Doing Business 2018 Thailand Economy Pro le of Thailand Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Thailand Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region East Asia & Pacific DB 2018 Rank 190 1 Thailand Income Category Upper middle income 26 Population 68,863,514 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 5,640 0 100 77.44 City Covered Bangkok DB 2018 Distance to Frontier (DTF) 0 100 78.43: Malaysia (Rank: 24) 77.44: Thailand (Rank: 26) 66.47: Indonesia (Rank: 72) 62.70: Regional Average (East Asia & Pacific) 58.74: Philippines (Rank: 113) Page 3   53.01: Lao PDR (Rank: 141) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Thailand Ease of Doing Business in Region East Asia & Pacific DB 2018 Rank 190 1 Thailand Income Category Upper middle income 26 Population 68,863,514 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 5,640 0 100 77.44 City Covered Bangkok DB 2018 Distance to Frontier (DTF) 0 100 78.43: Malaysia (Rank: 24) 77.44: Thailand (Rank: 26) 66.47: Indonesia (Rank: 72) 62.70: Regional Average (East Asia & Pacific) 58.74: Philippines (Rank: 113) 53.01: Lao PDR (Rank: 141) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Thailand 1 13 16 26 28 36 34 43 42 57 55 68 67 82 Rank 109 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Thailand 100 92.34 90.99 84.10 80 74.58 76.73 75.64 73.33 68.75 70.00 67.91 60 DTF 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+7.23 Change:+1.78 Change:+20.00 Investors Change:+8.04 Borders Change:+2.40 Change:+1.69 Change:+7.30 Permits Change:+8.33 Change:0.00 Change:0.00 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+7.23 Change:+1.78 Change:+20.00 Investors Change:+8.04 Borders Change:+2.40 Change:+1.69 Change:+7.30 Permits Change:+8.33 Change:0.00 Doing Business 2018 Thailand Change:0.00 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Thailand Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement THB 6.3 City Covered Bangkok East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Procedure – Men (number) 5 7.0 4.9 1.00 (New Zealand) Time – Men (days) 4.5 22.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 6.2 18.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 5 7.0 4.9 1.00 (New Zealand) Time – Women (days) 4.5 22.8 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 6.2 18.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 15.1 8.7 0.00 (113 Economies) Figure – Starting a Business in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.34: Thailand (Rank: 36) 83.78: Malaysia (Rank: 111) 82.32: Regional Average (East Asia & Pacific) 77.93: Indonesia (Rank: 144) 72.56: Lao PDR (Rank: 164) 68.88: Philippines (Rank: 173) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Thailand – Procedure, Time and Cost Time Cost 4.5 7 4 6 ost (% of income per capita) 3.5 5 3 Time (days) 2.5 4 2 3 1.5 Page 6   2 1 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Thailand Figure – Starting a Business in Thailand – Procedure, Time and Cost Time Cost 4.5 7 4 6 Cost (% of income per capita) 3.5 5 3 Time (days) 2.5 4 2 3 1.5 2 1 1 0.5 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Thailand – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Search and reserve a company name online Less than one day no charge Agency : Department of Business Development, Ministry of Commerce (online procedure) Promoters can search and reserve a company name on the Department of Business Development’s Web site (http://www.dbd.go.th/dbdweb_en/main.php? lename=index). The name reservation in person at the Department’s Registrar is no longer available as of 14 January, 2013. 3 name options are submitted for approval. Once approved, the name reservation is valid for 30 days. 2 Deposit paid-in capital in a bank 1 day no charge Agency : Bank Once the company gets approval for the memorandum and the articles of association, it must hold a statutory meeting. The promoters shall hand over the business to the directors after the meeting. The directors shall thereupon cause the promoters and subscribers to pay in at least 25% of the registered capital. 3 Register memorandum of association, apply and pay to register the 1 day see procedure company as a legal entity ( nal registration) and obtain TIN details Agency : Partnerships and Companies Registration O ce, Department of Business Development, Ministry of Commerce At the Single Point Service Center, entrepreneur can register the company, Page 7   obtain TIN, register for social security and register for the Workmen’s (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Thailand Details – Starting a Business in Thailand – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Search and reserve a company name online Less than one day no charge Agency : Department of Business Development, Ministry of Commerce (online procedure) Promoters can search and reserve a company name on the Department of Business Development’s Web site (http://www.dbd.go.th/dbdweb_en/main.php? lename=index). The name reservation in person at the Department’s Registrar is no longer available as of 14 January, 2013. 3 name options are submitted for approval. Once approved, the name reservation is valid for 30 days. 2 Deposit paid-in capital in a bank 1 day no charge Agency : Bank Once the company gets approval for the memorandum and the articles of association, it must hold a statutory meeting. The promoters shall hand over the business to the directors after the meeting. The directors shall thereupon cause the promoters and subscribers to pay in at least 25% of the registered capital. 3 Register memorandum of association, apply and pay to register the 1 day see procedure company as a legal entity ( nal registration) and obtain TIN details Agency : Partnerships and Companies Registration O ce, Department of Business Development, Ministry of Commerce At the Single Point Service Center, entrepreneur can register the company, obtain TIN, register for social security and register for the Workmen’s Compensation Fund. All documents are submitted and received in one window, within 1 day. Registration of the Company shall be made within 3 months of the day of the statutory meeting. Under the Civil and Commercial Code, Section 1111/1, for establishing the company, the director committee may require memorandum registration and company registration on the same day. If the promoters complete both steps on the same day, the required proceedings involving the memorandum promoters are as follows: (1) To have the subscribers of all the shares registered in the company; (2) Under Section 1108, to have a statutory meeting to consider any act of company, with all subscribers and all promoters presenting at the meeting and accepting such act in the statutory meeting; (3) To have promoters transfer all business to the director committee; and (4) To have the directors require every subscriber to pay the amount of shares under Section 1110 paragraph 2, and have such amount be fully paid. The required documents for registration of the company which must be signed by the authorized director(s) and a xed with the company's seal (if required) shall include but not limited to the followings: (1) Application form; (2) Articles of Association; (3) List of shareholders; (4) New director form signed by each director; (5) Declaration of Business Operation form; Page 8   (6) List of company registration; (1) Application form; (2) Articles of Association; Business Doing (3) 2018 Thailand List of shareholders; (4) New director form signed by each director; (5) Declaration of Business Operation form; (6) List of company registration; (7) Certi ed copies of the MOA and the Objectives; (8) A certi ed copy of the Notice and Minutes of the Statutory Meeting; (9) Con rmation of payment of share capital (at least 25%) by all subscribers; (10) Form for company name reservation (11) Form of certi cation of registration of limited company; and (12) Map(s) showing the location(s) of the registered o ce(s) of head o ce and branch o ce(s) (if any) of the company. The promoters prepare the application for registration of the memorandum of association containing the details speci ed in procedure 2; The rst statutory meeting shall still be convened, provided that the notice to summon the rst statutory meeting is not required; The shareholders must pay at least 25% of the registered capital; The promoters and authorized signatory director must sign the applications for registration of memorandum of association and for registration of incorporation, respectively, before Private Limited Companies Registrar, attorney at law, or auditor registered with the Registrar. However, if the company has adopted complicated articles of association, the Registrar may take a few days to review the company's articles of association. In such case, the registration of company incorporation may be prolonged for a few days or more. Under the Notice of the Director General of Revenue Department dated 11 January 2012, which is e ective from 1 February 2012, company’s registration number shall be the same as its tax ID. Thus, the company is not further required to obtain taxpayer identi cation number or card anymore. Employers (with one or more employees) must register their employees for social security and workers’ compensation insurance at the Social Security O ce, Ministry of Labor. Work regulations are no longer required to be approved by the Department of Labor Protection and Welfare, however they must be announced and displayed on the wall within company's premises. ). Later during operations, labor inspectors can check proper implementation of the work regulations. Cost: - Fee for registration of memorandum of association: THB 1,000 (THB 50 for every THB 100,000 of initial capital; minimum THB 500 and maximum THB 25,000) - Fee for registration of the company: THB 10,000 (THB 500 for every THB 100,000 of initial capital; minimum THB 5,000 and maximum THB 250,000) - Stamp duty to be a xed on memorandum of association: THB 200 - Stamp duty to be a xed on articles of association: THB 200 - Certi cate of Registration fee: THB 100 - A davit fee: THB 200 - Certi cation document fee: THB 50 per page. 4 Register for Value Added Tax 1 day no charge Agency : The Revenue Department VAT registration is mandatory for all companies whenever the company revenues hit the threshold of THB 1.8 million. The provision of the Thailand tax code can be found on the Revenue Department’s website: www.rd.go.th. The company shall apply the application at Bangkok Area Revenue O ce Page 9   - A davit fee: THB 200 Certi cation Doing -Business document 2018 fee: THB 50 per page. Thailand 4 Register for Value Added Tax 1 day no charge Agency : The Revenue Department VAT registration is mandatory for all companies whenever the company revenues hit the threshold of THB 1.8 million. The provision of the Thailand tax code can be found on the Revenue Department’s website: www.rd.go.th. The company shall apply the application at Bangkok Area Revenue O ce where the company o ce located and must submit the following documents: •01Application for VAT Registration in 3 copies (photocopy not accepted) •Rental Contract (a xed with stamp duty) or Letter of Consent from owner of the Building and Household Registration of such Building. •Photocopy of I.D. Card, Household Registration of the lessor. •Documents showing ownership of the lessor such as sell and purchases contract, transfer of ownership. •Map showing the location of the Building. •Photograph of the o ce with signboard name and number of the Building. •Certi ed letter from the Ministry of Commerce (issued within 6 months) together with Articles of Association, regulation and details of the Objective of the company. In case the company revenue less than 1.8 million THB, the company shall submit Por.Por.01-1form. Alternatively, the Revenue Department has recently introduced the possibility of VAT registration through an online system. The online registration process is as follows: (1) Complete an online application form for VAT registration (no user account is required for registration); (2) Submit the online application via the electronic service on the website of the Revenue Department (http://vsreg.rd.go.th/); and (3) The Revenue Department will notify the applicant for completion of VAT registration by e-mail within 15-days from the submission date of the online application. However, the usage of the online platform for VAT registration is not yet widespread, and entrepreneurs continue visiting the Revenue Department in person in order to register for VAT. 5 Register employees with the Social Security O ce 1 day no charge Agency : Social Security O ce An employer and each employee must be registered as an insured person Page 10   with the Social Security O ce ("the SSO"). The employer shall collects the widespread, and entrepreneurs continue visiting the Revenue Department in Doing person in order Business 2018to register for VAT. Thailand 5 Register employees with the Social Security O ce 1 day no charge Agency : Social Security O ce An employer and each employee must be registered as an insured person with the Social Security O ce ("the SSO"). The employer shall collects the application form at Social Security O ce where the company located and submit the registration form at the Zone O ce of Social Security. The employer is responsible to submit the following documents to the SSO within 15 days after hiring at least 1 employee: - employer and employee registration forms (Form SSO 1-01 and SSO 1-03) - a photocopy of company registration with objectives - a photocopy of VAT registration (Pro.Por20) or request of VAT registration (Por.Por.01) or special business tax registration or license of factory establishment - Map of working place - letter of power attorney (if applicable) and photocopy of I.D. of the authorized person. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned Page 11   by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Thailand Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 12   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Thailand Standardized Warehouse Estimated value of warehouse THB 9,908,909.40 City Covered Bangkok East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Procedures (number) 18 15.2 12.5 7.00 (Denmark) Time (days) 104 138.2 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 0.1 2.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 11.0 8.9 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.19: Malaysia (Rank: 11) 75.25: Lao PDR (Rank: 40) 74.58: Thailand (Rank: 43) 69.60: Regional Average (East Asia & Pacific) 66.84: Philippines (Rank: 101) 66.08: Indonesia (Rank: 108) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Thailand – Procedure, Time and Cost Time Cost 0.12 100 0.1 Cost (% of warehouse value) 80 0.08 Time (days) 60 0.06 40 0.04 20 0.02 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 * 15 16 17 18 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 13   component indicators. Doing Business 2018 Thailand Figure – Dealing with Construction Permits in Thailand – Procedure, Time and Cost Time Cost 0.12 100 0.1 Cost (% of warehouse value) 80 0.08 Time (days) 60 0.06 40 0.04 20 0.02 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 * 15 16 17 18 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Thailand and comparator economies – Measure of Quality 14 13.0 13.0 12.0 12 11.0 10 8.9 Index score 8 6.5 6 4 2 0 Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Details – Dealing with Construction Permits in Thailand – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request a building permit from the Bangkok Metropolitan Authority 1 day THB 650 Agency : Bangkok Metropolitan Authority An application for a permit to construct, modi ed, remove, or reallocate a building is required for any building. For buildings of no more than 23 meters in height or 10,000 square meters in area, the application must be submitted to the relevant District O ce with the following documents attached: • A copy of the applicant's corporate registration • A copy of the land title deed • The personal and tax identi cation cards of the applicant • Written permission of the architect and a copy of a valid professional Page 14   license Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Doing Business 2018 Thailand Details – Dealing with Construction Permits in Thailand – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request a building permit from the Bangkok Metropolitan Authority 1 day THB 650 Agency : Bangkok Metropolitan Authority An application for a permit to construct, modi ed, remove, or reallocate a building is required for any building. For buildings of no more than 23 meters in height or 10,000 square meters in area, the application must be submitted to the relevant District O ce with the following documents attached: • A copy of the applicant's corporate registration • A copy of the land title deed • The personal and tax identi cation cards of the applicant • Written permission of the architect and a copy of a valid professional license • Written permission of the design/calculation engineer and a copy of a valid professional license • Written permissions of the architect and engineer who will be the construction supervisors and copies of their valid professional licenses • Building plan • A calculation of building structure • For an industrial factory, hospital, fresh market, condominium, apartment, and any undesirable commercial building, details of the water treatment system and its calculation must be provided. The fees vary depending on the actual space area and size of the building: • THB 0.50 per square meter for a building not taller than 12 meters or two oors • THB 2.00 per square meter for a building taller than 12 meters but not more than 15 meters or three oors • THB 4.00 per square meter of the entire building space area for a building taller than 15 meters or three oors In the case considered here, the cost is THB 0.50 per square meter. A notice to the local authority in lieu of the building permit could be made. The application could be submitted to the local authority in a situation where construction work must be commenced urgently. The following supporting documents must be attached to the application to the local authority: • A copy of the applicant's corporate registration • A copy of the land title deed • Tax identi cation card of the applicant • Written permission of the senior professional architect and a copy of a valid senior professional license • Written permission of the senior professional design/calculation engineer and a copy of a valid senior professional license • Written permissions of the architect and engineer who will be the construction supervisors and copies of their valid professional licenses • Certi cate of building design • Building plan • Calculation of the building area Acknowledgement of the noti cation is normally granted within the day of ling the complete application. The cost is the same as for obtaining a Page 15   building permit. Doing Business 2018 No. Procedure Thailand Time to Complete Associated Costs 1 Request a building permit from the Bangkok Metropolitan Authority 1 day THB 650 Agency : Bangkok Metropolitan Authority An application for a permit to construct, modi ed, remove, or reallocate a building is required for any building. For buildings of no more than 23 meters in height or 10,000 square meters in area, the application must be submitted to the relevant District O ce with the following documents attached: • A copy of the applicant's corporate registration • A copy of the land title deed • The personal and tax identi cation cards of the applicant • Written permission of the architect and a copy of a valid professional license • Written permission of the design/calculation engineer and a copy of a valid professional license • Written permissions of the architect and engineer who will be the construction supervisors and copies of their valid professional licenses • Building plan • A calculation of building structure • For an industrial factory, hospital, fresh market, condominium, apartment, and any undesirable commercial building, details of the water treatment system and its calculation must be provided. The fees vary depending on the actual space area and size of the building: • THB 0.50 per square meter for a building not taller than 12 meters or two oors • THB 2.00 per square meter for a building taller than 12 meters but not more than 15 meters or three oors • THB 4.00 per square meter of the entire building space area for a building taller than 15 meters or three oors In the case considered here, the cost is THB 0.50 per square meter. A notice to the local authority in lieu of the building permit could be made. The application could be submitted to the local authority in a situation where construction work must be commenced urgently. The following supporting documents must be attached to the application to the local authority: • A copy of the applicant's corporate registration • A copy of the land title deed • Tax identi cation card of the applicant • Written permission of the senior professional architect and a copy of a valid senior professional license • Written permission of the senior professional design/calculation engineer and a copy of a valid senior professional license • Written permissions of the architect and engineer who will be the construction supervisors and copies of their valid professional licenses • Certi cate of building design • Building plan • Calculation of the building area Acknowledgement of the noti cation is normally granted within the day of ling the complete application. The cost is the same as for obtaining a building permit. 2 Receive pre-approval inspection from the Bangkok Metropolitan 1 day no charge Authority Agency : Bangkok Metropolitan Authority Page 16   ling the complete application. The cost is the same as for obtaining a Doing building Business permit. 2018 Thailand 2 Receive pre-approval inspection from the Bangkok Metropolitan 1 day no charge Authority Agency : Bangkok Metropolitan Authority Before the plan approval, the municipal authority inspects the site to con rm that the drawings submitted accurately represent the project on site. The building control o cers of the Bangkok Metropolitan Authority process this approval. 3 Obtain a building permit from the Bangkok Metropolitan Authority 30 days no charge Agency : Bangkok Metropolitan Authority As of April 1, 2013 the Bangkok Metropolitan Administration (BMA) now allows district directors to act on behalf of the Bangkok Governor under Building Control Act B.E. 2522 (1979) for simple buildings. The district director can issue the building approval for buildings that are not more than 10,000 sq. m. and not taller than 23 meters. This fast-track option has signi cantly reduced the time to obtain the building permit. 4 Notify the Bangkok Metropolitan Authority on the commencement of 1 day no charge construction works Agency : Bangkok Metropolitan Authority After the building permit has been granted, the name of the construction supervisor must be given to the Bangkok Metropolitan Authority with the permission of that supervisor. The latter could be any quali ed person, including the building owner, unless that person is prohibited by the regulations of the Engineering or Architectural Profession Act. It is assumed that one of BuildCo’s employees or owners satis es the requirements for being a construction supervisor. It is common for the supervisor to be the owner or one of the employees of the construction company. The construction supervisor should verify building conditions periodically. BuildCo must also submit a noti cation to commence construction works. 5 Receive random inspection - I 1 day no charge Agency : Bangkok Metropolitan Authority BMA will inspect the site about once per month to check for any violations during the construction phase. If there are complaints from others around the construction site, there will be more frequent inspections. 6 Receive random inspection - II 1 day no charge Agency : Bangkok Metropolitan Authority 7 Receive random inspection - III 1 day no charge Agency : Bangkok Metropolitan Authority 8 Receive random inspection - IV 1 day no charge Agency : Bangkok Metropolitan Authority 9 Receive random inspection - V 1 day no charge Agency : Bangkok Metropolitan Authority 10 Receive random inspection - VI 1 day no charge Page 17   Agency : Bangkok Metropolitan Authority 9 Receive random inspection - V 1 day no charge Agency : Bangkok Metropolitan Authority Doing Business 2018 Thailand 10 Receive random inspection - VI 1 day no charge Agency : Bangkok Metropolitan Authority 11 Receive random inspection - VII 1 day no charge Agency : Bangkok Metropolitan Authority 12 Request water connection 1 day no charge Agency : Metropolitan Water Work Authority (MWA) BuildCo must contact the local o ce of the Metropolitan Water Work Authority (MWA) to request a water connection. MWA will then conduct an on-site inspection a few days later. 13 Receive onsite inspection for water connection 1 day no charge Agency : Metropolitan Water Work Authority (MWA) 14 Request and obtain sewage connection 30 days THB 150 Agency : Wastewater Management Authority (WMA) The sewage connection is conducted by the Wastewater Management Authority (WMA). There is no inspection that is needed. The fee is THB 1 per meter. Request and obtain water connection 10 days THB 9,500 15 Agency : Metropolitan Water Work Authority (MWA) 16 Request occupancy permit 1 day no charge Agency : Metropolitan Bangkok Authority 17 Receive nal inspection 1 day no charge Agency : Bangkok Metropolitan Authority 18 Obtain occupancy permit 30 days THB 20 Agency : Metropolitan Bangkok Authority Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Thailand – Measure of Quality Answer Score Building quality control index (0-15) 11.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Page 18   Quality control before construction index (0-1) 1.0 Takes place simultaneously with previous procedure. Doing Business 2018 Thailand Details – Dealing with Construction Permits in Thailand – Measure of Quality Answer Score Building quality control index (0-15) 11.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Unscheduled inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the Page 19   supervision; Liability Doing 2018 regimes and insurance Business index (0-2) Thailand 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the University 1.0 construction on the ground? (0-2) degree in engineering, construction or construction management; Being a registered architect or engineer. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Page 20   Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square architect or engineer. Doing Business 2018 Thailand Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 21   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Thailand Standardized Connection Price of electricity (US cents per kWh) 13.5 Name of utility Metropolitan Electricity Authority City Covered Bangkok East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Procedures (number) 4 4.5 4.7 2 (United Arab Emirates) Time (days) 32 71.6 79.1 10 (United Arab Emirates) Cost (% of income per capita) 63.1 712.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 7 3.7 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 94.33: Malaysia (Rank: 8) 90.99: Thailand (Rank: 13) 84.31: Philippines (Rank: 31) 83.87: Indonesia (Rank: 38) 72.23: Regional Average (East Asia & Pacific) 52.65: Lao PDR (Rank: 149) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Thailand – Procedure, Time and Cost Time Cost 70 30 60 Cost (% of income per capita) 25 50 20 Time (days) 40 15 30 10 20 5 Page 22   10 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Thailand Figure – Getting Electricity in Thailand – Procedure, Time and Cost Time Cost 70 30 60 Cost (% of income per capita) 25 50 20 Time (days) 40 15 30 10 20 5 10 0 0 1 2 *3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Thailand and comparator economies – Measure of Quality 9 8 8 7 7 6 Index score 5 5 5 4 3.7 3 2 2 1 0 Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Details – Getting Electricity in Thailand – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to MEA and await estimate 7 calendar days THB 125,050 Agency : Metropolitan Electricity Authority (MEA) The customer can submit the application for connection online. The cost estimate is provided after site inspection - but if GIS data is available, no site inspection is needed (less than 50% of cases). Documents required for the application are copy of identi cation card, copy of census registration, copy of contract of sales, rent, lease, copy of company a davit, power of attorney document as well as location map, single line diagram, load schedule and electricity line diagram, detail of use (e.g. areas, machine, electric equipment and type of building). Usually, the Page 23   representative of the owner of the warehouse would submit the application. Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Doing Business 2018 Thailand Details – Getting Electricity in Thailand – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to MEA and await estimate 7 calendar days THB 125,050 Agency : Metropolitan Electricity Authority (MEA) The customer can submit the application for connection online. The cost estimate is provided after site inspection - but if GIS data is available, no site inspection is needed (less than 50% of cases). Documents required for the application are copy of identi cation card, copy of census registration, copy of contract of sales, rent, lease, copy of company a davit, power of attorney document as well as location map, single line diagram, load schedule and electricity line diagram, detail of use (e.g. areas, machine, electric equipment and type of building). Usually, the representative of the owner of the warehouse would submit the application. 2 Await completion of external works by MEA 18 calendar days THB 0 Agency : Metropolitan Electricity Authority (MEA) The utility conducts the external connection works. All cable and equipment for external connection are provided by utility. If a transformer needs to be installed, it would belong to the utility and other customers would use the transformer as well. The connection fee by MEA is based on a 140 meters connection. For 150 meters, the client would have to pay the cost for 10 meters of cable in addition to the connection fee. 3 Request and receive internal inspection by MEA 2 calendar days THB 0 Agency : Metropolitan Electricity Authority (MEA) The client submits a request for an internal wiring inspection by the utility. The client has to be present during the inspection. 4 Receive meter installation, nal connection and electricity ow from 7 calendar days THB 0 MEA Agency : Metropolitan Electricity Authority (MEA) After the connection is nished, the Meter Service Section of the utility installs the meter. After that the nal connection is done by the Distribution System Maintenance Section and electricity starts owing. Takes place simultaneously with previous procedure. Details – Getting Electricity in Thailand – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 7 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.5 System average interruption frequency index (SAIFI) 1.0 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Page 24   Mechanisms for monitoring outages (0-1) 1 Takes place simultaneously with previous procedure. Doing Business 2018 Thailand Details – Getting Electricity in Thailand – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 7 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.5 System average interruption frequency index (SAIFI) 1.0 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 0 Are e ective tari s available online? Yes Link to the website, if available online http://www.mea.or.t h/pro le/index.php? l=en&tid=3&mid=25 8&pid=109 Are customers noti ed of a change in tari ahead of the billing cycle? No Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 25   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Thailand Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value THB 9,908,909.40 City Covered Bangkok Page 26   East Asia & OECD high Doing Business 2018 Thailand Standard Property Transfer Property value THB 9,908,909.40 City Covered Bangkok East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Procedures (number) 5 5.5 4.6 1.00 (4 Economies) Time (days) 7 74.5 22.3 1.00 (3 Economies) Cost (% of property value) 7.3 4.3 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 18.0 15.8 22.7 29.00 (Singapore) Figure – Registering Property in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.06: Malaysia (Rank: 42) 69.55: Lao PDR (Rank: 65) 68.75: Thailand (Rank: 68) 59.01: Indonesia (Rank: 106) 57.55: Philippines (Rank: 114) 57.21: Regional Average (East Asia & Pacific) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Thailand – Procedure, Time and Cost Time Cost 7 7 6 6 Cost (% of property value) 5 5 Time (days) 4 4 3 3 2 2 1 1 0 0 1 *2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 27   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Thailand Figure – Registering Property in Thailand – Procedure, Time and Cost Time Cost 7 7 6 6 Cost (% of property value) 5 5 Time (days) 4 4 3 3 2 2 1 1 0 0 1 *2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Thailand and comparator economies – Measure of Quality 30 27.5 25 20 18.0 Index score 15.8 15 12.5 11.3 10.5 10 5 0 Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Details – Registering Property in Thailand – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct title search 1 day THB 10 Agency : Land O ce The buyer conducts the title search at the Land O ce. 2 Lawyer conducts a bankruptcy search 1 day No cost Agency : Bankruptcy Court The lawyer would conduct a search at the Bankruptcy Court in Bangkok to ascertain whether the parties of the transaction had or are involved in an insolvency procedure. Although the records are computerized, lawyers do not have access to this database and therefore they have to visit the Court to search for this information. Page 28   Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Doing Business 2018 Thailand Details – Registering Property in Thailand – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct title search 1 day THB 10 Agency : Land O ce The buyer conducts the title search at the Land O ce. 2 Lawyer conducts a bankruptcy search 1 day No cost Agency : Bankruptcy Court The lawyer would conduct a search at the Bankruptcy Court in Bangkok to ascertain whether the parties of the transaction had or are involved in an insolvency procedure. Although the records are computerized, lawyers do not have access to this database and therefore they have to visit the Court to search for this information. This procedure is not mandated by law, nor required by the Lands Department. However, it is a common due diligence procedure to properly investigate any liability that could a ect the transaction. 3 Obtain certi ed copies of companies’ documents from the Ministry of 1 day THB 200 (Affidavits) + Commerce THB 700 (MoA, AoA) Agency : Ministry of Commerce Parties obtain from the Ministry of Commerce the following documents: • Companies' A davits con rming the name, address, the amount of registered capital, names of directors and the authorized signatories. (THB 100) • Certi ed copies of the Memorandum and Articles of Association of each party (THB 50 per page, cost of certi cation) • List of shareholders of the company from the Ministry of Commerce to prove their nationality. On average, the Memorandum of Association (MoA) has 2 pages and the Articles of Association (AoA) about 5 pages. 4 Lawyers prepare the sale agreement and the parties sign it 3 days Approximately THB Agency : Lawyer's o ce 100,000 It is common to require the services of an attorney to transfer the property. After conducting the due diligence, the lawyer drafts the sale agreement and the parties sign it 5 Parties submit the application for the registration at the Land O ce 1 day 2% of appraised Agency : Land O ce value (registration fee) + 1% of sale The seller and the buyer, or their representatives, must go to the Land O ce price or appraised where the land is located, and submit an application to register the sale of value, whichever is the land and the buildings thereon. higher (withholding tax) + 3.3% of sale The Land O cer checks all the documents (from both the seller and the buyer) submitted with the application. He will also compare the original title price or appraised deed with the original copy kept at the Land O ce. All information in both value, whichever is original title deeds must be the same. If everything is consistent, he will higher (Specific proceed with the registration of the transfer of ownership. An o cial sales Business Tax) agreement is prepared and signed by the authorized representatives of the seller and buyer. The o cer then records the sales transaction at the back of Page 29   the original land title deeds (both the land owner's and the Land O ce's After conducting the due diligence, the lawyer drafts the sale agreement and Doing the parties sign Business 2018it Thailand 5 Parties submit the application for the registration at the Land O ce 1 day 2% of appraised Agency : Land O ce value (registration fee) + 1% of sale The seller and the buyer, or their representatives, must go to the Land O ce price or appraised where the land is located, and submit an application to register the sale of value, whichever is the land and the buildings thereon. higher (withholding tax) + 3.3% of sale The Land O cer checks all the documents (from both the seller and the buyer) submitted with the application. He will also compare the original title price or appraised deed with the original copy kept at the Land O ce. All information in both value, whichever is original title deeds must be the same. If everything is consistent, he will higher (Specific proceed with the registration of the transfer of ownership. An o cial sales Business Tax) agreement is prepared and signed by the authorized representatives of the seller and buyer. The o cer then records the sales transaction at the back of the original land title deeds (both the land owner's and the Land O ce's copies). The Land O cer calculates all the registration fees and expenses and asks the parties to pay and submit to him the receipts. The registration fee is 2% of the appraised value calculated by the Bureau of Property Valuation (GAV) and announced by the Treasury Department, Ministry of Financed every 4 years (Government Appraised Value (GAV)). The seller has to pay a 1% withholding tax on sale price or GAV - whichever is higher. (Seller may apply this as a credit towards their corporate income tax on any capital gain). As the seller is a company, withholding tax is calculated on the greater of the appraised value and the sale price. The seller has to pay stamp duty, which is 0.5% of the appraisal value if holding period for the individual is more than 5 years. If not, the transfer will be subject to the Speci c Business Tax (SBT). This SBT implies that the Seller has to pay 3.3% of the appraisal value or the sales price, whichever is higher. The 3.3% SBT includes a 0.3% municipality tax. The SBT is imposed on persons who sell their property for trade or a pro t- seeking purpose. Companies who sell real property in Thailand are deemed to be selling for trade or pro t and are subject to speci c business tax. Even if a company sells property in order simply to move to a new place, it is still deemed to have sold for a trade or pro t seeking purpose. Accordingly, the company who is the seller in this example will be subject to SBT. The registration fee, withholding tax and SBT are collected by the Land O ce. The cheques for the taxes are payable to the Ministry of Finance but collected by the Land O ce. The Land O cer then attaches the receipts to the application, and submits all documents to the Chief in charge who is authorized to approve the registration of the transfer. Once the registration is approved, it is deemed completed. The seller will receive one copy of the registered sale agreement. The buyer will receive another copy of the registered sale agreement and the original Land Title Deed. The Seller will need to produce the construction permit and household registration of the building as evidence to transfer the building. Takes place simultaneously with previous procedure. Page 30   registration of the building as evidence to transfer the building. Doing Business 2018 Thailand Takes place simultaneously with previous procedure. Details – Registering Property in Thailand – Measure of Quality Answer Score Quality of the land administration index (0-30) 18.0 Reliability of infrastructure index (0-8) 4.0 What is the institution in charge of immovable property registration? Bangkok Land O ce In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Bangkok Land O ce In what format are the majority of maps of land plots kept in the largest business city— Computer/Scann 1.0 in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 4.5 Who is able to obtain information on land ownership at the agency in charge of Only 0.0 immovable property registration in the largest business city? intermediaries Page 31   Takes place simultaneously with previous procedure. Doing Business 2018 Thailand Details – Registering Property in Thailand – Measure of Quality Answer Score Quality of the land administration index (0-30) 18.0 Reliability of infrastructure index (0-8) 4.0 What is the institution in charge of immovable property registration? Bangkok Land O ce In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Bangkok Land O ce In what format are the majority of maps of land plots kept in the largest business city— Computer/Scann 1.0 in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 4.5 Who is able to obtain information on land ownership at the agency in charge of Only 0.0 immovable property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://nam.dol.g o.th/doingbusine ss/Documents/d oc0001.pdf Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: http://nam.dol.g o.th/doingbusine ss/Documents/d oc0001.pdf http://www.dol.g o.th/dol/images/ medias/dol/dol/p Page 32   df/news35.pdf immovable property registration in the largest business city made publicly available– and if Doing so, how? 2018 Business Thailand Link for online access: http://nam.dol.g o.th/doingbusine ss/Documents/d oc0001.pdf http://www.dol.g o.th/dol/images/ medias/dol/dol/p df/news35.pdf and http://www.dol.g o.th/dol/index.ph p? option=com_con tent&task=view& id=19&Itemid=28 Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://nam.dol.g o.th/doingbusine ss/Documents/d oc0001.pdf http://110.164.12 8.67/download/w eb/pepc.html Is there a speci c and separate mechanism for ling complaints about a problem that Yes 1.0 occurred at the agency in charge of immovable property registration? Contact information: http://app.dol.go .th/DOL3I006.asp x Are there publicly available o cial statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Number of property transfers in the largest business city in 2015: 65775.0 Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://nam.dol.g o.th/doingbusine ss/Pages/survey. aspx Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://110.164.12 8.67/download/w eb/pepc.html Page 33   http://www.dol.g Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 c time frame—and speciBusiness Doing if so, how does it communicate the service standard? 2018 Thailand Link for online access: http://110.164.12 8.67/download/w eb/pepc.html http://www.dol.g o.th/dol/images/ medias/dol/dol/p df/news35.pdf Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred at the cadastral or mapping agency? Contact information: http://app.dol.go .th/DOL3I006.asp x Geographic coverage index (0–8) 4.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 5.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a No 0.0 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? . Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Civil Court property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Page 34   property worth 50 times gross national income (GNI) per capita and located in the largest Doing city, what business 2018 Business court would be in charge of the case in the rst instance? Thailand How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). Page 35   In case B, ABC grants BizBank a business charge, enterprise charge, floating Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Thailand Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Strength of legal rights index (0-12) 7 7.2 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.2 6.6 8.00 (34 Economies) Page 36   Credit registry coverage (% of adults) 0.0 16.0 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Thailand East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Strength of legal rights index (0-12) 7 7.2 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.2 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 16.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 56.6 22.3 63.7 100.00 (23 Economies) Figure – Getting Credit in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.00: Malaysia (Rank: 20) 70.00: Thailand (Rank: 42) 65.00: Indonesia (Rank: 55) 57.00: Regional Average (East Asia & Pacific) 55.00: Lao PDR (Rank: 77) 30.00: Philippines (Rank: 142) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Thailand and comparator economies 9 8 8 7.2 7 7 6 6 6 Index score 5 4 3 2 1 1 0 Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Details – Legal Rights in Thailand Strength of legal rights index (0-12) 7 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 37   Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Doing Business 2018 Thailand Details – Legal Rights in Thailand Strength of legal rights index (0-12) 7 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised Yes reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Thailand and comparator economies 10 8 8 7 7 Index score 6 5 5 4.2 4 2 0 Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Details – Credit Information in Thailand Page 38   0 Thailand Doing Business 2018 Indonesia Thailand Lao PDR Malaysia Philippines East Asia & Pacific Details – Credit Information in Thailand Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 27,645,084 0 Number of firms 311,478 0 Total 27,956,562 0 Percentage of adult population 56.6 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 39   transactions; Available legal remedies (damages, Percentage of adult population 56.6 0.0 Doing Business 2018 Thailand Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Extent of conflict of interest regulation index (0- 8.3 5.7 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6.3 4.8 6.4 Page 40   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Thailand East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Extent of conflict of interest regulation index (0- 8.3 5.7 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6.3 4.8 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.00: Malaysia (Rank: 4) 73.33: Thailand (Rank: 16) 63.33: Indonesia (Rank: 43) 52.33: Regional Average (East Asia & Pacific) 40.00: Philippines (Rank: 146) 31.67: Lao PDR (Rank: 172) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Thailand and comparator economies – Measure of Quality Thailand 7 7 10 7 5 8 Indonesia 7 5 10 7 7 2 Lao PDR 1 1 6 4 4 3 Malaysia 8 9 10 6 8 7 Philippines 7 3 2 5 0 7 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 East Asia & Pacific 5.6 4.6 6.2 3.9 5.3 6.1 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Thailand – Measure of Quality Answer Score Page 41   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Thailand Details – Protecting Minority Investors in Thailand – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 8.3 Extent of disclosure index (0-10) 10 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 2.0 2) the transaction and on the con ict of interest Extent of director liability index (0-10) 7 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Not liable 0.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by Yes 1.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0 negligently concluded Ease of shareholder suits index (0-10) 8 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 Page 42   shareholder Ease ofBusiness Doing suits index 2018 (0-10) Thailand 8 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 questions only Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes regardless of 2.0 outcome Extent of shareholder governance index (0-10) 6.3 Extent of shareholder rights index (0-10) 5 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a No 0.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 7 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Page 43   Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of Doing their term? Business 2018 Thailand Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0 maximum period set by law? Extent of corporate transparency index (0-10) 7 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general No 0.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. Page 44   Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Thailand Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Payments (number per year) 21 21.8 10.9 3 (Hong Kong SAR, China) Page 45   return, but within the tax assessment period. Doing Business 2018 Thailand East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Payments (number per year) 21 21.8 10.9 3 (Hong Kong SAR, China) Time (hours per year) 262 189.2 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 28.7 33.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 73.41 56.55 83.45 99.38 (Estonia) Figure – Paying Taxes in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.73: Thailand (Rank: 67) 76.07: Malaysia (Rank: 73) 72.42: Regional Average (East Asia & Pacific) 69.27: Philippines (Rank: 105) 68.04: Indonesia (Rank: 114) 54.18: Lao PDR (Rank: 156) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Thailand and comparator economies – Measure of Quality 80 73.41 68.82 70 60 56.55 52.65 50.00 Index score 50 40 30 18.57 20 10 0 Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Details – Paying Taxes in Thailand Total tax and contribution Tax or mandatory Payments Notes on Time Statutory rate (% of contribution (number) Payments (hours) tax rate Tax base profit) Notes on TTR Page 46   Doing Business 2018 Thailand Figure – Paying Taxes in Thailand and comparator economies – Measure of Quality 80 73.41 68.82 70 60 56.55 52.65 50.00 Index score 50 40 30 18.57 20 10 0 Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Details – Paying Taxes in Thailand Total tax and contribution Tax or mandatory Payments Notes on Time Statutory rate (% of contribution (number) Payments (hours) tax rate Tax base profit) Notes on TTR Corporate income 1 online 156 20% taxable 20.62 Should be based on CIT balance tax profit due Employer paid - 12 48 5% gross 5.15 Social security salaries contributions Business specific 1 online 3.3% taxable 2.00 tax profit Property tax 1 12.5% assessed 0.63 rental value Employer paid - 1 0.2% to gross 0.22 Workmen 1% salaries compensation fund Vehicle tax 1 Baht fixed fee 0.04 3,600 Property transfer 1 0.01% sale 0.01 The registration fee is reduced tax price from 2% to 0.01% during 29 October 2015 to 28 April 2016. Tax on check 1 3 Baht 0.01 transactions per check Tax on interest 0 1% interest 0.00 Can be used as CIT credit income Fuel tax 1 Baht 5.85 included 0.00 small amount per liter into the fuel price Page 47   Tax on interest 0 1% interest 0.00 Can be used as CIT credit Doing Business 2018 Thailand income Fuel tax 1 Baht 5.85 included 0.00 small amount per liter into the fuel price Value added tax 1 online 58 7% value 0.00 Chargeable to the customers (VAT) added Totals 21 262 28.7 Details – Paying Taxes in Thailand – Tax by Type Taxes by type Answer Profit tax (% of profit) 22.6 Labor tax and contributions (% of profit) 5.4 Other taxes (% of profit) 0.7 Details – Paying Taxes in Thailand – Measure of Quality Answer Score Post ling index (0-100) 73.41 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 16.0 68 Time to obtain a VAT refund (weeks) 33.2 42.15 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 10.5 83.49 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. Page 48   The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named Doing Business corporate 2018 income tax Thailand in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Page 49   Relevant government agencies include customs, port authorities, road a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Thailand Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 50   of agriculture or industry, national security agencies and any other Doing Business 2018 Thailand government authorities. East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Time to export: Border compliance (hours) 51 55.9 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 223 387.5 149.9 0.00 (19 Economies) Time to export: Documentary compliance 11 68.2 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 97 112.1 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 50 70.5 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 233 431.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 4 65.6 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 43 111.4 25.6 0.00 (30 Economies) Figure – Trading across Borders in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 84.10: Thailand (Rank: 57) 82.75: Malaysia (Rank: 61) 69.97: Regional Average (East Asia & Pacific) 69.39: Philippines (Rank: 99) 66.59: Indonesia (Rank: 112) 62.98: Lao PDR (Rank: 124) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Thailand – Time and Cost Time Cost 60 233 250 223 51 50 50 200 40 Time (hours) Cost (USD) 150 30 97 100 20 11 43 50 10 4 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 51   Doing Business 2018 Thailand Figure – Trading across Borders in Thailand – Time and Cost Time Cost 60 233 250 223 51 50 50 200 40 Time (hours) Cost (USD) 150 30 97 100 20 11 43 50 10 4 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Thailand Characteristics Export Import Product HS 84 : Nuclear reactors, boilers, machinery and mechanical HS 8708: Parts and accessories of appliances; parts thereof motor vehicles Trade partner China Japan Border Laem Chabang port Laem Chabang port Distance (km) 129 129 Domestic transport 2 2 time (hours) Domestic transport 147 147 cost (USD) Details – Trading across Borders in Thailand – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 18.2 90.2 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 51.0 132.4 Import: Clearance and inspections required by customs authorities 28.2 106.2 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 50.2 126.4 Details – Trading across Borders in Thailand – Trade Documents Export Import Page 52   cost (USD) Doing Business 2018 Thailand Details – Trading across Borders in Thailand – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 18.2 90.2 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 51.0 132.4 Import: Clearance and inspections required by customs authorities 28.2 106.2 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 50.2 126.4 Details – Trading across Borders in Thailand – Trade Documents Export Import Bill of lading Bill of lading Terminal handling receipts Commercial invoice Commercial invoice Packing list Packing list Delivery order Customs declaration Customs declaration Certificate of origin Import license Technical standards certificates Technical standards certificates SOLAS certificate SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees Page 53   economies the data are also collected for the second largest business city. SOLAS certificate SOLAS certificate Doing Business 2018 Thailand Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value THB 371,999.00 Court name Bangkok Civil Court City Covered Bangkok East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Time (days) 420 565.7 577.8 164.00 (Singapore) Cost (% of claim value) 16.9 47.3 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 8.5 7.9 11.0 15.50 (Australia) Figure – Enforcing Contracts in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 67.91: Thailand (Rank: 34) 66.61: Malaysia (Rank: 44) 56.22: Lao PDR (Rank: 97) Page 54   of judicial processes Quality Business Doing index (0-18) 2018 Thailand 8.5 7.9 11.0 15.50 (Australia) Figure – Enforcing Contracts in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 67.91: Thailand (Rank: 34) 66.61: Malaysia (Rank: 44) 56.22: Lao PDR (Rank: 97) 53.09: Regional Average (East Asia & Pacific) 47.23: Indonesia (Rank: 145) 45.96: Philippines (Rank: 149) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Thailand – Time and Cost Time Cost 1200 80 70.3 962 70 1000 Cost (% of claim value) 60 800 47.3 Time (days) 50 565.7 37.3 577.8 600 40 443 31.6 31.0 403.2 425 420 30 400 21.5 16.9 20 200 10 0 0 East Asia & Indonesia Lao PDR Malaysia OECD high income Philippines Thailand Pacific Figure – Enforcing Contracts in Thailand and comparator economies – Measure of Quality Thailand 2.5 2 1 3 Indonesia 2.5 1.8 0.6 3 Lao PDR 2.5 2 0 1 Malaysia 2.5 3 2.5 4 Philippines 2.5 1.5 0.5 3 OECD high income 2.5 2.9 2 3.6 East Asia & Pacific 2.2 2 1.3 3 0 2 4 6 8 10 12 Page 55   14 East Asia & Indonesia Lao PDR Malaysia OECD high income Philippines Thailand Pacific Doing Business 2018 Thailand Figure – Enforcing Contracts in Thailand and comparator economies – Measure of Quality Thailand 2.5 2 1 3 Indonesia 2.5 1.8 0.6 3 Lao PDR 2.5 2 0 1 Malaysia 2.5 3 2.5 4 Philippines 2.5 1.5 0.5 3 OECD high income 2.5 2.9 2 3.6 East Asia & Pacific 2.2 2 1.3 3 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Thailand Indicator Time (days) 420 Filing and service 60 Trial and judgment 260 Enforcement of judgment 100 Cost (% of claim value) 16.9 Attorney fees 10 Court fees 6.5 Enforcement fees 0.4 Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 3.0 Case management (0-6) 2.0 Court automation (0-4) 1.0 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Thailand – Measure of Quality Page 56   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Thailand Details – Enforcing Contracts in Thailand – Measure of Quality Answer Score Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 2.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 1.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 57   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Thailand 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or No consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 58   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Thailand Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Recovery rate (cents on the dollar) 68.0 35.4 71.2 93.1 (Norway) Time (years) 1.5 2.6 1.7 0.4 (Ireland) Page 59   Cost (% of estate) 18.0 20.6 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Thailand East Asia & OECD high Indicator Thailand Pacific income Overall Best Performer Recovery rate (cents on the dollar) 68.0 35.4 71.2 93.1 (Norway) Time (years) 1.5 2.6 1.7 0.4 (Ireland) Cost (% of estate) 18.0 20.6 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 12.5 7.0 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Thailand and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.64: Thailand (Rank: 26) 67.61: Indonesia (Rank: 38) 62.51: Malaysia (Rank: 46) 55.22: Philippines (Rank: 59) 40.78: Regional Average (East Asia & Pacific) 0.00: Lao PDR (Rank: 168) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Thailand – Time and Cost Time Cost 3 32.0 35 2.6 2.7 2.5 30 21.6 25 Cost (% of estate) Time (years) 2 20.6 1.7 1.5 18.0 20 1.5 1.1 15 1.0 1 10.0 9.1 10 0.5 5 0 0 East Asia & Indonesia no practice Malaysia OECD high income Philippines Thailand Pacific Lao PDR Figure – Resolving Insolvency in Thailand and comparator economies – Measure of Quality Thailand 5 2.5 2 3 Page 60   Indonesia 5 3 2 0.5 East Asia & Indonesia no practice Malaysia OECD high income Philippines Thailand Pacific Lao PDR Doing Business 2018 Thailand Figure – Resolving Insolvency in Thailand and comparator economies – Measure of Quality Thailand 5 2.5 2 3 Indonesia 5 3 2 0.5 Lao PDR 2 2 0 0.5 Malaysia 2 2 2 0 Philippines 5.5 2.5 3 3 OECD high income 5.4 2.8 2.3 1.9 East Asia & Pacific 3.7 2.3 1.2 1 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Thailand and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 90 81.3 80 68.0 70 64.7 60 50 40 35.4 30 21.3 20 10 0.0 0 Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Details – Resolving Insolvency in Thailand Indicator Answer Explanation Proceeding reorganization Mirage management will initiate reorganization as it serves to preserve the value of the hotel and keep the business; in addition, there is an opportunity under the reorganization process to compromise debts with creditors. As specified in Section 90/12 (6) of the Bankruptcy Act B.E. 2483, no secured creditors shall enforce payment of debt against the asset which is security. Outcome going concern The reorganization plan will be approved and the hotel keeps operating as a going concern. Time (in years) 1.5 The reorganization procedure will approximately take 1.5 years in total. After Mirage's petition to initiate reorganization, it takes around 4 months for the court to review the case, proceed with inquiries to relevant parties to examine the grounds for business reorganization, order the beginning of the reorganization proceeding and appoint an official Page 61   receiver overseeing the entire process. Pursuant to Section 90/17, the Court would appoint Thailand Indonesia Lao PDR Malaysia Philippines East Asia & Pacific Doing Business 2018 Thailand Details – Resolving Insolvency in Thailand Indicator Answer Explanation Proceeding reorganization Mirage management will initiate reorganization as it serves to preserve the value of the hotel and keep the business; in addition, there is an opportunity under the reorganization process to compromise debts with creditors. As specified in Section 90/12 (6) of the Bankruptcy Act B.E. 2483, no secured creditors shall enforce payment of debt against the asset which is security. Outcome going concern The reorganization plan will be approved and the hotel keeps operating as a going concern. Time (in years) 1.5 The reorganization procedure will approximately take 1.5 years in total. After Mirage's petition to initiate reorganization, it takes around 4 months for the court to review the case, proceed with inquiries to relevant parties to examine the grounds for business reorganization, order the beginning of the reorganization proceeding and appoint an official receiver overseeing the entire process. Pursuant to Section 90/17, the Court would appoint the person who is nominated by Mirage as the plan preparer if suitable, which could take approximate 3 months. Creditors may file an application for repayment of debts for business reorganization within one month after the order of appointment of the plan preparer is published under Section 90/26. As specified in Section 90/43, within 3 months after the appointment, the plan preparer is required to submit the reorganization plan to the official receiver and creditors. In practice it will take around 1 years to prepare the creditor list, draft and vote the plan taking consideration of all possible objections and corresponding amendments to the plan. After the reorganization plan is approved by creditors and verified by the court, the implementation of the plan may take additional 6 months or more until BizBank is repaid some or all of the money owed to it. Cost (% of 18.0 The costs associated with the case would amount to approximately 18%. Cost incurred estate) during the entire insolvency process mainly include lawyer fees (7%), the fees of the insolvency representative (plan preparer) (5%), other professionals involved, such as accountants and financial advisors (5%) and court fees (1%). Recovery rate (cents on the 68.0 dollar) Details – Resolving Insolvency in Thailand – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 12.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (c) Debtor may 0.5 proceedings? le for reorganization only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are Page 62   available, but dollar) Doing Business 2018 Thailand Details – Resolving Insolvency in Thailand – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 12.5 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (c) Debtor may 0.5 proceedings? le for reorganization only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 5.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 3.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization Yes 1.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated Page 63   equally? Does the insolvency framework require that dissenting creditors in reorganization Yes 1.0 receive Doing at least as Business much as 2018 what they would obtain in a liquidation? Thailand Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 2.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost Page 64   (i) notice period for redundancy dismissal; (ii) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Thailand Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Thailand Answer Hiring Page 65   Fixed-term contracts prohibited for permanent tasks? Yes days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Thailand Details – Labor Market Regulation in Thailand Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 229.4 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 0.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 6.0 Paid annual leave for a worker with 5 years of tenure (working days) 6.0 Paid annual leave for a worker with 10 years of tenure (working days) 6.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 6.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 66   Third-party Doing approval Business 2018 if nine workers are dismissed? Thailand No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 15.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 30.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 50.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 31.7 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 90.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 6.0 Business Reforms in Thailand In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Thailand implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Thailand made starting a business easier by abolishing the requirement to obtain a company’s seal and eliminating the need for approval from the Labor Department of company work regulations. Getting Electricity: Thailand made getting electricity easier by streamlining procedures through the implementation of a geographic information system, eliminating the external site inspection. Registering Property: Thailand improved the reliability of its land administration system by implementing a geographic information system and by scanning maps for most of Bangkok. Page 67   Getting Credit: Thailand strengthened access to credit by adopting new legislation that broadens the scope of assets that can be Minimum contribution period for unemployment protection (months)? 6.0 Doing Business 2018 Thailand Business Reforms in Thailand In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Thailand implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Thailand made starting a business easier by abolishing the requirement to obtain a company’s seal and eliminating the need for approval from the Labor Department of company work regulations. Getting Electricity: Thailand made getting electricity easier by streamlining procedures through the implementation of a geographic information system, eliminating the external site inspection. Registering Property: Thailand improved the reliability of its land administration system by implementing a geographic information system and by scanning maps for most of Bangkok. Getting Credit: Thailand strengthened access to credit by adopting new legislation that broadens the scope of assets that can be used as collateral. Thailand now allows a general description of assets granted as collateral and allows the security interest to automatically attach to the proceeds of the original asset. It also establishes clear grounds for relief from a stay for secured creditors during reorganisation procedures and allows out-of-court enforcement of collateral. Protecting Minority Investors: Thailand strengthened minority investor protections by making it easier to sue directors in case of prejudicial related-party transactions, increasing shareholder rights and role in major corporate decisions and clarifying ownership and control structures. Paying Taxes: Thailand made paying taxes easier by introducing an automatic risk-based system for selecting companies for a tax audit. It also made paying taxes less costly by reducing the property transfer tax rate. Enforcing Contracts: Thailand made enforcing contracts easier by introducing a system that allows users to pay court fees electronically. Thailand also reduced enforcement times by increasing the automation and e ciency of enforcement processes. Resolving Insolvency: Thailand made resolving insolvency easier by changing the voting procedures for reorganization plans. DB2017 Starting a Business: Thailand made starting a business easier by creating a single window for registration payment and reducing the time to obtain a company seal. Getting Credit: Thailand improved access to credit information by starting to provide credit scores to banks and nancial institutions. Resolving Insolvency: Thailand made resolving insolvency easier by introducing new restructuring for small and medium-size companies and by streamlining provisions related to company liquidation. DB2015 Dealing with Construction Permits: Thailand made dealing with construction permits less time-consuming by introducing a fast-track approval process for building permits for smaller buildings. DB2014 Paying Taxes: Thailand made paying taxes less costly for companies by reducing employers' social security contribution rate. DB2013 Starting a Business: Thailand made starting a business easier by allowing the registrar at the Department of Business Development to receive the company’s work regulations. Paying Taxes: Thailand made paying taxes less costly for companies by reducing the pro t tax rate. DB2012 Page 68   Paying Taxes: Thailand made paying taxes less costly for companies by reducing the pro t tax rate. Doing Business 2018 Thailand DB2012 Starting a Business: Thailand made starting a business easier by introducing a one-stop shop. Registering Property: Thailand made registering property more expensive by increasing the registration fee. DB2011 Registering Property: Thailand made registering property more costly by repealing a 2-year temporary tax reduction for property transfers. Paying Taxes: Thailand temporarily lowered taxes on business by reducing its speci c business tax for 12 months. DB2010 Starting a Business: Thailand made starting a business easier by merging 2 registration procedures in a single application form. DB2009 Registering Property: Thailand reduced the cost to transfer property through provisional cuts in 2 taxes: the transfer fee and the speci c business tax. Protecting Minority Investors: Thailand strengthened investor protections by enhancing directors’ duties and increasing remedies in cases where related-party transactions harm the company. Paying Taxes: Thailand made paying taxes easier and less costly for companies by encouraging electronic ling and payment, by introducing an exemption from corporate income tax for companies with taxable income not exceeding 1.2 million baht and concessionary rates for newly listed companies and by reducing the special business tax on property transactions as well as property transfer and mortgage fees. Trading across Borders: Thailand reduced the time and number of documents for exporting and importing by upgrading the electronic data interchange system. DB2008 Trading across Borders: Thailand reduced the time required for trading across borders by implementing a system allowing electronic submission of customs declarations and simultaneous veri cation of data by di erent agencies. Page 69   Trading across Borders: Thailand reduced the time required for trading across borders by implementing a system allowing electronic submission Doing Business of customs 2018 declarations and simultaneous veri cation of data by di erent agencies. Thailand Page 70