Thailand Takes a Step Towards Marriage Equality: A Closer Look at the Amendment of the Civil and Commercial Code

on December 8, 2023December 8, 2023 by The Legal Co.,Ltd.

Thailand Takes a Step Towards Marriage Equality: A Closer Look at the Amendment of the Civil and Commercial Code

Love has long been a powerful force that transcends boundaries and unites people from diverse backgrounds. In recent years, the LGBTQ+ community has grown significantly, with more individuals feeling empowered to come out and live their truth. Many countries around the world have recognized the importance of supporting the LGBTQ+ community and have amended their laws to allow for same-sex marriage. However, Thailand, despite being known as an LGBTQ+ friendly country, has yet to pass such legislation.

Over the years, the Thai parliament has engaged in several debates regarding marriage equality and civil unions. Unfortunately, all proposed bills have failed to be enacted, leaving the LGBTQ+ community without the legal recognition they deserve. However, there is a glimmer of hope on the horizon. In a recent development, the Thai cabinet has approved the principle of amending the civil and commercial code bill, proposing marriage equality.

The essence of this amendment lies in the redefinition of the term “couple” to include people of any gender. This groundbreaking change aims to grant homosexual couples the same fundamental rights as their heterosexual counterparts. These rights include the ability to claim compensation in the event of a breach of betrothal or infidelity, the right to dissolve a marriage, and equal minimum age requirements for both heterosexual and homosexual couples.

people with gay pride body paint holding hands

While this amendment marks a significant step towards marriage equality in Thailand, it is important to recognize that it is merely the beginning. Homosexual couples have long been living together as families, yet they continue to face a lack of fundamental rights. These rights encompass crucial aspects such as the ability to make decisions regarding medical care, joint management and control of property, and inheritance rights.

Although the principle of amending the civil and commercial code bill has only been approved by the cabinet, it is a promising start. The next step will be to propose this amendment to the House of Representatives, where further discussions and deliberations will take place. If the bill successfully navigates this process, it will pave the way for a more inclusive and egalitarian society in Thailand.

The potential impact of this amendment cannot be understated. It signifies a fresh start for real equality, ensuring that love knows no boundaries and that all individuals, regardless of their sexual orientation, have the opportunity to experience the joys and responsibilities of marriage. As Thailand takes this important step towards marriage equality, it sets an example for other nations to follow, fostering a world where love truly knows no bounds.

Author: Panisa Suwanmatajarn, Managing Partner.

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Subordinate Legislations under the Foreigners Work Management Emergency Decree

on December 8, 2023December 8, 2023 by The Legal Co.,Ltd.

Subordinate Legislations under the Foreigners Work Management Emergency Decree

man in black suit sitting on chair beside buildings

Author: Panisa Suwanmatajarn, Managing Partner.

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ANTEA – International Comparison 2023

on December 7, 2023December 7, 2023 by The Legal Co.,Ltd.

Thailand – Inheritance Taxation

Inheritance Taxation / Gift and Donation Taxation	Real Estate	Financial Assets	Company shares	Assets outside the Country	Miscellaneous
Taxable Events (personal and real obligation to contribute)	Inheritance taxation: A person receives inheritance from each deceased person, whether on one or multiple occasions, if the value of each inheritance exceeds 100 millions. Gift taxation: A person receives money or assets as a gift exceeds 20 millions from parents, ascendants, descendants, spouse or exceeds 10 millions from others. Donation taxation: N/A				Nothing to report.
Taxpayer	Inheritance taxation: Heirs / Legatees Gift taxation: Receiver Donation taxation: N/A				Nothing to report.
Taxable Base (Tax Valuation of Assets and Deductions)	Inheritance taxation: Values on the day assets are received. Gift taxation: Values on the day assets are received. Donation taxation: N/A				Inheritance taxation: Based on ministerial regulations issued by the authority of the Inheritance Tax Act B.E.2558. Gift taxation: Based on Property Valuation for the Public Interest Act B.E.2562.
Tax Rate	Inheritance taxation: Ascendants and descendants are taxed at 5% of the portion over 100 millions, while others are taxed at 10% of the portion over 100 millions Gift taxation: 5% of the portion exceeding 20 millions or 10 millions Donation taxation: N/A				Nothing to report.
Deductions and Exemptions in Tax Amount	Inheritance taxation: Spouse and the members of the Royal Family ranked Praongchao and above are exempted. Gift taxation: Charities and other organizatons are exempted. Donation taxation: N/A				Nothing to report.
Deadline Declaration and Tax Payment	Inheritance taxation: Within 150 days from the received date Gift taxation: The same with income tax Donation taxation: N/A				Nothing to report.
Internal Law and Agreements to Avoid Double Taxation	Thailand has several bilateral double tax treaties, which are distinctive to each member state.				Nothing to report.

Source: International Comparison November 2023 : Antea (antea-int.com)

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Rise of plant-based meat pushes review of IP strategies

on November 29, 2023December 6, 2023 by The Legal Co.,Ltd.

Asia IP : Rise of plant-based meat pushes review of IP strategies

“To be successful in plant-based meat businesses, the meat replacement should not only look and feel like meat in the traditional way but in taste as well. It should be healthy, too.”

“Technological innovations that make plant-based meat have the same functions and play significant roles in the expansion of plant-based companies,” she said. “Obviously, 3D printing, which allows for the creation of complex and customizable plant-based food products, and electrospinning, which involves using an electrical field to create nanofiber mats that can be incorporated into plant-based products to improve their texture, flavour and nutritional profile are keys to the success.”

Panisa Suwanmatajarn said in Asia IP, Rise of plant-based meat pushes review of IP strategies on 28 September 2023.

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Source: Asia IP – Rise of plant-based meat pushes review of IP strategies

A Proposal for the Reform of the Foreigners’ Working Management Emergency Decree B.E. 2561: Enhancing Labor Management in Thailand

on November 27, 2023November 27, 2023 by The Legal Co.,Ltd.

A Proposal for the Reform of the Foreigners’ Working Management Emergency Decree B.E. 2561: Enhancing Labor Management in Thailand

Introduction:

The Foreigners’ Working Management Emergency Decree B.E. 2561 (2018) (“Decree”) was enacted to establish an integrated system for managing foreign laborers in Thailand. While it has successfully facilitated legal immigration for foreign workers seeking employment in various sectors of the economy, there are challenges that need to be addressed.

This article presents a proposal to amend the Decree, aiming to enhance flexibility and address critical issues such as labor shortages, ultimately contributing to the stability of the Thai economy.

Challenges and Proposed Amendments:

The current Decree prohibits employers operating as labor contractors from directly bringing in foreign workers for employment purposes. Although this restriction was intended to regulate foreign labor, it has inadvertently created challenges for businesses striving to meet their workforce demands efficiently. To address these challenges, the proposed amendments seek to introduce changes that would allow labor contractors to bring in foreign workers from countries with established Memorandum of Understanding (MOUs) with the Thai government for direct employment. Additionally, the proposed amendments aim to remove penalties associated with the original decree’s prohibition, fostering a more lenient and adaptable system.

Benefits and Impact:

The proposed amendments advocate for a paradigm shift by permitting businesses operating as labor contractors to directly employ foreign workers. This change is expected to streamline the hiring process and provide a practical solution to address labor shortages in various sectors. By eliminating penalties related to the original and current Decree, the proposed amendment promotes a more open and flexible system, incentivizing employers to explore international labor options without fear of legal repercussions.

The primary goal of the proposed amendment is to address persistent labor shortages faced by various industries in Thailand. By allowing labor contractors to bring in foreign workers, the amendment aims to enhance the stability of the Thai economy and attract increased foreign direct investment. This strategic move aligns with the evolving needs of the economy and positions Thailand as an attractive destination for both skilled and unskilled foreign workers.

Anticipated Results:

The proposed changes are anticipated to contribute significantly to the stability and growth of the Thai economy. By providing a practical solution to labor shortages, industries will be able to operate more efficiently, ultimately contributing to overall economic growth. Moreover, increased flexibility in hiring foreign workers is expected to attract more foreign direct investment. Businesses, assured of a streamlined labor recruitment process, are likely to view Thailand as an attractive destination for investment and expansion.

woman sharing her presentation with her colleagues

Conclusion:

The proposed amendment to the Decree represents a strategic and forward-thinking approach to labor management in Thailand. By embracing flexibility and responsiveness, the country can not only address immediate challenges related to labor shortages but also position itself as a dynamic player in the global economy, attracting foreign workers and investors alike. This reform signifies a commitment to progress and economic development, ensuring that Thailand remains a competitive and thriving nation in the international arena.

Author: Panisa Suwanmatajarn, Managing Partner.

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Proposal for the Repeal of the Act Governing Offenses Arising from the Use of Cheques B.E. 2534 (1991) : Promoting Fairness and Responsibility

on November 27, 2023November 27, 2023 by The Legal Co.,Ltd.

Proposal for the Repeal of the Act Governing Offenses Arising from the Use of Cheques B.E. 2534 (1991) : Promoting Fairness and Responsibility

Introduction and Necessity for the Bill:

The presentation of this bill to address offenses related to the use of cheques is essential due to the inadequacies of the Act Governing Offenses Arising from the Use of Cheques B.E. 2534 (1991). The proposed bill aims to promote the use of cheques in transactions while ensuring that criminal penalties are proportionate to the severity of the offense. This departure from the current legal framework, which employs criminal sanctions for breach of contract not aligned with constitutional principles and international agreements, underscores the need for this new bill.

Key Provisions of the Bill:

Repeal of the Act Governing Offenses Arising from the Use of Cheques B.E. 2534 (1991):

The proposed bill seeks to repeal the Act Governing Offenses Arising from the Use of Cheques B.E. 2534 (1991) in its entirety, with immediate effect upon proclamation in the Royal Gazette.

Specific Provisions:

Acknowledgment of agreements allowing debtors to repay cheque-related debts and treating them as compromises.
Granting judicial authority for the adjudication of cases in civil matters.
Expedited release of individuals awaiting trial or serving sentences related to cheque offenses.
Guidelines for calculating imprisonment terms in cases involving cheque offenses and multiple legal violations.
Appointment of the Minister of Justice to oversee the implementation of the bill.

Benefits to the Public:

The proposed bill aims to address shortcomings in the Act Governing Offenses Arising from the Use of Cheques B.E. 2534 (1991) by aligning penalties with the severity of offenses. It seeks to establish a legal framework that promotes the responsible use of cheques while avoiding criminal implications for breaches of contractual obligations that are not of a grave nature. Additionally, the bill supports the rights and responsibilities of both creditors and debtors, allowing for negotiated repayment plans and expediting legal processes. This ensures a fair legal environment for all parties involved in cheque-related cases.

Conclusion:

In summary, the proposed bill aims to rectify the existing legal framework by fostering a balanced and fair approach to cheque-related offenses. By promoting the responsible use of cheques and aligning penalties with the severity of offenses, this bill aims to create a legal environment that encourages financial transactions while ensuring fairness and accountability.

Author: Panisa Suwanmatajarn, Managing Partner.

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Compliance with Takedown Notice Practices in Thailand

on November 21, 2023November 21, 2023 by The Legal Co.,Ltd.

Compliance with Takedown Notice Practices in Thailand

The takedown notice mechanism is an important tool for intellectual property right holders to combat the dissemination of illegal or infringing contents on the internet. In Thailand, there are specific provisions under the Computer-Related Crime Act B.E. 2550 (2007) (“CCA”) and the Copyright Act (No. 5) B.E. 2565 (2022) (“CA”) that govern the takedown notice processes.

Takedown Notice under the CCA:

Under the CCA, a competent official appointed by the Minister of the Ministry of Digital Economy and Society (“MDES”) has the authority to issue takedown notice for illegal computer data. The competent official, with the approval of the MDES, can file a petition with the court, accompanied by evidence, to request the court to block or delete the computer data. This applies to computer data that constitutes an offense under the CCA, data that affects the security of Thailand, or illegal contents.

Internet service providers (ISPs) are required to comply with takedown notice from competent officials if the notice is in the prescribed form under the CCA’s regulations. ISPs must fulfill the takedown notice within the timeframe specified by the court, not exceeding 15 days from the court’s order, unless there is a reasonable necessity for a delay.

Takedown Notice under the CA:

The Copyright Act (No. 5) B.E. 2565 (2022) provides copyright owners with the ability to initiate takedown notices for copyright infringement contents in the computer systems of various types of ISPs, including intermediary ISPs (Mere Conduit), caching ISPs, hosting ISPs, and search engine ISPs. Copyright owners can notify these ISPs to remove the claimed infringing contents, and the ISPs must promptly remove such contents. The ISP must also inform the alleged infringing user to file a counter-notice, which will be forwarded to the copyright owners. If the copyright owners fail to file a lawsuit against the alleged user within 30 days of receiving the counter-notice, the ISPs must restore the disputed information or allow access to the contents.

Takedown Notice for Other Types of Intellectual Properties:

Unlike the CA, other intellectual property-related laws, such as those governing trademarks and patents, do not explicitly provide provisions for takedown notices. In practice, intellectual property rights holders need to engage the Intellectual Property Rights Enforcement Office, which relies on the CCA to address illegal contents related to these types of intellectual property.

Despite the existence of these mechanisms, there is currently no comprehensive guideline issued by the government to assist intellectual property right holders in protecting their interests. Additionally, it remains unclear how Thai laws will be enforced against ISPs that do not comply with requests from rights holders, as the takedown of infringing contents currently relies on the cooperative basis of ISPs. However, the Department of Intellectual Property is working on establishing better mechanisms to enforce takedown notices for intellectual property infringing contents, including cooperation between governmental authorities and potential amendments to existing laws to address evolving technologies.

Author: Panisa Suwanmatajarn, Managing Partner.

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Enhancing Rights and Welfare: The Freelance Promotion and Protection Bill

on November 21, 2023November 21, 2023 by The Legal Co.,Ltd.

Enhancing Rights and Welfare: The Freelance Promotion and Protection Bill

Introduction

In the 21st century, the advent of the digital age has transformed the global landscape, leading to an increased reliance on electronic devices and digital platforms for everyday survival. This shift is especially prominent in major Asian cities like Bangkok, where traditional cash transactions are being replaced by the prevalence of digital payments such as credit cards, debit cards, and QR codes. Alongside this digital revolution, the rise of applications like Grab, Bolt, and Robinhood has introduced a new paradigm of work facilitated by independent contractors or partners, offering services ranging from food delivery to transportation.

The precarious situation of independent contractors despite their indispensable role, independent contractors, commonly known as partners, often find themselves in a precarious situation. Although,

their work may resemble that of employees, they are not granted the same level of protections provided by traditional employment laws. To address this pressing issue, the Ministry of Labour has introduced the draft Freelance Promotion and Protection Bill, aiming to establish a distinct category for these contractors, recognizing them as semi-independent professionals or semi-freelancers.

Safeguarding semi-freelancers

The Bill seeks to protect semi-freelancers from arbitrary termination by prohibiting business operators from ceasing to provide work during the resolution of complaints or in case of serious allegations. This provision aims to provide a safety net for semi-freelancers, ensuring a fair process before any cessation of work.

Regulating agreements for transparency and fairness

The Bill acknowledges the need for transparency and fairness in agreements between business operators and semi-freelancers. By regulating these agreements, the legislation aims to create a balanced working relationship that respects the rights and interests of both parties.

Enhancing well-being

Through a fund to enhance the well-being of semi-freelancers, the Bill proposes the establishment of a fund to which members can contribute. This fund would provide benefits such as access to credit unions, insurance coverage, and other rights, offering a social security net for those engaged in freelance work.

Arbitration mechanisms for dispute resolution

The Bill empowers semi-freelancers with the right to arbitrate labor disputes through a tribunal, arbitrator, or the labor court. This ensures a fair and impartial resolution mechanism that considers the specific nature of freelance work.

Strengthening collective bargaining power

Recognizing the collective strength of freelancers and semi-freelancers, the Bill promotes the formation of worker’s unions. This empowers freelancers to engage in collective bargaining, fostering a fairer working environment and ensuring that their voices are heard.

Establishing a dedicated committee

The establishment of a Freelance Promotion and Protection Committee underscores the commitment to safeguarding the rights and promoting the well-being of freelancers. This committee will serve as a dedicated body to address emerging issues and ensure the effective implementation of the Bill.

In conclusion, the Bill represents a crucial step towards acknowledging and addressing the unique challenges faced by freelancers and semi-freelancers in the evolving digital landscape. By providing legal recognition, ensuring job security, and establishing mechanisms for dispute resolution and collective bargaining, the Bill aims to foster a more equitable and supportive environment for those engaged in freelance work. Ultimately, this legislation endeavors to build a robust social security net, promoting the rights and well-being of freelancers and semi-freelancers in the contemporary workforce.

Author: Panisa Suwanmatajarn, Managing Partner.

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USTR Annual Review on Thailand Intellectual Property Protection 2023

on November 21, 2023November 21, 2023 by The Legal Co.,Ltd.

USTR Annual Review on Thailand Intellectual Property Protection 2023

The Office of the United States Trade Representative (USTR) conducts an annual review of intellectual property (IP) protection and enforcement in U.S. trading partners worldwide. Countries are categorized based on their IP infringement rates, with priority given to addressing issues in countries with high rates of infringement (Priority Foreign Country: PFC), i.e., countries on the Priority Watch List (PWL), and countries on the Watch List (WL).

Thailand was previously categorized as a country on the Priority Watch List from 2007 to 2017. However, on December 15, 2017, the USTR upgraded Thailand’s IP protection and enforcement status to the Watch List. Currently, Thailand remains on the Watch List along with 22 other countries. The USTR’s Notorious Markets Report for 2022 identified the MBK Center as the only market in Thailand with a high rate of IP infringement.

The USTR’s report acknowledges that Thailand has made progress in improving IP protection and enforcement. Efforts have been made to seize counterfeit and pirated goods, combat the sale of counterfeit goods online, and enhance cooperative measures among governmental agencies. Notable proceedings and plans by governmental agencies include:

Amendment to the Copyright Act B.E. 2537 (1994) to strengthen copyright owners’ rights, allowing them to initiate takedowns or block access to copyright infringement contents on the internet. The amendment also extended the lifespan of photography protection and facilitated Thailand’s accession to the World Intellectual Property Organization (WIPO) Copyright Treaty (WCT).
The development of the Thai Customs IPR Recordation System (TCIRs), an online system where right holders can submit trademark and copyright information to customs officials for verification of authenticity in imported, exported, or transit goods.
Cooperative measures among governmental authorities and organizations to combat the sale and advertisement of counterfeit goods online and online piracy. A Memorandum of Understanding (MOU) has been established between right holders and advertising associations to restrict support for websites that infringe on intellectual property.

However, the USTR report also highlights concerns and areas of improvement. The USTR recommends amending the Patent Act B.E. 2522 (1979) to streamline the patent registration process, reduce patent backlog and pendency, and prepare for accession to the Hague Agreement. Additionally, an amendment to the Copyright Act B.E. 2537 (1994) is suggested to address enforcement obstacles and enable Thailand’s accession to the WIPO Performances and Phonograms Treaty (WPPT).

The Department of Intellectual Property (DIP) is aware of the USTR’s concerns and is taking action to address them. The DIP is currently in the process of redrafting the Patent Act B.E. 2522 (1979) to provide additional protection for right holders, improve the registration process, and align with global standards for accession to the Hague Agreement. Similarly, the Copyright Act B.E. 2537 (1994) is undergoing legislative amendments for Thailand’s accession to the WPPT. Enforcement issues are being addressed through cooperative measures among 17 governmental authorities responsible for seizing and enforcing the law against IP infringers.

Despite ongoing efforts at the administrative, policy planning, and enforcement levels, intellectual property infringement remains a significant challenge in Thailand. The DIP is committed to resolving this issue and working towards removing Thailand from the Watch List countries.

Please note that the information provided is based on the USTR’s Special 301 Report 2023 and other relevant published sources.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand – New Government with its Executive and Legislative Policies to Promote Foreign Direct Investment

on November 21, 2023November 21, 2023 by The Legal Co.,Ltd.

Thailand – New Government with its Executive and Legislative Policies to Promote Foreign Direct Investment

The new government, which has taken office following a nine-year ruled by General Prayuth Chan-o-cha, signifies Thailand’s return to democracy after the 2014 military coup. Under the leadership of the Pheu Thai Party, led by Prime Ministerial candidate Srettha Thavisin, the government has set forth a visionary agenda, with a primary focus on promoting foreign direct investment to invigorate the country’s GDP.

To achieve this overarching objective, the government has implemented a multifaceted strategy that encompasses both executive and legislative policies. This strategy revolves around three core principles: reducing expenses, increasing income, and expanding opportunities, all designed to enhance Thailand’s overall business environment and attractiveness to foreign investors within the ASEAN region.

One of the government’s primary measures is an extensive economic stimulus program. This program aims to reduce the cost of living and production costs in the country. Key components include significant reductions in electricity prices, petrol prices, personal consumption loan interest rates, and suspension of debt payments for farmers. These measures are strategically designed to enhance the appeal of Thailand as a destination for foreign investment by improving the overall cost structure for businesses operating within its borders.

Furthermore, the government is focusing on boosting the Electric Vehicle (EV) industry as a driver of foreign investment. To achieve this, it plans to reduce tax exemptions for imported EV cars, incentivizing domestic EV manufacturing. By nurturing this emerging sector, Thailand seeks to enhance its industrial and technological capabilities, making it a compelling option for foreign investors looking to capitalize on the growing EV market.

The government has also implemented visa policies to promote foreign investment and tourism. Passport holders from China, Kazakhstan, Taiwan, and India already benefit from a free-visa policy, with plans to extend this privilege to other nationalities in the near future. Such policies foster an environment conducive to foreign business travel and investment in various sectors.

Furthermore, the government is taking steps to upgrade the country’s infrastructure. The proposed land bridge project, connecting the Andaman Sea to the Gulf of Thailand, will significantly enhance international trade routes, positioning Thailand as a pivotal transportation hub in the Indo-Pacific region. This infrastructure investment opens up opportunities for foreign investments in logistics and related industries.

Lastly, the government plans to introduce legislation to fund the 10,000 THB digital wallet project. This initiative will provide digital currency to adults with monthly incomes below 70,000 THB and savings below 500,000 THB. Any unused funds will be channeled into the National Competitiveness Enhancement for Targeted Industries Fund, further enhancing economic competitiveness and making Thailand an attractive destination for foreign investment.

In conclusion, the government’s comprehensive approach to economic development, with a focus on improving the business environment, supporting key industries such as EV manufacturing, and encouraging foreign investment, positions Thailand for substantial growth and prosperity. If effectively implemented, these policies have the potential to transform Thailand into a regional economic powerhouse.

Author: Panisa Suwanmatajarn, Managing Partner.

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