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

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

Key Areas of Cooperation

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

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

Implementation Plan for 2026

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

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

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

Key Benefits for Businesses

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

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

Conclusion

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

Author: Panisa Suwanmatajarn, Managing Partner.

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

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

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

Background

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

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

PAT’s New Administrative Execution Authority

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

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

Key Impact on the Private Sector and Business Operators

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

Conclusion

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

Author: Panisa Suwanmatajarn, Managing Partner.

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

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

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

Background and Key Changes

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

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

Phased Implementation of the New Wage Base

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

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

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

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

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

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

Practical Implications

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

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

Conclusion

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

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

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

Author: Panisa Suwanmatajarn, Managing Partner.

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

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

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

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

1.  Eligible Participants

       •  Thai resident individuals (natural persons only).

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

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

2.  Annual Tax-Deductible Contribution Limit

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

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

3.  Eligible Investments

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

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

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

4.  Holding Period Requirement

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

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

5.  Tax Treatment of Gains

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

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

6.  Lifetime or Cumulative Cap

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

What Stakeholders Should Prepare Immediately:

1. Individual Investors and High-Net-Worth Clients

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

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

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

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

2. Financial Institutions and Brokerage Firms

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

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

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

3. Listed Companies and Investor Relations Teams

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

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

4. Tax Practitioners and Certified Financial Planners

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

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

Key Takeaways:

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

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

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

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

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

Author: Panisa Suwanmatajarn, Managing Partner.

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

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

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

  1. Overview of the Draft Act

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

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

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

• Mandatory greenhouse gas (GHG) emissions reporting;

• Participation in the ETS (for regulated installations);

• Compliance with carbon tax and CBAM obligations;

• Submission of verified emissions and activity data;

• Exposure to audits and administrative sanctions; and

• Alignment with sustainability-related disclosure and taxonomy requirements.

  • Detailed Explanation of the Emissions Trading System (ETS)

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

  • Core Design

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

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

  • Trading & Flexibility

The Draft Act permits flexibility mechanisms aimed at market efficiency:

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

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

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

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

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

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

Conclusion

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

Key Takeaways

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

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

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

The system rewards early action and protects domestic industry.

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

Author: Panisa Suwanmatajarn, Managing Partner.

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

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

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

Current Scope of the Decree

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

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

Expansion of Licensing Oversight

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

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

Expanded License Categories

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

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

Multiple Fee Payment Channels

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

  • Service counters
  • Banks
  • Electronic payment platforms

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

Expected Benefits

The Draft Royal Decree is expected to:

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

Conclusion

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

Author: Panisa Suwanmatajarn, Managing Partner.

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Replacing Consular Legalization with Apostille: Thailand’s Step Toward Global Document Simplification

Introduction:

In a move aimed at streamlining international document authentication and enhancing Thailand’s integration into global legal frameworks, the Ministry of Foreign Affairs (MFA) has proposed the ratification of the Convention Abolishing the Requirement of Legalization for Foreign Public Documents, commonly known as the Apostille Convention. This proposal, part of ongoing efforts to modernize consular services, reflects Thailand’s commitment to facilitating cross-border transactions, trade, and mobility. As of December 2025, Thailand remains a non-party to the convention, but preparations for accession are well underway, building on initiatives launched in recent years. This article explores the nature of the Apostille Convention, the MFA’s plans, the potential benefits for Thailand, and related considerations.

What is the Apostille Convention?

The Apostille Convention, formally titled the Hague Convention of 5 October 1961 Abolishing the Requirement of Legalization for Foreign Public Documents, is an international treaty administered by the Hague Conference on Private International Law (HCCH). Its primary purpose is to simplify the process of authenticating public documents for use abroad, eliminating the need for complex and time-consuming chains of certifications through diplomatic or consular channels.

Under the convention, a single “apostille” certificate issued by a designated competent authority in the document’s country of origin suffices to verify its authenticity for use in any other contracting state. This apostille certifies the signature, the capacity of the signer, and the seal or stamp on the document, but not its content. Eligible documents include court orders, administrative records (such as birth, marriage, or death certificates), notarial acts, and official endorsements on private documents. However, the convention excludes documents issued by diplomatic agents, those related to commercial or customs operations, and certain administrative papers.

The process works as follows: A competent authority—often a ministry of foreign affairs, justice department, or regional office—affixes the apostille, which must conform to a standardized format with ten numbered fields in French (the convention’s working language). This includes details like the issuing country, signer’s name, date, and the authority’s signature and seal. Once apostilled, the document requires no further legalization in the destination country, though translations may still be needed separately. As of 2025, the convention has 128 contracting states, including major economies like the United States, China, India, and most European nations, making it one of the most widely adopted private international law instruments.

The Ministry of Foreign Affairs’ Plan:

Thailand joined the HCCH as a member state on 3 March 2021, marking a significant step toward greater involvement in international legal cooperation. Since then, the MFA has actively pursued accession to several HCCH conventions, including the Apostille Convention. The ministry’s proposal for ratification involves formal accession procedures, which Thailand officially initiated by 2024. This includes internal preparations such as developing a new legalization system to align with apostille standards, which is expected to reduce the current multi-step consular legalization process.

The MFA’s Department of Consular Affairs and Department of Treaties and Legal Affairs have been at the forefront of these efforts. Recent activities include hosting side events and workshops to discuss the convention’s developments and Thailand’s readiness, emphasizing collaboration with the public and private sectors to upgrade services. While no exact timeline for ratification has been publicly announced as of late 2025, progress indicates that Thailand is on track to become a party in the near future, potentially within the next year or two. This proposal aligns with broader goals of digitalizing consular services and reducing bureaucratic hurdles for Thai citizens and foreign entities dealing with Thai documents.

Currently, documents from or for use in Thailand require full consular legalization, involving authentication by the MFA and then by the embassy or consulate of the destination country—a process that can take weeks or months. Ratification would replace this with a simpler apostille system for transactions with other member states.

Benefits of Joining the Apostille Convention:

Accession to the Apostille Convention would bring substantial advantages to Thailand, particularly in an era of increasing globalization and economic interconnectivity. Key benefits include:

  • Efficiency and Cost Savings: The current legalization process is cumbersome and expensive, often requiring multiple visits to government offices and fees at each stage. An apostille system would streamline this into a single certification, reducing processing time from weeks to days and lowering costs for individuals and businesses. This is especially beneficial for frequent international dealings, such as exporting goods, studying abroad, or marrying internationally.
  • Facilitation of Trade and Investment: As a major exporter and hub for foreign investment in Southeast Asia, Thailand stands to gain from easier document recognition. Businesses could more readily authenticate contracts, patents, and corporate documents, boosting trade with the convention’s 128 member states. This aligns with Thailand’s economic strategies, including the Eastern Economic Corridor and free trade agreements.
  • Enhanced Mobility for Citizens: Thai nationals working, studying, or residing abroad would face fewer obstacles in presenting documents like educational certificates, birth records, or powers of attorney. Similarly, foreigners in Thailand—such as expatriates, tourists, or investors—would benefit from simplified authentication of their home-country documents.
  • Alignment with Regional and Global Standards: Several ASEAN neighbors, including Indonesia, Malaysia (in preparation), and the Philippines, are parties or planning to join. Accession would position Thailand as a more attractive destination for international cooperation, potentially increasing tourism, education exchanges, and legal services.
  • Digital Advancements: The convention encourages electronic apostilles (e-Apostilles), which Thailand could adopt to further modernize its systems, reducing paper-based processes and enhancing security through digital registries.

Overall, joining would cut down on the “sophisticated legalization process,” as noted by the MFA, and promote Thailand’s image as a forward-thinking nation in international law.

Challenges and Next Steps:

Despite the clear advantages, challenges remain. Thailand lacks a formal notary public system, which could complicate designating competent authorities for issuing apostilles. Additionally, legislative amendments and training for officials will be necessary to ensure smooth implementation. The MFA must also coordinate with other ministries, such as Justice and Interior, to establish apostille-issuing bodies.

Next steps include completing internal reviews, securing Cabinet and parliamentary approval for ratification, and depositing the instrument of accession with the HCCH. Once ratified, the convention would enter into force for Thailand after a standard objection period, typically six months. The MFA continues to engage in international dialogues, such as those at the Asian-African Legal Consultative Organization (AALCO), to learn from other acceding states.

Conclusion:

The Ministry of Foreign Affairs’ proposal to ratify the Apostille Convention represents a strategic advancement for Thailand’s international legal framework. By simplifying document authentication, this move would not only reduce administrative burdens but also foster economic growth, citizen mobility, and global partnerships. As preparations progress, stakeholders anticipate that accession will soon transform how Thailand interacts with the world, aligning it more closely with international best practices.

Author: Panisa Suwanmatajarn, Managing Partner.

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Proposed Relaxations to Foreign Exchange Regulations

Current Framework and Underlying Issues:

Thailand’s foreign exchange regulations, administered by the Bank of Thailand (BOT) under the authority of the Ministry of Finance (MOF), are designed to centralize foreign currency flows, channel them toward public benefit, and maintain the stability of the Thai baht. These rules govern transactions involving the purchase, sale, exchange, or transfer of foreign currencies, which must be conducted through licensed authorized entities, such as commercial banks. Key provisions include the mandatory repatriation of foreign-sourced income exceeding USD 1 million (or equivalent) within 360 days of receipt—encompassing proceeds from exports, services, loans, and investments—and the requirement for investors to notify the BOT prior to outbound transfers for foreign securities investments. Upon notification, the BOT issues an Intention Acknowledgment Certificate, which must be submitted to banks as proof of compliance.

Despite these measures supporting macroeconomic stability, they have introduced structural challenges in an era of expanding international trade and investment. The continuous growth in cross-border commerce has heightened the demand for efficient foreign currency management among businesses and individuals, including handling overseas revenues, diversifying portfolios through foreign securities, and mitigating exchange rate risks. However, the current thresholds and procedural mandates impose administrative burdens, elevate cross-border transfer costs, and constrain liquidity. For instance, the rigid repatriation rule compels entities to return funds promptly, even when retaining them abroad could optimize future payments or consolidate inflows, thereby increasing operational inefficiencies and opportunity costs. Similarly, the pre-notification process for investments adds layers of documentation and coordination among investors, banks, and the BOT, hindering timely access to global markets. These constraints, rooted in pre-existing foreign exchange ecosystem limitations, have been progressively addressed since 2020 through phased reforms, yet residual rigidities persist amid volatile global conditions.

Proposed Amendments and Their Rationale:

To address these issues and advance the BOT’s Foreign Exchange Ecosystem Development Plan—initiated in 2020 to foster balanced capital flows, enhance transaction flexibility, and reduce private sector costs—the MOF and BOT are currently conducting a public consultation on targeted relaxations. This initiative aligns with broader efforts to modernize Thailand’s financial framework, promoting resilience against currency fluctuations while upholding oversight. The proposals, detailed in a draft ministerial regulation, encompass two principal amendments, effective upon gazette publication following stakeholder input.

1.  Elevation of the Foreign Income Repatriation Threshold: Under the existing regime, any person or entity that earns USD 1 million or more in foreign income must repatriate it to Thailand—via sale to an authorized bank or deposit in a foreign currency account—within 360 days. The proposed change raises this threshold to USD 10 million or equivalent, exempting smaller inflows from mandatory return. This relaxation directly alleviates liquidity pressures by permitting the retention of funds abroad for strategic uses, such as offsetting future overseas obligations or aggregating receipts for a single, cost-efficient repatriation. By minimizing frequent transfers, it curtails associated fees and administrative efforts, thereby streamlining cash flow management without compromising the centralization of substantial inflows for macroeconomic monitoring.

2.  Streamlining Documentation for Outbound Foreign Securities Investments: Presently, investors intending to transfer funds abroad for securities must submit a prior notification to the BOT, including relevant details via designated systems, to obtain the Intention Acknowledgment Certificate for presentation to commercial banks. This step, while ensuring regulatory adherence, generates redundant paperwork and delays. The amendment eliminates this BOT notification and certificate issuance, substituting it with a simplified acknowledgment form—attesting to the investor’s awareness of applicable guidelines and commitment to compliance—submitted directly to the commercial bank. Applicable to non-retail outbound investments (excluding those via Thai intermediaries such as securities firms or personal funds), this reform expedites processing, reduces inter-institutional coordination, and empowers banks to handle verifications autonomously. Collectively, these measures enhance operational agility, lower compliance costs, and facilitate portfolio diversification, supporting Thailand’s integration into global capital markets.

Anticipated Benefits and Stakeholder Impacts:

The proposed relaxations are projected to yield predominantly positive economic outcomes, bolstering efficiency across the financial ecosystem while mitigating risks to baht stability through retained thresholds and reporting safeguards. No new licensing systems, committees, criminal penalties, or discretionary powers for officials are introduced, preserving a principles-based approach.

•  Businesses and Individuals: Enhanced flexibility in managing overseas earnings will enable more effective financial planning, such as retaining funds for international expenditures or risk hedging, thereby reducing transfer expenses and improving overall liquidity. This is particularly advantageous for exporters and service providers navigating volatile trade environments.

•  Thai Investors: Simplified outbound investment procedures will accelerate access to foreign securities, promoting risk diversification and yield optimization without the encumbrance of multi-step approvals, ultimately fostering greater participation in international markets.

•  Commercial Banks: Relief from BOT-mediated notifications and certificate handling will streamline transaction facilitation, diminish internal workflows, and improve client service, allowing banks to focus on core advisory and execution roles.

Broader societal benefits include reinforced economic resilience, as these changes align with ongoing BOT initiatives to counter baht appreciation pressures and structural market imbalances. Environmental or social impacts are negligible, with primary effects confined to financial operations.

Conclusion:

These proposed amendments by the MOF and BOT represent a measured evolution in Thailand’s foreign exchange regime, directly tackling administrative hurdles to unlock greater efficiency in cross-border finance. By elevating repatriation thresholds and rationalizing investment documentation, the reforms will empower stakeholders to navigate global opportunities with reduced friction, while safeguarding systemic stability. As Thailand’s economy deepens its international ties, such targeted enhancements underscore a commitment to adaptive, stakeholder-informed policymaking.

Author: Panisa Suwanmatajarn, Managing Partner.

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EEC: Consolidated Draft Notification on Private and Public-Private Investment

The Eastern Economic Corridor Office (EECO) has released for public hearing a comprehensive Draft Notification of the Eastern Economic Corridor Policy Committee titled “Criteria, Procedures and Conditions for Joint Investment with the Private Sector or for Allowing the Private Sector to be the Investor B.E. .…” (“Notification”).

Upon final promulgation, this single new Notification will repeal and replace all seven earlier versions issued between 2017 and 2020, thereby establishing a modern, unified and fully consolidated regulatory framework for every public-private partnership (PPP) and pure private-investment project in the Eastern Economic Corridor (EEC).

Current Challenges the Draft Seeks to Resolve:

The existing regime has suffered from:

  • Regulatory fragmentation caused by seven separate notifications and amendments over eight years, creating legal uncertainty and compliance complexity.
  • Excessive and unpredictable approval timelines due to overlapping reviews by multiple ministries and agencies.
  •  Inconsistent application of transparency rules, risk-allocation principles, and anti-corruption safeguards across projects.
  • Ambiguous or outdated provisions on non-competitive selection, contract amendments, post-contract supervision and arrangements after concession expiry.
  • Insufficient mandatory integration of private-sector consultation results and continuing public disclosure obligations.

How the New Draft Will Help:

The consolidated Notification introduces a clearer, faster, and more robust system:

1.  One single rulebook aligned with the Public-Private Partnership Act B.E. 2562 (2019) and international best practice.

2.  Strict timelines: 15 days for most completeness checks and agency comments; 30 days for Attorney-General review of contracts and amendments.

3.  Mandatory independent committees appointed by the EEC Policy Committee:

  • Selection Committee during procurement.
  • Supervisory Committee throughout the operational phase.

4.  Enhanced transparency and anti-corruption measures:

  • Compulsory private-sector hearing before finalizing feasibility studies and tender documents.
  • Publication of contract summaries and selection methodology within 30 days of signing.
  • Six-monthly public progress reports.
  • Automatic reporting to the National Anti-Corruption Commission (NACC) and State Audit Office.

5.  Explicit value-for-money and risk-allocation requirements in every feasibility study.

6.  Tiered contract-amendment procedure (minor → material → affecting Cabinet-approved principles) with corresponding approval levels.

7.  Obligation, at least five years before expiry, to prepare and obtain approval for a post-concession strategy (re-tender, state takeover, or extension).

8.  Competitive bidding as the unequivocal default; any non-bidding method requires detailed justification and prior Policy Committee approval.

Core Requirements and Procedural Stages:

1.  Project Proposal and Approval

  • Preliminary outline submitted to the EEC Policy Committee.
  • Full feasibility study (technical, financial, economic, legal, environmental, and risk analysis) prepared by qualified Thai/international consultants.
  • Circulation for 15-day comments from relevant ministries and agencies.
  • Final “Project Principles” submitted for Policy Committee approval (and Cabinet where budget or borrowing is required).

2.  Private Investor Selection

  • Invitation-to-tender documents, TOR, and draft contract prepared and approved by the Selection Committee.
  • Competitive bidding mandatory unless exceptional non-bidding approval is granted.
  • Winning investor must incorporate a new Thai-registered project company as the contracting entity.

3.  Supervision and Monitoring

  • Supervisory Committee appointed upon contract signature; meets quarterly and reports to EECO every three months with full information-request powers.

4.  Transparency, Consultation and Reporting

  • Mandatory private-sector hearing and incorporation of results into studies and tender documents.
  • Ongoing public disclosure throughout the project lifecycle.

Who Will Benefit:

  • Private investors and financial institutions: greater legal certainty, shorter and more predictable timelines, clearer amendment rules.
  • Sponsoring government agencies: single consolidated procedure, reduced duplication, stronger governance tools.
  • The general public and civil society: systematic consultation rights and continuous access to project information.
  • The EEC region overall: accelerated delivery of high-quality infrastructure and industrial projects with lower execution and reputational risk.

Preparations Required:

Government agencies planning EEC projects should now:

  • Reformat existing project pipelines to the new documentation standards and timelines.
  • Allocate budget for qualified Thai and international consultants (feasibility, financial modelling, tender documentation).
  • Build internal capacity for mandatory private-sector hearings and ongoing disclosure obligations.
  • Train staff on Selection Committee and Supervisory Committee procedures.

Private investors and consortiums should:

  • Monitor the final text after the public hearing process.
  • Prepare bidding and financing structures for the mandatory new Thai project-company requirement.
  • Strengthen compliance systems for integrity pacts and enhanced beneficial-ownership disclosure.

The draft is currently open for public hearing. Following the incorporation of stakeholder comments and publication in the Government Gazette, it will become the exclusive governing regulation for all future EEC investment projects, delivering a markedly more transparent, efficient, and investor-friendly environment for Thailand’s flagship economic corridor.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand : Penalties of non-tax compliance

Introduction

Taxes in Thailand are imposed in various forms, and the authorities governing each form of payment are separated from each other. The main authorities governing the tax collection in Thailand will be as follows:

  • Revenue Department – Responsible for collecting personal income tax, corporate income tax, value-added tax (VAT), withholding tax, specific business tax, and stamp duty.
  • Excise Department – Responsible for collecting excise taxes.
  • Customs Department – Responsible for collecting customs duties on imported and exported goods.
  • Local Administrative Authorities – Responsible for collecting local taxes, including land and building tax and signboard tax.

If a taxpayer fails to comply with the obligations to pay the taxes referred to above, neglects or refuses to act in accordance with the law, evades taxes, or provides

false information, the relevant authorities are entitled to impose fines, additional charges, and in some cases, criminal penalties against such taxpayer.

Personal Income Tax (PIT)Failure to file or late submission of a tax returnFine not exceeding 2,000 THBSection 35 of the Revenue Code
Failure to file a tax return to evade taxFine not exceeding 200,000 THB or imprisonment for a term not exceeding 1 year or bothSection 37 Bis of the Revenue Code
Giving false statement or evidence to evade taxImprisonment for a term of 3 months to 7 years, and a fine of 2,000 to 200,000 THBSection 37 of the Revenue Code
Late payment of assessed taxSurcharge of 1.5 percent per month and a fine of 2,000 THB imposed on the period of the month that the tax has not yet been paidSection 27  of the Revenue Code
Corporate Income Tax (CIT)Failure to file or late submission of a tax returnFine not exceeding 2,000 THBSection 35 of the Revenue Code
Failure to file a tax return to evade taxFine not exceeding 200,000 THB or an imprisonment for a term not exceeding 1 year or bothSection 37 Bis of the Revenue Code
False statement or gives false statement or evidence to evade taxImprisonment for a term of 3 months to 7 years, and a fine of 2,000 to 200,000 THBSection 37 of the Revenue Code
Late payment of assessed tax Surcharge of 1.5 percent per monthSection 27  of the Revenue Code
Value Added Tax (VAT)Operating a business without VAT registrationFine twice the tax due in the tax month for the duration of failure to comply with such provision, or 1,000 THB, whichever is greater.
Imprisonment up to 1 month, or a fine up to 5,000 THB, or both		Section 89 (1) of the Revenue Code
Section 90/2 of the Revenue Code
Late or missing VAT return/paymentFine twice the amount of tax due or remittable in the tax monthSection 89 (2) of the Revenue Code
Filing a VAT return or remitting VAT incorrectly, causing the VAT due or remitted to be under- or over-statedAdditional penalty equal to the amount of underpaid or overpaid VATSection 89 (3) of the Revenue Code
Filing an incorrect VAT return resulting in understated output VAT or overstated input VATFine for the amount of the deficient output tax or excess input taxSection 89 (4) of the Revenue Code
Using false tax invoice in tax calculation partly or whollyFine twice the amount of tax on such an invoiceSection 89 (7) of the Revenue Code
Late or incomplete VAT payment/remittance Surcharge of 1.5 percent per month on the unpaid VATSection 89/1 of the Revenue Code
Failure to issue or deliver a tax invoiceImprisonment up to 1 month, or a fine up to 5,000 THB, or bothSection 90/2 of the Revenue Code
Failure to prepare VAT-related reportsImprisonment up to 6 months, or a fine up to 10,000 THB, or bothSection 90/3 of the Revenue Code
Specific Business taxOperating a business subject to specific business tax without registrationImprisonment not exceeding 1 month or a fine not exceeding 5,000 THB or bothSection 91/18 of the Revenue Code
Failure to prepare a record of taxable and exempt gross receiptsImprisonment not exceeding 6 months or a fine not exceeding 10,000 THB or bothSection 91/19  of the Revenue Code
Stamp DutyNeglecting or refusing to pay duty or cancel stampFine not exceeding 500 THBSection 124  of the Revenue Code
Customs DutyFailure to comply with the Customs Act, including the failure to submit goods
declaration, pay the full amount of duties, or provide a security deposit		Fine not exceeding 50,000 THBSection 208  of Customs Act 2017
Withholding taxFailure to pay or remit withholding tax within the prescribed periodSurcharge of 1.5 percent per month and fine of 2,000 THB imposing on the period of the month that the tax has not yet been paidSection 27 of the Revenue Code
Failure to issue withholding tax certificatesFine not exceeding 2,000 THBSection 35 of the Revenue Code
Failure to withhold or remit the full Withholding TaxPayer is jointly liable with the payee for the unpaid Withholding TaxSection 54 of the Revenue Code

Source: International Comparison November 2025: Antea

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