VAT COLLECTION CHANGES
The Revenue Department is considering changing the way Value Added Tax (VAT) is collected to close loopholes that have resulted in the loss of revenue. The proposal is to withhold VAT in order to cut down on evasion. In order to make the changes the tax code would need to be amended and the parliament must give approval.

TAX ACCOUNTING ISSUES
The Federation of Accounting Professionals (FAP) considers the growing differences between the Thai Revenue Code and local accounting practices to be a potential problem. According to one expert Thai accounting practices which are based on international standards differ in a number of areas from the tax code. A committee is being formed to propose solutions.

BANKING & FINANCE
SME BANK TO OFFER FULL SERVICE
The government managed Small and Medium Enterprises (SME) Bank has announced that it will become a full service bank in 2010. The bank was set up to assist small businesses, but encountered many problems including large numbers of defaults and extensive losses due to a bad derivative deal.

BOARD OF INVESTMENT
TARGET FOR 2009
The Board of Investment (BOI) has announced that applications for 2009 exceeded the original target by 28%. A total of 1,193 were submitted.

SECURITIES & EXCHANGE
SLIDING COMMISSION APPROVED
A sliding scale for trading commissions has been approved by the Stock Exchange of Thailand (SET) board. The new framework will be effective from January 1, 2010 until the end of 2011. In view of the sliding scale some brokerage houses have decided to offer short-term zero commission fees to large investors

IMPLEMENTING CIVIL PENALTIES
The Securities and Exchange Commission (SEC) says that new amendments to regulations will help facilitate the use of civil penalties such as fines to improve the functioning of capital markets. Civil sanctions would be used against: improper or false dissemination of information; insider trading; share manipulation; embezzlement and offering security services without licenses. Harsher penalties would also be imposed on repeat offenders.

CROSS BORDER TRADING
Discussions between the Stock Exchange of Thailand (SET) and the Tokyo Stock Exchange (TSE) are taking place to consider the possibility of establishing cross-border trading of exchange traded funds (ETF's). At present there are 69 ETF's listed on the Tokyo exchange the majority of which track commodity prices such as oil and gold. Some also follow Chinese and Indian stock indexes.

CUSTOMS
CUSTOMS DEPARTMENT REFORM
The new Director General of the Customs Department has promised to reform his department, widely viewed as one of the most problematic government agencies. One of the reforms being considered is to limit the incentives provided to Custom officers. At present officials receive a portion of the fines for violations imposed on importers and exporters. Critics say such incentives lead to customs officials imposing maximum fines for personal gain.

ENVIRONMENT
NUMBER ONE PHOTOVOLTAIC FARM
A private consortium announced that the world's largest photovoltaic solar energy farm will be built in Lop Buri province in 2010. The 9 billion baht project hopes to receive soft loans, tax breaks and subsidies, including investment privileges from the Board of Investment, to make it commercially feasible. The investors will purchase 1,160 rai of land in Lop Buri, and the farm will have a maximum capacity of 73 megawatts.

MAP TA PHUT DILEMMA
The Administrative Court has ruled that one of the 65 halted projects in the Map Ta Phut Industrial Estate can resume, because its environmental impact report was approved prior to the implementation of the 2007 Constitution. The other 64 projects however must fulfill all health impact and environmental conditions before they can recommence. The controversy of Map Ta Phut has been ongoing since the Supreme Administrative Court ruled that the operating permits for 65 of the initial 76 projects must remain suspended due to environmental problems. Suspension of the projects has raised concerns with the business community because it is felt that this will discourage future foreign investment in Thailand.

INTELLECTUAL PROPERTY
ACTION ON COUNTERFEIT GOODS
The National Police and the Intellectual Property (IP) Department plan to take enforcement action against sellers of counterfeit goods during the New Year holiday season. Despite more aggressive action against counterfeit goods sellers in recent years, Thailand still has a bad reputation in this regard. The IP Department also launched a new hotline - number 1368 - for the general public to report violations.

CAMCORDER BAN
The government is drafting a law which would outlaw bringing a camcorder or mobile phone with video camera into a movie theater with the intent to record movies. If the existing provisions are applied, offenders would face fines ranging from baht 50,000 to 400,000 and/or imprisonment of three months to two years.

REAL ESTATE
BANGKOK OFFICE RENT 151 OUT OF 179
A recent global survey put Bangkok in a very competitive position for office space rent, being rated as the 151st most expensive market out of 179 markets. Occupancy costs were baht 694 per square meter per month, compared with baht 5,130 per square meter per month for space in central Tokyo, the most expensive market.

INCREASED LAND SALE
The Industrial Estate Authority of Thailand (IEAT) expressed confidence that land sales in industrial estates would increase in 2010 despite the unresolved problems at Map Ta Phut. The head of IEAT believes that land sales could grow as much as 40% if the problem are resolved.

FOREIGN INVESTMENT
FOREIGN BUSINESS ACT CHANGES
The government is drafting changes to the Foreign Business Act (FBA). Restrictions under Annex III are planned to be removed for certain types of businesses including tour guide operators, trading in agricultural futures, stock trading, derivatives trading, commercial banking, insurance, warehousing, operating schools and credit fonciers. However, tighter controls are also planned to govern the voting rights of foreigners. Also, all new foreign retail businesses would need to have ministry approval. The regulations would only apply to newly formed foreign companies.

TRADE
DOHA DEVELOPMENT ROUND
Thailand has confirmed that it supports an early conclusion of the Doha Development Round at the WTO Ministerial Meeting, saying that failure to conclude the talks soon could lead to a worsening of the recession.

AID FOR FARMERS
The government is planning to provide support to farmers who will be affected by a fall in produce prices after the Asean Free Trade Agreement is implemented at the beginning of 2010. Among other things an FTA fund is being set up.