Our comments are set out below for consideration.
1. The provision in respect of payment deductions under Clause 11 should be as agreed by the parties. It is worth noting that payment of service charges under Thai law would be subject to 3% withholding tax. However, we do not express any opinion on the tax implications under Double Taxation Agreements or other laws.
With regards VAT under Clause 12 please note that under Thai law services provided will be subject to 7% VAT and therefore service charges should be “exclusive” of VAT.
It is also worth nothing that services are not subject to stamp duty.
2. Singapore law as governing law, the parties can choose foreign law to govern their agreement but such law must not contravene Thai public policy and good morals, otherwise it is unenforceable, and such foreign law must be proven as a question of fact to the satisfaction of the Thai court, otherwise, the court will apply Thai law.
3. Similar to what we have previously advised on the agreement with TransAsia, resolution of disputes by arbitration is fair and acceptable. Perhaps add along the lines of “which cannot be resolved in good faith by agreement between the parties within [] working days of the dispute arising,” before the term “such dispute shall be finally referred to and settled by” and add along the lines of “in force at the date that the dispute was referred to arbitration” at the end, after “in accordance with SIAC rules.”
4. We do not have any issue with the addition of the language clause in Clause 16.
We hope this has helped with your enquiry and if we can be of any further help, please do not hesitate to contact us.
Kind regards
Our comments are set out below for consideration.
1. The provision in respect of payment deductions under Clause 11 should be as agreed by the parties. It is worth noting that payment of service charges under Thai law would be subject to 3% withholding tax. However, we do not express any opinion on the tax implications under Double Taxation Agreements or other laws.
With regards VAT under Clause 12 please note that under Thai law services provided will be subject to 7% VAT and therefore service charges should be “exclusive” of VAT.
It is also worth nothing that services are not subject to stamp duty.
2. Singapore law as governing law, the parties can choose foreign law to govern their agreement but such law must not contravene Thai public policy and good morals, otherwise it is unenforceable, and such foreign law must be proven as a question of fact to the satisfaction of the Thai court, otherwise, the court will apply Thai law.
3. Similar to what we have previously advised on the agreement with TransAsia, resolution of disputes by arbitration is fair and acceptable. Perhaps add along the lines of “which cannot be resolved in good faith by agreement between the parties within [] working days of the dispute arising,” before the term “such dispute shall be finally referred to and settled by” and add along the lines of “in force at the date that the dispute was referred to arbitration” at the end, after “in accordance with SIAC rules.”
4. We do not have any issue with the addition of the language clause in Clause 16.
We hope this has helped with your enquiry and if we can be of any further help, please do not hesitate to contact us.
Kind regards
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