TAX
TAX CONSULTING BAN
The Finance Minister announced that starting next year tax officers working for the Revenue Department will no longer be permitted to work as outside tax consultants. The Finance Ministry is presently drafting new rules to prevent conflict of interest issues.

REVISED ALCOHOL TAX FORMULA
Before the end of the year the Excise Department plans to submit a revised alcohol tax formula in order to conform to Thailand's commitment to the Asean Free Trade Agreement (AFTA) which takes effect on January 1, 2010. The government says the formula will be fair to all.

GOVERNMENT TAX DISPUTE
The Prime Minister has been asked to settle a tax dispute between the Board of Investment (BOI) and the Revenue Department over tax incentives for foreign investors who have multiple projects. The dispute is over cases in which a company has one project which is profitable and another operating at a loss. According to the BOI each project should be treated separately, whereas the Revenue Department claims the company would have to net-off the losses between companies and only carry forward part of the losses.

BANKING & FINANCE
CREDIT CARD LIABILITY CAP
The government is drafting a law to cap the liability of credit card holders to baht 10,000 for those whose cards have been lost or stolen. However, the cap only applies to reports of theft or loss made within the first three days.

FOREIGN BANK LIBERALIZATION PLAN
The Bank of Thailand (BOT) wants to see local banks' competitiveness improved over the next year before the foreign banking sector is liberalized in 2012-13. At such time foreign banks will be permitted to open up to two branches in addition to the head office.

BOARD OF INVESTMENT
SENSITIVE INDUSTRY ISSUE
In view of plans to liberalize investment under Asean, the Board of Investment (BOI) has decided to reduce the percentage of shares that foreigners will be permitted to hold from 100% to 49% in what are considered sensitive industries. According to the BOI sensitive industries include plant breeding and species improvement for rice, orchids, herbs, fruits and other plants.

ONE STOP INVESTMENT CENTER
The Board of Investment (BOI) has opened its first One Start One Stop (OSOS) investment center. The center will host 21 different government agencies which are involved with approvals for licenses and tax incentives for BOI applications. The new center is located in central Bangkok in the Chamchuri Office Tower at the corner of Rama IV Road and Phayathai Roads.

SMALLER PROJECT SUPPORT
The Board of Investment (BOI) plans to increase the number of small project promoted activities from 10 to 50 types of businesses. Newly promoted small business activities will include auto parts, services and agricultural processing.

INTELLECTUAL PROPERTY
STRICTER LAWS
The government is drafting amendments to the intellectual property laws which include designating "red zones" or areas which are notorious for the sale of pirated goods. The penalties for those who rent retail space to sell pirated and fake goods will increase substantially to fines of from baht 30,000 to 300,000. Those who produce and distribute counterfeit goods will also face more serious penalties.

SOFTWARE CRACKDOWN
In a move to prevent the use of unlicensed software, police are now raiding companies suspected of violating the law. Raids will continue through the end of the year.

SECURITIES & EXCHANGE
SLIDING SCALE FOR COMMISSIONS
The Securities and Exchange Commission (SEC) has agreed to a sliding scale structure for commissions paid for trading. However, the SEC and the Stock Exchange of Thailand (SET) are still debating the value of transactions which will be subject to the scale.

FOREIGN LISTING RULES
The Stock Exchange of Thailand (SET) will present to the Bank of Thailand (BOT) the proposed preliminary listing rules for companies which intend to raise funds for foreign investment. The Securities and Exchange Commission (SEC) has already agreed to allow cross-border listings.

ENVIRONMENT
POLLUTION TAX
A draft law on pollution taxes has been prepared to be sent to the cabinet. The law only covers wastewater and air pollution and the taxes will depend on the size of the plant and the type of toxic emissions. The draft calls for a tax to be paid by those emitting sulfur dioxide, nitrogen oxide and dust. Production facilities located in industrial estates will not be required to pay tax on wastewater because they already pay the estate operators for wastewater treatment.

GREEN PROJECTS LOAN
Thailand has applied to the World Bank for a loan of USD 3.1 billion to support green energy projects. The money would be used to support privately owned projects which are approved by the Export Import Bank of Thailand and the Bank for Agriculture.

COMMUNICATIONS
NUMBER PORTABILITY
The National Telecommunications Commission has announced that mobile phone number portability will probably be delayed for another nine months in order for telecom operators to have mobile portability systems in place. The mandate to install such systems in three months became effective last August, however operators were permitted to obtain extensions if they could show good cause.

INFORMATION TECHNOLOGY
COMPUTER ACT USE
The arrest of two persons for spreading false rumors online about His Majesty the King's health has raised questions about how the Computer Crime Act 2007 should be applied. Under Chapter 14 of the Act, legal action can be taken against persons who spread information on the internet which is detrimental to national security or causes public panic. Questions raised by the arrests include whether companies are liable for false information disseminated by their employees. The incident caused many businesses to take a closer look at who is allowed to use IT systems and for what purposes.

NEW IT SYSTEM FOR LAND OFFICES
The Land Department has signed a contract to install the first phase of an IT system to facilitate land transactions. According to the department head the new system will reduce errors and make corruption more difficult. During the first phase a land data base will be developed and computer systems will be in four provinces: Bangkok, Ubon Ratchatani, Nong Khai and Songkla.

FOREIGN EMPLOYMENT
ONE STOP CENTER MOVE
The One-Stop Service Center (OSSC) for visas and work permits, including the Board of Investment (BOI) section, will move to a new location in central Bangkok at Chamchuri Square, Phayathai Road. To facilitate the move the OSSC will be closed on December 25 and only reopen at the new location on January 4, 2010.

TRADE
FOOD SAFETY ALERT
The US will implement higher food safety standards in 2010 which are certain to have an impact on Thai exporters. All food suppliers will soon be expected to register with the US Food and Drug Administration.

CAMBODIA TRADE ISSUES
Thai companies doing business in Cambodia have expressed concern about the growing tension between the two