Guest Posted June 1, 2006 Report Share Posted June 1, 2006 Over the last month the government has announced a number of new strict regulations on foreigners. In some cases, these are described as simply measures to enforece exisiting laws. Some of the new regulations: 1. Land: In the front page of the "Business Section" of yesterday's Bangkok Post you will see this article on regulation of property ownership that came into effect May 25. According to Ronchai Krisadaolarn, the Thai property boom ended May 25. You can read the article (I can't find the link but it is in the printed version), but basically any Thai shareholders in a company used to buy property have to show they have the income needed to buy property. The article says this "regulation has already started to stall sales to foreigners." On new projects, new owners usually fund construction, paying about a 40% to 25% of the total cost while the unit is being built, and then paying the balance after completion. Those who have invested these sums appear to be screwed because "some land offices have...simply stopped transferring land." 2. Work Permit Laws will be Strictly Enforced: Under Thai law, you need a work permit even if you fly in for a single business meeting or to inspect a project. "Business Visas" do not count qualify. Even attending a business conference or convention constitutes work. The Labour Department now intends to check attendees at all conventions and business centers at hotels. Violators will be arrested, fined and deported. The measure is intended to protect Thai jobs in difficult economic times. Meanwhile, the Tourism Authority of Thailand was trying to promote business tourism. It is not clear if the can do so in the face of this new directive. 3. Preference Share Companies: Many companies here are established where foreigners control companies through Thai shareholders holding preference shares with diminshed voting rights. In the past, Ministry of Commerce spokesperson have said these companies are fine as long as the Thai shareholders actually pay for their shares. That is no longer the rule, and the Ministry of Commerce has been directed to check on these companies retroactively. It has been suggested that will have the authority to hand over such companies to either the government for liquidation or the exisiting Thai shareholders. No compensation will be provided to non-Thai shareholders. Again, this is described as a means of protecting Thais in difficult times. 4. Tax Collections: Thailand's tax revenues are falling short of its expenditures. There was an editorial cartoon in Monday's Bangkok Post about efforts to extract additinal sums from tax payers and the fact the revenue officers will get bonuses (six months) and promotions based on collections. Companies with foreign shareholders are to be the subject of special scrutiny. Pretty much all of this (and several other measures) in the last month. Not sure what is going on, but it doesn't look good. Incidentally, most banks and even the government have revised Thailand's projected GDP growth for this year down significantly. Link to comment Share on other sites More sharing options...
OCgringo Posted June 1, 2006 Report Share Posted June 1, 2006 Hi where did this info come from ? The checking for work permit at Conventions is scary for me OC Link to comment Share on other sites More sharing options...
steffi Posted June 1, 2006 Report Share Posted June 1, 2006 Yeah you figure that will be a big loss in tourist spending. I mean how many times does someone who's come on a business conference actually spend tourist money either during their conference or after. It seems completely boneheaded to alienate business travellers like this. The hotel industry will be up in arms I'm sure. Link to comment Share on other sites More sharing options...
lembeh Posted June 1, 2006 Report Share Posted June 1, 2006 >for a single business meeting or to inspect a project. "Business Visas" do not count qualify. Even attending a business conference or convention constitutes work. The Labour Department now intends to check attendees at all conventions and business centers at hotels. Violators will be arrested, fined and deported. The measure is intended to protect Thai jobs in difficult economic times. Sigh. Yet another brilliant move that will have the exact opposite effect. Convention buisness is *big* buisness, and highly competitive within the region. They have (if this goes through) just killed it in Thailand. I will leave the buisness side to those who know better, but would have thought they have just given greater impetus to buisness men to work with China etc rather than f*ck about in Thailand. More lost jobs. >authority to hand over such companies to either the government for liquidation **or the exisiting Thai shareholders**. LOL. Theft pure and simple. Wonder who has thier eye on what pot.... >Tax Collections: Thailand's tax revenues are falling short of its expenditures and >Companies with foreign shareholders are to be the subject of special scrutiny LOl again. Never mind the recent Shin corp deal eh? Try and f*ck the farangs yet again.... Sigh, sigh and sigh. -j- Link to comment Share on other sites More sharing options...
Lord Toad Posted June 1, 2006 Report Share Posted June 1, 2006 I suppose the real irony of all these measures, if they are truly enforced as suggested, will be to do the exactly the opposite to the stated intention: to protect Thai's in difficult times. All they will do is deprive the country of foreign earnings: at exactly the moment the trade balance has gone tits up, and throw 1,000s of Thais out of jobs. But, as ever in LOS, you suspect this is posturing and the reality will be far from this. The point about conferences is lunacy: you might as well close down the convention centres! Link to comment Share on other sites More sharing options...
MaiLuk Posted June 1, 2006 Report Share Posted June 1, 2006 If anyone else had put up that OP, i would have suspected this is a troll posting stupid bizarre fantasy. Me thinks thailand is going to drop through the floor as far as investment ratings go. Especially with the liquidation of all foreign owned preference share corporations (chavez himself would give a loud whistle at that one LOL) Maybe some fanatic has got control of the government regulation printing press and will be muzzled as soon as somebody with some gray matter realizes what he is up to. Link to comment Share on other sites More sharing options...
MaiLuk Posted June 1, 2006 Report Share Posted June 1, 2006 >>The point about conferences is lunacy: you might as well close down the convention centres! << Maybe they decided they only want p4p mongers as tourists from now on. Link to comment Share on other sites More sharing options...
MaiLuk Posted June 1, 2006 Report Share Posted June 1, 2006 OK i re-read the OP. >>The Labour Department now intends to check attendees at all conventions and business centers at hotels. Violators will be arrested, fined and deported. << Now it makes sense. This is no big deal. The guys at the labour department got a creative inspiration. They won't really deport anyone, just want to collect some tea money. Hope the conventioners know about tea money. Link to comment Share on other sites More sharing options...
Lord Toad Posted June 1, 2006 Report Share Posted June 1, 2006 That is a very fair point because I was told, a few years ago, by an international lawyer here that that is how most corporation own their land. In fact they use two Thai companies one as property owner and one as holding co. If they did that most foriegn owned hotels and plants would suddenly be in government ownership!!! I suspect the problem is that everybody and his dog is now doing it!!! However the the usual deal is that the Thai shareholders are leant the money to buy the shares and as a result they take a 10 for 1 drop in voting rights to become a preferential shareholder. They can get their righst back by paying off the loan Link to comment Share on other sites More sharing options...
OCgringo Posted June 1, 2006 Report Share Posted June 1, 2006 My last visit I went to 3 conventions /trade shows , in fact I extended my trip a week to go to one, They are building a gigantic convention center where they hold the Autoshow, I guess the next one will be Thai only OC Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.