August 2024

On August 2^nd, 2024, the General Administration of Customs (GAC) recently drafted the Administrative Measures of the Customs of the People's Republic of China for the Levying of Duties on Imported and Exported Goods (Draft Revision for Comment) (the "Draft") to solicit public opinions by September 2, 2024.

The Draft adds 38 articles, deletes 33 articles, modifies 41 articles and retains 10 articles compared with the existing measures. The revisions mainly involve: (1) deepening the comprehensive tax governance mechanism; (2) fully adopting the "self-report and self-pay" system; (3) clarifying the tax declaration obligation for royalties; (4) adjusting the applicable date for tax rates and exchange rates; (5) separating tax payment notification from tax payment certificate; (6) increasing taxpayer's tax declaration requirements; (7) adding provisions on the payment deadline of consolidated tax payment; (8) improving the regulations on the refund of late payment surcharge; (9) adding regulations on the levying of tax on bonded domestic sale goods; (10) adding regulations on customs tax confirmation; (11) implement classified handling of tax risks; (12) adding relevant provisions on tax enforcement; and (13) deleting the provisions on tax reduction and exemption for imported and exported goods.

Draft: http://www.customs.gov.cn/customs/302452/302329/zjz/6022962/index.html

On August 8th, 2024, three departments, including Ministry of Industry and Information Technology (MIIT), have jointly issued the Circular on Relevant Matters Concerning the Formulation of the List of Industrial Machine Tool Enterprises Eligible for VAT Super-deduction Policy for 2024 (the "Circular"), with effect from the date of issuance.

The list mentioned in the Circular refers to the list of enterprises engaged in principal machine, key functional part, and numerical control system of advanced machine tool which are eligible for value-added tax (VAT) super-deduction policy, as specified in Cai Shui [2023] No. 25. According to the Circular, enterprises applying for being included in the list shall submit application via the information submission system prior to August 31, 2024, generate paper documents affixed with official seal and report them to the provincial industry and information technology departments along with necessary supporting materials. For enterprises that have been included in the 2023 list and intend to apply for the inclusion in the 2024 list, Items 2, 3, 6 and 8 of the List of Evidential Materials to be Submitted by Industrial Machine Tool Enterprises Eligible for VAT Super-deduction Policy shall be submitted once again. The Circular also clarifies that enterprises may inquire about whether they are included in the list via the information submission system after October 31, 2024.

Circular:https://www.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2024/art_549a8290fee64b15afe2aea4ee5f934f.html

The State Taxation Administration (STA) has released the Circular on Further Facilitating Cross-region Migration of Taxpayers to Serve the Building of a Unified National Market (the "Circular"), with effect from September 1, 2024.

The Circular mainly involves: (1) proactively providing guidance to optimize prior reminders; (2) refining various scenarios to accelerate the in-process handling; and (3) providing tracking and follow-up guidance to improve subsequent services. Among others, the Circular calls for simplifying invoice usage procedures. For taxpayers adopting fully digitalized electronic invoices, the information system will automatically transfer their invoice quota to the new location. Taxpayers using tax control devices may change the tax control device information online in the case of migration within a province without cancelling the tax control device at the original tax authority. In the case of migration across provinces, taxpayers may remotely cancel the tax control device online and directly obtain a new device from the tax authority in the new location or adopt fully digitalized electronic invoices. The Circular also stresses the efforts to optimize the handling of pending matters, conduct categorized handling of tax-related risks, and improve the tax refund process.

Circular: https://fgk.chinatax.gov.cn/zcfgk/c102424/c5233779/content.html

On August 19th, 2024, the Ministry of Commerce (MOFCOM) has issued the Announcement [2024] No. 32, stating that anti-dumping duties will continue to be imposed on imports of halogenated butyl rubber originating in the United States, the European Union, the United Kingdom, and Singapore.

According to the Announcement, in accordance with Article 50 of the Anti-Dumping Regulations of the People's Republic of China (Revised in 2004), the MOFCOM, based on investigation results, suggested to the Customs Tariff Commission of the State Council the continuation of anti-dumping measures. The Customs Tariff Commission, following the MOFCOM's suggestion, decided that from August 20, 2024, anti-dumping duties will continue to be imposed on imports of halogenated butyl rubber originating in the US, the EU, the UK, and Singapore for a period of five years.

Announcement:https://www.mofcom.gov.cn/zwgk/zcfb/art/2024/art_fb218a61ce0f449cb678ce91617cfe1e.html

Source: news.gov.hk

The Bulgarian Supreme Administrative Court issued its decision on a transfer pricing dispute and held that start-up expenses for new projects cannot be excluded when calculating profit margins. The decision was issued in case of a dispute between the National Revenue Agency and Yazaki Bulgaria EOOD (Yazaki), a company engaged in the production of automotive products.

(a) Facts. Yazaki argued that losses from new projects should be excluded from total expenses to adjust its margins, calculating adjusted margins that fell within the comparables' interquartile range. However, the tax authorities rejected these adjustments and recalculated Yazaki's margins to the lower quartile of the comparables' range, resulting in additional tax liabilities.

(b) Issue. Тhe Supreme Administrative Court reviewed a tax audit concerning transfer pricing practices for automotive products. The audit had used the transactional net margin method (TNMM) and determined that Yazaki's reported net cost plus margins did not align with those of comparable companies, which led to additional tax assessments.

(c) Decision. The Supreme Administrative Court upheld the tax authorities' calculations, finding that Yazaki's adjustments were not justified under the TNMM principles and that the reported losses were not proven to be exceptional or temporary. The court annulled the previous decision of Administrative Court - Yambol, dismissed Yazaki's appeal, and affirmed the additional tax and interest claims.

Source: IBFD Tax Research Platform News

On 16 April 2024, the Ministry of Manpower (MOM) announced the introduction of tripartite guidelines for flexible work arrangement requests, effective 1 December 2024. These guidelines establish minimum requirements for employers and recommend best practices for handling FWA requests. Flexible Work Arrangements (FWAs) are essential for inclusive workplaces. When implemented effectively, FWAs benefit both employers and employees. The guidelines provided by the Tripartite Alliance for Fair and Progressive Employment Practises (TAFEP) outline how employees should request and utilize FWAs, and how employers and supervisors should handle such requests.

FWA Types

The guidelines identify three main types of FWAs:

• flexi-place (working from different locations aside the usual office location);
• flexi-time (working at different timings with no changes to total work hours and workload);
• flexi-load (working with different workloads and with commensurate remuneration).

Formal FWA Requests

Employers must have a formal FWA request process. Employees who have completed probation can submit formal requests. Existing formal and non-formal  practises should continue if mutually beneficial for both employees and employers.

FWA Request Process and Content

Employers can specify FWA request procedures (e.g., format, required information). Employees should follow these guidelines. If no formal process exists, employees can submit written requests by email. Requests should include the desired FWA type, frequency, duration, reason, and preferred start and end dates.

Employer Considerations

Employers should openly discuss and carefully consider FWA requests. Providing information about available FWA options and potential limitations is recommended. Employers who receive a formal FWA request should provide a written decision within two (2) months from receiving the request.

This decision should outline the approval or rejection of the request, including reasons for rejection if applicable. Employers are encouraged to discuss alternatives with the relevant employee(s) if the FWA request is rejected.

For more information regarding the guidelines and templates, please refer to MOM website at the following link: https://www.mom.gov.sg/-/media/mom/documents/press-releases/2024/tripartite-guidelines-on-flexible-work-arrangement-requests.pdf

 

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The Thailand Board of Investment (BOI) yesterday approved a package of incentives to promote investment in joint ventures (JV) between Thai and foreign companies to manufacture automotive parts and components, for vehicles using all types of propulsion systems.

The new package of incentives, which cover investments in both new projects, and in existing BOI promoted projects, aims to provide increased business opportunities for Thai entrepreneurs operating in the sector and to help upgrade automotive parts production. The incentives will apply to the manufacturing of parts for internal combustion engines (ICE), hybrids, and electric vehicles.

“We hope these attractive incentives will incite foreign and local part makers to join hands to develop the industry and further strengthen Thailand’s position as an automotive industry manufacturing hub,” said Mr. Narit Therdsteerasukdi, Secretary General of the BOI. The Board meeting was chaired by Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance.

To qualify for the incentives, a new JV will be required to invest not less than 100 million baht in the manufacturing of auto parts and to be formed between a foreign company and a Thai company, whereby a Thai side must hold no less than 30% of the new entity’s registered capital. The Thai company entering the JV will itself be required to have been established for at least 3 years prior to application with the BOI, and to be at least 60% Thai-owned.

Both new projects and existing parts manufacturers already enjoying BOI promotion privileges but transforming into a JV along the same criteria will be eligible for 2 years of additional tax exemption on the condition their total tax exemption period does not exceed 8 years in total.

Applications for investment promotion under this package must be submitted by end-2025.

The Board meeting, which was held today at the BOI headquarters in Bangkok, also approved a 2.54 billion baht investment in a new data center project to be located Nava Nakorn industrial estate, in Pathum Thani province, North of Bangkok. The totally foreign-owned project will support an IT Load of approximately 25 megawatts.

Source: BOI.go.th

On August 13, 2024, the Thai Cabinet approved the establishment of the National Credit Guarantee Agency (NaCGA) to facilitate small and medium-sized enterprises (SMEs) in obtaining low-interest loans. The Ministry of Finance and the Bank of Thailand are expected to propose legislation to officially establish the NaCGA, which is anticipated to take approximately six months to finalize.

The NaCGA will operate as a legal entity under government oversight, without being classified as a government institution or state enterprise. Its primary function will be to offer loan guarantees and other financial services to both financial institutions and non-bank financial institutions. The agency will provide guaranteed securities, financial advice to business operators, and develop a credit risk database, thereby enabling businesses to access investment funds more swiftly.

The funding for NaCGA will be sourced from:

1. Government contributions

2. Contributions from lending businesses

3. Other fees and charges

Source : thaigov.go.th

The Thailand Board of Investment (BOI) approved the investment promotion applications of eight large projects worth a combined 56.95 billion baht (USD 1.54 billion), including a bio-ethylene plant project by the local joint venture of Brazil’s Braskem, as well as data centers, power plants, and a major new hospital.

The meeting, which was chaired by Mr. Pichai Chunhavajira, Deputy Prime Minister, Minister of Finance, and Chairman of the BOI, also approved the introduction of a new investment promotion category covering service centers for the repair, repack, and reuse of used electric vehicle (EV) batteries and energy storage systems, that further complements the BOI’s comprehensive EV supply chain policy and incentives. Another new category was approved to support the data hosting business, to match the rising demand for this type of activity and complement the investment incentives already offered to support the development of the digital industry. The Board also approved a new promotion package for Quarantine Facilities for Animals for export to help improve quarantine and certification services for international trade of livestock.

“The applications approved today are large investment project by both foreign and local investors in key target industries of importance to the Thai government and the future development of the economy, such as projects helping to protect the environment and supporting the country's digital transformation,” said Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI), after the board meeting.

The Board also approved new incentives for automotive parts makers investing to upgrade their technological level and improve their productivity, and/or invest to transition their operations to serve new industries, such as the medical equipment or aviation sectors.

Project Approvals

• Braskem Siam Co., Ltd., a joint venture between Braskem, the leading global biopolymer producer, and Thailand’s SCG Chemicals PCL, received approval for a 19.3 billion baht investment to build a plant to produce up to 200,000 tons/year of bio-ethylene (or green-ethylene) from bio-ethanol from agricultural products such as sugarcane, cassava, and corn. The plant will be located in Map Ta Phut Industrial Estate, Rayong province. Bio-ethylene is used to make a variety of environmentally friendly products, from packaging for food and beverage to personal and home care products, toys, houseware, and plastic bags.
• The Board approved two large data center projects, aiming to support the economy’s digital transformation, and the fast-increasing demand for cloud computing, IoT and AI:
• A multinational company headquartered in the United States received approval for a 7.19 billion baht investment in a data center in Samut Prakan province.
• True Internet Data Center Co., Ltd. received approval for a 3.35 billion baht investment to expand one of the company’s four existing data centers, which is located at the True IDC East Bangna Campus, also in Samut Prakan province.
• Bumrungrad International Hospital Phuket Co.,Ltd. received approval for a 4.96 billion baht investment to build a 212-bed hospital and Advanced Diagnostic Center. The project aims to attract foreign medical tourists to Phuket, which is Thailand’s main international tourism hub.
• National Power Plant 12 Co.,Ltd. received approval for a 9.4 billion baht investment to build a plant to produce electricity and steam from biomass fuels, such as black rubber oil, a by-product of the paper pulp production process. The plant, which will have a production capacity of 130 megawatts of power and 576 tons/hour of steam, will be located in the 304 Industrial Park in Prachinburi province.
• The SCG Group received approval for a 6 billion baht investment in a cogeneration power plant with a production capacity of 130 megawatts of power and of 160 tons/hour of steam. The plant will be located in Map Ta Phut Industrial Estate, Rayong province, and will serve electricity to factories in the industrial estate.
• Super Earth Energy 8 Co.,Ltd., received approval for a 2.86 billion baht investment to build a plant to produce electricity from waste. The plant, which will have a 20 megawatts capacity, will be located in Nonthaburi province.
• Thai Lion Mentari Co., Ltd., the operator of Thai Lion Air, received approval for a 3.89 billion baht investment to acquire 10 aircraft, representing a total passenger capacity of 2,072 seats, total cargo capacity of 84.60 tons.

Support to Thai Startups

Also today, a meeting of the Commission on the National Competitiveness Enhancement for Targeted Industries Policies, for which the BOI acts as the secretariat, approved measures to promote high potential startup enterprises operating in target industries from the Pre-Series A to Series A level. Qualified Thai startups with high growth potential may receive cash support ranging from 20 to 50 million baht in the form of matching funds. The policy aims to help increase the country's competitiveness and help foster an economy driven by technology and innovation.

Source: BOI.go.th

BYD e BMW sono due case automobilistiche molto diverse. BYD è l'astro nascente cinese che si contende con Tesla il titolo di principale produttore mondiale di veicoli a nuova energia. BMW è la venerabile azienda tedesca, con 108 anni di storia, che si classifica come il marchio di auto di lusso più venduto al mondo.

Eppure, nonostante le loro diverse origini e mercati di riferimento, BYD e BMW hanno preso la stessa decisione aziendale: fare della Thailandia una base per la produzione di veicoli elettrici e delle batterie sempre più sofisticate che li alimentano.

Non sono certo le uniche. Agevolazioni fiscali del governo thailandese, sussidi e altri incentivi stanno trasformando la seconda economia più grande del Sud-est asiatico in un hub globale non solo per la produzione di veicoli elettrici a batteria (BEV), ma anche per le tecnologie ibride che stanno sostenendo la transizione verso le emissioni zero.

E anche mentre BYD ha celebrato l'inaugurazione il 4 luglio 2024 del suo stabilimento all'avanguardia da 32 miliardi di baht (circa 900 milioni di dollari) a Rayong, nel corridoio economico orientale ad alta tecnologia della Thailandia, altri sei grandi produttori cinesi di BEV — Great Wall Motor, Hozon New Energy Automobile, SAIC Motor, Chongqing Changan Automobile, GAC Aion e Chery Automobile — erano già operativi o stavano costruendo le proprie fabbriche nelle vicinanze.

Oltre a questa ondata di investimenti cinesi, nel marzo 2024 Isuzu Motors del Giappone ha utilizzato il Bangkok International Motor Show per svelare il primo BEV dell'azienda — una versione del popolare pickup D-Max da una tonnellata — che ha dichiarato sarebbe stato costruito in Thailandia ed esportato in alcuni mercati europei, come la Norvegia, a partire dal 2025. Isuzu, che vanta il 50% del mercato thailandese dei pickup, ha presentato lo scorso anno al Board of Investment (BOI) della Thailandia un piano per aumentare il proprio investimento nel paese di 32 miliardi di baht.

Anche le connazionali di Isuzu, Toyota e Honda, stanno abbracciando il Regno come luogo per portare avanti le proprie ambizioni in campo energetico pulito, concentrandosi inizialmente sugli ibridi mentre fanno passi timidi verso la produzione di veicoli elettrici.

Lo stesso vale per la Hyundai Motor Company della Corea. La sua unità, Hyundai Mobility Manufacturing (Thailand) Co., Ltd., ha ricevuto l'approvazione dal BOI nell'agosto 2024 per investire 1 miliardo di baht per avviare nel 2026 l'assemblaggio locale di BEV e delle batterie che li alimentano.

Tra i principali investitori europei, Mercedes-Benz ha iniziato ad assemblare auto elettriche e batterie in Thailandia dal 2022. BMW, che guida il segmento di mercato premium e costruisce auto in Thailandia dal 2000, lancerà i suoi primi veicoli elettrici prodotti localmente nella seconda metà del 2025. Nel marzo 2024, ha dato il via ai lavori per una fabbrica di batterie ad alta tensione di quinta generazione da 42 milioni di euro a Rayong.

Nello stesso mese, il produttore cinese di batterie SVOLT Energy Technology, in collaborazione con l'azienda energetica thailandese Banpu Next, ha iniziato a produrre pacchi batterie per veicoli elettrici in Thailandia, ulteriore prova che il regno non sta solo costruendo veicoli, ma sta anche creando una catena di approvvigionamento localizzata per sostenere la crescita del settore.

Poi, a maggio, Changan ha annunciato partenariati con produttori di componenti thailandesi, tra cui AAPICO Hitech PCL e Thai Summit Group, come parte di un piano di approvvigionamento totale del valore di 20 miliardi di baht (circa 540 milioni di dollari) per produrre localmente veicoli elettrici Changan dall'inizio del 2025.

In totale, 18 produttori di automobili a energia pulita hanno investito 2,2 miliardi di dollari nel Regno, una cifra che il BOI ritiene possa decuplicarsi entro il 2027.

"Seguo questi temi molto da vicino, ma anche io sono rimasto sorpreso da come si è sviluppato il mercato qui nell'ultimo anno", ha dichiarato Eric Ruge, Amministratore Delegato di BMW Manufacturing (Thailand) Co. Ltd., in un'intervista. "I clienti stanno marciando nella direzione dei veicoli elettrici a batteria".

La Thailandia è da tempo un attore di successo nell'industria automobilistica dei motori a combustione interna (ICE), classificandosi al 10º posto nel mondo e al primo posto nel Sud-est asiatico come produttore nel 2023.

Ora, le politiche governative che offrono sussidi, agevolazioni fiscali e altri incentivi a produttori e consumatori l'hanno catapultata verso i vertici delle classifiche dei veicoli elettrici, superando gli Stati Uniti e inseguendo il leader di mercato, la Cina.

Anche quando l'entusiasmo per i BEV ha iniziato a vacillare in altri paesi, quest'anno la Thailandia ha offerto un "impegno incrollabile" per mantenere il suo costante sostegno.

Questa coerenza non ha solo portato a un'impennata delle vendite di BEV a livello locale, ma ha anche contribuito a quello che gli analisti di Bloomberg Green, una divisione del servizio di notizie finanziarie con sede a New York che si concentra sul business, la scienza e la tecnologia del cambiamento climatico, affermano sarà un punto di svolta per l'adozione di massa dei veicoli a emissioni zero.

Il punto di svolta, stimano gli analisti, è una quota di mercato del 5% — il livello a cui le nuove tecnologie come gli orologi intelligenti tipicamente iniziano a conquistare il mondo. Finora 31 paesi hanno raggiunto questa cifra per le vendite di veicoli elettrici, con la Thailandia che l'ha superata "in modo fulmineo", hanno osservato.

Nel 2023, le vendite di veicoli elettrici in Thailandia sono aumentate di quasi otto volte, raggiungendo quota 76.000 — rappresentando il 12% di tutti i veicoli venduti. Nel primo trimestre del 2024, la quota di mercato dei veicoli elettrici è salita al 14%. "La Thailandia è emersa come pioniere dei veicoli elettrici nel Sud-est asiatico", ha riportato Bloomberg Green.

E questo è solo l'inizio. Prima di quest'anno, quasi tutti i veicoli elettrici venduti in Thailandia erano importati, per lo più dalla Cina. Ora, con l'apertura di tanti stabilimenti di produzione locali, la cifra annuale delle vendite per il 2024 è destinata a raddoppiare nuovamente a 150.000 — una quota di mercato del 20% di tutti i veicoli prodotti, come previsto dall'Associazione dei Veicoli Elettrici della Thailandia.

Il prossimo grande obiettivo del paese è una strategia chiamata "30@30" che punta a far sì che il 30% dei veicoli prodotti entro il 2030 siano elettrici. Questi includono non solo auto private, ma anche camion e autobus.

Considerando che oltre la metà della capacità di produzione di veicoli della Thailandia, pari a 2,5 milioni, sarà destinata all'esportazione, ciò renderebbe il Regno un contributore globale ancora più importante nella produzione di veicoli a energia pulita.

"La Thailandia mira a diventare un importante hub di produzione di veicoli elettrici per i mercati nazionali e di esportazione", ha dichiarato l'Agenzia Internazionale dell'Energia, un'organizzazione intergovernativa con sede a Parigi che riunisce paesi che rappresentano l'80% del consumo energetico globale, nel suo Global EV Outlook del 2024. "I nuovi sussidi, inclusi quelli per la produzione domestica di batterie, e le minori imposte all'importazione e di accisa, insieme alla crescente presenza di case automobilistiche cinesi, hanno contribuito a un rapido aumento delle vendite".

Il più visibile di questi produttori cinesi è BYD, che ha scelto la Thailandia come sua prima base di produzione al di fuori della Cina.

Quando è entrato nel mercato locale nel 2022 con un modello importato, l'Atto 3, i thailandesi hanno fatto la fila fuori dalle concessionarie per acquistarlo. L'anno scorso, dopo l'introduzione dei modelli importati Dolphin e Seal, BYD ha venduto 30.000 auto localmente — una quota del 40% del mercato thailandese dei veicoli elettrici.

Ha anche stretto un accordo con la Rêver Automotive di Bangkok per assemblare i suoi autobus e camion a batteria nel regno.

Ora, l'apertura della sua nuova fabbrica a Rayong, con una capacità produttiva di 150.000 veicoli all'anno, sembra destinata a svolgere un ruolo chiave nell'espansione internazionale lampo dell'azienda, soprattutto tra i 10 membri dell'Associazione delle Nazioni del Sud-est asiatico (ASEAN), un mercato di oltre 670 milioni di persone.

"Abbiamo già piani per esportare nei paesi dell'ASEAN, nel mercato australiano e persino in Europa", ha dichiarato Benson Ke Yubin, Direttore Generale di BYD Thailandia, in un'intervista.

Con così tante altre potenziali località tra cui scegliere, cosa ha convinto il gigante cinese dei BEV a investire in Thailandia? Come altri produttori intervistati per questo articolo, Ke ha indicato le politiche di sostegno della Thailandia e il ruolo del BOI nell'assistere gli investitori. "Ci sentiamo sicuri ad investire qui", ha detto.

Se la velocità della transizione della Thailandia verso i BEV sembra ambiziosa, si basa su una strategia collaudata. Per arrivare dove è oggi come leader globale nella produzione di veicoli convenzionali ICE, non solo ha attirato produttori automobilistici stranieri, ma ha anche sviluppato una sofisticata catena di approvvigionamento di parti a livello nazionale.

Ora un obiettivo primario è attrarre investimenti nella produzione di celle batteria per completare la localizzazione delle parti più importanti della catena di approvvigionamento dei veicoli elettrici.

Ma come ha fatto la Thailandia a convincere così rapidamente produttori di auto e batterie a trasferirsi? Diversi anni fa, il governo ha identificato "l'auto del futuro" come una delle cinque nuove industrie tecnologiche strategiche che intendeva sviluppare.

Poi, nel 2022, gli incentivi offerti ai produttori stranieri di veicoli elettrici includevano la possibilità di importare veicoli per i primi due anni a condizione che accettassero di costruire stabilimenti subito dopo.

Le aziende che iniziano la produzione locale entro la fine del 2024 ottengono i maggiori privilegi, sebbene le case automobilistiche che aprono stabilimenti tra il 2025 e il 2027 continueranno a essere incentivate.

La prima a muoversi è stata Great Wall Motor, che nel 2020 ha acquisito una fabbrica di auto convenzionali dal gigante statunitense General Motors, poi ha annunciato che avrebbe speso 22,6 miliardi di baht (circa 615 milioni di dollari) per convertirla alla produzione di ibridi e veicoli elettrici. (NB: fonte Reuters 10 luglio 2023 e Nikkei 11 febbraio 2023). I primi ibridi sono usciti dalla linea di produzione a giugno 2021, seguiti dai veicoli elettrici nel gennaio 2024.

Capace di produrre 80.000 veicoli all'anno, inclusi i modelli Ora Good Cat, Haval e Tank, l'azienda descrive la fabbrica di Rayong come la sua principale base di produzione per veicoli con guida a destra nel Sud-est asiatico.

Poi, a marzo, Hozon ha completamente aperto quella che ha definito "la prima fabbrica di veicoli elettrici al 100% in Thailandia", producendo la piccola auto Neta V che in Thailandia compete in prezzo con modelli ICE simili.

Ancor prima che iniziasse la produzione locale, la Neta V era già diventata un modello affermato in Thailandia in seguito al lancio del modello importato nel 2022. In un solo anno, sono state vendute 14.000 Neta, catapultandola al secondo posto tra i marchi di veicoli elettrici e nella top 10 dei modelli di auto più venduti di tutti i tipi in quell'anno. "Abbiamo impiegato solo un anno e un modello per ottenere l'accettazione dei consumatori in Thailandia", ha dichiarato il Direttore Generale di Neta Auto (Thailandia) Shu Gangzhi in un'intervista. "Questo ci ha dato la fiducia per investire di più in questo mercato ed è per questo che abbiamo deciso di avviare la produzione qui".

Ora, con una capacità produttiva di 30.000 unità all'anno, l'azienda guarda oltre i confini della Thailandia. "Stiamo anche preparando la base per le esportazioni verso altri mercati asiatici e forse altri mercati come il Sud Africa, sia per veicoli con guida a sinistra che a destra", ha aggiunto Shu.

Perché Hozon ha scelto la Thailandia? "Ha la politica sui veicoli elettrici più attraente e stabile — molto realistica — con incentivi sia per i consumatori che per i produttori", ha aggiunto Shu. "È anche un mercato ampio e sofisticato".

Sia Great Wall che Hozon utilizzano batterie fornite dalla nuova fabbrica JV di SVOLT. Sebbene SVOLT fosse originariamente l'unità batterie di Great Wall Motor Holdings, ora ottiene il 70% del suo business da altri produttori, afferma il Vicepresidente Senior di SVOLT, Feng Zhang.

Zhang afferma che parte della decisione di SVOLT di scegliere la Thailandia per la sua prima fabbrica nel Sud-est asiatico deriva dalla sua esperienza precedente. "Il progresso è stato rapido e fluido e questo ci ha dato molta fiducia", afferma.

Il punto cruciale, tuttavia, era commerciale. "Stiamo facendo affari in modo indipendente", aggiunge Zhang. "Ci aspettiamo una trasformazione molto elevata verso i veicoli elettrici in Thailandia. In Cina, la quota di mercato dei veicoli elettrici è vicina al 50%. Penso che lo stesso accadrà in Thailandia. Questo sarà un enorme mercato per noi."

Tornando alla fabbrica di BMW a Rayong, il Direttore Generale Ruge non attribuisce il successo della Thailandia nell'attrarre investimenti solo ai suoi incentivi o alle opportunità di mercato. Elogia anche molto la forza lavoro thailandese.

Della rete di produzione globale del Gruppo BMW, che comprende 30 stabilimenti in 15 paesi, Rayong è unico nel suo genere in quanto costruisce sia auto che motociclette sotto lo stesso tetto.

"È una piccola fabbrica, ma è estremamente complessa", dice Ruge. "Ed è assolutamente impressionante come riescano a costruire queste auto e motociclette senza alcun compromesso sulla qualità. Ho lavorato in tutto il mondo, ma quello che ho sperimentato qui è davvero eccezionale".

Fonte: BOI.go.th

On July 30, 2024, the Thai Cabinet approved enhanced tax incentives for investments in Thai Environmental, Social, and Governance (ESG) funds. The annual tax deduction limit has been increased from THB 100,000 to THB 300,000, but it must not exceed 30 percent of the investor's assessable income. Additionally, the required holding period for investment units has been reduced from eight years to five years for units purchased between January 1, 2024, and December 31, 2026.

Investments in Thai ESG funds will be separate from other retirement savings funds, such as retirement mutual funds and provident funds, which currently share a combined tax deduction cap of THB 500,000.

Source :  Thaigov.go.th

The UAE Government has issued a Federal Decree-Law amending specific provisions of the Federal Decree-Law Regarding the Regulation of the Employment Relationship, known as the “UAE Labour Law”.

This decree is part of the UAE's ongoing efforts to, further, develop its legislative and legal framework. It aims to ensure the efficiency and competitiveness of the labour market, regulate employment relationships, clearly define the rights and obligations of all parties involved, and ensure their protection by law.

The decree imposes fines of no less than AED100,000 and no more than AED1 million on any employer who employs workers without a proper permit, hires workers or brings them to the country and fails to provide them with a job, misuses work permits, or shuts down a business or suspends its activities without settling workers' rights, in violation of the new decree and its Executive Regulations. The same penalties apply to the illegal employment of minors or allowing minors to work in violation of the law by their guardians.

Additionally, the new decree introduces criminal penalties for fictitious recruitment, including fictitious Emiratisation. Therefore, employers found guilty of bypassing the provisions of the laws or executive regulations or decisions regulating the labour market, by faking their recruitment of one or more employees, will face fines ranging from AED100,000 to AED1 million. The penalty is multiplied by the number of workers involved in the fictitious employment.

The amendments state that in the case of labour disputes, and if there is a disagreement with a decision the Ministry of Human Resources and Emiratisation issued to solve the dispute, the case shall then be brought before the Court of First Instance rather than the Court of Appeal. The court shall revoke proceeding with any claims filed after two years from the termination of the employment relationship, by the provisions of the present law.

Furthermore, the new decree stipulates criminal proceedings for fictitious employment, including fraudulent Emiratisation, can only be initiated at the request of the Minister of Human Resources and Emiratisation or his/her authorised representative.

The decree also provides the Ministry with the power to settle such cases upon the employer's request before a court sentence is issued, provided that the employer pays at least 50 percent of the minimum specified fine and pays back to the government all the financial incentives received by his/her fictitious employees.

Additionally, according to the new decree-law, Courts of Appeal shall refer all requests, disputes and grievances regarding the regulation of employment relations, in their current state, to the competent Court of First Instance, starting from the date of the implementation of the provisions of this decree-law, except from the disputes that have been adjudicated or reserved for the issuance of a judgment.

Source: Mohre.gov.ae

The Federal Tax Authority (FTA) has urged Resident Juridical Persons with licences issued in July, irrespective of the year of issuance, to promptly submit their Corporate Tax registration application no later than 30th September 2024 to avoid administrative penalties.

In a press statement, the FTA advised taxable persons to adhere to the timelines specified in FTA Decision No. 3 of 2024 on the timeline for the registration of taxable persons for Corporate Tax under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, which came into effect on 1st March 2024. The FTA Decision outlines deadlines for each category of taxable persons subject to Corporate Tax to submit their registration applications.

The FTA noted that, as per Cabinet Decision No. 75 of 2023 on the administrative penalties for violations related to the application of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, and its amendments, an administrative penalty will be levied on taxable persons who fail to comply with submitting their Corporate Tax registration application within the specified time periods.

Furthermore, the FTA explained that the FTA Decision applies to juridical persons and natural persons, whether resident or non-resident, noting that juridical persons that are resident persons incorporated or otherwise established or recognised before 1st March, 2024 must submit their Corporate Tax registration application based on the month their licence was issued, irrespective of the year of issuance.

For taxable persons holding multiple licences as of 1st March 2024, the deadline is determined by the licence with the earliest issuance date. In the event that a taxable person holds an expired licence on 1st March 2024, the registration deadline is still based on the month the licence was issued.

The FTA stated that registration for Corporate Tax purposes is available through the EmaraTax digital tax services platform, which is accessible 24/7. The registration process has been streamlined into four main steps that will take approximately 30 minutes to complete. The platform also allows Value Added Tax or Excise Tax registrants to directly access their accounts via EmaraTax, complete registration for Corporate Tax, and submit the required documents. Once the registration request is approved, taxable persons will obtain a Tax Registration Number for Corporate Tax purposes.

Meanwhile, the FTA urged taxable persons subject to Corporate Tax who have yet to register to create a new username through the EmaraTax platform using their email address and mobile number. Once the account is successfully created, registration can be completed by identifying the taxable person, selecting the ‘Register for Corporate Tax’ option, and following the remaining simple steps.

Additionally, taxable persons subject to Corporate Tax can register directly through the EmaraTax digital tax services platform or through authorised tax agents listed on the FTA’s website. They can also submit a Corporate Tax registration application at several government service centres across the country, which provide their services electronically in accordance with government service standards and under the supervision of qualified and trained individuals. Once application procedures and electronically entered data verification are complete, a team of specialists reviews the application internally and provides the applicant with their Tax Registration Number for Corporate Tax directly to the email address listed in the Corporate Tax registration application.

Source: wam.ae

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Diacron provides support in assessing the impact of Corporate Tax, offering dedicated consultancy to ensure full compliance and meet related regulatory requirements. For any inquiry or to discuss your specific needs, please do not hesitate to contact us at tax.uae@diacrongroup.com

The Internal Revenue Service today announced interest rates will remain the same for the calendar quarter beginning Oct. 1, 2024.

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily.

Here’s a complete list of the new rates:

• 8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
• 5.5% for the portion of a corporate overpayment exceeding $10,000.
• 8% for underpayments (taxes owed but not fully paid).
• 10% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during July 2024.

See Revenue Ruling 2024-18 PDF for details, which announces the rates of interest, and will appear in Internal Revenue Bulletin 2024-37, dated Sept. 9, 2024.

Source: irs.gov

The Department of Treasury and the IRS have proposed amending federal estate tax regulations that apply to estates of decedents passing property to, or for the benefit of, a non-citizen spouse in a domestic trust for which the executor of the decedent's estate has made an election to be a qualified domestic trust (QDOT) and the trust satisfies all of the requirements for such treatment under applicable federal tax law and regulations. The proposed regulations, which were released on 20 August 2024, will appear in the Federal Register (REG-119683-22) on 21 August 2024.   Procedure for Filing Required Security Instruments Under current Treasury Regulations No. §20.2056A-2(d)(1)(i), QDOTs with assets whose value exceeds USD 2 million must satisfy one of three alternative security arrangements to secure the payment of the IRC section 2056A estate tax. Treasury Regulations No. §20.2056A2(d)(1)(i)(B) and (C), respectively, describe the requirements and form of the bond and the letter of credit that may be used as the required security arrangement. These provisions also require that the bond or letter of credit be filed with the decedent's federal estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, or Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States). Under the proposed regulations, a security instrument provided in compliance with Treasury Regulations No. §20.2056A-2(d) is not to be attached to the decedent's federal estate tax return (Form 706 or Form 706-NA). Instead, it is to be filed by submitting it directly to the Estate Tax Advisory Group. The proposal seeks to address the issue that security instruments attached to a decedent's federal estate tax return are not easily identified, hindering prompt forwarding to the Estate Tax Advisory Group.   Removing Outdated References The proposed regulations seek to remove outdated references to §20.2056A-2T(d), which have already been finalized as §20.2056A-2(d). In addition, the proposed regulations also seek to correct outdated references to a publication, to IRS officials and offices, and to procedures and addresses to be used by certain trustees to provide a security instrument to satisfy the requirements of a QDOT. The proposed regulations also seek to update the definition of "finally determined" in Treasury Regulations No. §20.2056A-2(d)(1)(iii) because the current definition of that term includes an outdated reference to the issuance of an estate tax closing letter. The proposed regulations would also update Treasury Regulations §§20.2056A-4 and 20.2056A-11 to properly identify the titles of IRS officials authorized to enter into agreements with regard to the section 2056A estate tax and to grant extensions of time to file a Form 706-QDT, US Estate Tax Return for Qualified Domestic Trusts, or to pay any section 2056A estate tax.   Source: IBFD Tax Research Platform News

The Department of Treasury and the IRS have proposed regulations on the time for making and revoking certain elections relating to foreign currency gains and losses.

Elections under § 1.954-2(g)

Under section 954(c)(1)(D) of the Internal Revenue Code (IRC) and Treasury Regulations §1.954-2(g), foreign personal holding company income (FPHCI) includes the excess of foreign currency gains over foreign currency losses attributable to any IRC section 988 transactions. This is important because FPHCI is a type of income that can be subject to US tax under Subpart F rules, even if it has not been distributed to US shareholders.

With respect to a controlled foreign corporation (CFC)'s computation of its FPHCI, US shareholders that are controlling US shareholders of a CFC may elect to:

• exclude foreign currency gains and losses otherwise includible in the CFC's FPHCI computation under Treasury Regulations §1.954-2(g) and instead include such foreign currency gains and losses in the category (or categories) of Subpart F income to which such gains and losses relate (Treasury Regulations §1.954-2(g)(3)); or
• treat as FPHCI all foreign currency gains and losses attributable to any section 988 transaction (except those described in §1.954-2(g)(5)) and any section 1256 contract that would be a section 988 transaction if not for section 988(c)(1)(D) (Treasury Regulations §1.954-2(g)(4)).

Controlling US shareholders make either of the above elections "on behalf of the CFC by filing a statement with their original income tax return for the taxable year of the US shareholders ending with or within the taxable year of the CFC for which the election is made, clearly indicating that the election has been made."

Under Treasury Regulations §1.954-2(g)(3)(iii) and (g)(4)(iii), the controlling US shareholders may revoke an election with the Commissioner's consent.

The proposed regulations provide that:

• controlling US shareholders may make a §1.954-2(g) election on behalf of a CFC by filing a statement with the original income tax returns for the taxable years of the controlling US shareholders in which or with which the taxable year of the CFC for which the election is made ends, clearly indicating that the election has been made;
• controlling US shareholders may revoke a §1.954-2(g) election on behalf of a CFC by filing a statement with their original income tax returns for the taxable years of the controlling US shareholders in which or with which the taxable year of the CFC for which the revocation is made ends, clearly indicating that the §1.954-2(g) election has been revoked;
• controlling US shareholders would be precluded from revoking a §1.954-2(g) election made on behalf of a CFC (including an initial election) until the sixth taxable year following the year in which the election was made; and
• if a CFC's controlling US shareholders revoke a §1.954-2(g) election, they may not make a new §1.954-2(g) election on behalf of the CFC until the sixth taxable year following the year in which the previous election was revoked.

Election under Proposed § 1.988-7(c)

IRC section 988 governs the tax treatment of foreign currency transactions. Under proposed regulations released in 2017, a taxpayer, including a CFC, could elect to use a mark-to-market method of accounting for section 988 gains and losses with respect to certain section 988 transactions.

According to the Treasury and the IRS, the 2017 proposed regulations provided too much flexibility by allowing taxpayers to make the election after knowing whether it would be beneficial, and thus selectively recognize losses. To address this, the Treasury and the IRS propose that the timing for making and revoking a §1.988-7 election, should align with the timing rules for making an election under IRC section 475. Section 475 governs the use of the mark-to-market accounting method for dealers in commodities and traders in securities or commodities.

Under the proposed rules, taxpayers must make the §1.988-7 election on the tax return for the year immediately preceding the year for which the election applies. Once made, the election would be effective for the taxable year for which it is made and all subsequent years. The taxpayer may revoke the election only with the consent of the IRS Commissioner. In addition, under the proposed rules, a taxpayer wishing to adopt the mark-to-market method under section 1.988-7 must receive the IRS Commissioner's consent to change their accounting method.

Source: IBFD Tax Research Platform News