Legal News. Deloitte Legal Representing tomorrow. Legal News Issue 16 November Inside this issue :
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1 Deloitte Legal Representing tomorrow Inside this issue : November 2016 Conference Meeting of Juristic Person via Electronic Media BOI approves Policy to Promote Investments in Medical Industry (Medical Hub) BOI launches Application-related Services in the e-investment Promotion Systems 01 Issue 16 November 2016
2 Conference Meeting of Juristic Person via Electronic Media The Department of Business Development of the Ministry of Commerce has issued a Notification dated 23 September 2016 regarding Setting up a Conference Meeting via Electronic Media. This was done in accordance with Announcement No.74/2014 of the National Council for Peace and Order Re: Conference meeting via Electronic media dated 27 June 2014 and have the criteria and conditions are as follows: 1. This criteria used for the meeting of the registered partnership, the limited company, the public company, trade association and chamber of commerce only. 2. The meeting is required by law and the president of the meeting can set up the meeting via Electronic media. 3. In case of the public company, trade association and chamber of commerce, the conference meeting can be conducted only in the case where the provision for setting up a Conference meeting via Electronic media must be specified in the articles of association. 4. In case of the registered partnership and the limited company, although the provision of setting up Conference meeting via Electronic media is not specified in the articles of association, the Conference meeting via Electronic media can still be set up. 5. The invitation of the meeting and other documents for the Conference meeting via Electronic media must be as follows: 5.1 Comply with the procedure and timeline as specified by the law or articles of association, for example, send via acknowledge receipt mail and announce in newspaper not less than 7 days in advance; or 5.2 Send via electronic mail and announce in newspaper in accordance with the timeline, law or the articles of association. 6. At least 1/3 of the quorum must attend at the meeting at the same place and all of the attendants must be in the Kingdom of Thailand while the meeting is conducted. Therefore, if all of the attendants of the meeting are not in the Kingdom of Thailand, the conference meeting cannot be set up. 7. The Conference meeting shall be conducted via information security system. Sound and voice recording of all attendants during the meeting as the case may be must be in accordance with the criteria and conditions of the announcement of Ministry of information and Communication Technology Re: The Standard for Security of the Conference meeting via Electronic media A.D dated 24 November The registration of the registered partnership, the limited company, the public company, trade association and chamber of commerce which shall be signed by the authorized person as registered by the resolution of the Conference meeting via Electronic Media, the applicant shall submit the supporting documentation together with the application for registration pursuant to the applicable provision. However, in case that the application is not signed by the authorized person as registered or there is the objection against the registration which refer to the resolution of the Conference Meeting via Electronic Media the applicant must submit the additional supporting documentation in accordance with related rules, regulations and provisions. 02
3 BOI approves Policy to Promote Investments in Medical Industry (Medical Hub) On 29 September 2016 the Board of Investment ( BOI ) has issued Announcement No. 8/2559 Re: Policy to Promote Investment in Medical Industry (Medical Hub) to strengthen the medical industry competitiveness for SMEs who are medical device manufacturers in Thailand as well as to encourage pharmaceuticals products manufacturers to improve their production standards to be equal to the international standards as follows: 1. Add the list of eligible activities for investment promotion for SME operators under Category 3 - Light Industry and grant corporate income tax ( CIT ) exemptions as follows: 3.11 Manufacture of medical devices or parts Manufacture of high-risk or high-technology medical devices Granted CIT exemption for 8 years (with no cap) Manufacture of other medical devices (except for medical devices made of fabrics or fibers) Granted CIT exemption for 7 years, capped at 100% of amount of investment, excluding cost of land and working capital) Manufacture of medical devices made of fabrics or fibers Granted CIT exemption for 5 years, capped at 100% of amount of investment, excluding cost of land and working capital) 2. Amend incentives granted under eligible activity 6.10 Manufacture of medicine as follows: year CIT exemption, capped at 100% of the investment excluding cost of land and working capital; or 2.2 In the case of an application for project investment is submitted to the BOI within 31 December 2017, the applicant will receive CIT exemption for up to 8 years, capped at 100% of the investment excluding cost of land and working capital. This Announcement came into effect as of 29 August 2016 onwards. 03
4 BOI launches Application-related Services in the e- Investment Promotion System On 30 September 2016, the Office of the Board of Investment ( BOI ) issued the Announcement No. Por. 5/2559 re: Conditions in Providing Services in the e-investment Promotion System. The Service Recipient (i.e. applicant for investment promotion or promoted company, as the case may be) must apply for a user name and password in order to become a member to use the e-investment Promotion System. The requests that the BOI provides services through the electronic systems are as follows: Applications for investment promotion; Applications in relation to the promotion certificate (only for projects which request for investment promotion via the e-investment Promotion System) which includes request for extension of promotional acceptance, promotional acceptance form, request for extension of timeframe for submission of evidence for issuance of the promotion certificate and form requesting for issuance of the promotion certificate; and Project amendments which includes request to amend the ratio of shareholders, request to change/increase/decrease factory location/business location, request to amend the registered capital and request to increase manufacturing capacity (resulting from increase of work time). The Service Recipient may submit applications via the e-investment Promotion System starting from 1 October 2016 and the BOI will discontinue the current service system used i.e. the paper-based application for investment promotion starting from 1 January 2017 onwards. 04
5 Contact Poljun Divari Director, Tax & Legal Services Tel: +66 (0) ext Pornpun Niyomthai Director, Tax & Legal Services Tel: +66 (0) ext Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see to learn more about our global network of member firms Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients most complex business challenges. To learn more about how Deloitte s approximately 225,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter. About Deloitte Southeast Asia Deloitte Southeast Asia Ltd a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam was established to deliver measurable value to the particular demands of increasingly intra-regional and fast growing companies and enterprises. Comprising 270 partners and over 7,300 professionals in 25 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region. All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal entities. About Deloitte Thailand In Thailand, services are provided by Deloitte Touche Tohmatsu Jaiyos Co., Ltd. and its subsidiaries and affiliates Deloitte Touche Tohmatsu Jaiyos Co., Ltd. 05
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