BOI’s OECD Pillar II compliance measure
The Board of Investment (BOI) has amended investment promotion measures regarding corporate income tax (CIT) benefits in relation to Multinational Enterprises (MNEs) with consolidated group revenue exceeding THB 28,000 million (currently approx. USD 795 million/EUR 735 million), in responding to the new Pillar II* under the OECD/G20 Inclusive Framework on BEPS (minimum income tax). The applicable companies are entitled to choose/amend (for companies currently under investment promotion) the promotion package which allows for a 50% reduction on CIT for up to 10 years (i.e. 10% tax rate, which mean another 5% will be taxed in the MNEs’ home country in accordance with the OECD Framework.)
*All MNEs with annual revenue above EUR 750 million (approx. USD 800 million) operating in any country will be subject to a minimum tax rate of 15%. If the company is taxed below 15% in any state, the state where its parent company is located will be entitled to collect the difference as a “Top-up Tax”
Stark Corporation PLC., a listed company in the Stock Exchange of Thailand (SET) and used to be in the SET100 (top 100 listed company in term of company value), defaulted its debenture payment amounting to a total of THB 9 billion (approx. USD 250 million). Soon after, the company executives admitted that the submitted annual financial report of the company sent to the Securities and Exchange Commission (SEC) is actually inaccurate and that the company is actually suffering a loss of over THB 5.6 billion (approx. USD 157 million). The company’s current stock price as of 29 June 2023 is closed at THB 0.020 (less than a US cent from the peak of THB 5.10). As a result, the company is now under strict scrutiny and investigation by both the SEC and the Department of Special Investigation for possible violations of the Criminal Code and the Securities Act.
NBTC sets up sub-committees for AIS – 3BB deal (9 June)
Even though AIS has taken over 3BB for over 11 months, the National Broadcast and Television Committee is still considering whether to approve the transaction. The chairperson of the NBTC has recently spoken out that the AIS – 3BB deal has several similarities to the TRUE – DTAC deal, therefore, the committee has to put in additional effort to protect the public interest. As a result, 4 sub-committees focusing on 4 main aspects, including Legal, Consumer Protection and Civil Rights, Technology, and Economics, have been established to further investigate the matter. All 4 sub-committees will have a working timeframe of 30 days which can be extended for a maximum of 2 rounds each lasting 30 days, and the last round can be extended for up to 90 days to conclude the investigation and determination. In short, the consideration will be sent back to the NBTC board within 6 months after the setup.
The Election Committee endorsed the election result (19 June)
The Election Committee has certified the election result for all 500 elected parliament members. However, the committee can still conduct investigation complaints related to the election day within one year after the electoral results, and if there is credible evidence that there is a violation of election law, the Election Committee can request the Supreme Court to call re-election.
Establishment of Big Data Institute (2 June)
The Big Data Institute (BDI) will replace the current Government Big Data Institute, which has been established in May 2019. The main objective of the BDI is to utilize big data to help drive the economy. The institute will also provide services to the private sector which is interested in incorporating big data into their business. The BDI is expected to start operation within September this year.