Author: The Legal Co.,Ltd.

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Same-Sex Marriage: Latest Update on Registration Process at Overseas Thai Embassies and Consulates-General

On September 24, 2024, Thailand took a historic step forward towards equality by enacting the Same-Sex Marriage Act, officially amending the Civil and Commercial Code (CCC). Published in the Royal Gazette, this landmark legislation replaces gender-specific terms like “husband” and “wife” with gender-neutral terms such as “spouses” and “individual,” legally recognizing same-sex marriages. The law came into effect on January 23, 2025, following a 120-day grace period, and has been met with widespread public support.

The Same-Sex Marriage Act in Thailand not only allows same-sex couples to officially register their marriage under Thai law but also grants them a comprehensive range of rights and protections. These include, but are not limited to, the right to make medical decisions for a spouse, inheritance rights, adoption rights, joint asset management, social security and healthcare benefits, tax advantages, and more.

According to statistical reports released by the Department of Provincial Administration, over 1,754 same-sex couples registered their marriage on the very first day the Same-Sex Marriage Act took effect. The momentum continued on February 14, 2025, with more than 2,039 same-sex couples celebrating their love through legal marriage registration. This overwhelming response highlights strong public support for the Same-Sex Marriage Act and marks a significant milestone in Thailand’s journey towards inclusivity and equality.

photo of woman in wedding dress standing while holding hands

A frequently asked question is whether the Same-Sex Marriage Act applies to same-sex foreign nationals wishing to marry a Thai spouse. The answer is yes. Similar to traditional heterosexual marriage registration, the foreign partner must obtain a certificate of single status from their embassy, have it certified and legalized, and present it to the registrar at the civil registration office.

Whilst some authorities’ processes (like domestic registration of marriage) are well prepared for the enforcement of the Same-Sex Marriage Act, others will need to catch up. In particular, the registration process at Thai embassies and consulates abroad has remained outdated, relying on forms that use traditional gendered terms like “male” and “female.” To address this, the Cabinet has approved a Draft Ministerial Regulation proposed by the Ministry of Foreign Affairs (MFA) under the Family Registration Act B.E. 2478 (1935). This regulation aims to modernize the registration process, ensuring alignment with the Same-Sex Marriage Act and improving services for Thai citizens worldwide. The Ministerial Regulation, approved by the Cabinet, was published in the Royal Gazette on January 23, 2025, and has now come into force.

Key Revisions Proposed in the Ministerial Regulation:

  1. Unified Application Form: Previously, five separate application forms existed for different registration types. The new proposal consolidates these into a single form and removes gender-specific terms like “male” and “female,” ensuring compliance with the Same-Sex Marriage Act.
  2. Data Submission to Central Registration Bureau: After registration at overseas Thai embassies and consulates-general, registrars will submit details to the Central Registration Bureau through a computerized system for national database inclusion. If electronic submission is not possible, a certified registration copy will be sent to the Ministry of Foreign Affairs, which will forward it to the Ministry of Interior for processing.
  3. Revised Government Fees: Government fees will be updated to reflect the new process. The fee for a certified copy of the registration certificate will increase from 2 baht to 300 baht, and the fee for requesting information from the Central Registration Bureau will rise from 4 baht to 300 baht.

Conclusion:

The revisions to the registration process at overseas Thai embassies and consulates-general represent a significant step ensuring legal recognition of same-sex marriages domestically and internationally. By adopting gender-neutral language and unifying application forms, the Ministry of Foreign Affairs is aligning its procedures with the Same-Sex Marriage Act and contemporary societal norms.

While implementing these changes may require administrative adjustments, they are crucial to strengthening Thailand’s commitment to equality and inclusivity. These updates demonstrate the government’s efforts to adapt and ensure all citizens are treated with dignity and respect, regardless of gender or sexual orientation. Further amendments to existing regulations are expected to fully recognize the rights of same-sex couples and update laws to reflect current social standards.

Author: Panisa Suwanmatajarn, Motana Sumetsawat, Tanadol Rungruengnoravet, and Pannaphat Suwantharakorn

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Thailand : Transfer Pricing

1. Overview of Transfer  Pricing Regulations in ThailandTransfer pricing in Thailand is governed by
1. Thai Revenue Code
2. Ministerial Regulation  No. 369 (B.E. 2563) (2020) Issued under the Thai Revenue Code Regarding the Adjustment of Income and Expenses of Related Companies or Partnership
3. Ministerial Regulation No. 370 (B.E. 2563) (2020) Issued under the Thai Revenue Code Regarding the Revenue Threshold of Companies or Juristic Partnerships According to Section 71 ter paragraph 3
2. Whether aligned with BEPS?Yes, Thailand participates the Inclusive Framework on BEPS.
3. Scope and Applicability of Transfer Pricing RegulationsCompany or Jursitic Partnership (for juristic partnership, it includes limited partnership and registered ordinary partnership)
1. who proceeds a transaction with its related companies or juristic partnerships under Transfer Pricing Regulations (please see below the definition as specified in Item 5.); and
2. Such company or juristic partnership has revenue of more than 200 million THB; and
3. Subjects to disclose information regarding its related companies or juristic partnerships and their transactions by submitting a Disclosure Form to the Thai Revenue Department
4. Transactions Covered:Commercial or financial terms, agreements, or contracts involving sales, services, marketing, advertising, loans, financial assistance, or other commercial or finance transactions, both verbally and in writing.
5. Legal Definition of Related companies or juristic partnerships Under Transfer Pricing RegulationsTwo entities or more are considered as related companies or juristic partnerships if any of the following conditions are met:
1. An entity, either directly or indirectly, holds shares or partnership (contribution) with not less than 50% of the total shares or partnership (contribution) of another entity; or
2. A shareholder or partner of an entity holds shares or partnership (contribution) at 50% or more of its total shares or partnership (contribution) and such shareholder or partner holds shares or partnership (contribution) at 50% or more of the total shares or partnership (contribution) in another entity; or
3. An entity that has a capital, management, or control relationship with another entity and either of them cannot operate independently.
6. Recognized Transfer Pricing MethodsThailand applies six methods:
1. Comparable Uncontrolled Price Method
2. Resale Price Method
3. Cost Plus Method
4. Transactional Net Margin Method
5. Transactional Profit Split Method
6. Other Methods subject to notification to the Director General of the Thai Revenue Department
7. Data Used for comparison
to improve the company or juristic partnership’s incomes and expenses.		The tax assessor will use these data to assess the company or juristic partnership’s incomes and expenses;
Internal Data
1. Prioritize using internal data from transactions that occurred between the related companies or juristic partnerships with other third-party companies or juristic partnerships
External Data
2. If internal data is unavailable, external data from transactions of other third-party companies or juristic partnerships shall be used, regardless of whether the transactions are conducted in Thailand or outside and by incorporated entities under Thai or foreign laws
8. Transfer Pricing Audit Process and PenaltiesTransfer Pricing Audit Process
Documentation Review – Disclosure Form (Master Files) and Local Files which were requested by the tax assessor to be used for analysis.
1. Contractual Term of the Transaction
2. Functional Analysis : FAR
3. Characteristic of Property & Service
4. Economic Circumstances
5. Business Strategy
Remarks:
– Local Files refer to the documents or evidence used to analyze the contractual terms of the transactions
– All documentations must be submitted in Thai language
The Tax Assessor Examination – The tax assessor verifies Arm’s Length Price (ALP).
Adjustments – If pricing is incorrect, taxable income is adjusted.
Penalties for Non-Compliance
ViolationPenalty
Failure to file a Disclosure Form, providing a false declaration, or providing insufficient informationA fine not more than 200,000 THB
9. Reporting Deadlines and Compliance Timelines1. Disclosure Form: Within 150 days from the last day of the fiscal year by electronic filling or by hand-in submission
2. Local Files: The Revenue Department can request local files within 5 years from the Disclosure Form filing date, and the Local Files must be submitted within 180 days of receiving the first notification or 60 days of receiving subsequent notifications by the Thai Revenue Department

Source: International Comparison March 2025 : Antea

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PDPA: Personal Data in Medical Certificates Defined by the Medical Council

Thailand’s Personal Data Protection Act B.E. 2562 (2019) (PDPA), effective June 1, 2023, governs the handling of personal data, including sensitive health information, with exemptions for medical purposes. The Subcommittee under the Personal Data Protection Committee has addressed the Medical Council’s inquiry about its standardized medical certificate forms, balancing professional standards with privacy compliance. This analysis outlines the facts, the subcommittee’s rulings, and the compliance implications.

Factual Background:

The Medical Council, established under the Medical Profession Act B.E. 2525 (1982), regulates medical practice standards per Section 7, including two medical certificate forms: (1) a health check certificate (2561/2018 version) and (2) a driver’s license certificate (2564/2021 version). Each form has two parts: Part 1, completed by the patient (e.g., name, address, congenital diseases), and Part 2, completed by the doctor. Part 1 ensures accurate health history for first-time patients without prior records. The council seeks clarification on PDPA compliance for patient self-reported sensitive data, third-party disclosure by patients, and form improvements.

close up photo of a stethoscope

Subcommittee Decisions:

The subcommittee ruled on three issues:

  1. Patient Self-Reported Sensitive Data in Part 1
    • Healthcare facilities, as data controllers, collect health data (e.g., congenital diseases) under PDPA, Section 26(5)(a), exempt from consent when necessary for legal duties (e.g., Medical Profession Act B.E. 2525 (1982)), preventive medicine, occupational health, diagnosis, treatment, or healthcare system management. Alternatively, Section 24(3) applies for patient-doctor contractual obligations, or Section 26(5)(a) for professional confidentiality. The council’s forms—requiring patients to input and sign off on personal data like name, address, and health history—fit these exemptions. Collection is lawful if limited to what’s necessary for the certificate’s purpose (e.g., epilepsy history for driving safety, per transport regulations). For new patients lacking records, self-reporting ensures accuracy, avoiding misleading certificates. Thus, this aligns with PDPA, Sections 24 and 26, provided data is purpose-specific and proportionate, per Section 22.
  2. Disclosure to Third Parties by Data Subjects
    • The National Health Act B.E. 2550 (2019), Section 7, deems health data confidential, barring disclosure that harms the individual unless consented or legally mandated. PDPA Section 26 and Section 27(1) echo this, prohibiting controllers from disclosing health data without explicit consent, except under exemptions. However, neither law restricts data subjects (patients) from sharing their own data. PDPA Section 30 grants data subjects access to their data, implying freedom to disclose it (e.g., to employers, and authorities). Thus, patients can share their certificates with third parties without PDPA or National Health Act violations, as this is their prerogative, not the controller’s action.
  3. Recommendations for Certificate Forms
    • Health data’s sensitivity (potentially impacting rights and freedoms) requires recipients (e.g., employers, and agencies) to secure it per PDPA, Section 37. The subcommittee suggests the council add guidance on forms or issue best practices for certificate use, ensuring third parties handle data appropriately and align with collection purposes. This enhances compliance without altering the forms’ structure, maintaining their professional utility.

Implications for Compliance:

The council’s forms comply with PDPA by leveraging medical exemptions, requiring only necessary data, and allowing patient disclosure flexibility. Healthcare facilities must ensure purpose-driven collection, while third-party recipients bear security duties. Adding guidance strengthens the ecosystem, aligning professional standards with privacy protections.

Key Takeaways:

  • Exemptions Enable Self-Reporting: Patient data in Part 1 is lawful under Section 26(5)(a) or Section 24(3) for medical purposes, no consent is needed if necessary (Section 22).
  • Patient Disclosure Is Unrestricted: Patients can share certificates freely per Section 30, unbound by PDPA or National Health Act restrictions on controllers.
  • Guidance Enhances Security: Adding recommendations ensures third-party compliance with Section 37, safeguarding sensitive data.
  • Necessity Rules Collection: Data must match certificate purposes (e.g., driving safety), balancing medical needs with privacy.

This ruling affirms the council’s approach, integrating PDPA exemptions with medical practice while suggesting proactive steps to protect data downstream.

Author: Panisa Suwanmatajarn, Managing Partner.

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Investment Trends in Thailand in 2025: The Increase in Foreign Investment Reflecting Thailand’s Potential to Attract Global Investors

In the face of a rapidly evolving global economy, Thailand has demonstrated a clear commitment to becoming a leading investment hub in the region. With its robust strategic advantages, ongoing infrastructure advancements and attractive investment support initiatives, the Thai government is diligently working to position the country as a premier destination for global investors.

The Director-General of the Department of Business Development, Ministry of Commerce, recently announced a notable surge in foreign investment, with 181 permits issued under the Foreign Business Act B.E. 2542 (1999) in the first two months of 2025. This marks a significant 68% increase compared to the same period last year, reflecting growing investor confidence in Thailand’s economic prospects and its continued recovery.

The investment landscape comprises 41 applications for Foreign Business Licenses (FBL) and 140 applications for Foreign Business Certificates (FBC), as well as those under treaties or international agreements. The most prominent foreign investors in Thailand come from leading economies such as Japan, China, Singapore, the United States and Hong Kong, engaging in the following business activities:

  1. Japan: With the highest investment rate at 21% and a total investment of 13,676 million baht, Japanese companies primarily focus on raw material sourcing, management solutions and Original Equipment Manufacturing (OEM).
  2. China: Representing 13% of investments with a total of 5,113 million baht, Chinese companies concentrate on raw material procurement, customs clearance within free trade zones, factory rentals and OEM.
  3. Singapore: Contributing 13% of investments with a total of 4,490 million baht, Singaporean enterprises invest primarily in modern distribution center services, tire research and development, data center operations and OEM.
  4. United States: Accounting for 11% of investments with a total of 1,372 million baht, American investors are active in retail, data support services for securities trading on the Stock Exchange of Thailand (SET) and OEM.
  5. Hong Kong: Comprising 9% of investments with a total of 1,587 million baht, Hong Kong businesses focus on engineering and technical services, modern distribution center operations, electric vehicle (EV) charging station infrastructure and OEM.
statues on buddhist temple

The Eastern Economic Corridor (EEC) has emerged as a key magnet for foreign capital, attracting 57 foreign investment projects, marking a remarkable 63% increase and representing 31% of total foreign investments. The total investment value within the EEC reached an impressive 17,546 million baht, accounting for 50% of all foreign investments during this period.

The EEC attracts investment across diverse sectors including retail, plastic mold manufacturing, refrigeration components, parts for tire manufacturing machinery, factory rental services, customs clearance services within free trade zones and OEM of various products such as automotive parts, metal stampings and molds. Key investors in the EEC include Japan, China, Singapore and other countries.

Thailand’s robust investment appeal is driven by a competitive environment supported by the Thailand Board of Investment (BOI). The BOI offers a comprehensive range of incentives including:

  • Corporate Income Tax (CIT) exemptions (up to 13+ years)
  • Import duty exemptions on key machinery and materials
  • Deductions for operational and R&D costs

Non-tax benefits include conditional foreign land ownership, streamlined visa and work permit processes and convenient one-stop services. These incentives are strategically designed to attract investments in high-tech, value-added and other key industries. Additionally, projects located in designated zones such as the EEC are eligible for enhanced benefits.

In conclusion, the significant rise in foreign investment in early 2025, particularly within the dynamic EEC, highlights Thailand’s growing prominence as a leading investment destination in Asia. Fueled by investor confidence, strategic advantages and proactive government policies, Thailand is reinforcing its position as a key hub for international capital and a vital player in the regional economic landscape.

Author: Panisa Suwanmatajarn, Managing Partner.

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Protecting Children and Youth: Thailand’s Amended Laws Against Online Cyberbullying

As previously discussed in our articles Thailand – defamation and insult can be considered as cyberbullying   – The Legal Co., Ltd. The current Thai legal framework addressing cyberbullying presents notable challenges. While existing laws, such as the Penal Code (Sections 326 and 328), allow victims to pursue defamation charges, significant limitations persist. These gaps are particularly evident in private digital forums where third-party witnesses are absent or when prosecutorial intent cannot be definitively established. Despite the existing Computer Crime Act B.E. 2560 (2017), a more nuanced and comprehensive legal approach is necessary.

Rationale for Legislative Enhancement

Protecting children and youth in the digital landscape is paramount. Their inherent vulnerabilities expose them to multifaceted online risks, including:

  • Cyberbullying
  • Online grooming
  • Sexual exploitation
  • Exposure to inappropriate content

Proposed Legislative Amendment

The Minister of Justice has drafted a comprehensive amendment to the Penal Code (“Draft Law”), specifically targeting online offenses against children and youth. Key provisions of the Draft Law include:

  • Precise definition of cyberbullying offenses
  • Clear penalties for actions causing psychological harm, shame, or adverse psychological effects
  • Potential consequences including:
    • Imprisonment up to one year
    • Fines up to 20,000 Baht
    • Combination of imprisonment and financial penalties

Notably, the amendment introduces an escalated penalty structure, increasing punishments by one-third for cyberbullying conducted on public platforms. This approach acknowledges the broader societal impact of such digital transgressions.

children finger pointing at a boy sitting on a wooden floor

Implementation and Comprehensive Strategy

While legislative reform represents a critical initial step, a holistic approach is essential. The proposed strategy encompasses:

  1. Rigorous legal enforcement
  2. Comprehensive educational initiatives
  3. Targeted awareness programs for:
    • Children
    • Youth
    • Parents
    • Educators

Next Procedural Steps

Following public consultation and feedback from authorities, the Draft Law awaits cabinet and parliamentary review and formal legislative enactment. This collaborative process ensures thorough consideration and refinement of the proposed legal framework.

Conclusion

The proposed Draft Law represents a significant advancement in digital child protection. By establishing clear legal boundaries and penalties, Thailand demonstrates a proactive commitment to safeguarding its youth in an increasingly complex digital ecosystem. Successful implementation will require sustained, multi-sectoral collaboration, balancing legal deterrence with educational empowerment.

Author: Panisa Suwanmatajarn, Managing Partner.

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Cyberbullying VS Defamation – The Legal Co., Ltd.

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Thai-American Business (T-AB) March 2025 Edition: Same-Sex Marriage: Updated Registration Process at Overseas Thai Embassies and Consulates-General to Reflect New Legal Landscape

“On September 24, 2024, Thailand took a historic step forward towards equality by enacting the Same-Sex Marriage Act, officially amending the Civil and Commercial Code (CCC). Published in the Royal Gazette, this landmark legislation replaces gender-specific terms like “husband” and “wife” with gender-neutral terms such as “spouses” and “individual,” legally recognizing same-sex marriages. The law came into effect on January 23, 2025, following a 120-day grace period, and has been met with widespread public support.”

By The Legal Co., Ltd., Co-Authors by Panisa Suwanmatajarn, Motana Sumetsawat, Tanadol Rungruengnoravet, and Pannaphat Suwantharakorn

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Source: Thai-American Business (T-AB) Magazine – AMCHAM Thailand

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Over The Top: Thailand’s Push to Regulate Online Streaming Platforms

In a significant step toward managing the rapid rise of Over-The-Top (OTT) platforms, Thailand’s Ministry of Digital Economy and Society has launched an initiative to bring these online streaming services under closer scrutiny. The Ministry has entrusted the National Broadcasting and Telecommunications Commission (NBTC) and the Electronic Transactions Development Agency (ETDA) with the task of forming a dedicated working committee. This group is charged with studying and proposing regulatory measures for OTT platforms—services that deliver diverse content, including movies, TV shows, music, and podcasts, directly to users via the internet. Unlike conventional media, these platforms operate independently of mobile network providers, cable operators, or digital TV broadcasters. Well-known examples include Netflix, YouTube, Disney+, TikTok, and Spotify.

Government Concerns:

The decision to regulate OTT platforms arises from mounting concerns about their potential exploitation. Authorities have noted that these services can serve as conduits for online crimes, such as fraud, the spread of inappropriate content, and copyright violations, all of which have caused significant harm to the public. In response, the Ministry aims to create a digital landscape that is secure, equitable, and sustainable, benefiting consumers, service providers, and the digital economy as a whole.

Focus Areas:

To this end, the working committee has identified five core areas of focus, each addressing distinct challenges posed by OTT platforms while fostering a fair and innovative digital environment.

little girl holding a tablet

1. Enhancing Safety Measures

The first area of focus is strengthening safety protocols. This involves curbing copyright infringement and preventing access to illegal content. The committee plans to introduce identity verification measures to deter misuse of these platforms, ensuring they are not exploited for illicit purposes.

2. Regulating Content

The second priority centers on content oversight. The committee seeks to refine existing laws, empowering regulatory bodies to monitor and control the material distributed on OTT platforms more effectively. Additionally, foreign platforms operating in Thailand will be required to obtain licenses and comply with local laws. The initiative also includes advocating for international cooperation in establishing shared regulatory frameworks.

3. Boosting the Digital Industry and Taxation

The third focus area aims to promote Thailand’s digital industry while ensuring fair economic contributions from OTT platforms. This includes supporting local entrepreneurs in developing homegrown platforms and mandating that OTT services generating revenue from Thai users pay taxes in the country. These efforts are intended to drive the rapid growth of domestic digital businesses and create added value within the national economy.

4. Protecting Personal Data

Data privacy is the fourth pillar of this regulatory framework. OTT platforms will be required to adhere to stringent data protection standards, such as those outlined in the European Union’s General Data Protection Regulation (GDPR). Measures will also be implemented to regulate the collection and use of user data, safeguarding individuals’ privacy rights and preventing abuses.

5. Ensuring Fair Competition

Finally, the committee will address competition in the OTT market. The goal is to prevent large platforms from establishing monopolies that could stifle fair competition. By supporting the development of local platforms and promoting market decentralization, the initiative seeks to level the playing field and encourage innovation.

man in black suit holding white ceramic mug

A Forward-Looking Approach:

This comprehensive strategy reflects Thailand’s recognition of both the opportunities and risks presented by OTT platforms. As these services continue to reshape how people consume media, the Ministry of Digital Economy and Society, alongside the NBTC and ETDA, is taking proactive steps to harness their potential while mitigating their downsides. By focusing on safety, content regulation, economic fairness, data protection, and competitive balance, Thailand aims to set a precedent for responsible digital governance—one that could resonate on the global stage.

As the working committee begins its task, the nation watches closely, hopeful that these measures will pave the way for a digital future that is not only vibrant and innovative but also secure and just for all.

Author: Panisa Suwanmatajarn, Managing Partner.

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Currency Exchange: Harmonized Local Currency Transaction Framework Enhances Cross-Border Trade in ASEAN

The Bank of Thailand (BOT), Bank Indonesia (BI), and Bank Negara Malaysia (BNM) have taken a significant step toward strengthening regional economic integration by adopting the harmonized Local Currency Transaction Framework Operational Guidelines (LCTF OG) and expanding the scope of eligible cross-border transactions under the framework. This initiative aims to promote the use of local currencies in trade and investment, mitigate exchange rate risks, and enhance efficiency in cross-border transactions.

The harmonized LCTF OG consolidates previously established bilateral guidelines between the three countries, creating a unified standard that ensures consistency, scalability, and transparency for participating financial institutions and their users. By streamlining processes and accommodating specific regulatory requirements of each jurisdiction, the framework provides a robust foundation for facilitating local currency transactions across Thailand, Indonesia, and Malaysia.

A key feature of the updated framework is the inclusion of portfolio investments as eligible underlying transactions, alongside trade in goods and services and direct investments. This expansion offers investors greater opportunities to conduct transactions in local currencies, reducing their exposure to exchange rate volatility and fostering deeper regional financial integration.

To support the expanded framework, BOT, BI, and BNM are inviting additional qualified commercial banks to participate in the LCTF. These banks, leveraging their expertise, operational capabilities, and cross-border networks, will play a pivotal role in facilitating local currency transactions and driving the adoption of the framework.

Since the initial implementation of the LCTF, Thailand, Indonesia, and Malaysia have observed a steady increase in local currency transactions for bilateral trade. The harmonized framework is expected to further enhance cross-border transaction options for businesses, reaffirming the commitment of the three countries to promote the use of local currencies in regional trade and investment.

Background: Promoting Local Currency Usage in ASEAN

The BOT, in collaboration with BI and BNM, has long recognized the strategic importance of local currency transactions in mitigating exchange rate risks and fostering economic stability. The Local Currency Settlement Framework, initiated under the BOT’s 2017-2019 international connectivity plan, laid the groundwork for this effort. The framework was further advanced through the Indonesia-Malaysia-Thailand Framework for Cooperation on Local Currency Transactions, formalized via three memorandums of understanding (MoUs) signed in August 2023.

In February 2025, the three central banks officially announced the adoption of the harmonized LCTF OG, marking a milestone in regional financial cooperation. The framework is designed to address the challenges of exchange rate volatility by providing businesses with a reliable mechanism to conduct transactions in local currencies.

grayscale photo of people at market

Key Features of the LCTF OG:

  1. Standardization: The framework unifies existing bilateral guidelines into a single set of operational standards, ensuring consistency and clarity for all participants.
  2. Enhanced Efficiency and Transparency: Streamlined processes reduce transaction complexities, improving efficiency and transparency for businesses and financial institutions.
  3. Flexibility for Local Regulations: While establishing common guidelines, the framework allows each country to adapt the rules to align with its specific legal and regulatory requirements.
  4. Expanded Transaction Scope: In addition to trade in goods and services and direct investments, the framework now includes portfolio investments, broadening the range of eligible transactions.
  5. Facilitation for Commercial Banks: The framework simplifies criteria for Appointed Cross Currency Dealers (ACCDs), enabling qualified commercial banks to play a more active role in facilitating local currency transactions.

Expected Outcomes:

The harmonized LCTF OG is expected to deliver several benefits, including:

  • Increased Convenience and Efficiency: Businesses will experience smoother and faster cross-border transactions using local currencies.
  • Reduced Exchange Rate Risks: By minimizing reliance on major currencies like the US dollar, businesses can better manage currency volatility.
  • Enhanced Regional Trade and Investment: The framework will stimulate economic activity within ASEAN by encouraging the use of local currencies in trade and investment.

Current Status and Future Prospects:

As of now, the LCTF OG is operational among qualified commercial banks and the central banks of Thailand, Indonesia, and Malaysia. While the framework remains an internal matter for the participating institutions, the central banks are actively encouraging more qualified commercial banks to join and support its expansion. This collaborative effort underscores the commitment of BOT, BI, and BNM to fostering regional economic resilience and integration.

Conclusion:

The adoption of the harmonized LCTF OG represents a significant advancement in promoting the use of local currencies for cross-border transactions in ASEAN. By standardizing processes, enhancing transparency, and expanding the scope of eligible transactions, the framework provides businesses with a powerful tool to mitigate exchange rate risks and streamline international trade. As Thailand, Indonesia, and Malaysia continue to lead this initiative, the LCTF OG is poised to play a pivotal role in driving regional economic growth and strengthening financial cooperation within ASEAN.

Author: Panisa Suwanmatajarn, Managing Partner.

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PDPA: Announcement on Administrative Fine Guidelines Seeks Public Comments

The Personal Data Protection Committee (PDPC) is set to issue a new announcement concerning the “Guidelines for Issuing Administrative Fine Orders by the Expert Committee.” Before finalizing, the PDPC is inviting public comments to ensure that the guidelines are comprehensive and effective. This article outlines the key elements, issues, and principles involved in this draft announcement.

Background and Principles:

Under Sections 74 and 90 of the Personal Data Protection Act B.E. 2562 (2019), administrative enforcement measures must align with the law governing administrative procedures. The current draft aims to repeal the definition of “administrative fine enforcement officer” and introduce a new definition for “administrative enforcement officer,” ensuring consistency with existing laws.

Key Issues:

Revised Definitions: The draft proposes to repeal the term “administrative fine enforcement officer” and introduce “administrative enforcement officer,” aligning with administrative laws.

  • Clear Procedures: Specifies detailed procedures for issuing fines and enforcing measures such as seizure, attachment, or auction.
  • Consideration Factors: Lists factors like severity of violation, size of operations, and impact on data subjects to consider when imposing fines.

Key Elements:

  • Administrative Enforcement Officer:

Defined as an official or employee of the Office of the Personal Data Protection Committee appointed by the Secretary-General.

Responsible for implementing measures like seizure, attachment, and auction.

  • Fine Definition:

Refers to the administrative fine ordered by the Expert Committee.

  • Notification Methods:

Allows for electronic notifications under urgent circumstances or if preferred by the affected party.

  • Factors for Consideration:

Includes details of the offense, severity, size of operations, effectiveness of the fine, benefits to data subjects, extent of damages, history of fines, responsibility levels, ethical codes, remedies, compensation payments, reasons and limitations, and other relevant facts.

  • Issuing Orders:

Non-severe cases may involve warnings or corrective actions.

Severe cases or ineffective initial orders will result in administrative fines.

  • Enforcement Actions:

If the obligated party fails to pay the fine, enforcement officers will issue a written notice demanding payment within no less than seven days.

Failure to comply can lead to seizure, attachment, or auction of property.

Public Consultation Period:

pink white black purple blue textile web scripts

The PDPC invites stakeholders and the public to review the draft and provide feedback from 20 February to 6 March 2025. This consultation period aims to gather diverse insights to enhance the effectiveness and fairness of the guidelines.

Conclusion:

By aligning with administrative laws and considering public input, the PDPC aims to strengthen data protection enforcement in Thailand. All interested parties are encouraged to participate in this crucial consultation phase to shape robust data protection measures.

This draft announcement underscores the PDPC’s commitment to ensure that administrative enforcement actions under the Personal Data Protection Act are consistent, clear, and effective. Your participation in the public consultation can significantly contribute to achieving these goals.

Author: Panisa Suwanmatajarn, Managing Partner.

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