The Cabinet met on Tuesday, December 26, 2017, in Sukhothai province. Some of the resolutions are as follows:
The Cabinet approved in principle Draft Royal Decree Issued under Revenue Code on Revenue Exemption (B.E…) (Extension of timeframe for SME startup tax incentive), as proposed by Ministry of Finance, and ordered it to be forwarded to Office of the Council of State for their review.
Exemption of corporate income tax for five consecutive accounting periods. Eligibility of the SME startups under the Royal Decree are as follows:
1. Must be a company or juristic partnership registered their businesses during January 1, 2018 and December 31, 2018, and whose paid-up capital does not exceed 5 million baht with net profits of under 30 million baht.
2. Must be in the 10 S-Curve industries as the new engines of growth, which focuses on innovations and high technology.
3. Must be a company of which at least 80% of the revenues is earned from the sale of goods and provision of services in the targeted S-Curve industries.
4. A company or juristic partnership eligible under the Royal Decree will no longer be eligible for tax incentive measure under the Investment Promotion Act.
The cabinet approved in principle draft royal decree and draft ministerial regulation, issued under the Revenue Code regarding exemption from revenue taxes (tax measure to promote tourism and seminars in second-tier tourism provinces), as proposed by Ministry of Finance, and ordered it to be forwarded to Office of the Council of State for their review.
The draft royal decree stipulates 100% personal income tax deduction against personal income for spending on seminars, hotels, and logistics in second-tier tourist provinces, that is, Nakhon Si Thammarat, Udon Thani, Chiang Rai, Lop Buri, Phitsanulok, Suphan Buri, Ubon Ratchathani, Nakhon Nayok, Nong Khai, Sakaeo, Loei, Tak, Trat, Phetchabun, Chanthaburi, Mukdahan, Nakhon Sawan, Ratchaburi, Samut Songkhram, Buri Ram, Chaiyaphum, Phatthalung, Trang, Si Sa Ket, Prajinburi, Satun, Chumphon, Sukhothai, Surin, Sakon Nakhon, Lamphun, Nakhon Phanom, Uttaradit, Ranong, Lampang, Roi Et, Mae Hong Son, Phichit, Phrae, Chai Nat, Nan, Ang Thong, Maha Sarakham, Kamphaeng Phet, Uthai Thani, Narathiwat, Yala, Phayao, Bung Kan, Kalasin, Yasothon, Sing Buri, Nong Bua Lam Phu, Amnat Charoen, and Pattani, during January 1- December 31, 2018.
The draft ministerial regulation stipulates that spending on tourism services and guides, hotels, and homestays in second-tier tourism provinces during January 1- December 31, 2017 can be claimed for tax deduction of up to 15,000 Baht.
The Cabinet acknowledged the overview of infrastructure development on transport in the Northern Part of Thailand, as proposed by Ministry of Transport. Key projects that have been implemented are as follows:
1. Development of land transport – Ministry of Transport has undertaken road improvement in the North for a total distance of 25,506.28 kilometers with a total budget of 115,179.440 million baht:
1.1 Expansion to four-lane roads to promote road safety for such major roads as Highway No. 12 (Mae Sot- Mukdahan) which is an important route under the Greater Mekong Sub-region Economic Cooperation Program Strategic Framework (GMS)
1.2 Construction of bypass roads to resolve traffic congestions, e.g., Sanpatong - Hang Dong Bypass in Chiang Mai
1.3 Development of public transportation in major areas of Chiang Mai and Phitsanulok to enhance travel efficiency
1.4 Facilitation improvement of logistics, distribution, and services for both domestic and international markets.
2. Development of rail transport
2.1 Construction of dual-track rail routes, e.g., Lopburi to Pak Nam Pho (contract to be signed at the beginning of 2018), and Pak Nam Pho – Den Chai (to be proposed to the cabinet at the beginning of 2018)
2.2 Construction of a 323-kilometer railway, route Denchai - Chiang Khong - Chiang Rai (now under the consideration of the Office of the National Economic and Social Development Board)
2.3 Construction of a high-speed rail link, route Bangkok- Chiang Mai. Phase 1 (Bangkok –Phitsanulok), covering 380 kilometer, will be proposed to the cabinet in 2018. The construction is expected to begin in 2019.
3. Development of water transport
Marine Department has completed dredging and maintenance works for 98 water channels in the North during 2014 to 2018, with the total budget of 597.494 million baht.
4. Development of air transport system - by Department of Airport and Airports of Thailand Public Company Limited:
4.1 Construction and Improvement of new passenger terminals in Mae Sot, Phrae, and Phetchabun
4.2 Plan for expansion of Chiang Mai International Airport to accommodate 20 million passengers per year, and 34 flights per hour until 2035.
4.3 Plan for construction of the second Chiang Mai Airport (at the area around Sankampaeng, Chiang Mai, and Ban Thi, Lamphun). Civil Aviation Authority of Thailand is now developing a master plan on establishment of Thailand’s commercial airports, and is conducting the feasibility study.
The Cabinet acknowledged a total of 85 projects/ activities to be implemented as the 2018 New Year’s Gifts for the public, which are categorized into 4 groups as follows:
1. Projects/activities for welcoming New Year: such as religious activities (Cross-Year Prayer, 10 Temples Day Trip), New Year celebration campaign to send away the old year and welcome the new year the Thai way, and online New Year Greeting Cards.
2. Projects/activities to reduce cost of livings and expenses
2.1 Sales of low-priced products
2.2 Assistance provided to farmers
2.3 Reduction of other expenses, such as fee reduction of pawnshops throughout Thailand, etc.
3. Projects/activities related to tourism and services
3.1 Tourism, culture, and learning, such as free entrance of cultural learning centers, contemporary art exhibitions and activities, etc.
3.2 Other services, such as Pracharat internet project, high speed internet network covering 24,700 villages, etc.
4. Projects/activities related to human, social, environmental and natural resources Development
4.1 Human development: such as free entrance to National Science Museum in Pathum Thani, organization of innovative exhibitions, etc.
4.2 Social development: for example, Pracharat (people, public, private partnership) markets, etc.
4.3 Environmental and natural resources development: such as development of river delta planning, forest in the city project, etc.
The Cabinet acknowledged a total of 16 projects/ activities to be organized as the 2018 New Year’s Gifts for the public from 4 ministries, namely Ministry of Social Development and Human Security (9 projects), Ministry of Energy (1 project), Ministry of Education (3 projects), Ministry of Public Health (3 projects).
--Cabinet Meeting (Prayut Chan-o-cha) December 26, 2017--