The COVID-19 crisis has posed questions for the insurance industry on a vast scale. From individuals who have actually contracted the virus, to those rendered unemployed by the economic crisis, to businesses that have been forced to close as a result of shutdown measures, almost no one has escaped loss of one form or another, and as the situation steadily returns to normal, increasing numbers of people are questioning whether  those losses are covered under insurance policies.

Dealing with the COVID-19 pandemic has taken top priority for almost every country in the world. In Thailand, even though the strength of the country’s health security measures has been ranked sixth-best globally, COVID-19 hit hard, and the country has only just begun to detail with the effects of the outbreak.    

As the world economy struggles to cope with the impact of the COVID-19 pandemic, many companies and other creditors are exploring options to manage non-collectible debts. However, the tax costs and consequences of different approaches to settling debts are often overlooked when they should be key considerations, and unwary creditors are at risk of unexpected surprises. This article will analyze some common debt settlement options and their tax consequences.Debt Offset

On April 16, 2020, the director general of the Thai Customs Department issued Notification No. 81/2563, which introduces new customs measures intended to facilitate the operations of importers during the COVID-19 pandemic. The new notification replaces and expands on a previous one (Notification No. 47/2563), issued in March 2020, which allowed importers of goods from China to submit photocopies of certificates of origin in certain circumstances, rather than originals, in order to qualify for a decrease in customs duties or duty exemption.

As the Thai government begins to gradually lift the restrictions that were implemented to minimize the health risks of the COVID-19 pandemic, the unprecedented economic impact of the disease continues to be felt across multiple sectors of the economy. Businesses have experienced a variety of challenges, including forced closures, supply chain disruptions, and severe declines in revenue as the number of customers has plunged. For the many businesses that lease space for their operations, one additional challenge is simply the ability to pay rent.

The intellectual property offices of Southeast Asia have implemented measures ranging from deadline extensions to expanded online services to cope with office closures and other issues brought about by the COVID-19 pandemic. Below, we summarize the responses in our jurisdictions. This information reflects the current status as of June 1, 2020, and is subject to change.Cambodia

On June 9, 2020, the Thai Cabinet approved a draft amendment to the Revenue Code to impose value-added tax (VAT) on e-service providers and e-platform operators with no presence in Thailand for payments received from users in Thailand. The VAT requirement is expected to apply to all forms of qualifying international e-service providers and e-platform operators, whether websites, smartphone applications, social media, or similar; and across a variety of businesses, from hotel booking sites to streaming media platforms.