Page 68 - E-BOOK

Land and building tax collection
The Land and Building Tax Act B.E. 2562 (2019) regulates provisions about tax collection from the land
and building owners, and sets the maximum tax rate to be calculated from appraised price. The maximum tax rate
depends on property type, and it will be collected at rate specified in the Land and Building Tax Act from 01 January
2020.

Later, the “Royal Decree on land and building tax reduction B.E. 2563 (2020) (Decree), issued pursuant to
Section 55 on 20 January 2020, valid from 01 January 2020 and hereafter, stipulates the land or building that is
NPAs that the asset management companies according to the laws on asset management Company (including BAM),
obtained not over 5 years, from the date that real estate belongs to the sector, will be reduced tax at rate of 90%
of payable taxes.

At present, it is unclear that the Ministry of Finance will consider extending the term of land and building
tax mitigation in 2021.

The risk management
The Company emphasizes the risk management, which is one of the main components of
good corporate governance; whereas the Company focuses on preparing and preventing any situations
and uncertainties that may occur and affect its ability to successfully achieve its goals and objectives.
The risk management is implemented both at the organization-level and at the activity-level. The Company
also cultivates the concept of risk management as part of its operation.

The Company integrates a risk management system into its business operation, whether at the
66 organization-level, department-level, and operative-level. The management information system allows executives
to monitor the risk status at each level; and to connect the risk management system with the Company’s database.
The Company also appoints directors and outside experts to the Risk Management committee, in accordance with
the Company’s policy, and in order to improve the overall efficiency of the Company’s risk management. The
Company develops and disseminates knowledge and understanding about the risk management to its employees
of every level continuously, in order to limit the risk to a level that is acceptable for the organization. Moreover,
the Company’s risk management aims at the business continuity management, in order to allow the Company to
conduct its business operation continuously.

The Company reviews, adjusts, and improves its risk management system continuously, in accordance
with the Company’s risk management policy/ guideline specified by the Board of Directors. Moreover, the risk
management system also plays an important role in determining and reviewing the Company’s risk management
policy/ guideline, as per the characteristics of the business operation that covers all the important risks of the
Company. The risk management system also specifies the strategies for managing, monitoring, and controlling the
organization’s risks at an acceptable level for the Company.

The Company realizes that risk management is a very important component of its business operation.
Therefore, the Company specifies the risk management guidelines that are appropriate and efficient, in accordance
with the characteristic of its business operation. And for this, the Company must study, evaluate, monitor, and manage
the risks systemically and continuously, in order to make sure that the Company’s executives will understand all
the related risks of the Company’s business operation, and will be able to manage those risks under the framework
specified by the Company.