Page 122 - TGIA_AnnualReport2012

Report of the Account, Finance and

Investment Committee

1. Non-Life Insurance Accounting Manual
The committee has commissioned the PriceWaterhouseCoopers ABAS Ltd. (PwC) to prepare the Non-Life

Insurance Accounting Manual to be distributed for use as reference to member companies.

2. Consultation on the Issue of Business Merger
The Thai General Insurance Association held a consultation meeting with the Revenue Department on the
problems and obstacles in business merger and on January 8, 2013, the Cabinet approved in principle the drafting
of a Royal Decree, issued under the Revenue Code on Tax Exemption (No….), B.E……and the Royal Decree, issued
under the Revenue Code on Expenses That Cannot Be Included in Calculation of Net Profit (No….), B.E. ….to
promote the business merger. The Decree shall exempt insurance companies that will merge business operation
from including insurance reserve in the calculation of income tax once the business operation has closed down.

3. Calculation of Insurance Premium Reserve, Claim Reserve and Accounting Methods.
Representatives of the Thai General Insurance Association met with officials of the Revenue Department to
provide clarification on the calculation of insurance premium reserve, claim reserve and accounting method to be
used in a process to amend Section 65 bis (1)(b) of the Revenue Code in pursuance to a request made by insurance
industry to the Revenue Department to accept the calculation of reserve, based on actuarial basis and accounting
standard.

4. Value Added Tax and Duty Stamp for Local Retention and Foreign Reinsurance
The Thai General Insurance Association has submitted a written request asking the Revenue Department to
review the practical guideline on value added tax calculation in the cases of reinsurance with local and foreign

reinsurers. The insurance industry is seeking an agreement from the Revenue Department to maintain the current
practice that discount from local and foreign reinsurance can be deducted from the reinsurance premium
immediately because the Revenue Office of Region 1 viewed that the reinsurance deduction should be included in
the tax base for reinsurance service.

120 รายงานประจ�าปี 2555 | Annual Report 2012