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Medical Professionals: Key Legislation

Thailand’s healthcare system operates under a robust legal framework designed to regulate the conduct, qualifications, and responsibilities of doctors, nurses, and other medical personnel. These laws aim to protect patient rights, uphold professional standards, and ensure public health safety. The primary legislation is administered by professional councils under the oversight of the Ministry of Public Health. This article provides a brief overview of the most relevant acts, their core provisions, and how they interact within the broader healthcare ecosystem.

1. Medical Profession Act, B.E. 2525 (1982)

This foundational law governs the practice of medicine by physicians. It establishes the Medical Council of Thailand as the regulatory body responsible for:

  • Issuing and revoking licenses to practice medicine.
  • Approving medical education programs and continuing professional development.
  • Enforcing ethical standards and disciplinary measures for misconduct.

The Act defines the scope of medical practice, prohibiting unlicensed individuals from performing medical acts. Violations can result in fines, imprisonment, or license suspension.

2. Professional Nursing and Midwifery Act, B.E. 2528 (1985), as Amended

This Act regulates the nursing and midwifery professions. It creates the Thailand Nursing and Midwifery Council, which oversees:

  • Licensing for nurses, midwives, and combined nursing-midwifery practitioners.
  • Setting standards for education, training, and the scope of practice.
  • Maintaining professional ethics and handling complaints or disciplinary actions.

The law delineates specific nursing duties, such as patient care, administration of treatments under medical supervision, and midwifery services. Unauthorized practice is penalized similarly to the Medical Profession Act.

3. Medical Facilities Act, B.E. 2541 (1998), with Amendments

Also known as the Sanatorium Act, this legislation governs the establishment and operation of hospitals, clinics, and other healthcare facilities. It requires:

  • Licensing for medical facilities.
  • Compliance with standards for infrastructure, equipment, and staffing.
  • Oversight to ensure safe and ethical service delivery.

This Act applies to institutions where doctors, nurses, and other personnel practice, imposing responsibilities on facility operators for overall compliance.

4. Act on the Practice of the Art of Healing, B.E. 2542 (1999)

This law regulates non-modern medical practices, including traditional Thai medicine, physical therapy, and applied arts of healing. It categorizes practices into branches (e.g., Thai traditional medicine, massage) and requires licensing for practitioners in these fields. It prevents overlap with modern medicine while allowing regulated traditional practices.

5. Other Supporting Legislation

  • Pharmaceutical Profession Act, B.E. 2537 (1994): Regulates pharmacists, often interacting with doctors and nurses in medication management.
  • Medical Device Act, B.E. 2551 (2008) and Narcotics/Pharmaceutical Laws: Govern equipment and controlled substances used by medical personnel.
  • Patient Rights Protections: Embedded in various acts and the National Health Act, B.E. 2550 (2007), ensuring informed consent and confidentiality.
  • Emerging protections: As of late 2025, drafts like the Act on Protection of Public Health Personnel B.E. …. aim to safeguard healthcare workers from violence or undue legal risks during duty.

Interactions Among These Laws

These acts form an interconnected system:

  • Professional vs. Institutional Focus: The Medical Profession Act, B.E. 2551 (2008)and Nursing/Midwifery Act, B.E. 2528 (1985) target individual practitioners’ qualifications and ethics, while the Medical Facilities Act, B.E. 2541 (1998)ensures the environments (hospitals/clinics) meet operational standards. Practitioners must comply with both—e.g., a licensed nurse working in an unlicensed facility could face indirect sanctions.
  • Scope of Practice Boundaries: Laws clearly define roles to prevent unauthorized acts (e.g., nurses cannot perform surgical procedures reserved for doctors). Overlaps are managed through collaboration, such as nurses administering treatments under physician orders.
  • Disciplinary and Legal Overlaps: Professional councils handle ethical breaches (e.g., license revocation), while civil liability (damages under the Civil and Commercial Code) or criminal charges (negligence under the Penal Code) are pursued in courts. A single incident, like malpractice, may trigger parallel proceedings.
  • Unified Oversight: All fall under the Ministry of Public Health, with councils promoting harmonized standards. This ensures multidisciplinary teams (doctors, nurses, technicians) function cohesively in patient care.

Understanding these laws is essential for medical personnel to avoid liability and maintain high standards. Resources from the Medical Council of Thailand and the Thailand Nursing and Midwifery Council provide detailed guidelines and updates.

Author: Panisa Suwanmatajarn, Managing Partner.

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Burden of Proof in Credit Card Fraud: A Landmark Thai Supreme Court Ruling

The Thai Supreme Court has reaffirmed a critical principle in credit card fraud cases: the burden of proof rests with the issuing bank, not the cardholder. This represents a departure from the general rule that the party asserting a claim bears the burden of proof. In doing so, the Court has clarified the allocation of risk between consumers and financial institutions in disputes involving unauthorized credit card transactions. Supreme Court Judgment No. 2624/2568 establishes an important precedent on liability for unauthorized credit card transactions and significantly strengthens consumer protection under Thai law.

Case Summary

This case arose from a claim filed by the issuing bank alleging that the cardholder failed to make payment on multiple outstanding debts arising from credit card transactions recorded under the cardholder’s account.

The cardholder consistently maintained that the credit card had not been used for the transactions recorded on the dates specified by the issuing bank. The cardholder further asserted that the credit card information had been unlawfully obtained and misused by a third party, as evidenced by a clear discrepancy between the signature appearing on the transaction records and the cardholder’s actual signature. The matter was subsequently reported to the inquiry officer.

man in gray sweater holding black smartphone

In the court of first instance, the cardholder was ordered to pay the outstanding debt. On appeal, although both parties sought review of the judgment, the Court of Appeal upheld the cardholder’s liability and increased the amount payable, declining to consider the defense of unauthorized use on the grounds that it had not been properly raised before the Court of First Instance.

The Supreme Court reversed the lower courts’ rulings, holding that the burden of proof properly rested with the issuing bank, given its superior control over credit card security measures and specialized expertise in transaction authorization systems. As the issuing bank failed to discharge this burden, the claim was dismissed and the cardholder was found not liable. The Court further noted that both the issuing bank and the merchant bore partial responsibility for failing to conduct adequate verification and to implement appropriate preventive measures.

The Burden of Proof Issue

Once credit card fraud is alleged, the key issue is whether the credit card system issued by the bank was sufficiently secure against copying or counterfeiting, and consequently, which party bears the burden of proof.

The Supreme Court held that matters relating to credit card security concern manufacturing, design, and operational processes that fall within the issuing bank’s specific knowledge and control. Accordingly, pursuant to Section 29 of the Consumer Case Procedure Act B.E. 2551 (2008), the burden of proof rests with the issuing bank.

In this case, the issuing bank failed to adduce technical or expert evidence demonstrating the adequacy of its credit card security system. Moreover, evidence showed that other cardholders had lodged similar complaints involving counterfeit cards. As a result, the issuing bank failed to discharge its burden of proof.

Key Impact on the Consumer Protection Sector

1. Shift of the Burden of Proof

The burden of proof is shifted from the cardholder to the issuing bank, as the issuing bank possesses specialized knowledge and expertise in credit card systems and transaction security. Accordingly, cardholders are not required to prove technical matters beyond their reasonable capacity.

2. Enhancement of Bank Security Standards

Following this judgment, issuing banks are required to substantiate claims regarding system security with concrete technical evidence, rather than relying solely on general assertions or internal standards.

3. Promotion of Consumer Confidence

The judgment reinforces consumer protection based on principles of fairness, enhances public confidence in digital financial systems, and supports broader economic activity.

4. Precedent Value

This judgment establishes an important precedent affirming that issuing banks are responsible for implementing effective fraud prevention measures and ensuring the security of credit card systems. Future disputes involving credit card fraud may rely on this judgment in assessing bank liability.

Conclusion

Thai Supreme Court Judgment No. 2624/2568 marks a significant advancement in consumer protection law by placing the evidentiary burden on issuing banks in cases involving electronic payment fraud. The judgment reinforces fairness in the assessment of contractual obligations, strengthens protection for cardholders, and places increased pressure on financial institutions to enhance their security, authentication, and fraud monitoring systems.

Author: Panisa Suwanmatajarn, Managing Partner.

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DBD Intensifies Crackdown on Illegal Businesses: Public Urged to Avoid Nominee Arrangements and Mule Accounts

As of December 2025, the Department of Business Development (DBD)’s Division for the Prevention and Suppression of Illegal Businesses continues to ramp up its efforts to combat unlawful practices, particularly the use of nominee shareholders and juristic person mule accounts. Following the Division’s establishment in October 2025 and the subsequent rollout of stricter measures, the public and business operators are strongly advised to strictly comply with Thai laws to avoid severe legal consequences.

The DBD has emphasized that certain high-risk groups must exercise extra caution when involved in company registrations or shareholding. Registering a company or holding shares in circumstances that raise red flags—such as links to suspicious networks or lack of genuine business intent—can lead to suspicions of acting as a nominee or facilitating mule accounts, both of which are serious violations.

Furthermore, the Department is closely monitoring cases where companies appear to lack real operational substance, such as those without proper financial trails, active business activities, or verifiable capital sources. Foreign nationals or entities attempting to control Thai companies through hidden ownership structures are particularly at risk of investigation.

In cases where discrepancies arise—such as mismatches between reported shareholders and actual control, or unusual transaction patterns—companies and individuals involved may be required to clarify their positions promptly. Failure to demonstrate legitimate business operations could result in legal action, including fines, company dissolution, or criminal charges.

The DBD reiterates that nominee arrangements, where Thai nationals hold shares on behalf of foreigners to bypass foreign ownership restrictions, undermine economic fairness and national security. Similarly, registering juristic persons primarily to open bank accounts for fraudulent purposes erodes public trust and facilitates crime.

To protect yourself and ensure compliance:

  • If you are a shareholder or director, actively participate in the company’s operations and maintain proper records.
  • Avoid agreeing to hold shares or register companies on behalf of others without a full understanding and genuine involvement.
  • Businesses should regularly review their structures for transparency and report any suspicious approaches immediately.

The Division is committed to fostering a transparent and equitable business environment. Violations not only harm the economy but also carry heavy penalties. Citizens are encouraged to correct any irregular arrangements voluntarily and seek guidance from the DBD to align with the law.

For our earlier article on the establishment of the Division, refer to https://thelegal.co.th/2025/10/14/department-of-business-development-establishes-division-to-combat-illegal-business-practices/ : Department of Business Development Establishes Division to Combat Illegal Business Practices.

Related Article: https://thelegal.co.th/2025/10/14/department-of-business-development-establishes-division-to-combat-illegal-business-practices/

Author: Panisa Suwanmatajarn, Managing Partner.

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Quick Big Win Program: Strengthening Thai SMEs Through Integrated Financial and Tax Measures

The Cabinet has approved a comprehensive policy package under the “Quick Big Win” Program designed to strengthen small and medium-sized enterprises (SMEs), which form a cornerstone of Thailand’s national economy. With an allocated budget of THB 21.75 billion, the program delivers immediate and measurable economic outcomes through enhanced access to financing, reduced financial burdens, and improved SME competitiveness.

The program is implemented in coordination with relevant government agencies and state-owned financial institutions to ensure efficient and timely execution of all measures.

Policy Rationale

The policy framework provides Thai SMEs with essential support to facilitate economic recovery and sustain their vital role in driving production, employment, and investment. The program addresses critical economic challenges, including:

  • Escalating operational costs
  • Intensified competition from foreign businesses
  • Ongoing liquidity constraints affecting SME operations

Key Program Components

I. Financial Measures: Strengthening SME Liquidity

  1. SMEs Quick Big Win Credit Guarantee Program

Implemented by the Thai Credit Guarantee Corporation (TCG) with a budget of THB 10.5 billion, this program enables SMEs to access timely financing from financial institutions at competitive interest rates. The program minimizes additional fees beyond standard guarantee charges, thereby reducing both direct and indirect burdens for SMEs and participating financial institutions.

The program comprises three distinct components:

Credit Guarantee Program for General SMEs (SMEs Go Big)
Provides credit guarantees to general SME operators, facilitating access to adequate financing from financial institutions to support business operations and enhance lender confidence.

Credit Guarantee Program for Micro SMEs (SMEs Smart Win)
Offers tailored credit guarantees for micro-SMEs, enabling small-scale entrepreneurs to obtain formal funding with reduced barriers and improved financial inclusion.

Credit Guarantee Program for Contractors and Procurement-Related SMEs (SMEs Quick LG)
Supports SMEs engaged in construction, procurement, or contracting activities with government agencies, state-owned enterprises, and private sector entities through credit guarantees for Letter of Guarantee (LG)-based financing.

  1. Additional Financial Support Programs

Low-Interest Business Revival Loans by Government Savings Bank (GSB)
This initiative supports the revitalization of Thai businesses under the “Reinvent Thailand” framework, with eligibility criteria and loan conditions established in consultation with the Thai Bankers’ Association, the Thai Chamber of Commerce, and the Federation of Thai Industries.

Sustainable Thai Credit Program (Phase 3) and SME Thai Chaiyo Loan by Bank for Agriculture and Agricultural Cooperatives (BAAC)
These programs provide targeted financial support to SMEs while promoting sustainable business practices.

Export Market Expansion Support by EXIM Bank
This program assists Thai SMEs in expanding into international markets without requiring government budget compensation.

II. Tax Measures: Promoting Fair Competition

1.    Revenue Department Initiatives

      e-Tax Project

Promotes SME adoption of electronic tax systems through support from larger corporate partners. The Revenue Department provides   

tax incentives, expedited VAT refunds, and compliance certification for eligible SMEs.

Fast Track Tax Refunds

Streamlines and accelerates corporate income tax refunds for low-risk taxpayers through a centralized Fast Track system utilizing   

PromptPay transfers.

2.   Customs Department Initiative

De Minimis Value (DMV) Adjustment
Effective 1 January 2026, import duties will be imposed on all goods purchased through online platforms from the first baht. This measure ensures a level playing field and enhances the competitiveness of domestic businesses.

III. Additional Support Measures

PromptBiz for Government Procurement
Connects government procurement and payment data with financial institutions, enabling SME contractors to access secure and expedited financing through verified contract and payment information.

SME Incentives in Public Procurement
Certified SMEs with annual revenue up to THB 500 million and e-Tax compliance receive additional scoring advantages in government contract evaluations, promoting equitable access to procurement opportunities and encouraging tax compliance.

Thai E-Commerce Platform Development
To reduce reliance on foreign platforms with high transaction fees, the government plans to establish a domestic e-commerce platform. This initiative will empower SMEs and local entrepreneurs, including agricultural producers, to conduct digital trade efficiently and contribute to national economic growth.

Program Benefits

The Quick Big Win Program delivers three primary benefits:

  • Enhanced Liquidity for SMEs Across Key Segments – Improved access to working capital and operational funding
  • Improved Competitiveness and Operational Efficiency – Reduced costs and streamlined administrative processes
  • Expanded Opportunities and Access to Funding – Broader participation in government procurement and export markets

Current Program Status

Following the dissolution of Parliament, the Quick Big Win Program remains fully operational. As the program received Cabinet approval on 2 December 2025, its implementation continues under the authority of the relevant government agencies and state-owned financial institutions in accordance with Cabinet resolutions.

Conclusion

The Quick Big Win Program represents a comprehensive governmental approach to strengthening Thai SMEs amid persistent economic challenges. By integrating credit guarantees, low-interest financing, tax facilitation, and fair-trade measures, the program directly addresses liquidity constraints while building long-term competitive capacity. Coordinated implementation among government agencies and state financial institutions ensures effective and timely delivery of support. These integrated measures expand access to funding, promote fair competition, and encourage digital transformation and sustainable business practices. The program reinforces the critical role of SMEs in sustaining production, employment, and investment, thereby contributing to Thailand’s economic recovery and long-term sustainable growth.

Author: Panisa Suwanmatajarn, Managing Partner.

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Institutional Cooperation Between the DIP and Thai FDA: A New Framework for Health Product Innovation

On 8 September 2025, the Department of Intellectual Property (“DIP”) and the Thai Food and Drug Administration (“Thai FDA”) entered into a Memorandum of Understanding (“MOU”) to enhance cooperation on patent capacity building and regulatory governance for health products. Recognizing patents as a fundamental legal mechanism for protecting innovations from unauthorized imitation, this initiative aims to strengthen Thailand’s health product industry, promote exports, and enhance global competitiveness.

Key Areas of Cooperation

Under the MOU, the two authorities will collaborate to integrate intellectual property protection with regulatory oversight across the product lifecycle:

  • DIP: The DIP will provide access to comprehensive, accurate, and up-to-date patent and intellectual property information to support innovation planning, research and development (“R&D”), and strategic decision-making.
  • Thai FDA: The Thai FDA will promote regulatory compliance and health product registration knowledge, particularly in relation to medicines and other regulated health products, and support coordination with patent-related processes where relevant.
  • Joint Initiatives: Both authorities will engage in technical and academic cooperation, including expedited registration of patents, petty patents, and trademarks relating to medicines and health products through the DIP’s Fast Track services.

Implementation Plan for 2026

To ensure practical and measurable outcomes, the MOU establishes concrete implementation measures for 2026, including:

  • The exchange of information relating to health product registration and patent applications to improve efficiency and policy coordination;
  • Joint training programs on patent information searches, covering both theoretical and practical aspects, to strengthen integrated operational capacity; and
  • The deployment of patent expiration and near-expiration alert systems to ensure that rights holders receive advance notification, enabling timely patent renewal and continued product protection.

The initial phase of implementation will focus on pharmaceutical products as a pilot area, with the scope potentially expanding to other health products regulated by the Thai FDA in subsequent phases.

Key Benefits for Businesses

The integration of data and workflows between the DIP and the Thai FDA is expected to generate tangible benefits for businesses operating in Thailand’s health product sector, including:

  • Faster and more efficient access to regulatory and intellectual property-related public services;
  • Improved alignment between patent strategies and regulatory approval pathways; and
  • Enhanced support for R&D, intellectual property protection, and commercialization of health products in both domestic and international markets.

Conclusion

The MOU between the DIP and the Thai FDA represents a significant advancement toward closer integration of intellectual property protection and regulatory governance for health products in Thailand. By strengthening institutional coordination, streamlining information exchange, and aligning patent management with regulatory processes, the framework establishes concrete implementation measures for 2026 While the initial phase provides a clear implementation roadmap, the cooperation plans for subsequent phases have not yet been announced. Accordingly, further developments and any expansion of the scope of cooperation will need to be closely monitored

Author: Panisa Suwanmatajarn, Managing Partner.

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Thai Cabinet Approves Draft Regulation Adding PAT to List of Government Agencies Eligible for Administrative Legal Execution

The Thai Cabinet has approved the draft Ministerial Regulation Prescribing Government Agencies Authorized to Request Administrative Enforcement B.E. .…, as proposed by the Ministry of Transport. A key amendment under this draft regulation is the inclusion of the Port Authority of Thailand (PAT) among the government agencies authorized to submit requests for administrative execution to legal execution officers.

This amendment is expected to strengthen PAT’s authority to enforce administrative fines and execute payment-related administrative orders in accordance with applicable laws. It is also anticipated to enhance regulatory efficiency at major ports nationwide, thereby supporting port operations and improving service standards.

Background

As PAT is established as a state enterprise, it does not fall within the scope of the Administrative Procedure Act B.E. 2539 (1996) and has therefore been unable to directly request administrative execution by legal execution officers.

Consequently, when individuals or companies fail to comply with payment obligations arising from PAT’s orders, PAT has had limited means to enforce compliance. This limitation has resulted in delays and inefficiencies in executing payment orders, with numerous cases remaining unresolved due to the lack of direct enforcement authority.

PAT’s New Administrative Execution Authority

Designating PAT as an eligible government agency under this draft regulation will enable it to apply standard administrative execution procedures and significantly improve its ability to collect outstanding debts and enforce payment-related administrative orders in a manner comparable to other government agencies.

Once the regulation enters into force, PAT will be entitled to directly request the court to appoint legal execution officers to seize or sell assets of individuals or businesses that fail to comply with administrative orders requiring payment, including through public auction procedures.

Key Impact on the Private Sector and Business Operators

  1. Stricter compliance with PAT orders: Businesses must promptly comply with PAT’s fees, fines, and administrative orders to avoid enforcement by court-appointed execution officers.
  2. Expedited dispute handling: Businesses and investors will need to respond more promptly to administrative notices, as delays may lead to administrative execution proceedings.
  3. Clearer enforcement procedures: Enforcement actions such as asset seizure and auction will follow uniform, transparent procedures, enabling businesses to better anticipate outcomes.
  4. Enhanced internal compliance requirements: Companies may need to strengthen internal controls to ensure timely payments and avoid additional costs or enforcement measures.
  5. Reduced reliance on civil litigation: Enforcement will primarily proceed through administrative execution rather than civil court proceedings, while the right to challenge orders before administrative courts remains preserved.

Conclusion

This draft regulation represents a significant development in empowering PAT to function more effectively as a regulatory authority. By enabling PAT to request legal execution of payment-related administrative orders, the government aims to enhance enforcement efficiency and ensure stronger compliance. This change is expected to materially affect how private businesses interact with PAT, making enforcement processes clearer, more expeditious, and more predictable.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s Social Security Reform: From Draft to Implementation of the New Wage Base

Further to our previous article, “Thailand’s Social Security Reform” (https://thelegal.co.th/2024/12/16/thailand-social-security-reform/), which explained the draft Ministerial Regulation on the revision of the wage base for social security contributions, the Thai Cabinet has now approved the draft regulation prescribing the minimum and maximum wage rates to be used as the contribution base.

This development represents a significant milestone, as the regulation has progressed beyond the proposal stage and received formal endorsement, accompanied by clear implementation timelines.

Background and Key Changes

The approved regulation repeals Ministerial Regulation No. 7 B.E. 2538 (1995), which had maintained a fixed wage base of 1,650–15,000 baht per month for nearly three decades. This framework no longer accurately reflected prevailing wage levels, contemporary economic conditions, or inflationary trends.

The new regulation modernizes the system through a gradual increase in the maximum wage base while preserving the existing minimum threshold, thereby providing stakeholders with adequate time to adjust to the changes.

Phased Implementation of the New Wage Base

Phase 1: 1 January B.E. 2569 (2026) – 31 December B.E. 2571 (2028)

  • Minimum: 1,650 baht/month
  • Maximum: 17,500 baht/month

Phase 2: 1 January B.E. 2572 (2029) – 31 December B.E. 2574 (2031)

  • Minimum: 1,650 baht/month
  • Maximum: 20,000 baht/month

Phase 3: From 1 January B.E. 2575 (2032) onwards

  • Minimum: 1,650 baht/month
  • Maximum: 23,000 baht/month

Practical Implications

As discussed in our previous article, the revised wage base will result in higher contribution ceilings and, correspondingly, enhanced social security benefits particularly for employees whose earnings exceed the former cap. Concurrently, the phased implementation approach enables employers to manage increased contribution obligations in a predictable and manageable manner.

From a systemic perspective, this adjustment strengthens the long-term fiscal sustainability of the Social Security Fund and better positions it to address demographic shifts, including Thailand’s aging population.

Conclusion

With Cabinet approval now secured, the reform of Thailand’s social security wage base has transitioned from conceptual framework to actionable implementation. While the substantive elements of the reform remain consistent with the earlier draft, the confirmation of effective dates provides legal certainty for employers, employees, and policymakers alike.

This milestone represents a significant step forward in aligning Thailand’s social security system with current economic realities and international best practices.

Related Article: https://thelegal.co.th/2024/12/16/thailand-social-security-reform/

Author: Panisa Suwanmatajarn, Managing Partner.

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Tax: Understanding TISA – New Tax-Incentivized Individual Savings Account for Thai Equities

Thailand is advancing toward the implementation of the Thailand Individual Savings Account (TISA), a strategic tax-advantaged investment framework intended to redirect household savings into domestic equities and mutual funds while providing substantial personal income tax deductions. Drawing inspiration from Japan’s Nippon Individual Savings Account (NISA), TISA is positioned as a cornerstone of the government’s Quick Big Win policy under the fifth pillar, aimed at fostering long-term savings and revitalizing the Thai capital market.

Recently, the Ministry of Finance (MoF) has presented the TISA proposal to the Economic Policy Committee for initial approval, with a subsequent Cabinet review scheduled for December 9, 2025.  This follows in-principle endorsement from the Economic Cabinet earlier in the year, elevating the annual tax-deductible contribution ceiling to 800,000 baht.  Upon final approval, regulations from the Revenue Department and Securities and Exchange Commission (SEC) are anticipated to enable rollout for the 2026 tax year, covering income earned in 2025. Recent analyses indicate TISA could inject significant liquidity into the Stock Exchange of Thailand (SET), particularly benefiting high-dividend sectors such as banking, while enhancing market confidence amid global uncertainties.

Key Features of TISA (Based on Proposed and Approved Framework):

1.  Eligible Participants

       •  Thai resident individuals (natural persons only).

       •  Limited to one TISA account per taxpayer, administered through asset management companies (AMCs), commercial banks, or brokerage firms.

       •  No specified minimum age, though contributions require assessable income; aligns with existing retirement savings vehicles like Super Savings Funds (SSF) and Retirement Mutual Funds (RMF).

2.  Annual Tax-Deductible Contribution Limit

       •  Up to 800,000 baht per year, inclusive of contributions to qualifying mutual funds (e.g., RMF, SSF, and Thai ESG Funds – TESG).

       •  This limit supplements deductions from other long-term savings instruments, potentially allowing high earners to deduct over 1.5 million baht annually in aggregate.

3.  Eligible Investments

       •  Primarily SET- and mai-listed ordinary and preferred shares.

       •  Expanded to include mutual fund units (RMF, SSF, TESG), bonds, and select exchange-traded funds (ETFs) tracking Thai equities; foreign securities and non-listed assets excluded initially.

       •  Enhanced incentives for sustainable investing: A 1.2x deduction multiplier for TESG contributions targeting companies with strong Environmental, Social, and Governance (ESG) performance.

4.  Holding Period Requirement

       •  Minimum one calendar year for investments to qualify for full benefits, with potential extensions to five years in equity-specific tranches to promote long-term discipline.

       •  Premature withdrawals or sales may result in retroactive disallowance of deductions, plus applicable penalties and interest.

5.  Tax Treatment of Gains

       •  Capital gains, dividends, and investment income within the TISA account are proposed to be fully exempt from personal income tax, mirroring NISA’s structure.

       •  This exemption applies post-holding period, providing a structural edge over standard taxable brokerage accounts.

6.  Lifetime or Cumulative Cap

       •  No fixed lifetime limit proposed, offering greater flexibility than Japan’s NISA (which caps cumulative investments at 18–60 million yen depending on the variant); however, annual caps ensure fiscal prudence.

What Stakeholders Should Prepare Immediately:

1. Individual Investors and High-Net-Worth Clients

•  Assess 2025 taxable income to project 2026 contribution capacity, integrating TISA with SSF/RMF/TESG for optimized deductions.

•  Curate a diversified portfolio of SET-listed dividend stocks (e.g., banking sector leaders) and TESG funds, prioritizing ESG-aligned assets for the 1.2x multiplier.

•  Initiate account setup with SEC-approved providers by Q1 2026; monitor MoF announcements for exact launch protocols.

•  Engage certified financial planners to model scenarios, factoring in the one-year minimum hold and potential government co-contributions.

2. Financial Institutions and Brokerage Firms

•  Expedite TISA-compliant platform integrations for account opening, transaction tracking, and automated tax reporting.

•  Develop compliance frameworks for the one-account rule and holding period enforcement, including penalty computation tools.

•  Launch targeted campaigns highlighting tax-exempt dividends and ESG multipliers to attract retail inflows, estimated to boost market liquidity significantly.

3. Listed Companies and Investor Relations Teams

•  Bolster retail-focused disclosures, emphasizing dividend policies and ESG metrics to capitalize on TISA-driven domestic demand.

•  Anticipate heightened scrutiny on long-term value creation, aligning with the SET’s Jump+ initiative for enhanced governance.

4. Tax Practitioners and Certified Financial Planners

•  Revise advisory models to incorporate TISA’s 800,000-baht layer and ESG enhancements, ensuring clients understand irrevocable commitments.

•  Prepare for inter-scheme coordination, as TISA may phase in as a successor to maturing SSF programs by end-2025.

Key Takeaways:

•  TISA establishes an 800,000-baht annual tax deduction for Thai equities and qualifying funds, with tax-exempt gains post-holding period and a 1.2x ESG multiplier, poised for Cabinet approval on December 9, 2025.

•  By promoting one-year-plus investments, it cultivates financial discipline and could sustain SET liquidity, especially in dividend-rich sectors, amid foreign inflow volatility.

•  High earners stand to realize compounded tax savings exceeding 200,000 baht annually when layered with existing vehicles, underscoring the need for proactive portfolio alignment.

•  Stakeholders must prioritize system readiness and education by early 2026 to harness TISA’s potential in fortifying Thailand’s retail investor ecosystem and economic resilience.

TISA signifies a transformative policy pivot, channeling public savings into sustainable market growth while mitigating reliance on external capital. Prudent early adoption, grounded in rigorous planning, will maximize its fiscal and wealth-building advantages.

Author: Panisa Suwanmatajarn, Managing Partner.

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Draft Climate Change Act: Full Overview with Detailed Emissions Trading System (ETS) Explanation

Thailand is preparing to introduce one of the most comprehensive climate frameworks in ASEAN — the Draft Act on Climate Change B.E. … (the “Draft Act”). The Cabinet approved the draft in principle in 2025, and it is expected to pass Parliament and enter into force in early 2027 (B.E. 2570). Once enacted, the Act will serve as the primary legal instrument for achieving Thailand’s updated NDC 3.0 targets, including carbon neutrality by 2050 and net-zero greenhouse gas (GHG)emissions by 2065, practically aligning with earlier aspirations for net-zero by 2050.

The Draft Act is designed to complement the forthcoming Clean Air Act, creating a twin-pillar system addressing both greenhouse gas mitigation and air pollution control.

  1. Overview of the Draft Act

The Draft Act consists of 205 sections across 14 chapters and establishes the following core legal mechanisms:

  • Legally binding national climate targets and sectoral pathways;
  • A centralized governance framework, including a National Climate Change Committee (NCCC) chaired by the Prime Minister;
  • Five climate-related market-based and financial mechanisms:
    • Climate Fund,
    • Mandatory emissions reporting and an Emissions Trading System (ETS),
    • A proposed Thailand Carbon Border Adjustment Mechanism (CBAM),
    • domestic carbon tax, and
    • Thailand Taxonomy for sustainable finance; and
  • Robust monitoring, reporting, verification (MRV), and enforcement provisions
  • Key Requirements for the Private Sector

The Draft Act imposes binding obligations on covered entities and large emitters, including:

• Mandatory greenhouse gas (GHG) emissions reporting;

• Participation in the ETS (for regulated installations);

• Compliance with carbon tax and CBAM obligations;

• Submission of verified emissions and activity data;

• Exposure to audits and administrative sanctions; and

• Alignment with sustainability-related disclosure and taxonomy requirements.

  • Detailed Explanation of the Emissions Trading System (ETS)

The ETS, codified in Chapter 8 (Sections 74–100), establishes a mandatory national cap-and-trade system and serves as the central economic mechanism under the Draft Act. It is designed to drive cost-effective emission reductions through a market-based approach. A national emissions cap will be set in accordance with Thailand’s climate targets, and tradable emissions allowances will be allocated through free allocation and/or auction. Entities that emit beyond their allocated allowances will be subject to fines.

  • Core Design

Under the ETS design, Thailand’s system aims to gradually reduce emissions through an annually declining national cap. The system will regulate approximately 300 large or strategically significant industrial facilities and will issue “allowances,” each representing one tonne of CO₂e. Covered entities must monitor their annual emissions and surrender sufficient allowances by 30 April of the following year to match their verified emissions.

During the initial phase (2028–2030), most allowances will be distributed for free to ease the transition for industry; however, this free allocation will decline over time, shifting toward a more market-based approach where entities will increasingly need to purchase or trade allowances. A reserve of 5–10% will be maintained to support new entrants, plant closures, or early-action performers.

  • Trading & Flexibility

The Draft Act permits flexibility mechanisms aimed at market efficiency:

  • Bilateral over the counter (OTC) and exchange-based trading.
  • Unlimited banking of surplus allowances.
  • Limited borrowing of future allowances (up to 10–20% of next year’s allocation)
  • Use of domestic and international offset credits, subject to a cap (approximately 5–10%)
  • MRV Requirements

MRV is a central component of the ETS, ensuring credibility and enforceability of emissions data. Regulated entities must:

  • Annual monitoring plans must be prepared and submitted.
  • Verified reports emissions reports must be submitted by 31 March each year.
  • Verification must be conducted by DCCE-accredited third-party bodies.
  • The DCCE may conduct random audits to ensure compliance and data accuracy.
  • Penalties

This Draft Act imposes criminal and administrative penalties according to the seriousness of the offence, including:

  • Fines of up to THB 5,000,000 or three times the benefit gained for false reporting;
  • Fines of up to three times the auction price for failure to surrender sufficient ETS allowances;
  • Fines of up to THB 5,000,000 or three times the benefit gained for failure to comply with carbon border adjustment requirements;
  • Imprisonment of up to three years and/or fines of up to THB 400,000 for violations of carbon tax enforcement; and
  • Fines of THB 10,000–100,000, plus daily fines for unregistered carbon credit operations.
  • Directors and responsible officers may also be liable for offences committed by a juristic person.
  • Benefits for the Private Sector
  • Policy certainty – Ensures consistent regulatory direction even amid government changes.
  • Competitive protection – Provides safeguards for businesses through Thailand’s CBAM framework.
  • Access to funding – Opens opportunities to Climate Change Fund grants and low-interest loans.
  • Export readiness – Supports compliance with international CBAM requirements, including EU and UK frameworks.
  • First-mover advantages – Rewards early adopters through carbon allowance sales and performance benchmarking.
  • What the Private Sector Needs to Prepare (2026–2028 Roadmap)
  • 2026: Foundational Preparation
  • Build robust Scope 1, 2 (and material Scope 3) GHG accounting to establish a reliable emission baseline.
  • Collect 2–3 years of historical activity data to support future reporting and verification.
  • Self-assess likelihood of falling within around 3,000 entities expected to be subject to mandatory emission reporting, or within around 300 entities covered under the ETS.
  • 2027: Strategic Planning and Readiness
  • Conduct marginal abatement cost curve (MACC) analysis to prioritize least-cost mitigation actions.
  • Participate in public hearings on upcoming regulations to stay aligned with emerging requirements.
  • Train staff or contract accredited verifiers to ensure MRV readiness.
  • 2028–2030: Alignment and Long-Term Integration
  • Develop 2030–2050 decarbonization roadmaps consistent with sectoral and national targets.
  • Budget for carbon-tax pass-through costs as carbon pricing mechanisms begin to take effect.
  • Map supply-chain embedded emissions, especially for CBAM-affected firms, to prepare for cross-border compliance.

As the Draft Act is still undergoing the legislative process, businesses should closely monitor regulatory developments to ensure timely preparation and alignment with the final requirements.

Conclusion

The Draft Act marks a significant step in Thailand’s climate governance, establishing a comprehensive national framework and introducing tools such as the ETS, carbon tax, CBAM, and Climate Fund. For businesses, the Draft Act presents both obligations and opportunities. Early preparation will enhance regulatory readiness, unlock financial incentives, and support international competitiveness.

Key Takeaways

Businesses in or trading with Thailand should view the next 18–24 months as a crucial period to prepare for this transformative legislation.

Thailand is rolling out a comprehensive, EU-style climate package, combining national targets, an ETS, a carbon tax, CBAM, a Climate Fund, and the Thailand Taxonomy.

Large emitters will be subject to mandatory reporting starting year 2027–2028, with enforceable carbon pricing expected around 2030.

The system rewards early action and protects domestic industry.

The years 2026–2027 is the decisive preparation and influencing window.

Author: Panisa Suwanmatajarn, Managing Partner.

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Reforming Thailand’s License Renewal System: Fee-Based Extensions and Broader License Coverage

Maintaining valid licenses is essential for uninterrupted business operations. However, the longstanding requirement to submit renewal applications each cycle has created procedural delays and unnecessary administrative burdens. To modernize and streamline the system, Thailand introduced the Royal Decree Requiring Licensees to Pay Renewal Fees Instead of Submitting Applications for License Renewal B.E. 2564 (2021) (the “Decree”), issued under the Licensing Facilitation Act B.E. 2558 (2015).

The Decree allows designated licenses to be renewed automatically upon payment of the prescribed fee—eliminating the need for repeated applications and marking a significant step toward reducing compliance complexity and improving regulatory efficiency.

Current Scope of the Decree

Under the existing framework, 11 categories of licenses qualify for renewal by fee payment, including:

  • Cosmetic notifications for the sale, import for sale, and manufacture of cosmetic products
  • Licenses for the operation of health establishments
  • Licenses for product standards inspection services

Expansion of Licensing Oversight

To further broaden the scope of eligible licenses and strengthen regulatory governance, on 25 September 2025, the Thai Cabinet approved the Draft Royal Decree Requiring Licensees to Pay Renewal Fees Instead of Submitting Applications for License Renewal (No. ..) B.E. .… (“Draft Royal Decree”).

The Draft Royal Decree expands the list of licenses subject to automatic renewal and authorizes regulatory officials to conduct operational inspections. These inspections are limited to monitoring purposes and do not impose additional substantive conditions on license renewal, which continues to be completed through fee payment alone.

Expanded License Categories

The Draft Royal Decree adds 23 additional license categories, significantly broadening regulatory coverage across various industries. Notable examples include:

  • Petty patent licenses – Licenses related to the registration and protection of inventions
  • Trademark registration – Licenses for registering trademarks and managing associated rights
  • Food production licenses – Licenses for manufacturing food products within the country
  • Food import licenses – Licenses for importing or bringing food products into Thailand

Multiple Fee Payment Channels

Regulatory authorities must provide accessible payment methods to facilitate compliance, including:

  • Service counters
  • Banks
  • Electronic payment platforms

These channels support faster renewals and promote broader adoption of the streamlined mechanism.

Expected Benefits

The Draft Royal Decree is expected to:

  • Expand the categories of licenses eligible for simplified renewal
  • Reduce administrative burdens and processing times
  • Ensure uninterrupted business operations
  • Improve efficiency in government revenue collection
  • Promote domestic and foreign investment by supporting continuous business activity
  • Enhance certainty and predictability for license-dependent businesses

Conclusion

The Draft Royal Decree represents a significant evolution in Thailand’s licensing framework. By expanding the range of license types and strengthening regulatory oversight while preserving a simplified renewal mechanism, the measure strikes an effective balance between rigorous governance and practical convenience. This reform ultimately contributes to a more transparent, predictable, and business-friendly regulatory environment.

Author: Panisa Suwanmatajarn, Managing Partner.

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