Cabinet retroactively extends tax incentives for juristic persons registration
The Cabinet agreed to retroactively extend the tax incentive measure to encourage business operators to register themselves as juristic persons which expired January 1 to December 31, 2018. Approval was given to the extension of the tax incentive measure which aims to have ordinary persons, non-juristic partnerships, and groups of persons to register as juristic persons and entities as part of the government’s goal to bring more business operatives into the tax system. It offers new juristic persons and entities exemptions of income tax and value-added tax on transferred assets and sales of products as well as tax on legal transactions. New juristic persons and entities can deduct expenses like accounting and auditing costs from income tax payment for five consecutive cycles.
The Consumer Confidence Index of the University of the Thai Chamber of Commerce (UTCC) rose to 80.9 in April in its second straight month, reaching a 40 month high boosted by strong tourism and exports. Global trade tensions and low farm prices remain a concern and consumers still feel the economic recovery is not broad based. The daily minimum wage was raised in April which may contribute to future confidence and the Finance Ministry predicts GDP to grow to 4.2 percent this year from 3.9 percent last year, the fastest pace in 5 years due to strong exports and tourism.
The Department of Land Transportation and the Navy have launched three bus routes linking U-Tapao International Airport with nearby Chonburi, Rayong, and Trat. Service to Trat includes a stop in Chanthaburi while the Chonburi route stops in Pattaya and Sri Racha. The routes are operated by private transport firms using air-conditioned buses with GPS tracking systems and another system to monitor their speed. The Department of Land Transportation plans on introducing new bus routes to all 34 airports across the country. Japan has agreed to extend soft loans to finance the planned new high speed extension of the Airport rail line linking U-Tapao International Airport with Suvarnabhumi and Don Mueang International Airports. The bidding process is expected to begin this month with the winner announced in November.
The government is working to expand 29 airports across the country over the next ten years as part of the bid to boost tourism to secondary provinces by linking small cities with Bangkok, other cities in Thailand and across South East Asia. Krabi, Khon Kaen, Surat Thani, Ubon Ratchathani and Phitsanulok are being targeted for expansion so that they will be able to accommodate larger aircraft like the Boeing 747 while airports in Lampang, Hua Hin, and Ranong will be renovated to accommodate medium sized aircraft. The airport in Mae Sot in Tak is already undergoing expansion due to be completed in 2019 and an airport in Yala is under construction.