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BOI: Incentive Reforms Target Aviation, AI and Sustainable Industries as Investment Applications Surge

Thailand’s Board of Investment (BOI) has continued to refine its investment promotion framework in 2026 through amendments to promoted activities and targeted incentive measures aimed at attracting high-value investment, strengthening industrial competitiveness and supporting the country’s transition towards a digital and sustainable economy.

The latest policy developments coincide with a substantial increase in investment activity. Investment promotion applications during the first quarter of 2026 exceeded THB 1 trillion, continuing the strong momentum seen in 2025 when applications reached a record level. The figures reflect increasing investor confidence in Thailand as a regional manufacturing, technology and innovation hub, particularly amid ongoing supply chain diversification and shifts in global production strategies.

Aviation and Air Transport Sector:

Among the recent initiatives, the BOI has expanded support for aviation and air transport-related activities as part of Thailand’s strategy to strengthen its position as a regional aviation and logistics hub. The revised promotion framework is expected to encourage investment in air transport services, aircraft maintenance, aviation support services and related infrastructure.

The measures complement broader efforts to improve transportation connectivity, facilitate cross-border trade and investment, and enhance Thailand’s competitiveness within the ASEAN region.

Smart and Sustainable Industries:

The BOI has also continued to enhance its policies supporting smart and sustainable industries, encouraging businesses to adopt advanced technologies, automation systems, energy-efficient machinery and environmentally sustainable production processes.

The policy direction reflects the government’s commitment to industrial upgrading, productivity enhancement and sustainability-driven growth. For investors, the reforms signal continued support for projects involving digital transformation, energy efficiency, carbon reduction and resource optimization. Such initiatives are increasingly aligned with the environmental, social and governance (ESG) expectations of global investors and multinational supply chains.

Digital and Artificial Intelligence Investments:

Digital technologies and artificial intelligence (AI) remain key priorities under Thailand’s investment promotion strategy. Recent investment trends indicate growing demand for projects involving data centers, cloud services, software development, AI applications and related digital infrastructure.

The continued emphasis on AI and digital transformation aligns with broader government objectives aimed at accelerating technological innovation, strengthening digital capabilities and attracting high-value industries. These developments further reinforce Thailand’s ambition to position itself as a regional technology and digital services hub.

Enhancements to the Long-Term Resident (LTR) Visa Program:

In parallel with investment promotion measures, the government has introduced adjustments to the Long-Term Resident (LTR) Visa program to facilitate the entry of foreign investors, executives and highly skilled professionals.

The revisions are intended to improve accessibility for qualified applicants and strengthen Thailand’s ability to attract global talent in strategic sectors. The combination of BOI incentives and LTR Visa benefits continues to form an important component of Thailand’s investment promotion strategy, particularly for multinational enterprises considering the establishment of regional headquarters, research and development centres or technology-focused operations in the country.

Continued Foreign Investment Momentum:

The strong investment figures recorded in early 2026 indicate that Thailand continues to benefit from global trends such as supply chain diversification, regionalization of manufacturing and increasing demand for digital infrastructure.

Investment activity has been concentrated in sectors including advanced electronics, AI-related businesses, digital infrastructure, clean energy, logistics and advanced manufacturing. The growth demonstrates continued investor confidence in Thailand’s investment ecosystem and the competitiveness of its incentive regime.

Key Takeaways:

  • The BOI continues to refine its investment promotion framework to attract high-value investments in strategic sectors, particularly aviation, digital technologies, artificial intelligence and sustainable industries.
  • Recent reforms demonstrate Thailand’s continued focus on industrial upgrading, technological innovation and environmentally sustainable growth.
  • Enhancements to the Long-Term Resident (LTR) Visa programme complement investment incentives by facilitating the attraction of foreign investors, executives and highly skilled professionals.
  • Record investment promotion applications in early 2026 indicate sustained investor confidence and Thailand’s growing role as a regional investment and manufacturing hub.

Businesses considering expansion into Thailand should review the availability of BOI incentives and assess how evolving promotion policies may support investment projects, regional headquarters, technology operations and sustainability initiatives.

Author: Panisa Suwanmatajarn, Managing Partner.

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Government Agencies Accelerate Work-from-Home Policies Through e-Office and Digital Government Initiatives

Introduction:

The public sector is continuing its digital transformation through expanded adoption of work-from-home (WFH) arrangements supported by electronic office systems and digital government infrastructure. In 2026, the government intensified these efforts as part of broader energy conservation measures while simultaneously advancing long-term public sector digitalization objectives.

Recent government directives signal a significant policy shift toward greater reliance on electronic document management, digital signatures, online collaboration tools, and cloud-based administrative platforms. Government agencies are therefore increasingly required to review and update internal regulations, operational procedures, and workforce management policies to support remote working arrangements without compromising public services, information security, or administrative accountability.

Cabinet Resolution Promoting Work-from-Home Arrangements:

On 10 March 2026, the Cabinet resolved that government agencies and state enterprises should immediately implement work-from-home measures for functions that do not directly involve public-facing services. The policy was introduced primarily as a response to energy concerns and rising fuel consumption, while also supporting broader governmental objectives relating to digital government development.

The Ministry of Digital Economy and Society (MDES) subsequently announced support for the policy through expanded utilization of the government’s e-Office platform and related digital systems. The initiative reflects the government’s continuing commitment to reducing paper-based administrative processes and promoting flexible work arrangements across the public sector.

e-Office as the Foundation for Remote Government Operations:

The e-Office platform serves as a centralized electronic office management system designed to enable government officials to perform their duties remotely while maintaining official administrative processes.

Core functionalities include:

  • Electronic document management (e-Document);
  • Digital workflow and document routing;
  • Electronic correspondence and records management;
  • Digital signature capabilities;
  • Online meeting and collaboration tools;
  • Task monitoring and reporting systems; and
  • Time attendance and work tracking functions through integrated Timesheet applications.

The system allows government personnel to access official documents, approve transactions, monitor workflow progress, and collaborate with colleagues from remote locations while preserving audit trails and administrative transparency.

According to government reports, more than 160 government agencies and local administrative organizations have already adopted the platform. Agencies may also utilize the Government Data Center and Cloud Service (GDCC) infrastructure to deploy e-Office solutions without incurring additional licensing costs.

Regulatory and Governance Considerations:

While technology enables remote work, successful implementation requires corresponding adjustments to internal regulations and administrative procedures.

Government agencies adopting WFH arrangements should review and update internal rules governing:

Performance Management and Supervision

Traditional attendance-based supervision may no longer be suitable in a remote work environment. Agencies should establish clear frameworks for:

  • Work assignment and delegation;
  • Deliverable-based performance measurement;
  • Reporting obligations;
  • Monitoring mechanisms; and
  • Accountability requirements for remote personnel.

The emphasis should shift from physical presence toward measurable outputs and documented performance indicators.

Working Hours and Attendance Controls

Although work may be performed remotely, agencies remain responsible for ensuring compliance with official working-hour requirements.

Appropriate measures may include:

  • Electronic attendance recording;
  • Timesheet systems;
  • Activity reporting requirements;
  • System log monitoring; and
  • Supervisor approval procedures.

Clear policies should be established regarding availability, response times, and communication expectations during official working hours.

Information Security and Data Protection

Remote access to government systems introduces cybersecurity and information security risks.

Agencies should establish policies addressing:

  • Secure remote access protocols;
  • Authentication requirements;
  • Use of government-issued devices;
  • Confidentiality obligations;
  • Storage and transmission of official information; and
  • Incident reporting procedures.

Particular attention should be given to sensitive government information and compliance with applicable cybersecurity and data governance requirements.

Continuity of Public Services

A fundamental principle of the government’s WFH policy is that public services must not be adversely affected.

Accordingly, agencies should identify:

  • Functions suitable for remote work;
  • Essential on-site operations;
  • Minimum staffing requirements;
  • Public service continuity plans; and
  • Escalation procedures for urgent matters.

Several agencies have adopted rotational work arrangements to balance operational efficiency with service delivery obligations.

Sector-Specific Implementation

Certain government sectors have already introduced tailored WFH frameworks.

For example, the Ministry of Public Health has implemented rotational remote-working arrangements designed to maintain uninterrupted healthcare services while reducing on-site staffing levels where operationally feasible.

Such approaches demonstrate that WFH implementation is not intended as a uniform solution across all agencies but rather as a flexible framework that must be adapted according to each organization’s operational requirements and public service responsibilities.

Implications for Government Agencies:

The 2026 policy initiative reflects a broader transition from temporary remote working measures toward institutionalized digital government operations.

Government agencies should therefore consider:

  • Updating internal regulations to formally recognize remote work arrangements;
  • Expanding deployment of e-Office and digital workflow systems;
  • Establishing objective performance evaluation frameworks;
  • Enhancing cybersecurity and data governance controls;
  • Developing clear WFH eligibility criteria; and
  • Ensuring uninterrupted public service delivery.

As digital government infrastructure continues to mature, WFH arrangements are likely to become a permanent component of public sector administration rather than merely an emergency or temporary measure.

Key Takeaways:

  • The Cabinet has directed government agencies and state enterprises to implement WFH arrangements for non-public-facing functions as part of energy conservation and digital transformation initiatives.
  • The government’s e-Office platform serves as a key technological enabler, providing electronic document management, digital signatures, workflow automation, online collaboration, and work tracking capabilities.
  • Agencies should revise internal regulations governing performance management, attendance monitoring, information security, and service continuity to accommodate remote work environments.
  • Cybersecurity, data protection, and accountability remain critical compliance considerations when implementing WFH policies.

The 2026 initiative represents a significant step toward long-term digital government operations and greater institutional adoption of flexible working arrangements within the public sector.

Author: Panisa Suwanmatajarn, Managing Partner.

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NBTC’s Third Broadcasting and Television Master Plan (2026–2030): Expanded Oversight of OTT Platforms and the Future of Digital Broadcasting

Introduction:

Thailand’s National Broadcasting and Telecommunications Commission (NBTC) is currently conducting public consultations on the Draft Third Broadcasting and Television Master Plan (2026–2030), which is intended to serve as the principal policy framework for the broadcasting sector over the next five years.

The draft plan reflects the NBTC’s recognition that the media landscape has undergone significant transformation as audiences increasingly consume content through online platforms and streaming services rather than traditional broadcasting channels. In response, the NBTC is proposing a broader regulatory approach that extends beyond conventional television and radio operators to encompass digital content ecosystems, online media platforms, and emerging forms of content distribution.

The proposed framework also addresses growing concerns regarding misinformation, the competitiveness of domestic digital platforms, and the future of the digital television sector as existing licenses approach expiry.

Greater Focus on OTT and Online Media Platforms:

A key feature of the draft plan is the NBTC’s intention to strengthen oversight of over-the-top (OTT) services and online media platforms.

The traditional broadcasting regulatory framework was designed primarily for licensed television and radio operators. However, the rapid growth of streaming platforms, social media services, and other online content providers has significantly altered viewing behavior and challenged the effectiveness of existing regulatory models.

The draft plan therefore contemplates the development of regulatory mechanisms appropriate for the digital environment, including measures aimed at enhancing accountability and governance of online content distribution platforms. While the specific regulatory tools remain under consideration, the proposal signals the NBTC’s intention to play a more active role in overseeing digital media services that reach Thai audiences.

This policy direction reflects a broader recognition that online platforms have become an integral part of the communications ecosystem and increasingly influence public discourse, information consumption, and media competition.

Measures to Combat Fake News and Harmful Content:

The draft plan identifies misinformation, disinformation, and content that may create social division or public disorder as important regulatory concerns.

The NBTC proposes closer cooperation with relevant government agencies, media organizations, and digital platform operators to strengthen mechanisms for monitoring and addressing false or misleading information disseminated through broadcasting and online channels.

Particular attention is expected to be given to content that may affect public safety, national security, social harmony, or public confidence in state institutions. The draft plan also contemplates the development of systems that promote responsible media practices and improve public awareness regarding information verification.

Although detailed implementation measures have not yet been announced, platform operators and content providers should anticipate increased regulatory attention to content governance and compliance frameworks in the coming years.

Promotion of Domestic Digital Platforms and Local Content:

Another important objective of the draft plan is the promotion of domestic digital platforms and the strengthening of Thailand’s content industry.

The NBTC has expressed support for initiatives that enhance the competitiveness of local media operators and encourage the development of platforms capable of serving Thai audiences while promoting domestic content creation.

The draft plan also seeks to encourage innovation in broadcasting technologies and digital content distribution. Such initiatives are intended to support sustainable growth within the media sector and reduce structural disadvantages faced by local operators in competing with large international digital platforms.

This policy direction aligns with broader national objectives relating to digital economy development and technological self-reliance.

Preparing for the Post-2029 Digital Television Landscape:

The draft plan also addresses the future of the digital television industry as existing digital television licenses are expected to expire around 2029.

Since the transition to digital broadcasting, television operators have faced substantial economic pressures arising from changing consumer behavior, fragmentation of audiences, and increasing competition from online media services. These developments have raised questions regarding the long-term sustainability of the current broadcasting model.

In response, the NBTC intends to develop a roadmap for the future of digital television. The roadmap is expected to examine the role of terrestrial broadcasting in an increasingly digital environment, potential adjustments to licensing frameworks, spectrum management strategies, and measures to support industry sustainability.

The outcome of these discussions is likely to influence the structure of Thailand’s broadcasting sector for years to come and may have significant implications for broadcasters, investors, content producers, and telecommunications operators.

Implications for Businesses:

The draft master plan demonstrates a regulatory shift towards a more integrated approach to media governance, where distinctions between traditional broadcasting services and online content platforms are becoming less pronounced.

Businesses that may be affected by future policy developments include:

  • OTT and streaming service providers;
  • social media and content-sharing platforms;
  • broadcasters and television operators;
  • telecommunications service providers;
  • digital advertising businesses; and
  • content creators and media companies.

Although the draft plan does not itself create immediate legal obligations, it provides a clear indication of the NBTC’s regulatory priorities and may serve as the foundation for future regulations, licensing requirements, and policy initiatives affecting the digital media sector.

Stakeholders should therefore monitor the consultation process and forthcoming regulatory developments closely.

Outlook:

The Draft Third Broadcasting and Television Master Plan (2026–2030) reflects the NBTC’s effort to modernize the regulatory framework governing Thailand’s broadcasting and media sectors in response to technological change and evolving consumer behavior.

By focusing on OTT regulation, combating misinformation, promoting domestic digital platforms, and preparing for the expiry of digital television licenses, the NBTC is signaling a broader and more proactive approach to media regulation in the digital era.

While many of the proposed measures remain at the policy stage, the draft plan provides important insight into the direction of future regulatory developments and the issues that are likely to shape Thailand’s communications and media landscape over the coming years.

Key Takeaways:

  • The NBTC is consulting on the Draft Third Broadcasting and Television Master Plan (2026–2030), which will guide broadcasting policy over the next five years.
  • Regulatory attention is increasingly shifting towards OTT services and online media platforms as digital content consumption continues to grow.
  • The draft plan proposes stronger measures to address fake news, disinformation, and other forms of harmful online content.
  • The NBTC seeks to promote domestic digital platforms and strengthen the competitiveness of Thailand’s content industry.
  • A roadmap is being developed to address the future of digital television ahead of the expected expiry of digital TV licenses around 2029.

Although no immediate legal obligations arise from the draft plan, businesses should monitor future regulatory initiatives that may affect platform governance, content regulation, and broadcasting operations.

Author: Panisa Suwanmatajarn, Managing Partner.

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NBTC: Notification Regulating the Use of Foreign Internet Services

The Office of the National Broadcasting and Telecommunications Commission (NBTC) has issued an official notification concerning the use of internet services, with specific provisions addressing the utilization of foreign internet connections and related cross-border activities.

Background and Objectives:

The notification, titled NBTC Office Notification Re: Use of Internet Services, aims to strengthen oversight of internet usage in Thailand. It focuses on ensuring national security, preventing misuse of domestic infrastructure for foreign operations, and protecting consumers while promoting responsible digital practices.

This regulation aligns with Thailand’s broader efforts to combat cross-border cybercrime, data misuse, and unauthorized international connectivity that could bypass local licensing requirements.

Key Provisions:

The notification covers several critical areas related to internet service usage, particularly those involving foreign elements:

1.  Restrictions on Foreign Internet Routing — Prohibitions on using Thai-registered IP addresses or domestic networks to provide or facilitate internet services abroad without proper authorization.

2.  Cross-Border Service Controls — Regulations governing international data roaming, foreign satellite internet connections, and unauthorized use of overseas internet gateways that may impact national infrastructure.

3.  Consumer Protections — Guidelines for users on managing international roaming charges and recommendations to disable foreign data services when not needed to prevent unexpected costs.

4.  Prohibited Practices — Bans on leveraging Thai telecommunications networks for illegal foreign business operations, including those that could enable fraud, scams, or other cyber threats originating from outside Thailand.

5.  Compliance Requirements — Mandatory standards for internet service providers (ISPs) to monitor and prevent unauthorized foreign internet usage through their networks.

Implications for Stakeholders:

•  Consumers: Greater awareness and tools to control foreign data usage, reducing risks of bill shock from international roaming and enhancing privacy.

•  Service Providers: Must implement stricter controls on network usage to avoid facilitating foreign internet services illegally.

•  Businesses and Operators: Enhanced scrutiny on cross-border connectivity, particularly for companies involved in international telecommunications.

Key Takeaways:

•  The NBTC notification emphasizes responsible use of foreign internet services to safeguard Thailand’s digital sovereignty and national security.

•  Thai networks must not be misused to support unauthorized foreign internet operations.

•  Consumers are encouraged to manage international roaming settings proactively.

•  All stakeholders should review the full official document on the NBTC website to ensure full compliance with the updated regulations.

Author: Panisa Suwanmatajarn, Managing Partner.

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ETDA: Proposed Overhaul of Thailand’s Electronic Transactions Act – Modernizing for the Digital Economy

Thailand’s existing Electronic Transactions Act B.E. 2544 (2001, as amended) has served as the foundational legal framework for electronic transactions for over two decades. Enacted in an earlier era of digital adoption, it primarily addressed basic electronic signatures, data messages, and recognition of electronic records. However, it increasingly struggles to accommodate rapid technological advancements, including automated contracting systems, electronic transferable instruments (such as e-bills of lading), cloud-based data storage, digital identity solutions, and complex cross-border digital platforms.

Limitations in the current law—such as uncertainty around the reliability and evidentiary weight of electronic data, rigid requirements that do not flexibly support emerging technologies without additional regulations, and enforcement gaps—hinder full digital transformation. This creates friction for businesses adopting paperless processes, e-commerce, fintech, logistics, and other innovative models central to Thailand 4.0 and the broader digital economy.

Many jurisdictions have proactively updated their frameworks to address these challenges. The United Nations Commission on International Trade Law (UNCITRAL) Model Laws on Electronic Commerce, Electronic Signatures, and Electronic Transferable Records have influenced reforms worldwide. Countries like Singapore, the EU (with eIDAS and related directives), and others have introduced technology-neutral rules, enhanced trust services, liability frameworks for service providers, and specific provisions for electronic equivalents of negotiable instruments. These updates boost legal certainty, reduce compliance burdens, facilitate international trade, and stimulate innovation while maintaining consumer and business protections.

Key Changes in the Draft Act and UNCITRAL Alignment:

The Electronic Transactions Development Agency (ETDA) has proposed a comprehensive Draft Electronic Transactions Act for public hearing (comments due by June 15, 2026). The draft represents a substantial rewrite rather than a simple amendment. It shifts Thailand toward a more technology-neutral, principles-based, and trust-oriented framework, building on the original law’s foundations while incorporating newer UNCITRAL instruments.

Major Changes from the Current Law:

Broader Legal Recognition of Electronic Data and Transactions: Electronic records that are accessible, reusable, and retain integrity will satisfy requirements for “writing,” originals, retention, and evidence across civil, criminal, and procedural contexts. Electronic transactions become the default/preferred mode. This significantly expands functional equivalence beyond the 2001 Act’s more limited scope.

Electronic Signatures, Seals, Timestamps, and Notices: Reliable electronic methods (or ETDA-prescribed ones) fulfill signature, seal, timestamp, and registered mail requirements. Public announcements can shift to verified online platforms. New emphasis on electronic seals and reliable timestamps strengthens evidentiary value.

Reliable Methods, Certification, and Burden of Proof: Introduction of “reliable electronic methods” with ETDA recognition/certification. When approved systems are used, the burden and cost of disproving reliability shift to the challenger. This provides stronger legal certainty and incentivizes certified solutions.

Automated and Electronic Contracting: Explicit validation of contracts formed by automated systems (with or without human intervention), plus detailed rules on attribution, receipt acknowledgment, timing/place of dispatch, input error correction, and verification methods.

New Regime for Electronic Transferable Instruments: A dedicated framework for e-bills of lading, warehouse receipts, promissory notes, etc., including exclusive control (equivalent to possession), transfer, endorsement, amendment, integrity, and paper-electronic conversion. This is a major addition.

Regulation of Service Providers: Broader coverage of identity proofing, e-signatures, timestamping, data storage, and related services. Replaces rigid licensing with a voluntary certification (“trust mark”) scheme, risk management, cybersecurity, and complaint-handling obligations. Liability protections for compliant providers, with transitional recognition for existing licensees.

Strong UNCITRAL Alignment:

Builds on the original Act’s foundation in the Model Law on Electronic Commerce (1996) and Electronic Signatures (2001).

Incorporates the Electronic Communications Convention (ECC, 2005) — Thailand acceded in 2025 — for automated contracting and international rules.

Adopts principles from the Model Law on Electronic Transferable Records (MLETR, 2017) for e-transferable instruments.

Aligns with the Model Law on Electronic Identity and Trust Services (MLIT, 2022) through trust services, certification, and technology-neutral identity frameworks.

Supports overall technology neutrality and functional equivalence, enhancing interoperability under initiatives like the Framework Agreement on Cross-border Paperless Trade (CPTA).

Business Impacts and Preparation Steps:

The Draft Act would lower barriers to digital operations, reduce paper dependency, streamline contracting and record-keeping, and improve cross-border compatibility. Sectors like trade finance, logistics, e-commerce, fintech, cloud services, and digital identity providers stand to benefit significantly.

New compliance expectations include system reliability, risk management, cybersecurity, audits, and vendor due diligence. Businesses may need to update processes, contracts, policies, and user interfaces.

Businesses should prepare by:

Reviewing current electronic systems against emerging “reliable method” standards.

Assessing exposure as service providers or users.

Monitoring ETDA subordinate regulations, certifications, and guidance.

Updating contracts, terms, privacy notices, and record-retention policies.

Enhancing cyber security and complaint-handling mechanisms.

Current Status and Next Steps:

The Draft Act is currently in the public hearing phase (comments due by June 15, 2026). Following consultation, it will undergo refinement, Cabinet approval, parliamentary review, and publication in the Government Gazette.

Implementation is not immediate: The law would generally take effect 180 days after Gazette publication, with ETDA issuing subordinate rules, standards, and certification procedures (targeted within 180 days post-publication, though effective timelines may extend). Full industry adaptation and technical rollout could span months to years. Existing providers receive transitional support.

Key Takeaways:

The Draft Act modernizes Thailand’s electronic transactions framework through broader recognition, new instruments for digital trade, and a flexible certification model — strongly aligned with evolving UNCITRAL standards.

It addresses longstanding limitations while promoting trust, innovation, and paperless processes across private and public sectors.

Businesses should proactively assess impacts, strengthen systems, and participate in the ongoing public consultation.

Successful implementation will enhance Thailand’s digital economy competitiveness, though it requires coordinated regulatory and industry efforts over the coming years.

Author: Panisa Suwanmatajarn, Managing Partner.

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Introducing a 200% Tax Deduction Incentive for Digital Transformation of SMEs

Introduction:

As digital transformation continues to reshape business operations and competitiveness, the Thai Government has introduced a significant tax incentive aimed at encouraging small and medium-sized enterprises (SMEs) to adopt digital technologies. Pursuant to the Royal Decree Issued Under the Revenue Code (No. 802) B.E. 2569 (2026), eligible SMEs are entitled to claim a tax deduction of up to 200% of qualifying expenditures incurred for the acquisition of digital products and services.

The measure forms part of Thailand’s broader strategy to accelerate digital adoption, enhance productivity, and strengthen the competitiveness of domestic businesses in the digital economy.

Overview of the Tax Incentive:

Under the Royal Decree, qualifying SMEs may deduct eligible digital-related expenses at twice the actual amount incurred for corporate income tax purposes. The enhanced deduction applies to expenditures relating to digital products and services procured from vendors or service providers registered or certified by the Digital Economy Promotion Agency (DEPA).

The incentive covers a wide range of digital investments, including:

  • Software acquisition and licensing fees;
  • Cloud computing and digital platform services;
  • Enterprise resource planning (ERP) and business management systems;
  • Smart devices and digital hardware;
  • Digital technology consulting and implementation services;
  • Cybersecurity solutions and related digital services; and
  • Other digital products or services approved under the applicable DEPA framework.

The policy is intended to lower the effective cost of digital adoption while encouraging businesses to modernize their operations and improve efficiency.

Eligible Businesses:

To qualify for the enhanced deduction, a taxpayer must satisfy the SME criteria prescribed under the Royal Decree. Specifically, the business must:

  • Have paid-up registered capital not exceeding THB 5 million as of the end of the accounting period; and
  • Generate annual revenue not exceeding THB 30 million.

Only businesses meeting both conditions are eligible to claim the incentive.

Deduction Amount and Limitation:

Eligible expenditures may be deducted at 200% of the actual amount paid, subject to a maximum qualifying expenditure of THB 300,000.

For example, if an eligible SME incurs THB 150,000 in qualifying software or digital service expenses, it may claim a tax deduction of THB 300,000 when calculating its corporate income tax liability.

The incentive applies to qualifying expenditures incurred between 24 June 2025 and 31 December 2027.

Practical Tax Benefits:

The enhanced deduction effectively reduces the taxable profit of qualifying businesses and lowers their corporate income tax burden.

For instance, if a company purchases an eligible system for THB 300,000:

  • Under normal tax rules, the company may deduct THB 300,000 as an expense.
  • Under the Royal Decree, the company may deduct THB 600,000.

The additional THB 300,000 deduction reduces taxable income and can generate meaningful tax savings, particularly for growing businesses investing in digital infrastructure.

Beyond the immediate tax benefit, the incentive encourages SMEs to accelerate investments in technology that may improve operational efficiency, data management, customer engagement, and cybersecurity resilience.

Compliance Considerations:

Businesses seeking to utilize the incentive should carefully consider the following legal and tax compliance issues.

Verification of DEPA Registration:

The enhanced deduction is available only for qualifying purchases or services obtained from vendors and service providers that have been registered or certified under the relevant DEPA program. Businesses should conduct appropriate due diligence before entering into transactions.

Qualification of Expenditures:

Not all technology-related expenditures automatically qualify for the enhanced deduction. Businesses should review whether a particular expense falls within the categories recognized by the Royal Decree and relevant implementing regulations.

Interaction with Other Tax Incentives:

Companies receiving benefits under other incentive regimes, including Board of Investment (BOI) promotion programs or research and development tax incentives, should evaluate whether multiple incentives may be claimed concurrently and ensure compliance with any anti-double-dipping restrictions.

Policy Significance:

The introduction of the 200% tax deduction reflects Thailand’s continued commitment to promoting digital transformation among SMEs. By reducing the after-tax cost of digital investment, the Government aims to encourage broader adoption of modern technologies and strengthen the country’s digital economy.

For many SMEs, the measure presents a timely opportunity to invest in software, cloud solutions, cybersecurity systems, and digital business processes while simultaneously benefiting from substantial tax savings.

Key Takeaways:

  • Eligible SMEs with paid-up capital of not more than THB 5 million and annual revenue not exceeding THB 30 million may claim a 200% tax deduction for qualifying digital expenditures.
  • The incentive applies to expenditures on software, digital services, smart devices, cloud solutions, cybersecurity systems, and other approved digital technologies.
  • Qualifying products and services must be purchased from suppliers or service providers registered or certified by DEPA.
  • The enhanced deduction is available for expenditures incurred from 24 June 2025 through 31 December 2027.
  • The maximum qualifying expenditure eligible for the enhanced deduction is THB 300,000.
  • Businesses should maintain comprehensive supporting documentation and verify eligibility requirements before claiming the incentive.
  • The measure represents a significant opportunity for SMEs to reduce tax liabilities while accelerating digital transformation initiatives.

Author: Panisa Suwanmatajarn, Managing Partner.

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AI-Powered Assistant “Nok Krasip” Launched to Empower SME Retailers Through Digital Tools

The government has introduced “Nok Krasip” (Whispering Bird), an AI chatbot assistant integrated into the “Thung Ngern” mobile application. This forms part of the “Thai Help Thai Plus 60/40” program, designed to support small retailers and community businesses with practical digital solutions.

Program Context:

This initiative underscores efforts to strengthen the grassroots economy by equipping micro, small, and medium-sized enterprises (MSMEs) — particularly traditional shops — with accessible technology. The Thung Ngern application serves as a central platform for financial and business management, with the AI feature representing a key advancement in providing real-time insights.

Core Features of the AI Assistant:

Nok Krasip delivers user-friendly tools tailored for retailers with limited technical expertise:

•  Sales Analysis: Automatic summaries of daily sales performance, transaction trends, peak periods, and inventory suggestions.

•  Raw Material Price Monitoring: Real-time market price data for essential commodities such as meats and other inputs, drawn from official sources.

•  Cost and Profit Analysis: Simple calculations that compare input costs with selling prices to support better pricing and margin decisions.

•  Intelligent Chatbot: Instant answers to questions about the program and application functions, featuring preset options for quick navigation.

The assistant is available in Thung Ngern version 5.50.0 and higher for eligible registered users.

Legal and Regulatory Considerations:

The introduction of this AI tool carries several implications for businesses operating in the digital economy:

•  Data Privacy Compliance: Processing of sales, inventory, and transaction data requires adherence to the Personal Data Protection Act B.E. 2562 (PDPA). Platform operators should maintain clear consent mechanisms and transparent data handling practices, especially when information is shared with government entities.

•  Digital Transaction Governance: The tool supports broader goals of fair digital commerce and MSME empowerment, aligning with regulations on electronic transactions, consumer protection, and platform responsibilities.

•  Cybersecurity and Procurement Standards: Government-backed digital services typically involve cybersecurity requirements and public technology procurement rules.

•  Intellectual Property Aspects: Issues may emerge concerning ownership of AI-generated insights, underlying datasets, and developed algorithms.

Practical Guidance for Stakeholders:

•  Retailers and MSMEs: Participants should review the application’s terms of service and data policies prior to extensive use. While the AI can enhance operational efficiency, it should supplement — not substitute — professional financial advice.

•  Platform Operators and Partners: Entities involved in such ecosystems should monitor evolving rules on data governance and electronic transactions.

•  Risk Management: Businesses adopting AI tools are advised to implement robust cybersecurity protocols and include appropriate contractual safeguards regarding accuracy and liability.

Key Takeaways:

•  The AI assistant Nok Krasip provides accessible, practical tools that help small retailers analyze sales, control costs, and make informed decisions.

•  Integration into the Thung Ngern application advances digital inclusion for MSMEs participating in government support programs.

•  Stakeholders should prioritize PDPA compliance, data security, and clear policies when leveraging such government-supported AI platforms.

•  This development signals continued focus on technology-driven support for the traditional retail sector, potentially improving competitiveness and access to future financing opportunities.

This article provides general information only and does not constitute legal advice. Readers should seek qualified professional counsel for matters specific to their situation.

Author: Panisa Suwanmatajarn, Managing Partner.

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Employment: Supreme Court Judgment No. 9052/2559 Reinforces Protections for Older Workers in Thailand’s Private Sector

1. Background about retirement age in the private sector:

In Thailand’s private sector, no universal mandatory retirement age is fixed by statute for all employers. Retirement is primarily governed by employment agreements, internal work regulations, or company policies. Prior to the Labour Protection Act (No. 6) B.E. 2560 (2017), which introduced Section 118/1, the legal framework was less explicit. This amendment clarified that retirement—whether pursuant to agreement or employer policy—constitutes termination of employment, thereby entitling the employee to statutory severance pay under Section 118.

In the absence of a stipulated retirement age in contracts or policies, or where the stipulated age exceeds 60 years, an employee aged 60 or above may elect to retire upon 30 days’ notice, with severance payable. In practice, many private sector organizations set retirement ages between 55 and 60 years. However, the application of such policies must adhere to principles of fairness, consistency, and non-discrimination, particularly as Thailand addresses the challenges of an aging society.

2. Compulsory compensation? What does the labor law say?

Under Section 118 of the Labour Protection Act, termination of employment—including retirement initiated by employer policy—requires the employer to pay severance compensation based on the employee’s length of service. The prescribed minimum rates include:

•  1 year but less than 3 years: not less than 90 days’ wages;

•  3 years but less than 6 years: not less than 180 days’ wages;

•  10 years or more: not less than 300 days’ wages (with potential enhancements for longer service).

Retirement is explicitly treated as employer-initiated termination when enforced through policy or agreement, triggering these obligations. Employers cannot circumvent severance by characterizing retirement as voluntary resignation. Furthermore, the arbitrary or discriminatory application of retirement policies may expose employers to claims of unfair dismissal.

3. Ruling – Analysis of Supreme Court Judgment No. 9052/2559:

Supreme Court Judgment No. 9052/2559 stands as a landmark decision in Thai labour jurisprudence concerning unfair termination and age-related employment practices. The case involved a head editor of a Chinese-language newspaper who commenced employment at age 55 and served for approximately 22 years until his termination at age 77. The employer introduced a new retirement policy aimed at organizational restructuring and recruiting younger staff, offering statutory severance equivalent to 300 days’ wages.

The Central Labour Court initially upheld the termination as a legitimate exercise of managerial authority for business improvement, noting the provision of full severance and absence of personal malice. The Supreme Court reversed this decision, ruling the termination an unfair dismissal. The Court adopted a substantive justice approach, scrutinizing the specific circumstances rather than accepting the policy at face value.

Key elements of the Supreme Court’s reasoning were:

•  Nature of the Work: The position required specialized linguistic, editorial, and academic expertise in Chinese-language publishing. Such roles typically benefit from accumulated knowledge and experience, which increase with age, rather than physical capabilities that may decline.

•  Employee’s Performance Record: The plaintiff maintained exemplary performance with perfect attendance and no health-related issues. Notably, the employer had recently promoted him and increased his salary, actions inconsistent with claims of diminished capability.

•  Validity of the Retirement Policy: The newly introduced policy lacked clear, objective, equitable, and pre-announced criteria. It was viewed as an ad hoc measure rather than a transparent, consistently applied rule, rendering it an insufficient justification for termination, especially when motivated primarily by age.

The Supreme Court remanded the case for determination of damages, including interest at 7.5% per annum. The judgment emphasizes that while employers retain managerial prerogative, age-based retirement decisions must be supported by objective, job-related justifications and cannot serve as a pretext for the arbitrary replacement of experienced personnel. Although issued prior to the 2017 amendments, the ruling remains highly relevant and continues to guide the application of fairness standards in retirement and termination cases.

Key Takeaway:

Supreme Court Judgment No. 9052/2559, together with the statutory framework under the Labour Protection Act, underscores that chronological age alone does not justify termination in Thailand’s private sector. Courts will prioritize individual capability, performance evidence, and substantive fairness, particularly in knowledge-intensive roles. Employers are advised to maintain transparent, consistently applied, and objectively justified retirement policies supported by legitimate business needs. This jurisprudence strengthens protections for capable older workers while encouraging responsible workforce management practices in Thailand’s aging society.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand – Long-Term Commercial and Industrial Lease Regulations

Immovable Property Lease for Commercial and Industrial Purposes Act B.E. 2542 (1999)

This Act, administered by the Department of Lands, regulates long-term leasing of land and immovable property for business purposes, addressing land-related rights in a commercial and industrial context.

Background: Why changes or review are needed

The Act has been in force since May 19, 1999. A review of its implementation is required to assess its effectiveness over the intervening period. This includes examining registration statistics, application volumes, leased area sizes, and practical outcomes in facilitating investment, commerce, and industry. The evaluation identifies any limitations, obstacles, or areas where the law no longer adequately supports economic needs, such as investment promotion, land use flexibility, or alignment with current economic conditions.

Proposed changes:

The current process is an evaluation rather than a direct draft of new amendments. It gathers public and stakeholder input on the Act’s achievements and shortcomings. Potential future amendments could address issues such as lease term limits, approval processes for large areas (e.g., exceeding 100 rai), registration requirements, or enhancements to better promote investment. Note that related discussions in Thailand have included proposals to extend maximum lease terms (e.g., from 30 to 99 years in certain contexts), though the specific hearing focuses on performance assessment rather than finalized amendment text.

Necessity and preliminary Impact:

(1) It promotes investment in certain types of commerce or industry that require long-term investment and the stability of lease rights.

(2) Tenants deserves the rights to the property as if they were owners within a specified period, and ownership can be conveniently transferred.

(3) Lease rights can be transferred through inheritance, subleased, and used as collateral for loans from financial institutions, increasing property value, improving liquidity, attracting investment, and stimulating the industrial and commercial sectors of the economy.

(4) Property owners have more options for utilizing their land for economic purposes.

Status:

The matter is currently at the summary of public consultation stage, where the Department of Lands invites comments and opinions through the central law system to inform the evaluation. This step ensures transparency and stakeholder participation prior to any subsequent revisions or proposals being advanced through legislative channels.

Key takeaways:

•  The hearing supports a structured review of a key land-related commercial leasing law to ensure it remains relevant for economic development.

•  Public input is actively sought to identify strengths and areas for potential improvement.

Author: Panisa Suwanmatajarn, Managing Partner.

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Ride Sharing: Guidelines for Platforms and Drivers Under New Strict Regulations

In a significant move to enhance passenger safety and formalize the ride-sharing industry, Thailand’s Ministry of Digital Economy and Society (DE), the Electronic Transactions Development Agency (ETDA), and the Department of Land Transport (DLT) have implemented comprehensive regulations for ride-sharing (Ride Sharing) platforms. The new framework, effective from March 31, 2026, shifts platforms from mere intermediaries to active overseers responsible for verifying drivers, vehicles, and service standards.

Background and Objectives:

The tightened regulations follow high-profile safety incidents involving ride-sharing services, particularly those affecting vulnerable users such as youth. Authorities aim to close regulatory loopholes, eliminate unregistered “ghost” drivers, and ensure all operations comply with public transport laws. The grace period for registration ended on March 31, 2026, after which full enforcement began.

The core announcement, issued by the Electronic Transactions Commission (ETC), outlines additional operational requirements for digital platform operators providing public passenger services (cars and motorcycles).

Key Requirements for Platforms:

Ride-sharing platforms (e.g., Grab, Bolt) must now fulfill enhanced responsibilities:

  • Strict Driver and Vehicle Verification: Platforms are required to verify that every driver and vehicle meets legal standards before accepting any booking. This includes real-time identity confirmation to prevent account sharing or impersonation.
  • Registration Mandates: Drivers must use vehicles properly registered as public transport — Ry.17 for motorcycles and Ry.18 for cars — with the DLT. Drivers must also hold a valid public driving license.
  • Ongoing Monitoring and Screening: Platforms must implement robust systems for background checks, continuous monitoring, and immediate suspension of non-compliant accounts.
  • Data Sharing and Transparency: Cooperate with authorities by sharing data on drivers, trips, and incidents. Platforms must also support the ETDA’s Driver Verify system to streamline registration.
  • Passenger Safety Measures: Enhanced features for identity verification (including digital ID integration) and emergency response protocols.

Failure to comply can result in severe penalties, including civil and criminal liabilities, service suspension, or complete revocation of operations under relevant laws such as the Computer Crime Act.

Requirements for Drivers:

Drivers (Riders) operating on these platforms must:

  • Register their vehicles as public transport (Ry.17/Ry.18) with the DLT.
  • Obtain and maintain a public driving license, which includes passing criminal background checks.
  • Complete verification through the ETDA’s Driver Verify system to facilitate registration and obtain certification.
  • Use only their own registered account for every trip — no account sharing or proxy driving is allowed.
  • Ensure vehicles meet safety and technical standards set by transport authorities.

As of early 2026, authorities reported around 19,000–28,000 properly registered vehicles/drivers, with efforts ongoing to bring more into compliance. Unregistered drivers face legal penalties under transport and digital platform laws.

Collaborative Enforcement:

The DE, ETDA, and DLT are working closely with cybercrime police (Police Cyber Crime Center) to monitor compliance. Platforms have been instructed to strengthen systems following recent incidents, including immediate account suspensions and cross-platform alerts to prevent problematic drivers from switching services.

Key Takeaways:

  • Full enforcement of Ride Sharing regulations began on March 31, 2026 — the grace period has ended.
  • Platforms are now legally accountable for proactive verification and safety, not just facilitation.
  • All drivers must use registered public vehicles (Ry.17/18) and hold public driving licenses.
  • Non-compliance risks account suspension, fines, or platform shutdown.
  • The goal is to create a safer, more trustworthy ride-sharing ecosystem that protects passengers while supporting legitimate drivers and businesses.

These measures represent Thailand’s commitment to balancing digital innovation with public safety in the sharing economy. Stakeholders are encouraged to consult official ETDA and DLT channels for the latest guidance and support programs.

Author: Panisa Suwanmatajarn, Managing Partner.

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