Page 127 - TGIA_AnnualReport2015

Performance Report of the Accounting, Finance and
Investment Committee

1. Writing off Bad Debts from Reinsurance Recoveries Arising from the Flood in 2011
Due to the flood in 2011 causing a huge number of claims to insurance companies, the Thai General
Insurance Association had proposed to Ministry of Finance to prescribe criteria for writing off bad debts from
reinsurance recoveries in case that reinsurer(s) could not pay the reinsurance claims in whole and negotiated to
pay in part or in case that a settlement could not be reached so insurance companies had to proceed law suits,
which, in either case, insurance companies could not use the unpaid claims (bad debts) for tax exemption.
In this regard, the Office of Insurance Commission had already issued an Insurance Commission Declaration
on Asset Devaluation Consideration from Reinsurance Flood Claim in B.E. 2554, B.E. 2558, to support the
writing off criteria prescribed by the Revenue Department which was currently in the process of the Revenue
Department to promulgate a Ministerial Regulation.

2. Value-added Tax Base for Reinsurance
As the Thai General Insurance Association had written to the Revenue Department to kindly consider
about a Value-added Tax (VAT) base in relation to reinsurance, explaining and requesting the VAT base to be
calculated from premiums after taking out reinsurance discount (Net Premium Written), the Revenue Department
has issued an Announcement of Director-General of the Revenue Department on VAT (No. 207) Prescribing
Characteristics and Conditions of Remuneration Exempted from Tax Base Calculation, under Article 79(4) of the
Revenue Code amending the Revenue Code (No. 30) B.E. 2534 by adding a statement as (21) to Item 2 of the
Announcement of Director-General of the Revenue Department on VAT (No. 40) as follows:
“(21) The value of reinsurance service under Non-life Insurance laws, only the part of reinsurance discount
that a registered reinsurer had deducted from reinsurance premium(s),”

3. Withholding Tax Consideration
The Accounting, Finance and Investment Committee and the Insurance Accounting Club has jointly
considered to be an income-tax withholding representative for corporate insureds. In this regard, the Committee
has appointed EY Corporate Services Company Limited a consultant and conducted a research on guideline for
withholding tax, by taking into consideration the Revenue Department’s announcements and line of response
to consultations.
The Committee is currently in the stage of considering pros and cons and doing a cost comparison, to
make the practice clear. If there is a feasibility of being the income-tax withholding representative of income
payers, the Committee shall proceed to propose to the Revenue Department for further consideration.

4. A Training Course in Insurance Contracts for Non-life Insurance Accountants
Due to a plan of the Federation of Accounting Professions under the Royal Patronage of His Majesty the
King to enforce the International Financial Reporting Standard on Insurance Contract (IFRS 4) in 2016, in relation
to the preparedness for financial statements preparation, the OIC so asked insurance companies to have a trial
submission of financial statements and disclosure of information in the notes to financial statements in June,
2015.
As to assist member companies to be prepared, the Committee conducted a training course in Insurance
Contracts for Non-life Insurance Accountants covering a topic of Disclosure of Information in the Notes to
Financial Statements under the International Financial Reporting Standard on Insurance Contract (IFRS 4), on
Thursday 21 , May, 2015, from 8.00 – 16.30 hrs, at Cha-da Grand Ballroom 1, the Bangkok Cha-da hotel,
st
Ratchadaphisek Rd., Bangkok. The training course was honored to have Khun Nongluck Poomnoi from the EY
Corporate Services Company Limited as a lecturer. The course was accredited to be counted as accounting
and auditing hours by the Federation of Accounting Professions under the Royal Patronage of His Majesty the
King for 6.30 hours. There were 188 people participating in the course.

124 รายงานประจาปี 2558 | Annual Report 2015
�