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Super License: The Draft Act on Facilitation in the Consideration of Licenses and Provision of Services to the Public

The Draft Act on Facilitation in the Consideration of Licenses and Provision of Services to the Public, widely known as the “Super License” law, constitutes a major reform to Thailand’s administrative licensing and public service framework. It revises and expands upon the Facilitation of Licensing by Government Agencies Act B.E. 2558 (2015), aiming to reduce bureaucratic obstacles, enhance transparency, integrate digital processes,  foster a more efficient and applicant-centered administration.

1. Background:

The initiative traces its origins to evaluations of the 2015 Act, which demonstrated effectiveness in facilitating public interactions with government agencies but revealed opportunities for improvement amid evolving economic, social, and technological conditions. The Office of the Public Sector Development Commission (OPDC) proposed revisions to minimize unnecessary procedures, discretionary decisions, and compliance burdens while aligning with digital government objectives under the Electronic Government Operations Act B.E. 2565 (2022).

The draft was approved in principle by the Cabinet on April 2, 2024, and underwent public hearings (including a third round from September 20 to October 11, 2024) before review by the Office of the Council of State. It advanced through parliamentary consideration in 2025, passing reviews in both the House of Representatives and the Senate. Progress paused due to parliamentary dissolution prior to final enactment.

2. Key Provisions:

The draft organizes reforms across general principles, procedural enhancements, licensing mechanisms, service delivery improvements, periodic evaluations, centralized systems, and accountability measures. Core provisions include:

•  Expanded Scope: Application extends beyond licenses to registrations, notifications, approvals, and broader public services provided by state agencies, ensuring uniform standards.

•  Mandatory Public Handbooks: Authorities must publish detailed, standardized handbooks specifying criteria, procedures, documents, fees, timelines, conditions, and electronic options, with prohibitions on redundant requests and immediate deficiency notifications.

•  Streamlined Processing: Immediate verification of completeness upon receipt; strict timeline adherence with delay notifications (every 15 days) and explanations for extensions beyond 30 days; oversight by the Commission on Public Sector Development for persistent issues.

•  Automatic Renewal via Fee Payment: Renewal deemed effective upon fee payment for designated licenses (per ministerial regulations), reducing formal re-applications while maintaining compliance monitoring.

•  Super License (Principal License) Mechanism: The Cabinet may designate a principal license for activities requiring multiple approvals; issuance automatically grants subsidiary permissions, enabling single-point completion for sectors like factory construction, hotels, spas, and energy projects.

•  Extended or Permanent Validity: Licenses to have indefinite duration or a minimum five-year term where appropriate, replacing frequent short-term renewals.

•  Provisional/Trial Operations: Low-risk activities permitted temporarily via notification or registration pending full approval, with refinements toward notification systems recommended.

•  Centralized One-Stop and Electronic Centers: Joint physical/digital centers for submissions, inquiries, payments, and tracking; a national electronic central reception center (potentially with private involvement under data protection) forwards applications within one working day and monitors progress.

•  Fast-Track and Multilingual Support: Accelerated channels for urgent cases; forms and information available in English and other languages upon request.

•  Accountability Measures: Procedural violations (e.g., untimely processing, redundant demands) constitute disciplinary offenses for officials.

These elements collectively promote efficiency, digital integration, and reduced discretion while safeguarding public interests.

3. Impact to the Public:

The reforms promise tangible benefits for citizens, entrepreneurs, and investors:

•  Simplified access to services through consolidated processes and single-point submissions, reducing time, costs, and repeated interactions.

•  Greater transparency via mandatory handbooks, clear timelines, and limited discretion, minimizing opportunities for arbitrary decisions or corruption.

•  Faster business commencement, particularly for low-risk activities via provisional operations and automatic mechanisms, supporting economic activities in manufacturing, tourism, hospitality, and emerging sectors.

•  Enhanced competitiveness by improving Thailand’s ease of doing business rankings, attracting domestic and foreign investment, especially in high-value industries such as data centers, semiconductors, and modern agriculture.

•  Improved accessibility for non-Thai speakers and international applicants through multilingual support and digital channels.

Overall, the legislation prioritizes user convenience and national economic growth without compromising regulatory integrity.

4. Current Status:

As of mid-March 2026, the draft has secured prior approval from both the House and Senate but requires reaffirmation following parliamentary dissolution. Public discussions and media coverage in early March 2026 highlight cross-party recognition of its value, positioning it as a continuation of established reform efforts. No enactment has occurred, but momentum suggests active preparation for legislative progression.

5. Key Takeaways:

•  The Super License initiative modernizes governance by emphasizing efficiency, digital tools, and centralized services over fragmented approvals.

•  It exhibits policy continuity across administrations, demonstrating that beneficial reforms transcend political boundaries for national advantage.

•  Successful enactment could substantially alleviate bureaucratic burdens, boost investment attractiveness, and elevate public service quality.

•  Effective rollout will hinge on robust inter-agency coordination, digital infrastructure development, and periodic reviews (every five years) to adapt to future needs.

This proposed legislation underscores Thailand’s commitment to administrative modernization and enhanced competitiveness.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Plans to Reform Excise Tax System to Increase Revenue

Excise tax is one of the principal sources of revenue for the Thai Government (“Government”). For fiscal year 2026 (B.E. 2569), the Government has set a target to collect approximately THB 578.2 billion in excise tax revenue.

In the first quarter of fiscal year 2026 (October 2025 – January 2026), excise tax collection was in total amount of THB 191.3 billion, exceeding the Government’s projection by THB 8.3 billion. The higher-than-expected revenue was largely driven by strong domestic consumption and increased spending during the year-end tourism season and the New Year holidays.

To further strengthen fiscal revenue for fiscal year 2026, the Government is considering several reforms to Thailand’s excise tax system.

Plan to Increase Excise Tax Revenue

The Ministry of Finance aims to increase excise tax revenue by approximately 7.6% through several policy measures, including:

  • restructuring the excise tax framework;
  • adjusting tax rates for certain goods and services; and
  • improving tax administration and enforcement.

The Excise Department has conducted policy studies and is expected to submit the proposed reform plan to the Cabinet for consideration soon.

Proposed Reform of Cigarette Excise Tax

Thailand currently applies a two-tier excise tax system for cigarettes, consisting of the following components:

1. Ad Valorem Tax (Based on Retail Price)

  • 25% for cigarettes priced at not more than THB 72 per pack
  • 42% for cigarettes priced above THB 72 per pack

2. Specific Tax (Based on Quantity)

  • THB 1.25 per cigarette (approximately THB 25 per pack)

According to studies conducted by the Fiscal Policy Office, the current two-tier system has reduced government revenue because cigarette manufacturers often maintain retail prices below the THB 72 threshold in order to benefit from the lower tax rate.

To address this issue, the Excise Department is considering the introduction of a single-tier tax rate, under which cigarettes would be taxed at the same rate regardless of retail price. This approach is expected to reduce price distortions and improve tax collection efficiency.

The Excise Department has requested legal clarification from the Council of State regarding whether the proposed tax structure can be implemented. Further progress will likely depend on the policy direction of the new government.

Automobile Excise Tax Changes

The Government has revised the automobile excise tax framework, with tax rates varying depending on the type of vehicle and its environmental performance. The new tax structure came into effect on 1 January 2026.

Under the revised framework, the excise tax rate is determined primarily based on carbon dioxide (“CO₂”) emission levels, replacing the previous approach that focused mainly on engine displacement (cc). As a result, certain vehicle categories are now subject to higher tax rates compared with those applied in 2025.

Key changes include:

  • Internal combustion engine vehicles (“ICE”) with CO₂ emissions of 100 g/km: the tax rate increased from 12% to 13%.
  • ICE vehicles with engines exceeding 3.0 liters, such as luxury cars and supercars: the tax rate increased from 40% to 50%.
  • Hybrid electric vehicles (“HEV”) with CO₂ emissions not exceeding 100 g/km: the tax rate increased from 4% to 6%.
  • HEV with CO₂ emissions between 101–120 g/km: the tax rate increased from 8% to 9%.
  • HEV with CO₂ emissions between 121–150 g/km: the tax rate increased from 8% to 14%.
  • Electric pickup trucks, which were previously exempt from excise tax, are now subject to 2% tax rate.

As a result of this policy shift, the excise tax rate for vehicles in the eco-car segment has increased from 12% to approximately 13–34%, depending on emission levels.

The Government also plans to gradually increase automobile excise tax rates in two additional phases, during 2028–2029 and again in 2030, as part of its long-term environmental and fiscal policy.

Automobile excise tax collection in the first quarter of fiscal year 2026 increased partly because manufacturers and consumers accelerated vehicle purchases ahead of the tax increase. Following the implementation of the new tax structure on 1 January 2026, tax revenue from automobiles is expected to increase further in the remaining quarters of fiscal year 2026 due to the higher tax rates introduced under the revised framework.

Other Potential Excise Tax Measures

In addition to the proposed reforms to cigarette excise tax and automobile taxation, the Excise Department is also considering further adjustments to excise taxes on several categories of goods and services. However, the specific criteria and potential tax rate changes have not yet been clearly determined.

These potential measures may include:

  • restructuring excise taxes on petroleum and petroleum products;
  • increasing excise tax rates on sin goods, such as alcohol and beer;
  • introducing taxes on products harmful to health, such as a potential salt tax;
  • imposing taxes on environmentally harmful goods, including possible battery or carbon taxes; and
  • reviewing the taxation of luxury goods and services.

Conclusion

Thailand is considering several reforms to its excise tax system in order to strengthen government revenue and improve tax collection efficiency. Key measures include the potential introduction of a single-tier cigarette tax, revisions to the automobile excise tax framework based on vehicle type and CO₂ emissions, and possible adjustments to taxes on petroleum products, alcohol, health-related products, environmentally harmful goods, and luxury goods and services.

These reforms aim not only to increase government revenue but also to support broader policy objectives, such as promoting environmentally friendly vehicles and reducing harmful consumption. However, higher excise tax rates may also increase costs for businesses and retail prices for consumers.

With the revised automobile tax framework already taking effect on 1 January 2026, together with other proposed measures currently under consideration, excise tax revenue is expected to continue increasing throughout fiscal year 2026. Businesses operating in industries subject to excise tax should closely monitor future policy developments, as upcoming regulatory changes may significantly affect tax costs and compliance obligations in Thailand.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOT: Policy Rate Reduced to 1.00% to Support Economic Recovery Amid Heightened Downside Risks

On 25 February 2026, the Monetary Policy Committee (MPC) of the Bank of Thailand resolved, by a vote of 4 to 2, to reduce the policy interest rate by 0.25 percentage point, from 1.25% to 1.00%, effective immediately. This adjustment shifts the monetary policy stance from neutral to accommodative.

Economic Context and Rationale:

Although, Thai economic growth in the fourth quarter of 2025 surpassed earlier projections—driven by temporary end-of-year factors and firmer underlying momentum in private investment and merchandise exports—overall expansion is forecast to remain below potential in 2026 and 2027. Growth continues to exhibit uneven sectoral performance, constrained by structural impediments, intensified global competition, and concentration in lower value-added segments. Private consumption is expected to moderate, while small and medium-sized enterprises (SMEs) face persistent challenges, including restricted credit access, tight liquidity conditions, and pressure from the appreciated Thai baht.

Headline inflation is subject to heightened downside risks relative to prior assessments, stemming from declining energy prices, potential additional government measures, increased competition, and subdued demand amid below-potential growth. Headline inflation is now projected to return to the target range in the second half of 2027, later than previously anticipated. Core inflation is also expected to remain low. Although deflationary risks are assessed as limited—owing to the absence of widespread price declines—medium-term inflation expectations have moderated slightly yet remain anchored within the target range.

The rate cut is intended to sustain supportive financial conditions, alleviate debt burdens on households and SMEs, and reinforce medium-term inflation expectations in an environment of rising downside risks.

Transmission to the Banking System:

Previous policy rate reductions have already translated into lower interest rates across the banking system and financial markets, thereby reducing financing costs for many borrowers. Nevertheless, overall credit extension continues to contract, and borrowing costs remain elevated for higher-risk SMEs due to prudent lending practices by financial institutions. The Committee underscores the importance of monitoring policy transmission and advocates for additional targeted financial measures to support vulnerable segments.

Commercial banks have responded promptly to the latest policy adjustment by lowering their lending rates, thereby ensuring effective transmission of the easing measure to households and businesses.

Effect and Impact to Investors:

The reduction in the policy rate and the accompanying adjustments by commercial banks hold several implications across asset classes:

•  Equities
Interest-rate-sensitive sectors—such as property development, consumer finance, and retail—are likely to benefit from lower financing costs and potential increases in consumer spending. These dynamics may support improved corporate earnings and valuations, particularly for domestically oriented firms.

•  Fixed Income
Bond yields are anticipated to decline in response to the more accommodative policy stance, generating capital appreciation for holders of existing bonds. However, the widening yield spread between Thai and U.S. government securities may influence foreign capital flows and affect demand for Thai debt instruments.

•  Currency
The Thai baht may face short-term depreciation pressure against major currencies due to the narrowed interest rate differential with key trading partners. While this could enhance the competitiveness of export-oriented companies, it may simultaneously raise input costs for firms reliant on imported materials.

Policy Considerations and Outlook:

The prevailing policy rate is regarded as sufficiently accommodative, consistent with the economic and inflation outlook, and supportive of the gradual return of inflation to the target range over the medium term. At the same time, the Committee remains attentive to preserving limited monetary policy space amid global uncertainties, safeguarding medium-term financial stability, and preventing the accumulation of imbalances associated with prolonged low interest rates.

Structural economic challenges cannot be addressed through monetary policy alone. Complementary measures across fiscal, structural, and targeted support policies are essential to enhance productivity, strengthen competitiveness, and foster sustainable growth.

Key Takeaways:

•  The policy rate has been lowered to 1.00% to adopt a more accommodative stance and bolster economic recovery.

•  The measure addresses below-potential growth, sectoral imbalances, and increasing downside risks to inflation.

•  Debt relief for households and SMEs remains a central objective, supported by effective transmission through commercial bank lending rates.

•  Investors in interest-sensitive equities, fixed income, and export-oriented sectors may experience differentiated impacts.

•  Continued vigilance is required regarding financial stability, exchange rate developments, and the necessity of coordinated multi-policy responses.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOT: Bank of Thailand Introduces Stricter Rules on Large Cash Transactions to Combat Illicit Flows

The Bank of Thailand (BOT) is set to implement enhanced oversight on significant cash movements as part of efforts to address gray-area financial activities, reduce risks of money laundering, and promote greater transparency in the financial system.

Under the upcoming regulations, financial institutions will soon be required to perform detailed customer due diligence for any cash withdrawal exceeding 5 million baht in a single transaction. Customers must clearly explain the source of the funds and the intended purpose of the cash. If the explanation is unsatisfactory or unverifiable, banks may restrict or decline to process the transaction.

This measure primarily targets unusual or high-risk cash usage that could be linked to informal, unregulated, or illicit activities. In a later phase, similar requirements will apply to cash deposits of 5 million baht or more, where the origin of the funds must also be justified.

The BOT has indicated that legitimate needs—such as those of small and medium-sized enterprises (SMEs), individuals conducting regular business operations, or other verifiable purposes—will continue to be accommodated, provided appropriate documentation and explanations are provided. However, the rules aim to make large-scale cash handling more accountable and discourage reliance on physical currency for questionable purposes.

Looking ahead, after an initial implementation period and evaluation of impacts (including any effects on ordinary users), the threshold may be lowered to 3 million baht for both withdrawals and deposits to further strengthen controls.

These changes form part of broader initiatives to tackle structural economic vulnerabilities, encourage electronic payments where practical, and limit opportunities for crime or opaque transactions.

Impact on the Public:

Most everyday individuals and small businesses will remain largely unaffected, as transactions below the 5 million baht threshold face no new requirements, and legitimate large needs can proceed with proper justification.

People or entities accustomed to handling large cash amounts (e.g., for property deals, business purchases, or other high-value activities) will need to prepare explanations and supporting evidence in advance, potentially adding time and documentation steps at the bank.

Those involved in informal or gray-area dealings may find it significantly harder to move large sums in cash without scrutiny, increasing the risk of restrictions or reporting to authorities.

Overall, the shift promotes safer, more traceable financial habits while aiming to reduce crime risks associated with large cash volumes and ease burdens through related reviews of common banking fees.

Key Takeaways:

Implementation is expected in the near future (early to mid-March timeframe), giving the public time to adjust to more accountable cash handling practices.

Cash withdrawals over 5 million baht will require clear justification of purpose and source; unsatisfactory explanations may lead to restrictions.

The rules will later extend to large cash deposits and could lower the threshold to 3 million baht after review.

Legitimate users (e.g., SMEs and individuals with valid reasons) can continue transactions by providing details—no outright ban is intended.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOT: Draft Regulations on Enhanced Customer Due Diligence and Risk Management for Customer Use of Financial Services, Including Cash-Related Transactions

The Bank of Thailand (BOT) has issued draft regulations aimed at strengthening the framework for customer due diligence (CDD), know-your-customer (KYC) processes, and risk management practices among financial institutions (FIs) and specialized financial institutions (SFIs). These proposals establish a comprehensive, risk-based, end-to-end approach to prevent the financial system from being exploited for financial crimes, enhance public confidence in financial services, and provide equitable protection for customers affected by such activities.

The drafts address evolving risks, particularly those associated with abnormal transaction patterns and the inherent challenges of cash-based operations, which remain vulnerable to misuse due to their anonymity and traceability limitations. Key obligations include governance oversight, robust identity verification, continuous transaction monitoring, enhanced due diligence (EDD) for suspicious cases, secure record-keeping, and mandatory reporting of abnormal activities to the BOT.

1. Draft Criteria for Practices and Risk Management Arising from Customers’ Use of Financial Services

This regulation requires FIs and SFIs to implement and continually refine processes throughout the customer relationship lifecycle, proportionate to identified risks.

•  Governance: The board of directors and senior management must establish and approve risk-based CDD/KYC policies, ensure adequate resources, and conduct periodic reviews. Significant policy amendments require board approval. Institutions must maintain clear structures for roles, responsibilities, and the three lines of defense to support effective risk controls.

•  KYC and CDD: Institutions must verify customer identity and authenticity using reliable sources, identify beneficial owners, and prevent identity fraud. For savings accounts (high-risk products), specific verification methods apply:

       •  Thai individuals: Primary use of national smart cards via readers and electronic government systems, with defined alternatives for exceptional cases.

       •  Foreign individuals: Passports and verifiable residency documents, preferably using technologies such as Near Field Communication (NFC), along with evidence of purpose of stay.

       •  Legal entities: Official registration documents to determine ownership, control, and business nature.

•  Monitoring and Enhanced Due Diligence: Continuous systems must detect abnormal transactions or behaviors. Upon identification of anomalies, EDD is required, including inquiries into source of funds, financial status, and transaction purpose. Transactions must be rejected if EDD cannot be satisfied or if criminal indicators are evident.

•  Customer Support: Fair and prompt procedures must assist customers impacted by risk management actions who are not involved in suspicious conduct.

•  Record-Keeping and Reporting: Customer and transaction data must be securely retained for prescribed periods to support regulatory oversight. Suspicious transactions and abnormal patterns must be reported to the BOT in specified formats.

2. Draft Criteria for Practices and Risk Management of Cash-Related Transactions

This regulation imposes heightened controls on cash activities—including deposits, withdrawals, cashier’s cheques, and currency exchanges—conducted through branches or electronic channels, recognizing cash’s role in facilitating illicit flows.

•  Strengthened Identity Verification: Customers must present themselves or complete verified authentication before engaging in any cash-related transaction to eliminate anonymous or proxy movements.

•  Monitoring Abnormal Cash Movements: Institutions must monitor for patterns inconsistent with customer profiles or lacking economic rationale, including excessive high-value or frequent transactions.

•  Enhanced Due Diligence for High-Value Cash Transactions: Abnormal patterns trigger EDD. If purpose or legitimacy cannot be verified, transactions must be refused, with mandatory reporting to the BOT.

•  Support for Affected Customers: Processes must ensure timely and equitable assistance for victims of financial crimes, particularly in cash-related contexts.

These draft regulations represent the BOT’s ongoing commitment to bolstering anti-money laundering measures, improving transparency, and safeguarding the integrity of Thailand’s financial system through stricter oversight of customer onboarding, verification, and high-risk transactions.

Key Takeaways:

•  Financial institutions and specialized financial institutions will be required to adopt comprehensive risk-based CDD/KYC frameworks across the full customer lifecycle.

•  Governance responsibilities rest with boards and senior management to ensure effective policies, resources, and controls.

•  Cash transactions face particular scrutiny, mandating identity verification, monitoring of unusual patterns, and refusal of unverified high-risk activities.

•  Enhanced monitoring, EDD, secure record retention, and regulatory reporting aim to detect and mitigate financial crime risks promptly.

•  Institutions must balance risk management with fair treatment of legitimate customers impacted by these measures.

Author: Panisa Suwanmatajarn, Managing Partner.

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Liquor Import: Draft Ministerial Regulation to Modernize Liquor Import Framework and Support Tourism Sector

On 3 February 2026, the Thai Cabinet approved in principle the draft Ministerial Regulation on Permission to Import Liquor into the Kingdom (amending the Ministerial Regulation B.E. 2560 [2017], as amended by Ministerial Regulation No. 2 B.E. 2562 [2019]), as proposed by the Ministry of Finance through the Excise Department.

The primary purpose of this amendment is to update and rationalize the regulatory regime governing liquor imports. The existing framework has imposed certain procedural and substantive limitations that hinder legitimate business activities and complicate excise tax administration under the licensing system. The revision seeks to streamline procedures, remove unnecessary legal obstacles, facilitate importers, strengthen tax oversight through digital tools, and align the regime with national policies to promote tourism by enhancing product diversity, stimulating tourist spending, and creating greater economic value in the sector, consistent with the Cabinet resolution dated 28 November 2023.

The draft regulation introduces four substantive amendments:

1.  Clarification and Strengthening of Type 5 Import License Provisions
The amendment grants the Director-General of the Excise Department explicit authority to define detailed criteria, procedures, and permitted purposes for Type 5 licenses (covering imports not falling under Types 1–4). This resolves previous ambiguity that allowed broad interpretation and potential misuse.
Initial categories to be specified include importation for re-export, use as raw material or component in non-liquor industries, importation as non-commercial samples or for personal consumption (limited to 200 litres per occasion), and importation of rectified spirit for industrial production of plant-based ethylene.

2.  Abolition of the Sole Agent Requirement for Type 1 Import Licenses
The previous condition requiring Type 1 license applicants (import for sale, excluding duty-free retail under customs law) to be the exclusive agent of the imported brand is removed. This change enables multiple importers to handle the same brand, thereby fostering greater competition.
The relaxation will initially apply only to wine and sparkling wine. The Director-General retains discretion to reimpose the sole agent condition for other liquor categories if warranted. The Excise Department’s Imported Liquor Price Database system now provides reliable price benchmarking, valuation, and smuggling detection capabilities, rendering the sole agent mechanism less essential for tax control.

3.  Introduction of Electronic Submission Channels
Applications for import licenses may now be filed either in person at the appropriate Excise Area Office or Branch Office (corresponding to the Customs clearance location) or electronically via designated digital platforms. This dual mechanism significantly improves administrative efficiency and accessibility for importers.

4.  Simplification of Label Submission Requirements (Type 1 Licenses)
The mandatory prior approval of container labels before applying for a Type 1 license has been eliminated. Importers are now required only to submit sample labels that fully comply with the criteria and content specifications announced by the Director-General of the Excise Department. This reduction in procedural burden is supported by the department’s established electronic label verification infrastructure.

The Ministry of Finance has confirmed that the amendments do not alter excise tax rates or taxable bases; accordingly, no reduction in state revenue is anticipated. The revised system is expected to enhance tax collection effectiveness and further curb illicit importation.

The proposal was subject to public hearing and received concurrence in principle from relevant ministries and agencies, including Tourism and Sports, Commerce, Public Health, Industry, and the Office of the National Economic and Social Development Council. The Council of State has advised that the Cabinet possesses the authority to approve the draft in principle, as the matter constitutes routine regulatory adjustment and does not impose binding obligations on future administrations pursuant to Section 169 (1) of the Constitution.

Key Takeaways:

•  The regulation modernizes Thailand’s liquor import licensing regime by removing outdated restrictions and integrating digital processes.

•  Elimination of the sole agent requirement (initially for wine and sparkling wine) promotes fairer market competition and greater product availability.

•  Enhanced administrative efficiency through electronic applications and simplified label procedures reduces burdens on legitimate importers.

•  Fiscal neutrality is preserved; no tax rate reductions are involved, while improved oversight is expected to strengthen revenue collection and reduce smuggling.

•  The measure directly supports national tourism objectives by facilitating greater variety and accessibility of imported alcoholic beverages, thereby encouraging tourist expenditure and sector growth.

•  Upon publication in the Royal Gazette, the amended regulation will enter into force, marking a structured step toward a more competitive, transparent, and tourism-aligned import framework.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOI: Accelerates Implementation of Thailand FastPass to Unlock Over 480 Billion Baht in Strategic Investments

The Board of Investment of Thailand (BOI) continues to advance the Thailand FastPass mechanism as a central tool for expediting large-scale private investments. As outlined in the detailed overview titled “Thailand FastPass: Implementation Details for Expediting Strategic Investments” BOI’s FastPass: Implementation Details for Expediting Strategic Investments – The Legal Co., Ltd., the mechanism was established to address regulatory and operational delays affecting high-priority projects, initially targeting approximately 70 initiatives valued at around 300 billion baht.

Recent developments indicate that the scope has expanded significantly. The BOI is now focusing on unlocking investments exceeding 480 billion baht across roughly 80 stalled or pending projects. These initiatives span critical sectors including data centers, renewable and clean energy facilities, electric vehicle production and component manufacturing, advanced electronics, printed circuit boards, and industrial estate expansions. Delays have primarily stemmed from challenges in electricity grid capacity allocation, land acquisition and zoning approvals, environmental impact assessment processes, visa issuance, and work permit procedures.

The FastPass framework retains its core structure while scaling to meet the increased volume:

•  Projects are selected according to minimum investment thresholds, alignment with national strategic industries, and capacity to generate substantial economic benefits such as employment, domestic supply-chain integration, and technology transfer.

•  Participants are required to commit to accelerated disbursement schedules—typically at least 20 percent of the total investment value within a short, defined period (e.g., six months or within the current fiscal year)—to demonstrate immediate economic contribution and justify expedited processing.

•  Inter-agency coordination, supported by dedicated subcommittees and formalized service-level agreements, continues to target a 20–50 percent reduction in approval and licensing timelines for electricity provisioning, land development, immigration services, labor permits, and environmental clearances.

This intensified application of FastPass aligns with the government’s broader Big Win economic strategy, which prioritizes structural transformation in three key domains:

1.  Smart Agriculture: Deployment of technology to lower production costs and position Thai agricultural products at premium global market levels.

2.  Modern Industries: Sustained investment momentum in electric vehicle ecosystems and intelligent electronics manufacturing.

3.  Premium Services: Elevation of tourism and hospitality toward high-value segments, including wellness tourism and advanced experiential offerings.

The BOI is ensuring continuity of these efforts across potential changes in administration. Preparations are also underway for complementary measures, including an enhanced version of the Half-Half Plus program that incorporates mandatory reskilling and upskilling components for participants, with the aim of significantly increasing incomes for small retailers while maintaining focus on equitable distribution to micro and small enterprises in provincial areas.

By channeling substantial private capital without additional public expenditure, the Thailand FastPass mechanism supports immediate economic activation, job creation, industrial upgrading, and Thailand’s long-term positioning within global high-technology value chains.

Key Takeaways:

•  Thailand FastPass now targets the realization of over 480 billion baht across approximately 80 strategic projects in sectors such as data centers, clean energy, and electric vehicles.

•  Qualifying projects must commit to rapid investment disbursement (e.g., minimum 20 percent within a short timeframe) to access expedited approvals.

•  Inter-agency collaboration aims to reduce processing times by 20–50 percent for electricity, land, visa, permit, and environmental requirements.

•  The mechanism supports the Big Win priorities of smart agriculture, modern industries, and premium services while maintaining policy continuity.

•  The approach delivers prompt private-sector stimulus and contributes to sustainable, long-term economic competitiveness.

Related Article: BOI’s FastPass: Implementation Details for Expediting Strategic Investments – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOT: Strengthening Financial Oversight to Address Baht Pressures and Enhance Stability

The Thai baht continues to face pressures stemming from global monetary policy divergences, volatile capital movements, and heightened risks associated with financial crime. Despite robust macroeconomic fundamentals and record-high foreign exchange reserves, the Bank of Thailand (BoT) has implemented a multifaceted strategy that extends beyond traditional monetary policy tools. This approach addresses vulnerabilities in financial transparency, misuse of cash, flows through alternative assets such as gold, and cross-border digital fraud.

Key initiatives include intensified monitoring of large cash withdrawals to disrupt grey funds, enhanced regulatory scrutiny of gold transactions, deepened collaboration with international organizations such as the International Monetary Fund (IMF) and the World Bank to combat digital fraud, and targeted foreign exchange interventions to ensure orderly market conditions.

1. Enhanced Monitoring of Large Cash Withdrawals and Grey Funds

The BoT is advancing stricter oversight of substantial cash withdrawals via commercial banks. Institutions will be required to identify and report transactions exceeding a designated threshold—anticipated to range between THB 3 million and THB 5 million—and to document the customer’s declared purpose. This measure targets the use of cash in illicit or opaque activities, including mule accounts, which are increasingly difficult to reconcile with modern payment preferences favoring electronic transfers. These efforts complement strengthened customer due diligence (CDD) and know-your-customer (KYC) protocols, while aligning with parallel controls on gold as an alternative channel for fund movements outside conventional banking systems.

2. International Collaboration to Counter Digital Fraud

In recognition of the cross-border and technology-driven nature of financial crime, the BoT has intensified partnerships with the IMF and World Bank. These collaborations focus on developing supervisory frameworks, sharing intelligence, and aligning domestic regulations with global standards to mitigate online scams, mule networks, and technology-enabled money laundering. The strategy emphasizes three core elements: reducing digital fraud incidence, bolstering cybersecurity resilience, and enhancing the readiness of Thailand’s digital financial ecosystem to safeguard societal financial well-being.

3. Baht Stabilization and Record Foreign Exchange Reserves

The BoT maintains a managed float regime, intervening only to moderate excessive volatility and preserve orderly conditions without pursuing a specific exchange-rate target. Recent baht appreciation—reaching near five-year highs and breaching 31 baht per US dollar—has been partly attributed to gold-related inflows rather than underlying economic fundamentals. To mitigate such pressures, the BoT is reinforcing oversight of gold transactions to curb short-term baht volatility from synchronized large-scale sales and to limit risks from grey capital flows via gold as a conversion or transfer mechanism.

4. Regulatory Updates on Gold and Foreign Exchange Transactions

On 26 January 2026, the Royal Gazette published Exchange Control Notifications No. 35 and No. 36, issued by the Competent Officer for Rules and Practices Relating to Foreign Exchange. These instruments refine the framework for gold trading and foreign exchange operations to promote transparency and audit-ability among high-value participants.

•  Notification No. 36 (effective from 27 January 2026) introduces stricter requirements for major gold traders—those involved in importing or exporting gold and averaging at least THB 10 billion per year in domestic gold transactions over the preceding five calendar years (or equivalent at market rates). Such entities must:
(i) submit transaction data electronically via BoT-designated systems or methods;
(ii) ensure the accuracy and completeness of reported information, with the Competent Officer retaining authority to request supplementary details as necessary; and
(iii) retain relevant records and supporting documentation for a minimum of three years for inspection purposes.

•  Notification No. 35 modernizes foreign exchange rules to reflect prevailing economic conditions. It relaxes certain obligations for foreign currency acquisitions below USD 10 million (or equivalent), permits individuals to execute direct overseas payments up to USD 5 million per person annually, and mandates licensed entities to verify investor compliance, secure required reports through BoT systems, maintain documentation for at least five years, and prevent misuse for speculation, unlicensed cross-border payments, or regulatory circumvention.

Potential Implications:

These measures will impose greater compliance and reporting obligations on banks, gold traders, digital platforms, corporate entities, and high-net-worth individuals. Cross-border operations may experience increased alignment with international norms, potentially reducing flexibility while enhancing predictability and transparency.

In summary, the BoT’s integrated response underscores the interconnected nature of contemporary financial risks across cash, alternative assets, digital channels, and international flows. By addressing both immediate pressures and underlying vulnerabilities, these policies aim to reinforce systemic resilience and sustain confidence in Thailand’s financial framework.

Key Takeaways:

•  The BoT is prioritizing transparency in gold and cash transactions to mitigate baht volatility and curb illicit flows.

•  Notification No. 36 mandates reporting and record-keeping for major gold traders (THB 10 billion+ average annual domestic volume).

•  Notification No. 35 eases certain foreign exchange thresholds while strengthening compliance safeguards.

•  International partnerships and domestic oversight enhancements target digital fraud and grey funds.

•  Market participants should prepare for heightened scrutiny, robust documentation, and proactive adaptation to ensure regulatory alignment.

Author: Panisa Suwanmatajarn, Managing Partner.

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Updates to Thailand’s Investment Promotion Regime

Overview of Recent Amendments to Investment Promotion Measures in Thailand

Pursuant to the Investment Promotion Act B.E. 2520 (1977), as amended, Thailand has established a comprehensive framework and institutional mechanisms for promoting investment. The primary objectives are to create an investment-friendly environment, foster industrial development, and promote equitable income distribution by granting investment incentives to business activities deemed significant and prioritized.

In furtherance of these objectives, the Board of Investment (BOI) issued Notification of the Board of Investment No. 9/2565 regarding Measures for the Promotion of Industries Critical to National Development (“BOI Notification No. 9/2565“). This notification establishes the categories of business activities eligible for investment promotion, together with the applicable conditions, criteria, and privileges granted to promoted projects, as detailed in the Schedule of Investment-Promoted Activities annexed thereto.

To align with Thailand’s evolving economic development policies and strategic direction, accommodate the rapid expansion of industrial activities, and enhance incentives for investors, the BOI issued two notifications dated 5 June B.E. 2568 (2025), which were published in the Royal Gazette on 22 January B.E. 2569 (2026). These notifications revise and update the investment promotion framework to reflect current economic and industrial conditions by amending certain categories of business activities eligible for investment promotion as prescribed in the Schedule of Investment-Promoted Activities. The key amendments are summarized below:

1. Notification of the Board of Investment No. Sor. 5/2568

Amendment to the List of Activities Eligible for Investment Promotion under BOI Notification No. 9/2565

This notification is issued pursuant to BOI Notification No. 9/2565, which prescribes the categories of business activities and conditions eligible for investment promotion as set forth in the Schedule of Investment-Promoted Activities. Certain categories have been amended to focus on investments that create added value, promote the adoption of modern technologies in the manufacturing sector, enhance the development of supply chains to ensure Thailand’s export-oriented production attains international recognition and delivers maximum benefits, and accommodate the rapid expansion of data center businesses by supporting Thailand’s advancement toward becoming a digital hub of the ASEAN region.

This notification revises the categories of business activities and conditions eligible for investment promotion with respect to 32 categories under the Schedule of Investment-Promoted Activities. The majority of these are activities that generate added value for the national economy, including the machinery and automotive industry, electrical appliances and electronics industry, metals and materials industry, public utilities, digital industry, and creative industry. Additionally, investment promotion for metal cutting activities (Category 5.4.10) has been discontinued and removed from the list of promoted activities. This notification applies to business operators who submit applications for investment promotion on or after 1 July B.E. 2568 (2025).

2. Notification of the Board of Investment No. Sor. 6/2568

Investment Promotion Measures for Tourism-Related Businesses in Secondary Cities

The public sector has provided support for tourism development in secondary cities, which are provinces that are not widely known but possess high tourism potential. To promote tourism, distribute income equitably, and sustainably expand economic opportunities to local communities, investment promotion measures have been introduced for tourism-related businesses located in designated secondary cities.

This notification revises the criteria and conditions for investment promotion applicable to certain categories of tourism-related businesses (including cruise terminals, hotels, international exhibition centers, and similar establishments), totaling 12 items under the Schedule of Investment-Promoted Activities. The location of the establishment serves as a key criterion for granting enhanced and more beneficial investment promotion privileges, such as extended periods of corporate income tax exemption, to create incentives for both domestic and foreign investors to invest in secondary cities and extend investment promotion benefits to tourism businesses located therein. This notification applies to business operators who submit applications for investment promotion on or after 5 June B.E. 2568 (2025).

Key Observations

1. Discontinuation of Metal Cutting Activities (Category 5.4.10)

Business activities previously eligible for investment promotion under Category 5.4.10 (metal cutting activities) are no longer entitled to apply for BOI promotion, as the BOI has formally discontinued investment promotion for this category. Businesses operating in the affected sectors should conduct a careful review of their current operations to determine whether they may qualify under other eligible promoted activities. Where necessary, they should consider restructuring their investment structures or business operations to ensure ongoing compliance with the revised BOI investment promotion framework.

2. Enhanced Incentives for Tourism-Related Businesses in Secondary Cities

Tourism-related businesses located in secondary cities, whether newly established or existing, may have opportunities to receive investment promotion incentives at a higher level than previously available, including longer and more favorable tax incentives, which may serve as a catalyst for increased investment. Conversely, businesses located in primary cities may not be entitled to the same level of preferential treatment as those located in secondary cities, which may result in heightened competitive pressure regarding operational costs.

Status and Legal Effect

These two notifications are issued pursuant to Section 16 of the Investment Promotion Act B.E. 2520 (1977), as amended, and shall be applied in conjunction with the Investment Promotion Act B.E. 2520 (1977) and BOI Notification No. 9/2565. In the event of any inconsistency or conflict between the conditions or criteria, the provisions of these two notifications shall prevail and be applied on a case-by-case basis to the relevant promoted businesses, taking into account the prevailing economic circumstances at the relevant time.

Furthermore, additional or amending notifications concerning investment-promoted activities may be issued in the future to reflect Thailand’s evolving economic conditions. Investors are therefore advised to closely monitor regulatory developments in order to formulate, review, and adjust their investment strategies in a timely and appropriate manner.

Conclusion

These two BOI notifications constitute a significant component of Thailand’s current legal and policy framework governing investment promotion. They clearly reflect the government’s policy orientation toward enhancing national competitiveness, promoting targeted high-value industries, supporting regional economic development, and refining the investment promotion regime to ensure its alignment with rapidly evolving economic and technological landscapes.

Related Article: Thailand BOI Launches New SME Efficiency Enhancement Measures (Notification No. 5/2568) – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand BOI Launches New SME Efficiency Enhancement Measures (Notification No. 5/2568)

The Thailand Board of Investment (“BOI”) has issued BOI Notification No. 5/2568 Re: Measures to Enhance the Efficiency of Small and Medium-Sized Enterprises (“SMEs”), introducing a comprehensive incentive framework aimed at strengthening the competitiveness of SMEs. The measures are designed to encourage SMEs to modernize their operations through technological upgrades, enhanced operational efficiency, digital transformation, improved energy efficiency, and diversification into new industries.

This notification took effect on 5 June 2025 and applies to all investment promotion applications submitted on or after that date.

Purpose of the Measure

This measure aims to strengthen the resilience and long-term competitiveness of SMEs by promoting investments that enhance operational efficiency, elevate business practices to internationally recognized sustainability standards, and facilitate the transition into emerging industries. These initiatives are intended to enable SMEs to better align with global production requirements and environmental expectations.

Eligibility Requirements

To be eligible for the incentives under this measure, an applicant must satisfy all of the following conditions:

  • The company must have at least 51% Thai shareholding, and more than half of its authorized directors must be Thai nationals.
  • The company’s total revenue, calculated on a consolidated basis and inclusive of both BOI-promoted and non-promoted activities, must not exceed THB 500 million in aggregate over the preceding three fiscal years.
  • The company must be registered under the SME ONE ID system prior to the submission of the investment promotion application.

Conditions

The BOI permits existing SME projects to apply for incentives under this measure, subject to the following conditions:

  • This measure applies to existing SME projects, irrespective of whether they currently receive BOI investment promotion, provided that the project falls within an activity category eligible for promotion at the time of application. Projects classified under the BOI’s excluded activities or policies shall not be eligible.
  • Projects that have previously been granted BOI promotion may reapply under this measure upon the expiry of their existing corporate income tax (CIT) exemption or reduction period, or in cases where no CIT exemption was granted at the time of the original promotion.

Required Efficiency Improvement or Transition Activities

To be eligible under this measure, applicants must implement one or more of the following efficiency enhancement or business transition activities, subject to approval by the BOI:

  • Upgrading or replacing machinery and automation systems to enhance operational efficiency;
  • Adoption of digital technologies, including system integration software, artificial intelligence (AI), machine learning (ML), big data analytics, and electronic payment systems;
  • Upgrading production processes or operational systems to align with Industry 4.0 standards;
  • Improving energy efficiency or adopting renewable energy solutions within business operations;
  • Obtaining internationally recognized sustainability or quality certifications (e.g., GAP, FSC, PEFC, ISO 22000, ISO 14064); and
  • Transitioning business operations into new industries or activity categories eligible for BOI investment promotion.

1. Submission and Approval of the Investment Plan

  • Applicants are required to submit a comprehensive investment plan detailing the proposed improvement measures or transition activities.
  • Investment plans involving Industry 4.0 upgrades must be reviewed and approved by the National Science and Technology Development Agency (NSTDA).

2. Minimum Investment Requirement

  • The investment in efficiency improvement must be no less than THB 500,000, excluding the cost of land and working capital.

Rights and Benefits

Eligible SME projects are entitled to the following incentives:

  • Import duty exemption on machinery
  • Corporate income tax (CIT) exemption for up to five (5) years, equivalent to 100% of the qualifying investment amount (excluding land and working capital)
  • The CIT exemption period commences once the project generates revenue and must be utilized within three (3) years from the date of the promotion certificate.

Conclusion

BOI Notification No. 5/2568 represents a significant policy initiative to strengthen Thailand’s SME sector. By promoting modernization, digital transformation, energy efficiency, and sustainability, the measure supports SMEs in enhancing productivity and aligning with international standards.

Overall, the scheme is expected to accelerate the long-term competitiveness and resilience of SMEs while contributing to Thailand’s broader industrial transformation.

Author: Panisa Suwanmatajarn, Managing Partner.

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