Thailand Law Library

by Thailand Lawyer

Chapter 6: Withdrawal of Rights and Benefits

In the case where a promoted person violates or fails to comply with the conditions stipulated by the Board, the Board shall have the power to withdraw the rights and benefits granted to him, in toto or in part, and may prescribe the duration thereof.

If the Board is of the opinion that such violation or failure to comply with the conditions by the promoted person is unintentional, the Board may first instruct the Office to serve a written warning to the promoted person to make remedy or to comply with the conditions with a prescribed period. If, after the expiration of such period, the promoted person has failed to do accordingly without justification, the Board shall take action as prescribed in paragraph one.

In the case where the Board has withdrawn in toto the rights and benefits concerning taxes and duties on imports or exports, it shall be treated as if the promoted person had never been granted exemption or reduction of taxes and duties from the beginning and he shall pay taxes and duties computed on the basis of the condition and price of the items and the rate of taxes and duties thereof, as existed on the date of import or export. As for reduction of taxes and duties was granted, the outstanding balance of the full amount of taxes and duties as computed above shall be paid.

In the case where the Board has withdrawn in part the rights and benefits concerning taxes and duties on imports or exports, it shall be treated as if the promoted person had been granted exemption or reduction of taxes and duties from the beginning only to the extent of the rights and benefits still remaining to him and he shall pay taxes and duties only on the part which has been withdrawn computed on the basis of the condition and price of the items and the rate of taxes and duties as existed on the date of import and export.

The promoted person shall apply to the Customs Department or customs station through which the import or export of such items was effected within one month from the date of being informed of the order of the Board withdrawing such rights and benefits concerning taxes and duties to pay taxes and duties or additional taxes and duties, and the promoted person shall pay them at the customs office designated by the Customs Department within one month or from the date the promoted person was informed of the amount payable. If the promoted person fails to apply for paying taxes or does not pay such taxes and duties or additional taxes and duties within the time referred herein, the promoted person shall pay a surcharge at the rate, not on a compound basis, of one per cent per month of the amount thereof, payable from the expiry of either the application date or the payment date until the date that such taxes and duties or additional duties as well as surcharges have been paid, provided that it shall not exceed 3 months from such expiry dates.

If the promoted person fails to comply so, it shall be treated as if the import or export of such items was effected by means of evasion of taxes and duties and the law on customs shall apply thereto. For the purpose of calculation of such surcharges, a fraction of one month shall be counted as one month.

In the case where the promoted person fails to comply with the warning of the Office under section 54, paragraph two, the Board may require the promoted person to pay a surcharge to the Government through the Customs Department, together with the taxes and duties or additional taxes and duties payable under paragraph three, at the rate of one percent per month of the amount thereof, payable from the expiry date of the period prescribed under section 54 paragraph two; provided that the amount of surcharge under this section shall not exceed the amount of taxes and duties or additional taxes and duties payable; and in order to enforce the payment of surcharge, it shall be regarded as if it were duty payable under the law on customs.

For the purpose of legal proceeding, the computation of the prescription under this section shall commence one month after the order being informed.

In the case where the Board has withdrawn the rights and benefits concerning juristic person income tax, it shall be treated as if the promoted person had not been entitled to the rights on the exemption or reduction of juristic person income tax for the financial year that such rights and benefits have been withdrawn, and the Revenue Code shall apply thereto.

The Board may withdraw the rights and benefits concerning juristic person income tax and make the withdrawal retroactive to the financial year that the promoted person violated or failed to comply with the conditions stipulated by the Board. The promoted person shall apply to the Revenue Department or Regional Revenue Office or Provincial Revenue Office in which the promoted person’s head office is located for paying taxes and pay the taxes and duties that had been exempted or reduced within one month from the date the promoted person was informed of the withdrawal of such rights and benefits. The juristic person income tax rate that is applicable for the financial year that the promoted person is granted tax exemption or reduction shall apply for tax computation. If the promoted person fails to apply to and fails to pay taxes and duties or additional taxes and duties within the time thereof, the promoted person shall pay a surcharge under the Revenue Code from the expiry of the application date and not make the payment until such taxes and duties or additional taxes and duties as well as the surcharge have been paid. If the promoted person fails to comply so, the Revenue Code shall apply thereto.

The order of the Board withdrawing the rights and benefits concerning juristic person income tax under paragraph two shall not apply to dividends derived from the promoted activity which have been paid prior to the date of such withdrawal order.

In the case where the promoted person dissolves his activity, merges it with others, or transfers it to others, the promotion certificate shall be valid for a period not more than three months from the date of dissolution, merger or transfer.

In the case where the operator of the newly merged or transferred activity wished to take the transfer of the promoted activity under the conditions stipulated in the promotion certificate, he shall file an application for promotion within the period prescribed in paragraph one.

If the Board deems it appropriate to grant promotion thereto, a promotion certificate shall be issued granting him such rights and benefits under this Act in so far as they would remain to the original promoted person. If the Board deems it inappropriate to grant promotion, it shall withdraw all rights and benefits.