Tag: employment and labor

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New Tax Framework for Foreign-Sourced Income: Thailand’s Draft Decree Explained

The taxation of foreign-sourced income has emerged as a pivotal issue within Thailand’s tax system, particularly as increasing numbers of Thai individuals engage in overseas employment, investment, and asset holdings. The government seeks to achieve a delicate balance between closing tax loopholes and incentivizing the repatriation of overseas funds to stimulate domestic economic growth.

Historical Framework

Under the previous Revenue Department Order No. GorKhor 0802/696, dated 1 May 1987, foreign-sourced income remained exempt from Thai personal income tax provided it was brought into Thailand in a tax year different from the year in which it was earned. This provision enabled many individuals to legally defer the remittance of foreign income, thereby avoiding immediate taxation obligations.

Current Regulatory Changes

Effective 1 January 2024, the aforementioned provision was repealed by Revenue Department Order No. Por.161/2566. Under this regulation, individuals classified as Thai tax residents, those residing in Thailand for more than 180 days within a calendar year, are now obligated to pay personal income tax on foreign-sourced income if such income is remitted to Thailand, regardless of the calendar year it is earned. The applicable personal income tax rates for this remitted foreign income range progressively from 5% to 35%, determined by the total taxable amount.

Unintended Consequences and Policy Response

While Revenue Department Order No. Por.161/2566 was enacted to enhance tax transparency and align Thailand’s tax framework with international standards, including those established by the OECD, it has generated an unintended consequence. Many Thai individuals earning foreign-sourced income have opted not to remit such funds to Thailand due to concerns regarding potentially substantial tax burdens.

In response to these matters, the Revenue Department is currently drafting a new Royal Decree (hereinafter referred to as “the Draft“) designed to address these conditions.

person holding dollar bills while using a calculator

Key Proposed Provisions

The Draft includes the following principal proposals:

  • Tax Exemption Extension: Personal income tax exemption will apply to foreign-sourced income remitted to Thailand within one to two years from the year it was earned. If remitted after that, the income tax will be applied.
  • Elimination of Same-Year Requirement: The current requirement mandating income remittance within the same calendar year it was earned will be removed.

This revised approach aims to provide taxpayers with enhanced flexibility in managing financial transactions, such as year-end dividend payments, while serving as a positive incentive for overseas Thais to repatriate funds for domestic investment across capital markets, business enterprises, and real estate sectors.

Current Status and Implementation Considerations

While the Draft represents a promising policy development, it has not yet been formally enacted and enforced. Uncertainty remains regarding whether the new provisions will apply retroactively to income remitted to Thailand during 2024.

Until formal enactment occurs, timing remains a critical consideration. Remitting income outside the anticipated grace period may result in taxation under current regulations.

Conclusion

The recent policy initiative by the Thai government reflects a broader strategic objective to incentivize, rather than penalize, the repatriation of foreign-sourced income. This approach serves dual purposes—reducing the tax burden on individuals earning income abroad while acting as a catalyst for attracting capital back into the domestic economy. Should the Draft be formally enacted and enforced, it will communicate a clear and positive message to overseas Thai nationals that repatriating funds will no longer entail prohibitive tax costs.

The success of this policy framework will ultimately depend on its implementation details and the government’s ability to balance revenue generation with economic stimulus objectives.

Author: Panisa Suwanmatajarn, Managing Partner.

Source: International Comparison August 2025: Antea

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Thailand Labor Landmark Case: Employers Jailed for Unpaid Severance of more than 800 Workers

In August 2025, a pivotal moment in Thailand’s labor rights landscape occurred when the Samut Prakan Provincial Court denied bail to four executives of the company who were immediately imprisoned for unlawfully terminating of  more than 800 employees without paying mandated severance and advance notice compensation. This case marks a rare instance of employers facing immediate incarceration for violating labor laws, reinforcing the judiciary’s commitment to upholding workers’ rights under the Labor Protection Act B.E. 2541 (1998).

Background of the Case:

The dispute originated in November 2024, when the company terminated more than 800 employees without providing severance pay or advance notice payments, as required by Thai labor law. The total amount owed to the employees is approximately 220 million baht (USD 6.2 million). Despite labor inspectors’ orders to compensate the workers, the company’s executives failed to comply, prompting the affected employees, supported by labor advocates, to pursue criminal legal action against the company and executives.

Legal Framework: Labor Protection Act B.E. 2541 (1998):

The court’s ruling is grounded in the Labor Protection Act B.E. 2541 (1998), which outlines key protections for employees:

•  Mandates advance notice of termination and payment in lieu of notice.

•  Requires severance pay for employees terminated without cause, with amounts based on length of service.

•  Imposes penalties, including fines and up to six months’ imprisonment, for employers who fail to comply with severance or other compensation requirements.

The executives’ non-compliance with labor inspectors’ orders and their attempts to delay judicial proceedings justified the court’s decision to deny bail and order immediate detention.

Court Proceedings and Worker Advocacy:

The former employees attended the court’s hearing to oppose the executives’ bail applications, submitting objections citing the financial hardship caused by the employer’s actions and their defiance of legal orders. The court’s denial of bail and immediate imprisonment of the executives is an uncommon outcome in Thailand, where labor disputes often result in prolonged negotiations or unenforced rulings. The workers’ eight-month struggle involved repeated appeals to government bodies, including the Ministry of Labor, police, and public prosecutors, showcasing the power of collective action.

Broader Implications for Thai Labor Rights:

This case sets a significant precedent for Thailand’s labor movement, demonstrating that persistent advocacy can lead to criminal accountability for employers. Enforcement of labor laws in Thailand has historically been inconsistent, with many employers evading penalties. This case signals that violations of the Labor Protection Act B.E. 2541 (1998) can result in severe consequences, potentially deterring future non-compliance. However, the affected workers still await their 220 million baht in compensation, and the Ministry of Labor’s silence on this and similar cases involving over 43,000 workers nationwide highlights the need for stronger enforcement and systemic reforms.

Key Takeaways:

1.  Judicial Accountability: The court ruling upholds the Labor Protection Act B.E. 2541 (1998), affirming the judiciary’s role in protecting workers’ rights.

2.  Power of Collective Action: The workers’ eight-month campaign through protests and legal advocacy illustrates the impact of organized labor in achieving justice, despite limited union protections.

3.  Ongoing Challenges: The workers have yet to receive their 220 million baht in compensation, underscoring gaps in enforcement and the need for government intervention.

4.  Precedent for Employers: The imprisonment of the executives serves as a deterrent, warning employers of criminal penalties for labor law violations.

5.  Call for Reform: The case highlights systemic issues, including the Ministry of Labor’s inaction and weak unionization laws, necessitating reforms to strengthen labor protections.

This landmark ruling not only delivers justice for more than 800 affected workers but also galvanizes Thailand’s labor movement, proving that collective action can challenge systemic inequities.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand : Tax Exemption of Dividend

ConceptExplanation
Dividend and Capital gain ExemptionTax Exemption of Dividend
1. Half Tax Exemption
A limited company incorporated under Thai laws receiving dividends from another company incorporated under Thai laws must include the income in its tax calculation. However, only 50% of such income is subject to tax.

2. Full Tax Exemption
A public limited company incorporated under Thai laws whether it is listed or non-listed company holding at least 25% of the voting rights in the dividend-distributing company incorporated under Thai laws is fully exempted from tax on dividends, provided that the dividend-distributing company does not hold any shares in the dividend recipient company whether directly or indirectly. In both cases, the holding company must hold shares in the dividend-distributing company for at least 3 months before and after the dividend payment.

Tax Exemption of Capital Gain
Tax exemption of capital gain applies only in certain cases of share transfers where specific holding periods and criteria of the shares in the company incorporate and operated in Thailand are met.  
Participation in Non- Resident EntitiesA limited or public limited company incorporated under Thai laws shall be exempt from tax on dividends distributed by any company or partnership incorporated under foreign laws if the following conditions are met:
1. Such Thai company must hold at least 25% of the total voting shares in the dividend-distributing entity, and the shares must be held for at least six months from the date of acquisition to the date the dividend is distributed; and
2. The dividend must be paid from net profits after the tax deduction in the country where the dividend-distributing entity is incorporated, at a rate of not less than 15% of the net profits after tax deduction, regardless of whether that country provides any tax reduction or exemption for the dividend distributing entity.  
Group of Companies StructureA limited or public limited company incorporated under Thai laws shall be exempt from tax on dividends distributed by any company or partnership incorporated under foreign laws if the following conditions are met:
1. Such Thai company must hold at least 25% of the total voting shares in the dividend-distributing entity, and the shares must be held for at least six months from the date of acquisition to the date the dividend is distributed; and
2. The dividend must be paid from net profits after the tax deduction in the country where the dividend-distributing entity is incorporated, at a rate of not less than 15% of the net profits after tax deduction, regardless of whether that country provides any tax reduction or exemption for the dividend distributing entity.  
Group of Companies StructureAny group of companies managed through a holding structure enables centralized and unified control, as well as strategic decision-making. The profits generated by subsidiaries/affiliates of the group of companies will also be required to be retained and reinvested within the group.  
Participation requirementsTo qualify for full dividend tax exemption under Thai laws, the parent company must hold at least 25% of the total voting shares in the subsidiary, with no cross-shareholding structure.
In addition, the parent company must have held such shares for not less than three months before and after the dividend distribution date.  
Benefits of Holding sharesHolding shares in other companies with centralized control will reduce costs, manage risk, protect assets, and provide tax benefits.  
Subholding StructureThai law does not specifically define a subholding company. If it acts like a holding company regardless of level of shareholding structure, the conditions regarding the holding company will be applied.  
Protection of Minority ShareholdersUnder the Thai laws, protection of minority shareholders can be in several form, including participation in meetings, voting rights, and the ability to inspect company records as mutually specified in the articles of association of the company.  
Deduction to avoid Double TaxationDouble Tax Agreements (DTAs)
Bilateral tax treaties are signed by and between Thailand and many other contracting countries (e.g., the United States, Singapore, Japan, China, the United Kingdom, Germany, Australia, etc.) to prevent natural persons and juristic persons with cross-border income from facing double taxation in both Thailand and such particular foreign countries. The measures can be in a form of tax credit or tax exemption.  
Consideration of the Holding Company as a Taxable Person for VAT purposesBusiness engaging in certain activities are required to register for VAT. However, a holding business is not considered as a business activity subject to VAT. Thus, it is not required to register and is not subject to collect and conduct VAT filing.  
Taxation effects on Non-Resident HoldingsA company incorporated under foreign laws that does not conduct business in Thailand, but receives assessable income, such as dividends or other benefits from a company operated and based in Thailand, will be liable to pay tax under Thai laws.
Additionally, capital gains from the sale of shares in a company incorporated and operated in Thailand by a non-resident are subject to withholding tax in Thailand as Thai-sourced income.
Requirements for Capital Gains ExemptionCapital gains from the sale of shares of the company incorporate and operated in Thailand may be exempt from the income tax if the following conditions are met:
• The shares have been held for at least 24 months prior to the sale;
• The sale results in a capital gain (i.e., generating profits from the original investment);
• The company incorporated and operated in Thailand earns at least 80% of its revenue from government-promoted activities for two consecutive accounting years prior to the sale.
In addition, capital gains from the transfer of shares in a venture capital holding company may also be exempt from tax, provided that a venture capital holding company has invested in a company incorporated and operated in Thailand that earns at least 80% of its revenue from government-promoted activities for two consecutive accounting years prior to the sale.  
Group Structure and Tax ConsolidationThailand’s tax system treats each company as a separate taxable entity, requiring companies to file taxes individually. There is no provision under the Thai Revenue Code for group tax filing or consolidated tax returns. Profits and losses cannot be offset across the group.  
Liability of the Parent CompanyA parent company is generally not liable for the debts or obligations of its subsidiary/affiliates, as it is a separate entity from its subsidiaries/affiliates. However, as a shareholder, it is liable to pay for any unpaid amount of shares it holds in such subsidiaries/affiliates. The liability will be as in the amount of unpaid amount of shares.

Source: International Comparison July 2025: Antea

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Thailand : Transfer Pricing

1. Overview of Transfer  Pricing Regulations in ThailandTransfer pricing in Thailand is governed by
1. Thai Revenue Code
2. Ministerial Regulation  No. 369 (B.E. 2563) (2020) Issued under the Thai Revenue Code Regarding the Adjustment of Income and Expenses of Related Companies or Partnership
3. Ministerial Regulation No. 370 (B.E. 2563) (2020) Issued under the Thai Revenue Code Regarding the Revenue Threshold of Companies or Juristic Partnerships According to Section 71 ter paragraph 3
2. Whether aligned with BEPS?Yes, Thailand participates the Inclusive Framework on BEPS.
3. Scope and Applicability of Transfer Pricing RegulationsCompany or Jursitic Partnership (for juristic partnership, it includes limited partnership and registered ordinary partnership)
1. who proceeds a transaction with its related companies or juristic partnerships under Transfer Pricing Regulations (please see below the definition as specified in Item 5.); and
2. Such company or juristic partnership has revenue of more than 200 million THB; and
3. Subjects to disclose information regarding its related companies or juristic partnerships and their transactions by submitting a Disclosure Form to the Thai Revenue Department
4. Transactions Covered:Commercial or financial terms, agreements, or contracts involving sales, services, marketing, advertising, loans, financial assistance, or other commercial or finance transactions, both verbally and in writing.
5. Legal Definition of Related companies or juristic partnerships Under Transfer Pricing RegulationsTwo entities or more are considered as related companies or juristic partnerships if any of the following conditions are met:
1. An entity, either directly or indirectly, holds shares or partnership (contribution) with not less than 50% of the total shares or partnership (contribution) of another entity; or
2. A shareholder or partner of an entity holds shares or partnership (contribution) at 50% or more of its total shares or partnership (contribution) and such shareholder or partner holds shares or partnership (contribution) at 50% or more of the total shares or partnership (contribution) in another entity; or
3. An entity that has a capital, management, or control relationship with another entity and either of them cannot operate independently.
6. Recognized Transfer Pricing MethodsThailand applies six methods:
1. Comparable Uncontrolled Price Method
2. Resale Price Method
3. Cost Plus Method
4. Transactional Net Margin Method
5. Transactional Profit Split Method
6. Other Methods subject to notification to the Director General of the Thai Revenue Department
7. Data Used for comparison
to improve the company or juristic partnership’s incomes and expenses.		The tax assessor will use these data to assess the company or juristic partnership’s incomes and expenses;
Internal Data
1. Prioritize using internal data from transactions that occurred between the related companies or juristic partnerships with other third-party companies or juristic partnerships
External Data
2. If internal data is unavailable, external data from transactions of other third-party companies or juristic partnerships shall be used, regardless of whether the transactions are conducted in Thailand or outside and by incorporated entities under Thai or foreign laws
8. Transfer Pricing Audit Process and PenaltiesTransfer Pricing Audit Process
Documentation Review – Disclosure Form (Master Files) and Local Files which were requested by the tax assessor to be used for analysis.
1. Contractual Term of the Transaction
2. Functional Analysis : FAR
3. Characteristic of Property & Service
4. Economic Circumstances
5. Business Strategy
Remarks:
– Local Files refer to the documents or evidence used to analyze the contractual terms of the transactions
– All documentations must be submitted in Thai language
The Tax Assessor Examination – The tax assessor verifies Arm’s Length Price (ALP).
Adjustments – If pricing is incorrect, taxable income is adjusted.
Penalties for Non-Compliance
ViolationPenalty
Failure to file a Disclosure Form, providing a false declaration, or providing insufficient informationA fine not more than 200,000 THB
9. Reporting Deadlines and Compliance Timelines1. Disclosure Form: Within 150 days from the last day of the fiscal year by electronic filling or by hand-in submission
2. Local Files: The Revenue Department can request local files within 5 years from the Disclosure Form filing date, and the Local Files must be submitted within 180 days of receiving the first notification or 60 days of receiving subsequent notifications by the Thai Revenue Department

Source: International Comparison March 2025 : Antea

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Social Security: Registration for Migrant Workers

Introduction:

In a significant move to enhance the welfare of migrant workers, the Thai government has mandated the registration of foreign workers under the social security system. This initiative, stemming from a Cabinet resolution on 24 September 2024, aims to ensure that migrant workers from Cambodia, Laos, Myanmar, and Vietnam receive the same benefits as Thai workers. The Ministry of Labor has issued an announcement allowing foreign nationals from these countries to work in Thailand under special provisions. Employers are required to register migrant workers under the social security system to ensure they receive benefits such as medical care, compensation for sickness and childbirth, and old-age pensions, in compliance with the Social Security Act B.E. 2533 (1990) and the Workmen’s Compensation Act B.E. 2537 (1994).

Documents for Registration:

  1. New Migrant Workers: Those who have never been registered with the Social Security Office (SSO) must submit documents issued by the Foreign Workers Administration Office which are work permit or certificate of employment for migrant workers and government fee receipt.
  • Previously Registered Migrant Workers: These workers must provide one of the following identity documents which are passport, travel document, non-Thai citizen identity card (pink card), social security card, or work permit and fill out the required form.
construction-site-build-construction-work-159306.jpeg

Timeframe for Registration:

  1. Workers with Pre-Announcement Permits: For migrant workers who obtained their work permits before the announcement’s effective date (24 December 2024), employers must register them within 30 days, i.e., by 23 January 2025.
  2. Workers with Post-Announcement Permits: For those who receive their work permits on or after 24 December 2024, employers must register them within 30 days from the date their work permits are obtained.

Key Takeaways:

  1. Registration Deadlines: Employers have specific period of time to register their migrant workers under the social security system.
  2. Mandatory Registration: Employers must register migrant workers under the social security system to ensure they receive benefits such as medical care, sickness and childbirth compensation, and old-age pensions.
  3. Required Documents: New and previously registered migrant workers must submit specific documents to prove their eligibility and registration status.

Related Article: Proposed Reforms for Migrant Workers in Thailand: Temporary Stay and Work Permit Relaxations – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s Social Security Reform

On 1 December 2024, the Social Security Office (SSO) under the Ministry of Labor opened a public hearing to gather feedback on a draft Ministerial Regulation aimed at replacing Ministerial Regulation No. 7, which has been in effect since 1995. The proposed regulation introduces changes to the minimum and maximum wage bases used for calculating contributions to the Social Security Fund (SSF). The goal is to ensure that the regulation reflects current economic conditions and enhances benefits for insured individuals. Ministerial Regulation No. 7 (1995) set the wage base for insured individuals under Section 33 at a minimum of 1,650 THB per month and a maximum of 15,000 THB per month.

Proposed Changes to the Wage Base

To adapt to current economic conditions and improve benefits, the SSO proposes gradual adjustments to the wage base as follows:

  • 1 January 2026 – 31 December 2028:
    • Minimum: 1,650 THB/month
    • Maximum: 17,500 THB/month
  • 1 January 2029 – 31 December 2031:
    • Minimum: 1,650 THB/month
    • Maximum: 20,000 THB/month
  • From 1 January 2032 onwards:
    • Minimum: 1,650 THB/month
    • Maximum: 23,000 THB/month

These adjustments will result in higher contributions from both employers and employees but will also lead to enhanced benefits for insured individuals. The increase in the wage base will gradually improve benefits across various categories.

Employer’s Obligations under the Social Security Act

Under Thailand’s Social Security Act, employers are required to deduct contributions from employees’ wages and contribute an equal amount to the SSF on behalf of their employees. Non-compliance, such as failing to register employees or remit contributions, may lead to fines or legal action. Compliance ensures employees’ financial security.

Key Takeaways

  • Purpose: To align with the current economic situation and improve benefits for insured persons.
  • Changes: Increased wage ceiling, higher contributions, and increased benefits.
  • Benefits: Increased compensation for sickness, maternity, disability, death, unemployment and higher pension.
  • Implementation: Gradual increase in wage ceiling over several years.

Author: Panisa Suwanmatajarn, Managing Partner.

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Labor: Legal Consideration for Employment Termination

Disclaimer:
This article provides a general legal framework for employment termination in Thailand. It is important to note that specific industries, professions, or situations may be subject to additional or different regulations. If a matter in question is governed by specific legislations, those particular laws and regulations must be considered in addition to the general principles outlined here.


Introduction:
Employment termination is a critical aspect of workforce management that requires careful consideration of legal and ethical factors. In Thailand, the Labor Protection Act B.E. 2541 (1998) provides the primary framework for lawful employment termination, balancing the rights of employers and employees. This article explores the key aspects of employment termination under Thai labor law, focusing on contract types, compensation requirements, and legal protections for both parties. Types of Employment Contracts and Termination Procedures:

The Labor Protection Act B.E. 2541 (1998) recognizes two primary types of employment agreements:

1. Fixed-Term Contracts

    • Termination occurs automatically upon contract expiration.
    • Early termination by the employer requires written notice.
    • Premature termination without cause may result in a breach of contract penalties.

    2. Non-Fixed Term Contracts

      • Termination requires written notice prior to or on the wage payment date and will be effective on the following payment date.
      • Notice period should not exceed three months unless specified otherwise in the contract.

      For both contract types, failure to provide proper notice obliges the employer to pay compensation in lieu of notice and salary until the effective termination date. Additional contractual obligations, such as repatriation expenses, must also be honored.


      Compensation for Termination Without Cause:
      When an employer terminates an employee without the employee committing any offense specified by law or contract, the Labor Protection Act B.E. 2541 (1998) mandates severance pay. The amount is calculated mainly on the employee’s length of service.


      In cases of contract breach before expiration without the employee’s fault, employers must pay damages. Failure to provide advance notice also requires compensation in lieu of notice.

      Source: International Business Newsletter December 2024 (antea-int.com)

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      Carbon credit market regulations

      Carbon Credit Market Regulations
      Currently, Thailand applies voluntary program called Thailand Voluntary Emission Reduction Program (“T-VER“) for controlling and managing of carbon credit market. No compulsory laws or regulations to control or manage of carbon credit market.

      However, there are currently 3 draft laws related  to the carbon credit market under the process of public hearing which are:
      1. Draft Act on Promoting Greenhouse Gas Reduction and Carbon Credits B.E. ….
      2. Draft Act on Climate Change B.E. …. (proposed by Department of Climate Change and Environment, Ministry of Natural Resources and Environment
      3. Draft Act on Climate Change B.E. …. (proposed by Ms. Saniwan Buaban, the House Representative)
      (all herein after referred to as “Drafts“).
      DefinitonsActivity dataNot mentioned in the guideline of T-VER.
      Baseline yearNot mentioned in the guideline of  T-VER.
      Compliance MechanismGoverning Authorities
      Thailand Green House Gas Management Organization (Public Organization) (“TGO“).
      Obligated Entities
      As Thailand currently applies for voluntary program, thus, there is no spcified obligated entities. However, the definition of obligated entitiies are mentioned in the Drafts.
      Application for Registration in T-VER
      T-VER has designated the types and categories of the businesses registering to join the program (e.g. renewal energy business, transportation business, waste management business). Such businesses may submit application and required documents to TGO. The duration for consideration of the application is 60 days.
      Once the business is registered, the business shall have the duty to prepare for monitoring report regarding amount of Green House Gas (“GHG“) emission for further requesting for carbon credit certificate.
      GHG Emission Intensity Trajectory and TargetsThe Types of GHG
      Under the guideline of T-VER, the GHG covers
      ◾ carecarbon dioxide (CO2)
      ◾ methane (CH4)
      ◾ nitrous oxide (N2O)
      ◾ hydrofluorocarbons (HFCs)
      ◾ perfluorocarbons (PFCs)
      ◾ sulfur hexafluoride (SF6)
      ◾ nitrogen trifluoride (NF3)
      The Calculation of GHG Emissions Intensity
      The calculation of GHG emission intensity  will be calculated by the business opeartor. Given that the sum amount of GHG emission result known as “Ery”, it must contain no decimal.
      Monitoring and Reporting ProcessSubmission of Monitoring Report of GHG Emission
      The business is required to prepare the monitoring report of GHG emission for further requesting for  carbon credit certificate. The monitoring report of GHG emission must be submitted together with
      1) Verification report made by a third party known as Validation and Verification Body (“VVB“)
      2) Calculation of the amount of GHG emission in excel form
      3) Lists of tools used for recording of GHG emission of the business.
      Verification and Assessment of PerformanceFor T-VER, the verification process applies the standard of ISO 14064-3:2019 for assessing the reduction of the GHG emission from the business. The verification and assessing must be conducted by VVB.
      Issuance and Surrender of Carbon Credit CertificateIssuance of Carbon Credit Certificate
      Business may request for carbon credit certification by submitting application and related documents to TGO. This certification must be requested within 2 years from the date which status of being business under T-VER is terminated. If the business operator fails to do within this period, they will no longer be able to request for further carbon credit certification for their business.
      Once TGO approves the registration of carbon credit certificate, a carbon credit certificate will be issued within 20 working days from the date of completion of the review.
      Surrender of Carbon Credit Certificate
      The surrender of carbon credit certificate can be conducted through Thailand Carbon Credit Registry (“TCCR“) which is electronic platform for carbon credit market. 
      Trading of Carbon Credit CertificatesTrading of Carbon Credit
      The seller and buyer of carbon credit must have an account registered with TCCR, and every transaction (i.e. sellign and trading) has to be moitored and approved by the carbon credit registrar appointed by the TCCR.
      Tax Benefit
      Profits earned by business  from the sale of carbon credits in Thailand under T-VER  will be exempted from corporate income tax.
      Banking of Carbon Credit CertificatesProvisions regarding banking and carbon credit certificate are not mentioned in the guideline of T-VER, including the expiration date of  carbon credit certificate.
      Compliance with GHG Emission Intensity TargetsTGO will assessed the GHG emission amount of the business under T-VER for the improvement of GHG emission reduction.

      Source: International Business August 2024 (antea-int.com)

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      Labor: The Battle for Fair Treatment

      In the intricate world of labor law, a case emerged that would challenge the principles of fair treatment and equality in the workplace. This is the story of a quality control inspector who fought for his rights and set a precedent for labor practices in Thailand.

      The Employment Journey:

      The plaintiff, once an employee of the first defendant and later a contract worker for the second defendant, was sent to work in the production department of the second defendant on 25 January 2017. His final position was as a quality control inspector. On 6 May 2020, the second defendant returned the plaintiff to the first defendant. During his tenure with the second defendant, the plaintiff received a housing allowance of 750 baht per month, while direct employees of the second defendant received 2,300 baht per month. The plaintiff never received annual bonuses or diligence allowances from either defendant.

      The Dispute:

      The plaintiff filed a lawsuit seeking for housing allowances, diligence allowances, and bonuses. The labor court found that the defendants were not liable for the housing and diligence allowances. However, the court ruled that the second defendant’s failure to pay bonuses to contract workers, who performed the same tasks as direct employees, constituted discriminatory treatment under Section 11/1 of the Labor Protection Act B.E. 2541 (1998).

      The Appeal:

      The second defendant appealed, arguing that under the Labor Relations Act B.E. 2518 (1975), they had the right to set different criteria for union members and non-members. Since the plaintiff was not a union member, he was not entitled to the bonus. The Specialized Court of Appeal dismissed this argument, stating it was a factual dispute rather than a legal one.

      crop asian judge working on laptop in office

      The Supreme Court’s Decision:

      The Supreme Court had to determine whether the second defendant’s appeal was a legal issue. The court found that the second defendant’s argument was indeed a legal one, as it involved the interpretation of the Labor Relations Act B.E. 2518 (1975) and the Labor Protection Act. B.E. 2541 (1998). The Supreme court ruled that the second defendant’s practice of not paying bonuses to contract workers was discriminatory and violated Section 11/1 of the Labor Protection Act B.E. 2541 (1998). The Supreme Court also addressed the second defendant’s claim that applying the employment conditions agreement to non-union members violated the Constitution. The Supreme Court found that this was not a constitutional issue but rather a matter of legal interpretation.

      The Outcome:

      The Supreme Court upheld the lower court’s decision, ordering the second defendant to pay the plaintiff a bonus of 124,796 baht, with interest. The Supreme Court also adjusted the interest rate to comply with the new Civil and Commercial Code amendments, which reduced the default interest rate from 7.5% to 5% per year.

      Key Takeaways:

      1. Equality in Benefits: Employers must provide equal benefits and welfare to contract workers and direct employees performing the same tasks.
      2. Legal Interpretation: Disputes involving the interpretation of labor laws can be considered legal issues and are subject to higher court review.
      3. Non-Discrimination: Discriminatory practices in the workplace, such as unequal bonus payments, are prohibited under labor protection laws.
      4. Constitutional Claims: Arguments based on constitutional grounds must clearly demonstrate a conflict with constitutional provisions to be considered valid.
      5. This case underscores the importance of fair treatment in the workplace and the legal avenues available to employees’ seeking justice. It serves as a reminder that equality and non-discrimination are fundamental principles in labor law.

      Author: Panisa Suwanmatajarn, Managing Partner.

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      Labor: Private Higher Education Institutions with Special Labor Protections

      Background:

      Dr. James (a pseudonym) had been a dedicated professor in the Faculty of Liberal Arts at a private university for over 28 years. His commitment to teaching and research was unwavering until the day he received a retirement notice from the university.

      “I felt betrayed,” Dr. James recalls. “When I started working here, there was a regulation about severance pay that was more beneficial to employees. But the university changed the rules without my knowledge.”

      Feeling that he had been treated unfairly, Dr. James decided to sue the university in the labor court, demanding severance pay according to the original regulations.

      “I thought this was a violation of labor rights,” he says. “But I was not sure if standard labor protection laws applied to private universities”.

      Dr. James’s case went through the Central Labor Court, the Specialized Appeal Court, and finally reached the Supreme Court.

      The Supreme Court’s decision in 2023, surprised Dr. James and many in the academic community. The Supreme Court ruled that private higher education institutions are not subject to regular labor protection and labor relations laws.

      “I had no idea there was specific legislation for private higher education institutions,” Dr. James says, disappointment evident in his voice. “But at least this law stipulates that employees must receive benefits no less than those prescribed by general labor protection laws”.

      Although, he lost the case, Dr. James’s fight was not in vain. His case helped raise awareness about the rights of personnel in private higher education institutions.

      “I hope my story will be a lesson for my colleagues,” Dr. James concludes. “We need to know our rights and closely monitor any changes in regulations.”

      Key Takeaways

      1. Private higher education institutions in Thailand are governed by specific labor protection laws, not subject to general labor protection and labor relations laws.
      2. Employees in private higher education institutions must receive benefits no less than those specified in general labor protection laws.
      3. Changes to internal regulations of private higher education institutions are not considered amendments to employment conditions under labor relations law.
      4. Personnel in private higher education institutions should regularly monitor changes in internal organizational regulations.
      5. Labor lawsuits, even if unsuccessful, can help raise awareness about the rights of employees in private higher education institutions.

      Author: Panisa Suwanmatajarn, Managing Partner.

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