566” to “sale by December 31, 2566, and registration by January 31, 2567.”

2. Electric Vehicle Support Scheme Phase 2 (EV 3.5)

   (1)Effective from 2567-2570, covering passenger cars, pickup trucks, and electric motorcycles, with differences in subsidy provision compared to the initial phase.

(2)Regarding the importation of completely built electric vehicles (CBU), electric cars must be manufactured as compensation within the year 2569 at a ratio of 1:2 of the import quantity during the period of 2567-2568 (import 1 car, produce 2) or produce compensation in the year 2570 at a ratio of 1:3 (import 1 car, produce 3 as compensation).

(3)Additional conditions are specified that imported car batteries and domestically manufactured car batteries must comply with the Industrial Product Standards (TIS) and specify the characteristics of electric cars that support quick charge.

(4)Existing operators participating in the EV3 scheme and intending to participate in the EV 3.5 scheme should be able to apply for benefits by complying with the specified conditions.

4.Subject: Draft Act to Prevent and Suppress the Financing of Terrorism and the proliferation of weapons of mass destruction. (No……) B.E.……(Cabinet resolution dated 27 February 2024)

Important contents of the draft Act

1. Determined the Office of Anti-Money Laundering It is responsible for taking action against person designated as those who have committed acts of terrorism or the proliferation of weapons of mass destruction (“Designated Person”) can use the money or property that has been suspended to cover basic expenses, such as food and medical care for family members. (father, mother, spouse, child) in order to provide protection according to the basic rights to life.
2. Determined to prohibit other individual from providing financial assistance to designated person to cut off channels for providing assistance or support to designated persons to use money or assets to commit crimes.
3. The Land Office is exempt from setting policies for risk assessment or guidelines to prevent the financing of terrorism or the proliferation of weapons of mass destruction, such as reporting measures transactions that have reasonable grounds to be suspicious.
4. Determined that other individual than designated person may submit motion to the Anti-Money Laundering Office. To use money or property that has been suspended to pay off debt to a designated person who is the debtor.
5. Determined that the Office of Anti-Money Laundering has the authority and duty to collect information and evidence to be used in determining or revoking the list of designated persons or seizing, attaching, or confiscating assets.
6. Determined additional offenses on various grounds, such as violating the policy or guidelines or any other measures necessary to prevent the financing of terrorism or the proliferation of weapons of mass destruction. Including specifying that certain offenses committed by juristic persons are comparable offenses.

5.Announcement of Board of Investment promotion No. 4/2024 regarding measures to stimulate investment to revive the economy.

Announced on February 7, 2024, effective from February 7, 2024.
This announcement is announced to encourage large projects in targeted industries to accelerate investment to revive the economy by virtue of Section 16, Section 18 and Section 35 of the Investment Promotion Act B.E. 2520, the Board of Investment promotion has issued announcement as follows:

1. Designate areas in every province as investment promotion zones.
2. Conditions
   2.1 The business must be a business in groups A1, A2, A3 and A4, except
   (1) Types of business that do not have an establishment location, such as air transport business, sea transport business, etc., as determined by the Office.
   (2) Types of businesses that have conditions to be established only in the southern border provinces or border special economic development zones.
   2.2 The business must be a project that has received corporate income tax exemption rights and benefits according to various investment promotion measures for a total of not more than 8 years.
   2.3 The business must be an actual investment of not less than 1,000 million baht, excluding the cost of land and working capital, within 12 months from the date of issuance of the promotion certificate.
   2.4 It will not be allowed to extend the time for accepting promotions and submitting evidence of issuance of promotion certificates. Consideration will be given to extending the time for importing machinery and taking appropriate action.
   2.5 Evidence of actual investment must be submitted in order to receive additional rights and benefits according to the form specified by the Office within 18 months from the date of issuance of the promotion certificate. However, it will be considered to extend the time for submitting evidence of actual investment in order to receive additional rights and benefits as appropriate. On the date of applying for additional rights and benefits, there must be remaining rights and benefits of corporate income tax exemption, both the period and the amount of corporate income tax exemption.
3. Additional rights and benefits Receive a corporate income tax deduction for net profits earned from investments at the rate of 50 percent of the normal rate for a period of 5 years from the end of the corporate income tax exemption period.
4. This measure applies to projects that submit applications for promotion from 2 January 2024 to the last working day of 2024.
5. Authorize the office to act on behalf of you in considering approval or disapproval of project amendments in order to receive additional rights and benefits for projects of all investment sizes according to this measure. Including consideration of extending the time for submitting evidence of actual investment. in order to receive additional rights and benefits as appropriate.

6. Announcement of the Investment Promotion Committee No. 2/2567 Regarding Measures to Expand Existing Production Bases

To incentivize major investors to continue selecting Thailand as their production base and stimulate continuous investment, the Investment Promotion Committee issued an announcement on February 7, 2567, with the following key points:

1. Designating every province as an investment promotion zone.
2. Applicants for promotion must be existing promoted persons with projects promoted during the past 15 years (2009-2023), totaling no fewer than 3 projects, with a combined investment value of at least 10,000 million Baht, excluding land and working capital.
3. Additional benefits will be granted for projects expanding investment value of at least 500 million Baht, excluding land and working capital, with exceptions for certain types of businesses, as follows:
   (1) Extending CIT exemption for an additional 3 years, not exceeding 13 years, for Group A1+ businesses.
   (2) Reducing CIT deduction for net profit derived from investment by 50 percent of the normal rate for a period of 5 years, starting from the end of the CIT exemption period for Group A1 and A2 businesses.
   (3) Extending CIT exemption for an additional 3 years, not exceeding 8 years in total, for A3 and A4 businesses.
4. Projects that have exceeded the maximum 8-year CIT exemption period will not be eligible for additional benefits and CIT deduction under Section 35(1).
5. Projects that have already received additional benefits under this measure will not be eligible to apply for benefits under the economic recovery stimulus measures.
6. These measures shall be effective for projects applying for promotion from January 2, 2567, until the last working day of 2567.

7. Announcement of the Capital Investment Promotion Committee No. 3/2024 regarding measures to promote integrated business base relocation.

Announced on February 7, 2024, effective from January 2, 2024 onwards.

This announcement is issued to promote the integrated relocation of production bases by foreign investors. Whole production factory regional office and research and development center by virtue of Section 16, Section 18 and Section 31 of the Investment Promotion Act B.E. 2520 as follows:

1.New investment projects in manufacturing that have applied for investment promotion

2.Production projects that were previously promoted in Group A by rights and benefits corporate income tax exemption has not ended. Except for types of businesses that have specific policies that do not provide rights and benefits. As specified by the office.

Additional benefits according to this announcement