In our tax article for January 2018, we noted that the Cabinet approved a draft transfer-pricing law on 3 January 2018. Recently, the government submitted the draft act amending the Revenue Code on transfer pricing (“the draft Act”) to the National Legislative Assembly for consideration. Most of the content of the draft Act remains the same as the version passed in a public hearing held by the Revenue Department last year.
On 27 June 2018, Ministerial Regulation No.338 was published in the Royal Gazette effective retroactively from 1 January 2018, allowing a taxpayer to claim a personal income tax deduction of up to 60,000 baht for medical expenses paid by the taxpayer or his/her spouse for prenatal care and child delivery.
Currently, the value-added tax (VAT) rate is reduced from the normal rate of 10% to 7%. This reduction was set to expire after 30 September 2018, unless another law was passed extending the reduced VAT rate.
On 13 May 2018, the Royal Decree on Amendment to the Revenue Code (No. 19) (“Royal Decree No. 19”), B.E. 2561 was published in the Government Gazette, and became effective on the following day.
On 10 April 2018, Ministerial Regulation No. 335 issued by the Revenue Department was published in the Royal Gazette.