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Thailand Implements Comprehensive Regulations for Cash-on-Delivery (COD) Services to Enhance Consumer Protection

Thailand’s Committee of the Consumer Protection Board (CCPB) has taken a significant step towards regulating Cash-on-Delivery (COD) services by classifying them as a controlled business. This move comes in response to the growing popularity of online services and various payment methods in Thailand, as well as the need to address issues such as fraud and inadequate security measures associated with COD transactions.

Following our previous articles on the ETDA’s Recommendation for an Online Merchant Management System with Cash on Delivery Service, the new regulations, set to take effect on October 3, 2024, establish comprehensive requirements for COD service providers, with a focus on enhancing transparency and protecting consumer rights. These rules build upon previous recommendations by the Electronic Transactions Development Agency (ETDA) for an Online Merchant Management System with Cash on Delivery Service.

Receipt Requirements for Cash-on-Delivery (COD) Payments:

Under the new regulations, COD service providers must issue detailed receipts that meet specific criteria:

  • Language and Readability:
    • The receipt must be in Thai.
    • The text must be clear and legible, with a font size no smaller than 2 millimeters and no more than 11 characters per inch.
  • Details to Include:
    • Provider and Service Provider Information:
      • Full name, address, telephone number, and email of both the provider and the service provider.
      Product Information:
      • Tracking number.Detailed description of the product.Amount charged for the product.Pick-up location details.Service provider’s information.Customer information.Authorized name on the invoice.Time limit for holding the payment (5 days before transferring to the provider).Time limit for returning the product.
    • Receipt Preparation:
      • The receipt must be issued immediately upon receiving payment from the customer.
  • Customer Rights to Refund:
    • Reasons for Refund:
      • If the customer receives a product they did not order, or if the product is damaged.If the customer receives a product they did not order and was charged for it, with proof that the product was not ordered.If the customer inspects the product upon delivery, using photos or videos as evidence, and finds it does not match the order.If the customer cannot receive the product at the time of delivery, discovers it was not ordered, and informs the service provider, they can refuse the product and request a refund.
    • Refund Processing:
      • The process for issuing refunds should be briefly described, outlining the necessary steps.
  • Prohibited Clauses:
    • The receipt must not include:
      • Clauses that exclude or limit the liability of the provider or service provider for issues with the product.
      • Clauses that deny responsibility or prohibit returns or exchanges if the product is incorrect, damaged, or defective.
      • Clauses stating that refunds will not be provided.

    These detailed requirements aim to ensure that consumers are fully informed about their purchases and their rights when using COD services. The regulations address the entire transaction process, from the initial order to potential refunds, providing a comprehensive framework for consumer protection.

    The new rules also establish a holding period for payments, requiring service providers to retain the payment for five days before transferring it to the product provider. This window allows customers time to report any issues with their order and request a refund if necessary.

    By implementing these regulations, the Thai government aims to create a more secure and transparent environment for online transactions, benefiting both consumers and businesses operating in this space. The detailed receipt requirements and clear refund policies should help reduce disputes and provide a standardized approach to handling COD transactions.

    As the October 3, 2024 implementation date approaches, businesses offering COD services in Thailand will need to ensure their practices align with these new requirements. This may involve updating their receipt systems, revising their refund policies, and training staff on the new procedures.

    The introduction of these comprehensive regulations demonstrates Thailand’s commitment to adapting its consumer protection laws to the evolving digital economy. As e-commerce continues to grow, such measures will be crucial in maintaining consumer trust and fostering a healthy online marketplace. These regulations set a new standard for COD services in Thailand, potentially serving as a model for other countries facing similar challenges in regulating online transactions.

    Key Takeaways:

    1. Thailand’s Committee of the Consumer Protection Board (CCPB) has announced new regulations for Cash-on-Delivery (COD) freight services.
    2. The regulations aim to address issues such as fraud and inadequate security measures associated with COD services.
    3. Detailed receipt requirements have been established, including specific formatting and content guidelines.
    4. Customer rights to refunds are clearly outlined, including situations where refunds are applicable and the refund process.
    5. The regulations prohibit certain clauses that limit liability or deny customer rights to returns or refunds.
    6. The new rules are set to take effect on October 3, 2024, following a public hearing process.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    Thailand’s Proposed Electronic Transaction Bill: Modernizing the Digital Economy Framework

    Thailand is poised to modernize its electronic transaction legislation with a comprehensive overhaul of the Electronic Transaction Act B.E. 2544 (2001) (ETA). The proposed Electronic Transaction Bill (ETB), currently undergoing public consultation, aims to update the legal framework to better align with current technological advancements and international standards.

    The ETB retains the fundamental principle of functional equivalence between electronic and physical documents established in the ETA. However, it further clarifies compliance requirements for electronic documents to meet legal obligations traditionally imposed on physical documents. For instance, publishing information on an accessible online platform would be deemed equivalent to newspaper publication when required by law. The ETB also affirms that electronic information can be used as evidence in legal proceedings, with the burden of proof regarding credibility falling on the party questioning such information.

    A significant addition to the proposed legislation is the introduction of Electronic Transferable Records (ETRs), aligning with the UNCITRAL Model Law on Electronic Transferable Records. ETRs are defined as documents or records that can be used to claim rights against another party. Given their unique characteristics, such as control and endorsement methods, the ETB outlines specific requirements for ETRs. These include: (1) containing all messages/terms stipulated by law, (2) using a reliable method to control rights over the electronic transferable record, and (3) employing a reliable method to ensure information correctness.

    hands typing on a laptop keyboard

    The ETB also introduces provisions for Electronic Transaction Services (ETS), encompassing a range of digital services including identity proofing and authentication, electronic signatures, timestamping, transmission and storage of electronic information, registration and certification of websites and domain names, and ETR services. The ETB proposes a two-tiered governance approach for ETS providers: mandatory compliance with basic obligations and optional certification as a reliable service provider by the Electronic Transactions Development Agency (ETDA). This framework aims to enhance service quality and reliability while offering potential liability exemptions for certified providers under certain circumstances.

    To ensure a smooth transition, the ETB includes provisions to address the status of digital platform service providers currently regulated under the Royal Decree on the Operation of Digital Platform Services subject to Prior Notification B.E. 2565 (2022). These transitional measures aim to maintain regulatory continuity until a new digital platform law is enacted.

    The proposed legislation represents Thailand’s efforts to create a more robust and internationally aligned legal framework for electronic transactions. It seeks to enhance the credibility of digital transactions, reduce costs, and ultimately boost Thailand’s competitiveness in the global digital economy.

    As of July 2024, the ETB is undergoing its second round of public consultation, with an additional round planned before finalization. Following this process, the ETB will be submitted to the Cabinet and subsequently proposed to Parliament for deliberation. This comprehensive update to Thailand’s electronic transaction laws signifies a crucial step in adapting to the evolving digital landscape and supporting the country’s economic growth in the digital era.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    Thailand Introduces New Regulation to Protect Online Shoppers

    The Office of the Consumer Protection Board (OCPB) in Thailand has approved a draft announcement aimed at addressing the growing concerns of e-commerce fraud and consumer protection in online shopping. The new regulations, set to be published in the Royal Gazette in July, will introduce significant changes to cash-on-delivery services and provide more rights to consumers.

    The Minister to the Prime Minister’s Office stated that numerous complaints have been received from consumers regarding issues with online purchases. These include receiving unordered packages with cash-on-delivery demands, difficulties in contacting sellers after problematic purchases, and inability to obtain refunds due to logistics companies claiming they have already paid the sellers.

    In the first quarter of 2024 alone, the Office of the Consumer Protection Board (OCPB) received a staggering 5,786 complaints related to consumer goods and services. Of these, 2,162 were specifically about online shopping – a testament to the growing pains of Thailand’s digital economy.

    To tackle these issues, the OCPB has introduced the “Dee-Delivery” measure, which imposes new requirements on logistics providers offering cash-on-delivery services. This comprehensive set of regulations, soon to be enshrined in law, promises to revolutionize the cash-on-delivery system that has long been a staple of Thai e-commerce.

    gray steel shopping cart

    Picture this, a courier arrives at your door with a package. Under the new rules, you are no longer at the mercy of what is inside. You can open it, inspect it, and if it is not what you ordered or if it is damaged, you can refuse it on the spot. No more battles for refunds or chasing ghost sellers.

    Key aspects of the new regulations include:

    1. Mandatory detailed information: Logistics companies must provide comprehensive details about the sender, including name, address, and contact information.
    2. Five-day holding period: Payment collected from consumers must be held by the logistics company for five days before transferring to the seller, allowing consumers time to report issues and request refunds.
    3. Right to inspect: Consumers are granted the right to open and inspect goods before making payment.
    4. Refusal rights: If problems are found during an inspection, consumers can refuse payment and reject the goods.
    5. Clear documentation: All transaction details must be clearly stated on the receipt in Thai language with specific font size requirements.

    The new measures also outline conditions under which consumers are entitled to refunds, such as receiving incorrect or damaged items, or goods that were not ordered.

    These regulations aim to enhance transparency in online transactions and provide consumers with more protection against fraudulent practices. The OCPB hopes that by implementing these measures, the number of complaints related to e-commerce will decrease, improving overall consumer confidence in online shopping.

    person marking check on opened book

    The new regulations are expected to take effect 120 days after their publication in the Royal Gazette, giving businesses time to adapt to the new requirements. Failure to comply with these regulations could result in significant penalties, including fines of up to 200,000 baht, imprisonment for up to one year, or both.

    This proactive approach by the Thai government demonstrates a commitment to addressing the evolving challenges in the e-commerce landscape and ensuring a safer online shopping environment for consumers.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    Thailand’s ETDA Unveils Comprehensive Guidelines to Combat Online Advertising Fraud

    In a significant move to address the growing concerns of digital fraud and misleading advertisements, Thailand’s Electronic Transactions Development Agency (ETDA) has introduced a comprehensive set of guidelines aimed at regulating advertising on digital platforms. This initiative, detailed in the “Manual for Advertising Oversight on Digital Platform Services,” comes as a response to the increasing incidents of online scams, impersonation of public figures, and fraudulent activities that have resulted in substantial financial losses for unsuspecting users.

    The digital landscape in Thailand has witnessed a surge in sophisticated scams, often involving the impersonation of celebrities, influencers, and reputable businesses. These fraudulent activities have not only led to financial damages but have also eroded public trust in online platforms. Recognizing the urgent need for intervention, the ETDA has developed these guidelines to establish a more secure and trustworthy online advertising environment.

    User Authentication: At the heart of the new regulations is a robust system for advertiser verification. Digital platform operators are now required to implement stringent user authentication processes for all advertisers. The guidelines mandate a minimum Identity Assurance Level (IAL), which may involve using government-issued identification or other reliable methods to confirm the true identity of advertisers. This measure aims to create a significant barrier for potential scammers and impersonators, making it more challenging for them to operate anonymously on these platforms.

    Advertiser Data Management: The guidelines also place a strong emphasis on data management and transparency. Platform operators must maintain comprehensive records of advertisers in a machine-readable format. This includes the creation of watchlists for potentially problematic advertisers, blacklists for those who have violated policies or laws, and whitelists for trusted advertisers. By implementing these lists, platforms can more effectively manage the quality and reliability of advertisements appearing on their services.

    codes on tilt shift lens

    Pre-Publication Screening: Pre-publication screening is another critical component of the new guidelines. Digital platforms are expected to establish clear criteria for prohibited or restricted advertisements and implement thorough screening processes before any ad is published. This proactive approach aims to prevent harmful or misleading content from reaching users in the first place.

    Ongoing Monitoring: Recognizing that no system is perfect, the ETDA also mandates ongoing monitoring of published advertisements. Platforms are required to use a combination of automated systems and human review to continuously assess the content on their sites. The guidelines suggest prioritizing high-risk content for more intensive scrutiny, ensuring that potentially harmful ads are quickly identified and addressed.

    User Reporting Mechanisms: User empowerment is a key feature of the new regulations. Digital platforms must provide easy channels for users to report inappropriate or illegal advertisements. These reporting mechanisms should be prominently displayed alongside advertisements, allowing users to flag suspicious content quickly. Furthermore, platforms are required to have clear processes for handling these reports, including timely reviews and responses to user concerns.

    green and white line illustration

    Transparency: Transparency is emphasized throughout the guidelines. Platform operators are now required to disclose their policies, processes, and tools used in ad management and content moderation to users. This openness is intended to build trust between platforms and their users, providing clarity on how advertising is managed and moderated.

    The ETDA’s approach balances the need for stringent oversight with the practicalities of operating a digital platform. While the guidelines are comprehensive, they allow for flexibility in implementation, recognizing that different platforms may have varying business models and technical capabilities. The agency encourages platform operators to adapt these guidelines to their specific circumstances while maintaining the core principles of user protection and fraud prevention.

    By implementing these measures, the ETDA aims to create a more trustworthy online advertising environment in Thailand. The guidelines are expected to significantly reduce the incidence of fraud and scams on digital platforms, protecting consumers from financial losses and restoring confidence in online transactions and advertisements.

    As digital platforms begin to implement these new guidelines, Thai consumers can look forward to a safer online environment. The success of this initiative could potentially serve as a model for other countries grappling with similar issues in the digital advertising space. As the digital economy continues to grow, such proactive measures by regulatory bodies like the ETDA will be crucial in ensuring that the benefits of online platforms are not overshadowed by the risks of fraud and deception.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    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.”

    low angle photography of white and purple concrete building

    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.

    aerial view of buildigns

    “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.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    NCSA Tackles Cloud Security with New Measures

    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.

    green and white line illustration

    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:

    1. Cloud security governance, encompassing information security policies, organization of information security, supplier relationships, and compliance with rules and regulations.
    2. 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:

    1. Self-assessment, conducted in accordance with NCSA’s prescribed requirements.
    2. Assessment by a regulator or regulatory agency (attestation).
    3. 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.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    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.”

    gray concrete buildings

    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.

    group of people photo
    Photo by Helena Lopes on Pexels.com

    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.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    BOI’s Tax Relief Sparks Housing Accessibility

    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.

    person pointing on the screen of a laptop

    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.

    Author: Panisa Suwanmatajarn, Managing Partner.

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    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.

    person in welding mask while welding a metal bar
    • 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.  

    Author: Panisa Suwanmatajarn, Managing Partner.

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    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.

    1. 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.

    Author: Panisa Suwanmatajarn, Managing Partner.

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