Jiraporn Kunplome, 3rd
left, along with Pattaya Mayor Itthiphol Kunplome, Saksit Teerapornsathanon,
Narongchai Kunphlome and Chanyut Hengtrakool cut the ribbon to officially
launch the Sixty-Six Condominium project.
Manoon Mokpol
Pattaya Mayor Itthiphol Kunplome helped launch the new
Sixty-Six Condominium project at a party attended by political dignitaries
and property developers March 26.
The Sixty-Six Condomium, a planned 32-unit building on
Soi 1 in North Pattaya, is fronted by Jiraporn Kunplome’s Talay 66 Co. The
project is selling units starting from 2.7 million baht with six floor
plans. Construction begins this month.
Jiraporn said Sixty-Six Condominium is ideal for people
who wish to be close to shopping and entertainment, as it’s centrally
located. But it’s also close to the beach for sun worshippers.
Floor plans include a 44 sq. m. one-bedroom unit, a 52.7
sq. m. one-bedroom with kitchen and Jacuzzi, two 96 sq. meter two-bedroom
and two 134 sq. m. two-bedroom units. Two configurations offer a view of the
sea.
For more information contact 082-587-3338 or check online at
SixtySixCondo.com.
Party
guests take a look around the glitzy project showroom.
An
artist’s render shows the completed Sixty-Six Condominium building.
Duensing Kippen Tax and
Law
In Part I of this two part article we noted the
importance for your company to comply with the legal requirements to
“write-off” uncollectable or “Bad Debts” so that your company would not be
required to pay income tax on these uncollected monies. And we saw that
under Section 65 of the Thailand Revenue Code (“RC”) and Ministry of
Finance regulation No. 186 (1991) (“MR”), in order for Bad Debts to
be written-off they generally have (1) arisen from your company’s business
and (2) it must not be too late to file a court action to collect them.
Now
we look at the rest of requirements under the MR to write-off Bad Debts.
These additional requirements are further outlined in the following clauses
of the MR and in doing so the debts are categorized by amount as follows:
(i) debt(s) by a debtor exceeding Thai Baht 500,000
(Clause 4 MR);
(ii) debt(s) by a debtor between Thai Baht 100,000 and
Thai Baht 500,000 (Clause 5 MR); and
(iii) debt(s) by a debtor not exceeding Thai Baht 100,000
(Clause 6 MR)
Different conditions for a write-off are applicable for
the different categories. The strictest requirements are applicable to
category (i). MR Clause 4 requires:
(1) “demands for payment have been made and the matter
has been pursued to the extend suitable to the case of such acts being
expressly recorded and yet debts remain unsettled (...)” because “(a)
the debtor died, is missing or proved to be missing and has no property to
pay the debts or (b) the debtor dissolved his business, and the debt due
from him to the other creditors with preceding preferential rights over his
entire properties exceed the value thereof”; and either
(2) (a) a civil action has been brought against the
debtor and after a court order or injunction the debtor does not have
sufficient property to settle the debts; or
(2) (b) a bankruptcy action has been brought against the
debtor and a compromise has been reached with the debtor with court approval
or the debtor has been adjudged bankrupt and the first lot of the debtor’s
properties have been shared out.
With regard to category (ii) debts, pursuant to MR Clause
5, the conditions for a write-off are the same as those for category (i)
debt but that with regard to the requisite civil court proceedings it is
sufficient that the court has accepted the plaint.
Whereas with regard to the relevant alternative
bankruptcy proceedings, the action against the debtor needs only to have
been accepted by the court. However, in this case category (ii) debts, it is
also required that the director or managing director of the juristic company
creditor issue an order within 30 days from the last day of the relevant
accounting period authorising the write-off of the Bad Debt.
Finally for category (iii) debts the requirements are the
least strict. Pursuant to MR Clause 6, it is not necessary to comply with
the requirements in MR Clauses 4 and 5. Court proceedings, for example, are
not required. Rather, it is sufficient that “demands for payment have been
made and that the matter has been pursued to the extent suitable to the
case, and yet debts remains unsettled” provided that any court action in
relation to the debt would entail higher costs in relation to the court
proceedings than the amount expected to be recovered.
The final requirement is that once the creditor has
complied with all above mentioned rules and regulations the creditor must
write-off the receivable as a Bad Debt expense in the same accounting
period. However, in case of a category (ii) debt, the accounting period in
which this must be done is the accounting period when the relevant court
accepts the civil complaint or the bankruptcy petition.
To manage the risk of unnecessary tax liabilities in connection with Bad
Debts you should continually monitor company’s accounts receivable in order
to keep abreast of its various debts and determine when and what action is
appropriate and as needed competent tax counsel should be consulted
directly.
Note: Duensing Kippen is a multi-service
boutique law firm specializing in property and corporate/commercial matters
and is also the only such firm in Thailand that compliments its property and
corporate/commercial legal expertise with a core tax law practice. Duensing
Kippen can be reached at: [email protected] or for more
information please visit them at: www.dktaxandlaw.com.
