On 10 February 2021, a new Act Amending to the Thai Revenue Code (No.53) B.E. 2564 was legally enacted concerning foreign companies’ duty to collect and remit VAT on digital services and e-platforms as published in the Thai Royal Gazette. This new VAT filing obligation applies to all foreign companies who provide their digital/electronic service and/or e-platform service to Thai individuals. These foreign companies are required to apply for Tax I.D. status as Thai VAT registrants if their annual revenues reach the minimum threshold of more than THB 1.8 million (USD 60,040) in a tax calendar year, which obligates the foreign company to submit VAT returns on a monthly basis.
The definition of e-Service under Clause 77/1 (10/1) of the new law includes provision of services that are delivered to Thai individuals through internet or other electronic methods. where the nature of service in principle is performed automatically and cannot be performed if it lacks information technology.
The definition of e-Platform under Clause 77/1 (10/1) includes market, channel, or other methods that many service providers use to render electronic services to service recipients.
Those foreign companies are required to charge 7% VAT on the gross service fee received from Thai individuals. However, they are not allowed to issue tax invoices or claim input tax that arises from these business operations in Thailand.
Please note that there has not yet been any announcement concerning criteria or method as to how the Thai Revenue Department will enforce this new law to allow the foreign companies to register their Thai VAT I.D. status and how to file and pay VAT in Thailand under this new legislation. We expect that the subordinate regulations will be enacted and published before this e-VAT law will become effective on 1 September 2021.
Source: Taken from PKF Thailand. More here
The cabinet of ministers has approved the compensation scheme for the secured employer and employee according to Section 33 on July 20, 2021. The Social Security Office (“SSO”) has been allocated this compensation as part of the Royal Decree that authorizes the Ministry of Finance to lend capital to solve a problem, alleviate, and regenerate the economy and society that has been affected by the COVID-19 pandemic.
This compensation will be given to employers and employees affected by the COVID-19 lockdown measures under the conditions as follows:
In this respect, the secured person under Section 33 of the Social Security Act B.E. 2533 could verify their rights through the SSO’s website.
This compensation scheme is a much-needed boost to the struggling Thai economy. It may not be the ultimate solution to the problem, but it alleviates the struggle and financial difficulty of both the employers and employees in the affected areas. If the spread out of COVID-19 continues to worsen, there is a high likelihood that the government may need to issue another batch of compensation. We will continue to monitor the COVID-19 situation and provide updates on any further developments.
The general perception with annual audits throughout the world is they are a necessary evil. Companies are required to have an audit, but they find the whole process a lot of effort and cost for very little benefit.
PKF Thailand auditors are different. They traditionally have provided their client's additional level of service. The PKF Thailand audit team have a can-do attitude to providing solutions and advice to their clients whilst providing a cost effective, international quality audit.
PKF were appointed auditors of Royal Phuket Marina (RPM) 2 years ago because of their client service, innovation and engaging personalities as well as their intention to have a local Phuket presence - and they have not disappointed.
Nuobello was instrumental in selecting PKF as auditors of RPM and was so impressed, they joined forces with PKF in an office in The Plaza Surin at the beginning of the year.
With the collaboration of PKF and Nuobello, we have developed a suite of financial products that includes the Hospitality Value Added Audit. PKF will not only provide hotels with their customary service audit, but together with Nuobello, are offering hotels insights from our experience for our clients to get value from the audit process.
These benefits include additional services of:
If you are not getting anything from your auditors except a painful experience, a signed audit report and a large audit fee, maybe it is time to make a switch. PKF - auditors with intiative, personality and can-do attitude - will not disappoint and will assist you in improving your hotel's performance.
Please contact us for a Free Consultation.
Legal Updates: Another One-Year Postponement of PDPA
June 10, 2021
Despite the postponement of the Personal Data Protection Act B.E. 2562 (2019) (“PDPA”) last year, the Ministry of Digital Economy and Society still foresees difficulty fully enforcing PDPA in 2021 due to technical obstacles in the course of PDPA implementation and the current situation of COVID-19 pandemic which has wrecked the economy and society nationwide. They thus proposed another one-year postponement of PDPA to the Cabinet Minister, who approved the resolution and enacted a Royal Decree prescribing Organization and Business Data Controllers in Exemption of PDPA Enforcement (No. 2) B.E. 2564 (2021) (“Royal Decree”) on May 7, 2021, to postpone the effective date of the major PDPA provisions from June 1, 2021, to June 1, 2022.
Critical Perspectives of the Postponement
According to this new Royal Decree, the following five Chapters and one Section of PDPA shall be effective in June next year.
Since the postponement affords additional time for all sectors in Thailand to adapt and customize their operation for PDPA compliance, this Royal Decree is a blessing in disguise. By next year, most sectors’ operations, if not all, should be in full compliance with PDPA; this will only be beneficial for all parties involved because PDPA offers comfort to all data subjects that their personal data will be handled with due care and transparency. In another light, PDPA enforcement will usher in a new regulatory era of data transactions in Thailand, which is necessary, given how much data is being used in the current business paradigm of the global Big Data trend.
พระราชกฤษฎีกากำหนดหน่วยงานและกิจการที่ผู้ควบคุมข้อมูลส่วนบุคคลไม่อยู่ภายใต้บังคับแห่งพระราชบัญญัติคุ้มครองข้อมูลส่วนบุคคล พ.ศ. ๒๕๖๒ (ฉบับที่ ๒) พ.ศ. ๒๕๖๔ (๒๕๖๔, ๘ พถษภาคม). ราชกิจจานุเษกษา เล่มที่ ๑๓๘ ตอนที่ ๓๒ ก หน้า ๑ - ๓
Retrieved from http://www.ratchakitcha.soc.go.th/DATA/PDF/2564/A/032/T_0001.PDF ,Retrieved 4 June, 2021
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An Opportunity to Change for the Better
Hotels are now in the position to take full advantage of restructuring their traditional Back of House functions to reduce the resources and costs and improve the efficiencies of the management information.
The PKF Nuobello back office hotel accounting model presents hotels of all sizes with a real, affordable solution to use this pandemic to make significant change for the better.
Pandemic and Technological Advances
Even prior to the COVID-19 pandemic severely impacting the performance of the hospitality industry, digital technology advances were having a big impact on the industry. Social media and mobile technologies have changed the traditional business model of how hotels deal with customers.
Hotels are under increasing pressure from competition and to develop new strategies for growth. A major part of the hotel's competitiveness and profitability strategy is to minimise costs and improve operation efficiences without impacting on the customer experience.
COVID-19 has put additional focus on the management of costs. Most hotels have reduced their back office staff levels significantly during COVID. As we look at the reopening strategies post COVID, now is the opportunity for hotels to change their back office model to an outsourced solution.
What are the Advantages of Outsourced Back Office Accounting?
1. Process and Personnel Expertise
2. Access to High-Tech Hotel Accounting Tools and Analysis
3. Cost Savings and Flexibility
4. No Distraction for Employees
PKF-Nuobello is a collaboration between PKF Thailand and Nuobello which has developed a suite of products for the hospitality industry.
We have a model and a team to enable hotels to outsource the financial management to provide a level of service not normally possible for a small hotel or hotel group.
The PKF-Nuobello Solution
We understand not every hotel's requirements are going to be the same. Some may want to outsource all of their accounting and HR, others may be happy with their HR department and just want to outsource the accounting. We are flexible in our offering and can tailor a solution to meet the hotel's requirements.
We have hired an experienced Hotel Financial Controller who heads up the Hotel Accounting Outsourcing Division of PKF Nuobello.
We have Cluster Financial Controllers (CFC) who will manage a group of 4-5 hotels. The CFC is responsible for:
Nuobello Welcome PKF to Phuket
Nuobello facilitated the appointment of PKF Thailand as auditors of Royal Phuket Marina 2 years ago. Their appointment was based not only on their fees being cheaper than the previous Big 4 accounting firms but PKF were different from a client service, innovation and engaging strong personalities - they have not disappointed. Nuobello was so impressed with PKF that we approached them to team up with us in Phuket and we opened up an office at The Plaza Surin in February.
Some Background Information
Nuobello's CEO, Michael Ayling, has previously spend 12 years as Finance Director and then Managing Director of Laguna Phuket and has extensive experience from a hotel owner and management company perspective. His Partner, David Bartlett has held CFO roles internationally before joining Michael at Nuobello in 2013. Michael and David held CEO/CFO and HR roles at Blue Tree, Phuket, developing the project from conception, through construction, opening and operations. Michael and David have almost a combined 20 years in Audit for KPMG in a number of international offices.
PKF and Nuobello have recently developed a suite of products for the hospitality industry. Value Added Audits, providing significant added value from the standard statutory audit to assist the hotel to improve performance, Outsourced Hotel Accounting and HR Services and recently released PKF People, a dynamic, easy to use and efficient HR and payroll system which should save time and money for hotels of all sizes.
This is just the beginning, but this coming together of like-minded professionals to develop unique Phuket-based hospitality offerings holds great expectations for Nuobello and PKF Thailand.
Thailand could be without Chinese tourists until 2023.
Indications are that China will not be opening its borders until 2023 which will have severe implications on the recovery of the Thai tourism industry in the short to medium term.
On the brighter side, the longer term prospects for the region are much more positive as Chinese tourists are expected to be drawn to countries that they see as safe and which offer an easy visa application process. For this Thailand will be very well placed to see a surge from the lucrative Chinese market when the borders finally open.
The full article discussing this important issue for both the tourism industry and the Thai economy as a whole can be found here.
PKF join Nuobello in Phuket
PKF Thailand has expanded its operations to Phuket, where we are collaborating with Phuket hospitality and tourism development and consulting company, Nuobello. This strategic collaboration is based on Nuobello's knowledge of the hotel industry and PKF's expertise in accounting and business advisory, which together can provide further Value Added Services to numerous hospitality clients in Phuket. PKF's goal is to help clients identify key issues and resolve this through professional guidance, analysis and planning.
In addition, we have partnered with a software developer to create PKF People to assist businesses in improving their payroll and human resource processes whilst also reducing costs and ensuring time is utilised where it matters. We believe that PKF People is the perfect tool for all types of businesses and are excited to launch this into the Phuket market.
Expertise, Software Solutions and Knowledge
PKF Thailand is a leading international accounting and business advisory firm in Thailand and is a member of the PKF International global network. In May 2021, we were ranked in the top two international accounting firms in Thailand by Thaiger, a popular online news platform based in Phuket. Our head office is located in the heart of Bangkok with two branch offices on the Eastern Seaboard in Sriracha and Pattaya. We have over 110 professional consultants in Thailand, we provide the following core services to a range of businesses including: audit and assurance, tax advisory, accounting, payroll, corporate legal and advisory.
Organizing a meeting in public spaces during the COVID-19 pandemic is a difficult thing to do and it has become near-impossible with the recent third-wave outbreak. Through its official announcement as dated 26 April 2021 (“DBD Announcement”), the Department of Business Development (DBD) responded to this change of event by allowing postponement of juristic persons’ meetings as well as providing an alternative e-meeting arrangement,
The details of the DBD Announcement are listed out below.
Juristic persons can postpone the meeting date if the following conditions are fulfilled:
After the postponed meeting is held, the juristic person shall submit the letter of clarification stating the causes of the postponement to the DBD, together with financial statements, a copy of the list of shareholders, a copy of the minutes of the shareholder’s meeting or the annual report.
Juristic persons can alternatively hold a meeting electronically during the COVID-19 pandemic according to the Electronic Meeting Royal Decree B.E. 2563 (2019) which is effective since 19 April 2019. The e-meetings will have the same legal effects as an in-person meetings as prescribed by the relevant law.
This DBD Announcement relieves the anxiety of those organizations who planned to arrange their annual general meetings during this crisis period. They can readjust their meeting plan according to their circumstances with some choosing to postpone their meetings, while others may choose to hold their meetings electronically instead.
This announcement is an example of an effective, simple solution implemented by a government body to solve the current complications faced by the private sectors arising out of the COVID-19 situation.
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Editor (2021, April 26). การจัดการประชุมนิติบุคคลภายใต้ประกาศของจังหวัดเรื่อง สั่งปิดสถานที่เป็นการชั่วคราว
Retrieved April 30, 2021, from bangkokbiznews.com: article_20210429120746.pdf (dbd.go.th)
Editor. (2020, April 18). กฎหมายที่อยู่ในความรับผิดชอบของกระทรวง. Retrieved from กระทรวงดิจิทัลเพื่อเศรษฐกิจและสังคม Ministry of Digital Economy and Society: https://www.mdes.go.th/law/detail/3619-EMERGENCY-DECREE-ON-ELECTRONIC-MEETINGS--B-E--2563--2020-
Original article here