2021 - A Year of Updates in Review

2021 was a year characterized by rampant pandemic and the combined efforts of governments and the private sector to curb the increasing Covid outbreak. Business and society have rebounded to more sustainable growth, forced to adapt to change at a very fast pace.?

Look back on some of MPG's most popular articles and updates in 2021, which offer meaningful insights into the most recent regulatory reforms and trends.??

Insolvency procedures in Thailand are governed by the Bankruptcy Act B.E. 2483 (1940), as amended. The act mandates that judges with special expertise preside over restructuring and bankruptcy proceedings. Thai court trials are highly complex, and many conditions need to be met before one can commence bankruptcy, financial restructuring, or insolvency proceedings. This article touches on some of these and the Thai law in general.

The Board of Investment (BOI) has, as of November 2021, adjusted two measures to lead eco-friendly investments. The first measure now provides the conditions to use refrigerants to reduce environmental impacts.?The second measure is designed to encourage the implementation of Carbon Capture, Utilization, and Storage (CCUS) technologies for industrial use.

On 16 September 2021 Thailand’s Board of Investment (BOI) announced that it will consolidate its list of promoted digital activities and combine them into a single category for development of software, platforms for digital services, or digital content under Category 5.10. Category 5.10 will replace the previously existing categories of ‘software’ (5.7), ‘e-commerce’ (5.8) and ‘digital services’ (5.9).

As the business world continues to globalize, more than ever international and multinational enterprises are seeking to expand into other markets. In recent years, with increased labor costs and regulations, certain countries that used to be favored, such as China, are becoming less optimal. Now, Southeast Asia, specifically Thailand, is becoming a very attractive choice. Thailand has a modern market and is a perfect gateway to Asia Pacific.

Due to the unstable economic and health climate amidst the global pandemic, creditors and those interested in lending credit in Thailand have understandably been concerned about the repayment of debt owed to them. Fortunately for creditors, since the Debt Collection Act, B.E. 2558 (2015), Thailand enjoys a rather comprehensive and effective debt recovery process including out of court settlements as well as litigation proceedings.

Thailand’s Board of Investment (“BOI”) has resolved to enhance merit-based incentives to boost industrial competitiveness. In?March 2020, the BOI announced investment promotion measures for small and medium enterprises (SMEs) which included merit-based incentives. Applications can be submitted until the last business day of 2021.

The digital realm is becoming an increasingly prevalent space to conduct business by selling products and services on the internet, which is now commonly referred to as “e-commerce.” E-commerce covers a wide range of transactions including B2B (Business to Business), B2C (Business to Consumer) and B2G (Business to Government).?

The Revenue Department recently issued the long-awaited Notification of the Director-General on Corporate Income Tax No. 407 dated 30 September 2021. The Notification outlines the?transfer pricing?requirements for both the information/documents for a local file and the criteria for the benchmarking study exemption. These requirements are applicable to all accounting periods starting on or after 1 January 2021.

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