Over The Top: Thailand’s Push to Regulate Online Streaming Platforms
In a significant step toward managing the rapid rise of Over-The-Top (OTT) platforms, Thailand’s Ministry of Digital Economy and Society has launched an initiative to bring these online streaming services under closer scrutiny. The Ministry has entrusted the National Broadcasting and Telecommunications Commission (NBTC) and the Electronic Transactions Development Agency (ETDA) with the task of forming a dedicated working committee. This group is charged with studying and proposing regulatory measures for OTT platforms—services that deliver diverse content, including movies, TV shows, music, and podcasts, directly to users via the internet. Unlike conventional media, these platforms operate independently of mobile network providers, cable operators, or digital TV broadcasters. Well-known examples include Netflix, YouTube, Disney+, TikTok, and Spotify.
Government Concerns:
The decision to regulate OTT platforms arises from mounting concerns about their potential exploitation. Authorities have noted that these services can serve as conduits for online crimes, such as fraud, the spread of inappropriate content, and copyright violations, all of which have caused significant harm to the public. In response, the Ministry aims to create a digital landscape that is secure, equitable, and sustainable, benefiting consumers, service providers, and the digital economy as a whole.
Focus Areas:
To this end, the working committee has identified five core areas of focus, each addressing distinct challenges posed by OTT platforms while fostering a fair and innovative digital environment.
1. Enhancing Safety Measures
The first area of focus is strengthening safety protocols. This involves curbing copyright infringement and preventing access to illegal content. The committee plans to introduce identity verification measures to deter misuse of these platforms, ensuring they are not exploited for illicit purposes.
2. Regulating Content
The second priority centers on content oversight. The committee seeks to refine existing laws, empowering regulatory bodies to monitor and control the material distributed on OTT platforms more effectively. Additionally, foreign platforms operating in Thailand will be required to obtain licenses and comply with local laws. The initiative also includes advocating for international cooperation in establishing shared regulatory frameworks.
3. Boosting the Digital Industry and Taxation
The third focus area aims to promote Thailand’s digital industry while ensuring fair economic contributions from OTT platforms. This includes supporting local entrepreneurs in developing homegrown platforms and mandating that OTT services generating revenue from Thai users pay taxes in the country. These efforts are intended to drive the rapid growth of domestic digital businesses and create added value within the national economy.
4. Protecting Personal Data
Data privacy is the fourth pillar of this regulatory framework. OTT platforms will be required to adhere to stringent data protection standards, such as those outlined in the European Union’s General Data Protection Regulation (GDPR). Measures will also be implemented to regulate the collection and use of user data, safeguarding individuals’ privacy rights and preventing abuses.
5. Ensuring Fair Competition
Finally, the committee will address competition in the OTT market. The goal is to prevent large platforms from establishing monopolies that could stifle fair competition. By supporting the development of local platforms and promoting market decentralization, the initiative seeks to level the playing field and encourage innovation.
A Forward-Looking Approach:
This comprehensive strategy reflects Thailand’s recognition of both the opportunities and risks presented by OTT platforms. As these services continue to reshape how people consume media, the Ministry of Digital Economy and Society, alongside the NBTC and ETDA, is taking proactive steps to harness their potential while mitigating their downsides. By focusing on safety, content regulation, economic fairness, data protection, and competitive balance, Thailand aims to set a precedent for responsible digital governance—one that could resonate on the global stage.
As the working committee begins its task, the nation watches closely, hopeful that these measures will pave the way for a digital future that is not only vibrant and innovative but also secure and just for all.
Online Gaming Act: Push for a Balanced and Thriving Digital Economy
Thailand’s Ministry of Digital Economy and Society (MDES) is taking significant steps to regulate and promote the online gaming industry through the draft Film and Game Act (Draft Act). This legislative effort aims to balance the rapid growth of the gaming industry with the need to protect society, particularly children and youth, from potential negative impacts. The Draft Act seeks to establish a comprehensive framework for the industry, focusing on content regulation, industry promotion, and consumer protection.
Key Provisions of the Draft Act:
1. Content Regulation and Age-Appropriate Classification
The Draft Act introduces a content rating system for films and games, ensuring that media content is appropriate for different age groups. This system will help parents and guardians make informed decisions about what their children consume. Games and films must display their content ratings, brief descriptions, and identification codes to inform consumers about their suitability.
The content rating system will categorize games and films based on their themes, such as violence, sexual content, or language. For example, games with violent content may be restricted to players aged 18 and above, while games with educational content may be suitable for all ages. This system will be enforced by the Content Classification Committee, which will review and classify media content before it is released to the public. Developers and publishers must ensure their products comply with these classifications and display the appropriate labels prominently.
2. Establishment of Regulatory Bodies
The Draft Act proposes the creation of a National Film and Game Industry Promotion Committee, chaired by the Prime Minister, to oversee the industry. This committee will include representatives from various ministries, experts in media, psychology, culture, and marketing, as well as stakeholders from the gaming and film industries. Additionally, a Content Classification Committee will be established to review and classify media content.
The National Film and Game Industry Promotion Committee will be responsible for setting policies, promoting the industry, and ensuring compliance with the law. It will also work to attract international investments and foster innovation in the gaming sector. The Content Classification Committee, on the other hand, will focus on reviewing and classifying media content to ensure it meets the standards set by the law. These bodies will play a crucial role in shaping the future of Thailand’s gaming and film industries.
3. Streamlined Licensing and Registration
The Draft Act simplifies the licensing process for gaming and film businesses, replacing the previous stringent approval system with a notification-based system. This change aims to reduce bureaucratic hurdles while maintaining standards to protect consumers and public interests.
Under the new system, businesses will only need to notify the relevant authorities of their operations, rather than obtaining prior approval. This streamlined process will make it easier for startups and small businesses to enter the market. However, businesses must still adhere to the standards set by the law, such as content classification and consumer protection measures. The authorities will conduct periodic inspections to ensure compliance.
4. Promotion of Local Industry and Talent
The draft law emphasizes the development of Thailand’s gaming and film industries by promoting local talent, encouraging innovation, and attracting international investments. It also aims to create a fund to support the growth of these industries, ensuring they remain competitive on a global scale.
The government plans to establish a fund to provide financial support to local game developers, filmmakers, and other stakeholders. This fund will be used to finance innovative projects, provide training and development programs, and support international collaborations. Additionally, the government will work with educational institutions to develop curricula that align with the needs of the gaming and film industries, ensuring a steady pipeline of skilled talent.
5. Protection of Youth and Society
The Draft Act prioritizes the protection of children and youth from harmful content. It mandates that games and films with inappropriate content, such as violence, explicit material, or content that undermines national security or morality, must be restricted or banned. The law also empowers authorities to take action against media that violates these standards.
The law includes strict provisions to prevent the dissemination of harmful content to minors. For example, games with violent or explicit content must be clearly labeled and restricted to appropriate age groups. The authorities will have the power to take down or block access to games and films that violate these standards. Additionally, the law encourages the development of parental control features in games to help parents monitor and restrict their children’s access to inappropriate content.
6. Penalties for Non-Compliance
The Draft Act introduces administrative fines and criminal penalties for businesses that fail to comply with content classification, licensing, or other regulatory requirements. Penalties can range from fines of up to 5 million baht to imprisonment, depending on the severity of the violation.
Businesses that fail to comply with the law may face significant penalties. For example, a company that releases a game without the required content classification could be fined up to 5 million baht. In severe cases, such as the dissemination of content that undermines national security or morality, the responsible individuals could face imprisonment. These penalties are designed to ensure that businesses take their regulatory obligations seriously and prioritize consumer protection.
What the Online Gaming Industry Needs to Prepare For:
1. Compliance with Content Classification
Game developers and publishers must ensure their products are reviewed and classified according to the new content rating system. This includes displaying appropriate labels and ensuring that games are marketed responsibly to the right age groups.
Developers will need to submit their games to the Content Classification Committee for review before release. The committee will assess the game’s content and assign an appropriate rating. Developers must then display this rating prominently on the game’s packaging, marketing materials, and digital storefronts. Failure to comply with these requirements could result in fines or other penalties.
2. Adaptation to New Licensing Requirements
Businesses in the gaming industry will need to familiarize themselves with the new notification-based licensing system. This includes registering their operations and adhering to the standards set by the regulatory bodies.
The new licensing system will require businesses to notify the authorities of their operations and provide details about their products and services. While this process is less burdensome than the previous approval system, businesses must still ensure they meet all regulatory requirements. This includes adhering to content classification standards, protecting consumer data, and ensuring fair business practices.
3. Focus on Youth Protection
The industry must prioritize creating content that is suitable for younger audiences or clearly labeling games that are intended for mature players. Developers should also consider implementing parental controls and other safeguards to protect minors.
Developers should design games with youth protection in mind, ensuring that content is appropriate for the intended age group. For games aimed at mature audiences, developers must implement robust age verification systems and parental controls. Additionally, developers should avoid using manipulative design practices, such as excessive in-game purchases, that could exploit younger players.
4. Investment in Local Talent and Innovation
With the government’s focus on promoting the local gaming industry, businesses should invest in developing Thai talent and creating innovative games that can compete globally. Collaboration with educational institutions and participation in government-led initiatives will be key.
Businesses should partner with universities and vocational schools to develop training programs that equip students with the skills needed in the gaming industry. Additionally, companies should invest in research and development to create innovative games that appeal to both domestic and international audiences. Participation in government-led initiatives, such as industry forums and innovation grants, can also help businesses stay ahead of the curve.
5. Preparedness for Regulatory Inspections
Gaming companies should be prepared for inspections by regulatory authorities to ensure compliance with the new law. This includes maintaining proper records, adhering to content guidelines, and cooperating with authorities during investigations.
Companies should establish internal compliance teams to ensure they meet all regulatory requirements. This includes maintaining detailed records of their operations, content classifications, and consumer complaints. Regular internal audits can help identify and address potential compliance issues before they are flagged by authorities.
6. Engagement with Regulatory Bodies
The industry should actively engage with the newly established regulatory bodies to provide feedback and stay informed about any updates or changes to the law. Participation in public consultations and industry forums will be crucial.
Businesses should participate in public consultations and industry forums to share their perspectives and provide feedback on the Draft Act. This engagement will help ensure that the final regulations are practical and effective. Additionally, businesses should establish regular communication channels with regulatory bodies to stay informed about any updates or changes to the law.
Conclusion:
Thailand’s Draft Act represents a significant step toward regulating and promoting the online gaming industry while safeguarding societal interests. By balancing growth with responsibility, the law aims to create a thriving digital economy that benefits both businesses and consumers. For the gaming industry, this means adapting to new regulations, prioritizing youth protection, and seizing opportunities for growth and innovation. As the Draft Act moves closer to implementation, stakeholders must prepare to navigate this evolving landscape and contribute to the sustainable development of Thailand’s gaming sector.
Computer Crime and Telephone Scams: Strengthening Legal Frameworks to Combat Cyber Fraud
Introduction:
In response to the escalating threat of cybercrime and telephone scams, the Thai government has taken decisive steps to enhance its legal framework. The Cabinet has approved amendments to the Royal Decree on the Prevention and Suppression of Technological Crimes. This move comes amid growing concerns over the daily financial losses suffered by citizens, which currently average between 60 to 70 million baht. Prior to the implementation of recent measures, these losses were even higher, ranging from 100 to 120 million baht per day. The urgency of the situation has necessitated immediate action to address the vulnerabilities in the existing legal framework.
Bank of Thailand (BOT) also supports the principles of this draft Royal Decree and has collaborated with relevant agencies to provide input to refine the draft, ensuring it effectively enhances measures to prevent and suppress technological crimes.
The BOT has been actively working with both public and private sector stakeholders to establish mechanisms where service providers must share responsibility and compensate for damages if they fail to comply with regulatory standards. This policy direction is a priority for the BOT, which is in the process of clearly defining the responsibilities of financial institutions in addressing technological crimes. These responsibilities will be used to assess liability for damages caused by such crimes, in conjunction with other relevant service providers under this Royal Decree and related regulations.
The original Royal Decree, enacted in 2023, was found to lack sufficient authority and penalties in several critical areas. These gaps include the inability to take action against “mule accounts” on peer-to-peer (P2P) platforms, the absence of mechanisms to refund victims, and the lack of shared liability among parties involved in criminal activities. The proposed amendments aim to address these shortcomings by introducing several key provisions:
1. Enhanced Authority Over P2P Platforms: The amendments grant authorities greater power to take action against peer-to-peer (P2P) platforms involved in illegal activities. This includes the ability to investigate, suspend, or shut down platforms facilitating fraudulent transactions.
2. Mandatory SIM Card Suspension: Telecommunications providers are now required to suspend SIM cards associated with fraudulent activities. This measure aims to disrupt the operations of scam networks that rely on mobile communication.
3. Faster Refunds for Victims: Banks are mandated to share information about “mule accounts” (accounts used to launder money) with the Anti-Money Laundering Office (AMLO). This will expedite the process of identifying and refunding victims of cyber fraud.
4. Stricter Penalties for Non-Compliance: P2P platforms and banks that fail to prevent the opening of accounts by criminals will face increased penalties. This provision ensures that financial institutions take proactive measures to verify the legitimacy of account holders.
5. Penalties for Data Breaches: Individuals or entities that disclose personal . information without authorization will be subject to harsher punishments. This aims to deter data breaches and protect citizens’ privacy.
6. Shared Liability for Financial Institutions: Financial institutions, mobile networks, and social media platforms will now bear partial responsibility for damages resulting from cybercrimes. This shared liability framework encourages all stakeholders to implement robust security measures.
7. Extraterritorial Jurisdiction: The amendments include provisions to hold offenders and their supporters accountable, even if they are located overseas. This ensures that international perpetrators involved in cybercrimes affecting Thailand can be pursued and penalized. This provision is crucial for addressing cross-border cybercrime and ensuring that offenders cannot evade justice by operating from outside the country.
Impact on Stakeholders:
The amendments will have significant implications for various stakeholders, including financial institutions, telecommunications providers, social media platforms, and the general public. Financial institutions and telecom companies will need to invest in robust compliance mechanisms to avoid penalties and ensure adherence to the new regulations. Social media platforms will be required to enhance their monitoring systems to detect and prevent fraudulent activities. For the public, these changes promise greater protection against cyber fraud and telephone scams, but they will also need to remain vigilant and informed about the risks associated with online transactions.
Effective Date:
The amended Royal Decree is expected to take effect immediately after its publication in the Royal Gazette. The Secretary-General of the Council of State has indicated that the process of finalizing the draft and publishing it will take no more than 30 days. As a result, the new regulations are anticipated to be enforceable by February 2024. This swift implementation underscores the government’s commitment to addressing the growing threat of cybercrime and protecting citizens from financial losses.
Conclusion:
The amendments to the Royal Decree represent a significant step forward in Thailand’s efforts to combat cybercrime and telephone scams. By addressing the gaps in the existing legal framework and introducing stricter penalties, the government aims to create a safer digital environment for its citizens. The inclusion of extraterritorial jurisdiction ensures that offenders and their supporters, even those located overseas, can be held accountable. However, the success of these measures will depend on the collective efforts of all stakeholders, from financial institutions to individual users, to remain vigilant and proactive in the face of evolving cyber threats. The BOT’s proactive involvement in defining responsibilities and ensuring compliance further strengthens the framework, paving the way for a more secure financial and technological ecosystem in Thailand.
Key Takeaways:
Urgency of Action: The Thai government has recognized the urgent need to combat cybercrime and telephone scams, given the substantial daily financial losses incurred by citizens.
Strengthened Legal Framework: Amendments to the Royal Decree introduce stricter penalties and broader authority for law enforcement agencies to tackle cyber fraud and telephone scams effectively.
Shared Responsibility: The new regulations emphasize the shared responsibility of financial institutions, telecom providers, and social media platforms in preventing cybercrime.
Enhanced Victim Protection: Faster refund mechanisms and increased penalties for data breaches aim to provide better protection for victims of cyber fraud and scams.
Global Collaboration: The Thai government is working with international partners to address cross-border cybercrime, highlighting the importance of global cooperation in combating this growing threat.
Extraterritorial Jurisdiction: The amendments include provisions to hold offenders and their supporters accountable, even if they are located overseas. This ensures that international perpetrators involved in cybercrimes affecting Thailand can be pursued and penalized.
Effective Date: The amended Royal Decree is expected to take effect immediately after its publication in the Royal Gazette, with enforcement anticipated by February 2024.
BOI Launches New Measures to Boost Affordable Housing Investment
BOI Launches New Measures to Boost Affordable Housing Investment
The Board of Investment (BOI) has unveiled special new measures aimed at stimulating investment in residential housing projects priced at 1.5 million baht or less. This initiative is part of a collaborative effort with the Government Housing Bank to expand homeownership opportunities for low-income Thai families.
Under the new promotion, property developers can apply for BOI investment incentives to construct housing projects capped at 1.5 million baht per unit. The Government Housing Bank will evaluate and certify qualifying developers, who can then submit applications for BOI promotion by the end of 2025.
“Affordable housing is a national priority to ensure all Thai citizens can realize the dream of home ownership,” said BOI Secretary General. “These new measures provide tax incentives to developers to increase the supply of moderately priced housing stock.”
To be eligible, residential projects must meet specific criteria set by the Government Housing Bank:
For condominiums, a usable area must be at least 24 sq.m. per unit
For townhouses/detached homes, the usable area must be at least 70 sq.m.
Projects must include amenities like parking, security, cleaning services, and common areas
Developers must first obtain construction permits and Government Housing Bank certification before applying to the BOI for promotion privileges.
Once approved, developers will receive corporate income tax exemption for 3 years capped at their total investment amount. Only construction costs for utilities, roads, and public amenities within the project qualify for the tax break.
“The high costs of land and construction make it very difficult for developers to profitably build housing below 1.5 million baht,” noted BOI Secretary General. “This incentive helps make those moderately-priced projects financially viable.”
The Government Housing Bank has already opened an online application portal at www.ghbank.co.th for developers seeking certification to apply for BOI promotion.
Both the BOI and Government Housing Bank see this joint investment promotion as critically enhancing residential options for lower-income Thai families striving for home ownership.
The National Cyber Security Agency (NCSA) has recognized the growing reliance on cloud services by both government agencies and private sectors, along with the increasing number of cyberattacks targeting users. In response, the agency has drafted the Notification on Cloud System Cyber Security Standard (“Notification“), aiming to establish a robust standard of security measures for cloud systems.
Applicable Entities and Scope: The draft Notification is applicable to government agencies, supervising or regulating organizations, and organizations of critical information infrastructure (as defined under the Cybersecurity Act B.E. 2562 (2019)) that utilize cloud services and have official contracts with Cloud Service Providers (CSPs). These entities are collectively referred to as Cloud Service Customers (CSCs).
Risk Assessment and Categorization: According to the draft Notification, the risks associated with cloud system usage can originate from either the CSC or the CSP. Despite the fact that the draft Notification’s applicability is extended to only the CSCs, the CSPs are to be bound by its service agreement with CSCs to comply with the requirements of the draft Notification as well. CSCs and CSPs are mandated to assess the level of risk in accordance with the security objectives prescribed by another NCSA’s notification. The risk levels are categorized as low, moderate, and high, each with different minimum requirements for security standards, CSC and CSP assessments, and certifications.
Minimum Requirements: The minimum requirements for cloud security depend on the assessed risk level and the related security objectives. These requirements may encompass various aspects, including:
Cloud security governance, encompassing information security policies, organization of information security, supplier relationships, and compliance with rules and regulations.
Cloud infrastructure security and operations, covering human resources security, asset management, access control, cryptography, physical and environmental security, operations security, communication security, system acquisition, development and maintenance, supplier relationships, and information security incident management.
Assessment and Certification: Depending on the risk level and the related security objectives, CSCs or CSPs may be required to conduct compliance assessments as follows:
Self-assessment, conducted in accordance with NCSA’s prescribed requirements.
Assessment by a regulator or regulatory agency (attestation).
Assessment by an advanced certified body.
The frequency of assessments and certifications will also depend on the assessed risk level.
The draft Notification provides greater details, and CSPs and CSCs subject to its provisions are required to carefully assess their associated risks and obligations.
Conclusion: The NCSA’s draft Notification aims to establish a comprehensive framework for ensuring the security of cloud systems used by government agencies, regulatory bodies, and critical infrastructure organizations. By introducing risk-based minimum requirements, assessments, and certifications, the agency seeks to address the growing cybersecurity threats and enhance the overall resilience of cloud services within the country.
The Financial Revolution: Thailand Prepares for the First Virtual Banking?
Thailand’s financial landscape is on the verge of a transformative revolution. Virtual banks, the technological-driven and user-centric financial services.
The Digital Leap for Ease of Doing Business in Thailand
In a significant move to enhance the ease of doing business in Thailand, a joint collaboration between government agencies and private sector organizations was unveiled. The Thai Chamber of Commerce, the Board of Trade of Thailand, the Office of the Public Sector Development Commission (OPDC), and the Department of Business Development (DBD) took the stage to announce the “Joint Corporate Data Linkage” initiative.
This groundbreaking project aims to revolutionize the way businesses interact with government entities by eliminating the need for physical document submissions, such as copies of national ID cards, house registration documents, and company affidavits. Through an online system, legal entity information will be seamlessly linked and shared among participating agencies, reducing redundancies and streamlining processes.
The Chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand emphasized the importance of efficient government services in enhancing the country’s competitiveness. “For too long, entrepreneurs have been burdened with the task of submitting countless documents for various proceedings,” the Chairman stated. “This initiative marks a significant step forward in leveraging digital technology to alleviate those burdens and foster a more business-friendly environment.”
The Joint Corporate Data Linkage is the culmination of years of legal and technological advancements, including the Licensing Facilitation Act B.E. 2558 (2015), the Digitalization of Public Administration and Services Delivery Act B.E. 2562 (2019), and the Act on Management of State Affairs by Electronic Means B.E. 2565 (2022). These legislative efforts have paved the way for a seamless integration of government services into the digital age.
Initially, ten government agencies have pledged their commitment to this initiative, including the Food and Drug Administration (FDA), the Department of Lands (DOL), the Treasury Department, the Board of Investment of Thailand (BOI), the Department of Industrial Works (DIW), the Excise Department, the Bank of Thailand (BOT), the Thai Customs Department, the Comptroller General’s Department, and the Revenue Department (RD).
The Secretary-General of the OPDC highlighted the significance of this collaboration, stating, “The OPDC recognizes the importance of harnessing digital technologies to enhance the efficiency of government services. By fostering cooperation between public and private entities, we aim to provide convenient, cost-effective, and inclusive services to businesses and citizens alike.”
The benefits of the Joint Corporate Data Linkage are multifaceted. According to projections, the initiative is expected to reduce up to 392 document retrieval procedures, resulting in substantial cost savings of approximately 800 Thai Baht per transaction. This translates into an estimated annual saving of around 7 billion Baht, factoring in time, document usage, accounting costs, and opportunity costs.
The Director-General of the DBD underscored the technological advancements underpinning this endeavor. “We have developed a robust system that enables real-time, accurate, and secure data exchange between agencies,” the Director-General explained. “By leveraging the Central Data Exchange system (GDX), we can ensure efficient and seamless information flow, further enhancing the overall experience for businesses.”
The Joint Corporate Data Linkage is not only a testament to Thailand’s commitment to digital transformation but also a beacon of opportunity for investors. As the system matures and expands, investors may find lucrative opportunities in public-private partnerships, collaborating with government agencies to further develop and enhance the platform, potentially yielding long-term returns on investment.
With the formal commencement of the Joint Corporate Data Linkage on May 1st, 2024, Thailand takes a significant stride towards a future where doing business is streamlined, efficient, and aligned with the digital era. This initiative sets the stage for continued innovation and collaboration between the public and private sectors, positioning Thailand as a frontrunner in the global race for competitiveness and business-friendly practices.
The Office of the Board of Investment (BOI) has declared tax incentives for property developers engaged in the construction of residential properties, including houses and condominiums, aimed at catering to low-income individuals. These incentives are applicable to properties priced at 1.5 million THB or below.
The privileges were approved by the Board of Investment on March 15th, 2024, in accordance with the third phase of the Government Housing Bank (GHB)’s initiative to extend loans to low-income individuals for the acquisition of houses and condominium units and consistent with the government’s economic stimulus measure through the real estate sector.
Projects meeting the eligibility criteria, which include a minimum requirement of 70 square meters of space for housing projects and at least 24 square meters of condominium space floor, will qualify for a three-year exemption from corporate income tax. This exemption applies to and shall not exceed the investment costs associated with infrastructure development such as roads, public facilities, and amenities for public use within the projects.
By extending tax privileges to developers constructing residential properties priced at 1.5 million THB or below, the BOI aims to stimulate the supply of affordable housing options and enhance accessibility for low-income segments of the population. Importantly, this initiative promotes social welfare of low-income populations and stimulate inclusive economic development in the real estate sector.
Thailand’s BOI Incentives: Driving Business Competitiveness
Thailand’s Board of Investment (BOI) has introduced targeted incentives aimed at boosting the competitiveness of eligible businesses across various sectors in the local market. Here is a breakdown of the key programs and their benefits:
Upgrading Automotive Industry (BOI’s Notification No. 2/2566)
Existing BOI-promoted automotive projects can reapply for a 3-year corporate tax exemption if their previous benefits have expired. They must invest at least 1 million THB in automation and robotics manufacturers (excluding land and working capital). The new investment project must support the domestic industry by 30% of the total automation system and robotics value to qualify for a 3-year corporate income tax exemption.
Community and Social Development (BOI’s Notification No. 1/2567)
Active projects and new investment projects must have a minimum capital investment of 5 million THB (excluding land and working capital costs). Additionally, they must invest a minimum of 500,000 THB in supporting local organizations, such as social enterprises and unions, to qualify for a 3-year corporate income tax exemption.
Retention and Expansion Program(BOI’s Notification No. 2/2567)
Businesses with a long-standing presence of not less than 15 years and a significant investment history of not less than 10,000 million THB from at least 3 projects can get benefit from this program. Expansion projects with an investment value of at least 500 million THB (excluding land and working capital costs), will receive corporate income tax exemptions of 3 up to 13 years depending on the business’s category. The range of tax exemptions varies depending on the businesses categorized by the BOI office.
Comprehensive Relocation Program (BOI’s Notification No. 3/2567)
To encourage foreign investors in relocating integrated businesses, including manufacturing facilities, regional headquarters, and research and development centers, new investments that are eligible to receive BOI incentives of 3 up to 8 years of corporate income tax exemption under this promotion must submit manufacturing projects applications for investment promotion of the International Business Center (IBC) and an applicant must undertake the substantial functions of regional headquarters and/or R&D centers as indicated.
Economic Recovery (BOI’s Notification No. 4/2567)
The activities categorized in group A such as businesses related to public utilities or the automotive industry are entitled to receive corporate income tax exemption not exceeding 8 years with the additional rights and benefits of 50% reduction from the standard corporate income tax rate applies to net profits derived from the investment for a duration of 5 years after the expiration of the corporate income tax exemption.
BOI’s Vision: Thailand as a World-Class Events Hub and Electronics Powerhouse
Thailand Board of Investment (“BOI”) is committed to positioning Thailand as a hub for organizing events and electronics powerhouse under significant measures in place which are: 1) promoting investment in events such as music festivals, sports, and international festivals, and 2) promoting investment in Printed Circuit Board (“PCB”) businesses.
Promoting investment in events such as music festivals, sports, and international festivals
To recover the country’s tourism and entertainment sectors from the COVID-19 crisis, BOI grants incentives to attract world-class events by offering benefits to organizers of large international concerts, sporting events, and festivals with investments or expenses not less than THB 100 million (approximately USD 2.8 million). These benefits include exemptions from import duties on equipment to be used in such an event and easing the process of obtaining a visa and work permit for the foreign staffs.
Promoting investment in businesses related to Printed Circuit Board (“PCB”) businesses
Thailand Board of Investment has endorsed incentives to boost foreign investment for three supply chain sectors related to PCB businesses as follows:
Businesses involved in supporting PCB production processes such as lamination, drilling, plating, and routing;
Key manufacturers for PCB production, including flexible CCL (FCCL), copper-clad laminate (CCL), and prepreg; and
Producers of essential materials and supplies for PCB manufacturing businesses such as dry film, transfer film, and backup boards.
These supply chain sectors for PCB businesses will be eligible for exemptions on import duties for raw materials and machinery used in product exportation. Additionally, they may qualify for corporate tax exemptions for up to 8 years, based significantly on the materials, technology, and investment scale.
These measures cover a wide range of PCB-related businesses, including producers of PCB components and manufacturers of raw materials, and aim to enhance Thailand’s competitiveness in the electronics manufacturing sectors, the entertainment sectors, and the event industry sectors which in correspond with the Cabinet’s vision – Ignite Thailand – to elevate Thailand into a global hub for major events, aiming to attract the tourists from around the world. These incentives have been granted to those events and PCB related businesses by the BOI since 28 March 2024, enabling the BOI to promote the aforementioned businesses in Thailand.
