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Notification of the Competent Officer on Exchange Control (No. 38) — Draft Amendment

Introduction

On 25 March 2026, the Competent Officer on Exchange Control issued the Draft Notification on the Criteria and Procedures for Foreign Exchange Transactions (No. 38) (the “Draft Notification”). The Draft Notification proposes amendments to the existing notification dated 31 March 2004 (as amended), with the principal objective of enhancing regulatory clarity and easing documentary requirements for certain foreign exchange (“FX”) transactions.

The proposed amendments primarily concern documentary requirements, the timing for submission of supporting documents, and the specific treatment of certain transaction categories, including FX purchases for foreign currency deposit (“FCD”) accounts, gold import payments, and hedging transactions. The Draft Notification is expected to have material practical implications for authorized juristic persons, financial institutions, and business operators engaged in cross-border FX transactions.

Key Amendments

1. FX Purchases for Own Foreign Currency Deposit (FCD) Accounts

Under the Draft Notification, where a customer purchases foreign currency solely for deposit into its own FCD account, authorized juristic persons are no longer required to request supporting documents, irrespective of the transaction amount.

This amendment represents a significant relaxation of administrative requirements and reflects a regulatory policy direction toward facilitating liquidity management and FX flexibility for market participants. Supervisory oversight will continue to be exercised under the existing FCD regulatory framework.

2. FX Purchases for Gold Import Payments

In contrast to the relaxation described above, the Draft Notification expressly tightens documentary requirements for FX purchases made for the purpose of settling payments for imported gold.

For such transactions, authorized juristic persons must request supporting documents in all cases, without regard to transaction value. No monetary threshold or exemption applies.

This differentiated treatment reflects the regulator’s continued emphasis on monitoring transactions considered to carry heightened financial, market, or systemic risk.

3. Timing for Submission of Supporting Documents

The Draft Notification clarifies and differentiates timing requirements for the submission of supporting documents as follows:

General Rule Supporting documents must be submitted on the transaction date (the “Trade Date”).

Relaxation for Certain Spot Transactions For spot FX transactions not related to gold import payments, authorized juristic persons may, where justified by necessity and reasonableness, permit the submission of supporting documents on the settlement date (the “Settlement Date”) in lieu of the Trade Date.

Mandatory Submission on the Settlement Date Submission of supporting documents on the Settlement Date is required for:

  • forward FX transactions with a value of USD 200,000 or equivalent or more; and
  • FX purchases for gold import payments, regardless of amount.

4. FX Transactions for Hedging Based on Forecast Exposure

For FX transactions entered into for the purpose of hedging or managing exchange rate risk arising from forecast exposure, the Draft Notification introduces greater flexibility in the categories of acceptable documentation.

In addition to forecast-based documents, customers may now submit:

  • evidence of underlying obligations; or
  • documents demonstrating exposure to exchange rate risk, such as billing notices or contractual indicators.

This change more closely aligns regulatory practice with commercial reality, particularly in the context of treasury and risk management operations.

5. Sale of Foreign Currency by Residents

The Draft Notification amends the existing provisions governing the sale of foreign currency by persons resident in Thailand, applicable to both spot and forward transactions.

Authorized juristic persons are permitted to facilitate such transactions on a broader basis, in particular where the seller:

  • will receive foreign currency income in the future; or
  • maintains funds in its own FCD account.

This amendment provides additional operational flexibility while preserving applicable reporting and disclosure obligations.

Key Takeaways

  • FCD Transactions: FX purchases for deposit into a customer’s own FCD account no longer require supporting documents, regardless of amount.
  • Gold Imports: FX purchases for gold import payments remain strictly regulated, with mandatory documentation required in all cases.
  • Document Timing: While the Trade Date remains the default submission deadline, limited flexibility has been introduced for non-gold spot FX transactions.
  • Large Forward FX Transactions: Forward contracts valued at USD 200,000 or more require documentation to be submitted on the Settlement Date.
  • Hedging Transactions: A broader range of documentary evidence is now acceptable for forecast-based hedging arrangements.
  • Operational Impact: Financial institutions and business operators are advised to review and update their internal policies, compliance checklists, and transaction workflows to ensure alignment with the Draft Notification.

Author: Panisa Suwanmatajarn, Managing Partner.

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Updated Regulation on Official Secrets: Modernization, Electronic Security Measures, and Comparison with International Standards

On 30 December 2025, the Thai Cabinet approved in principle the draft Regulation on the Protection of Official Secrets (No. ..) B.E. …., as proposed by the Office of the Permanent Secretary to the Prime Minister. This revision updates the framework established in B.E. 2544 (2001), primarily to address the increasing reliance on electronic systems in government operations and resolve limitations in handling classified information digitally.

Background and Rationale:

The original regulation, enacted pursuant to Section 16 of the Official Information Act, B.E. 2540 (1997), mandated measures to prevent leakage of official secrets. It detailed procedures for classification, copying, translation, transfer, transmission, disclosure, destruction, storage, backup, and security, but focused predominantly on paper-based documents.

With the widespread adoption of electronic systems, agencies faced operational delays when handling classified information, often reverting to paper methods for compliance. This practice conflicted with the Prime Minister’s Office Regulation on Administrative Correspondence (No. 4), B.E. 2564 (2021), which promotes electronic administration.

The need for reform was identified as early as the Official Information Board No. 2/2554 meeting in March 2011, leading to the formation of a sub-committee. The revised draft, endorsed by the Board in its no. 2/2568 meeting on 28 October 2025, was subsequently submitted to the Cabinet.

Key Amendments: Electronic Classified Information

The primary enhancement is the introduction of Chapter 5: Electronic Classified Information, comprising 26 new provisions (Sections 50/1 to 50/26). These establish comprehensive guidelines for digital management of classified data, covering:

•  Classification and marking of electronic documents.

•  Procedures for creation, copying, translation, transfer, transmission, receipt, and disclosure via digital channels.

•  Secure storage, backup, and recovery to mitigate loss or unauthorised destruction.

•  Cybersecurity measures, including encryption, access controls, and system auditing.

•  Protocols for secure destruction of electronic classified information when no longer needed.

These provisions aim to facilitate efficient inter-agency coordination and public service delivery while preserving confidentiality.

Expected Benefits:

By providing clear protocols for electronic transmission, the regulation enhances administrative speed and aligns secrecy practices with modern information technology. It supports digital transformation in public administration without compromising national security or obligations under the Official Information Act, B.E. 2540 (1997).

Next Steps:

The Cabinet has directed submission of the draft to the Committee for the Scrutiny of Draft Legislation and Subordinate Legislation Proposed to the Cabinet. This review will incorporate observations from entities such as the Office of the Public Sector Development Commission, the Office of the Council of State, the Digital Government Development Agency, the National Economic and Social Development Council, and the National Security Council. Formal promulgation will follow upon completion.

Comparison with International Standards:

Thailand’s revisions demonstrate strong alignment with global best practices in electronic handling of classified information, which universally emphasize encryption, access controls, auditing, and secure storage.

•  United States: Executive Order 13526 and NIST SP 800-53 Revision 5 offer detailed, risk-based controls across multiple families (e.g., Access Control, System and Communications Protection). Thailand’s provisions mirror these in core areas but are less granular.

•  European Union: Council Decision 2013/488/EU requires approved cryptography for higher classifications and comprehensive information assurance. Thailand parallels this in transmission and storage requirements.

•  United Kingdom: The Official Secrets Act 1989 (as amended) and related policies incorporate encryption and secure systems, with recent enhancements under the National Security Act 2023 addressing contemporary threats.

•  ISO/IEC 27001: This standard mandates risk-based information classification and controls for transfer and protection. Thailand’s government-specific rules complement this approach.

Similarities include mandates for encrypted transmission, restricted access, secure storage, and audited destruction. Differences lie in depth: international frameworks like NIST provide extensive, customizable controls and certification requirements, whereas Thailand’s update remains procedurally focused on administrative adaptation.

Overall, this reform represents a commendable advancement toward international convergence, bolstering Thailand’s digital governance while upholding robust confidentiality safeguards. Further enhancements could involve adopting more detailed risk-based mechanisms and independent certification processes observed in mature systems.

Author: Panisa Suwanmatajarn, Managing Partner.

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Bank of Thailand Proposes Stricter Documentation Requirements for Inbound Foreign Exchange Transactions

In addition to the proposed increase in the foreign income repatriation threshold under the Bank of Thailand’s relaxations to foreign exchange regulations (as outlined in our previous article, Proposed Relaxations to Foreign Exchange Regulations), the Bank of Thailand (“BOT”) has proposed measures to strengthen regulatory oversight of inbound foreign exchange transactions. These measures aim to mitigate appreciation pressure on the Thai Baht, enhance transaction transparency, and prevent the inflow of funds inconsistent with their declared sources or otherwise undesirable.

The BOT has launched a public consultation on the Draft Notification on Rules and Procedures for Foreign Exchange Transactions (Draft Rules on Verification of Inbound Foreign Exchange Transactions). The consultation period runs from 30 December 2025 to 16 January 2026, with feedback informing the final regulatory framework.

Current Regulatory Framework

Under existing rules:

  • Foreign currency may be brought into Thailand without amount limitation for conversion into Thai Baht or deposit into a foreign currency deposit (“FCD”) account.
  • Transaction participants are required only to declare the source of funds.
  • No supporting documentary evidence is currently required.

Rationale for the Draft Rules

The proposed amendments are intended to:

  • Enhance scrutiny of inbound foreign exchange transactions and align inbound controls with outbound foreign exchange rules, under which purchases or transfers of foreign currency of USD 200,000 or more (or equivalent) are subject to documentary verification unless Know Your Business (“KYB”) procedures have been applied.
  • Increase transparency in foreign exchange transactions.
  • Prevent misrepresentation of fund sources and the use of inbound transactions for non-genuine or undesirable purposes.
  • Mitigate appreciation pressure on the Thai Baht by moderating demand arising from inbound foreign exchange transactions through enhanced verification and documentation requirements.

Key Features of the Draft Rules

While inbound foreign exchange transactions remain unrestricted in terms of amount, the Draft Rules propose stricter documentary verification requirements, differentiated by the type of licensed service provider.

1. Transactions Conducted Through Commercial Banks

A. Transactions of USD 200,000 or More (or equivalent)

Commercial banks are required to verify supporting documents corresponding to the declared source of funds on a transaction-by-transaction basis.

Exception: Documentary verification may be waived for routine transactions of business customers that are well known to the bank and subject to ongoing KYB and Customer Due Diligence (“CDD”) processes.

B. Certain High-Risk Inbound Transactions

For inbound transactions that may be used for non-business-related purposes or where the source of funds is unclear, commercial banks would be required to obtain supporting documentation on a transaction-by-transaction basis, even if the customer has already undergone KYC/KYB procedures. Such transactions include, but are not limited to:

  • Proceeds from the sale of real estate
  • Proceeds from the sale of digital assets
  • Capital inflows other than direct investment or securities investment
  • Other income sources that cannot be clearly identified

C. Digital Asset-Related Proceeds

Where foreign currency is derived from the sale of digital assets, banks must additionally obtain documents evidencing either:

  • The source of the digital assets, or
  • The source of funds used to acquire such digital assets.

2. Transactions Conducted Through Non-Bank Operators

A. Transactions of USD 200,000 or More (or equivalent)

Non-bank operators would be required to verify supporting documents corresponding to the declared source of funds for every transaction, without exception.

B. Digital Asset-Related Proceeds

Supporting documents evidencing the source of the digital assets or the funds used to acquire such assets must be obtained in all cases.

C. Inbound Cash Transactions Exceeding USD 15,000 (or equivalent)

Non-bank operators must obtain the customs declaration evidencing that the cash was declared to Thai Customs authorities upon entry into Thailand.

Potential Impacts

  • High-value transaction participants and business operators not subject to ongoing KYB processes, or whose transactions fall within categories requiring enhanced scrutiny, may face increased compliance burdens, particularly in preparing and submitting supporting documentation.
  • Commercial banks and non-bank operators will bear additional compliance and operational responsibilities in verifying documents and ensuring adherence to the enhanced regulatory standards.

Conclusion

The Draft Rules represent a clear move toward stricter verification of inbound foreign exchange transactions, particularly for high-value transfers and funds derived from digital assets or non-traditional sources. Although inbound transactions remain unrestricted in amount, documentation requirements will increase significantly. Market participants should review their transaction structures and supporting documentation in advance to ensure readiness once the rules are finalized.

Author: Panisa Suwanmatajarn, Managing Partner.

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TISA Update – Government Responds to Industry Backlash with+ Proposed Reforms for Broader Equity Incentives

In a follow-up to our earlier publication, “Tax: Understanding TISA – Thailand’s New Tax-Incentivized Individual Savings Account for Thai Equities” (Tax: Understanding TISA – New Tax-Incentivized Individual Savings Account for Thai Equities – The Legal Co., Ltd.), which outlined the initial framework for the Thailand Individual Savings Account (TISA) as a promising tool to channel household savings into domestic equities amid Cabinet approval on December 9, 2025, recent developments reveal significant industry skepticism and swift governmental pledges for revisions. Just two days after the Economic Cabinet’s endorsement, Finance Ministry officials have announced plans to refine the scheme, addressing core criticisms that it lacks genuine incentives for stock investments, imposes tax traps on high earners, and fails to deliver structural market reforms. These adjustments aim to balance equity for low- and middle-income savers while restoring appeal for affluent investors, potentially injecting up to 1 trillion baht annually into the Stock Exchange of Thailand (SET).

The backlash, led by analysts and echoed across financial media, highlighted TISA’s resemblance to outdated Long-Term Equity Funds (LTFs) rather than transformative models like Japan’s NISA or the UK’s ISA. Critics argued that the 800,000-baht aggregate tax deduction cap—encompassing TISA, Retirement Mutual Funds (RMF), Super Savings Funds (SSF), Thai ESG Funds (TESG), and other vehicles—disproportionately benefits only 15.9% of Thais who pay personal income tax (PIT), while the proposed income-tiered multipliers (1.3x for earners below 1.5 million baht annually, versus 0.7x for those above) could effectively raise taxes for high-net-worth individuals, deterring their participation as the market’s primary liquidity providers.

Addressing Key Criticisms: Proposed Amendments to Enhance Appeal:

Later on, Deputy Prime Minister and Finance Minister convened stakeholders at the Ministry of Finance to review feedback, emphasizing that the contentious multipliers and income thresholds remain “preliminary models” subject to recalibration for fairness and efficacy. “We are not locking in any figures that could distort incentives or penalize savers; our goal is permanent, flexible long-term savings without the renewal uncertainties of past schemes like LTFs,” underscoring the scheme’s role in the “Quick Big Win” policy’s fifth pillar to combat Thailand’s declining savings rate (from 27% to 25% of GDP over the past decade) ahead of full aging society status.

Key proposed tweaks include:

1.  Refined Income-Tiered Deductions

       •  The 1.3x multiplier for sub-1.5 million baht earners (capping deductions at 1.04 million baht for 800,000-baht investments) will be retained to empower 11.4 million low- and middle-income households, but the 0.7x cap for higher earners (limiting them to 560,000 baht) is under review. Officials signal potential equalization to 1x across brackets or a graduated scale to avoid “tax traps,” ensuring high earners—who contribute over 60% of PIT revenue—retain motivation without subsidizing fiscal shortfalls exceeding 40 billion baht annually from prior incentives.

2.  Expanded Flexibility in Investments and Portfolios

       •  Unlike rigid predecessors, TISA will permit self-directed asset allocation across SET-listed stocks, bonds, ETFs, and mutual funds, with intra-account switches allowed without voiding deductions, provided a minimum five-year hold (or until age 55 for retirement-linked portions). This addresses complaints of a 55-year lock-in as overly restrictive, introducing up to 25% collateralization for emergency loans to enhance liquidity.

       •  A new 200,000-baht annual tranche, separate from the deduction cap, will exempt dividends, interest, and capital gains from tax—mirroring NISA’s success in boosting Japan’s investment-to-deposit ratio from 17% to 23.6% over a decade—directly countering the “no real return exemptions” critique.

3.  ESG and Thematic Boosters

       •  The 1.2x deduction multiplier for TESG investments remains, but with broadened eligibility to high-ESG or governance-scoring stocks, encouraging sustainable flows without mandating funds. This aligns with the SET’s Jump+ reforms, potentially channeling 100-200 billion baht yearly into green and blue economy sectors.

4.  Complementary Measures for Market Depth

       •  Parallel initiatives include monthly 1,000-million-baht issuances of “Savings Plus” government bonds (minimum 1,000 baht, app-based with full liquidity) and micro-insurance stamp duty exemptions to lower entry barriers. The Office of Insurance Commission (OIC) will also cut risk charges on equity investments from 25% to 18%, freeing up 100 billion baht annually from insurers for SET inflows.

These revisions, slated for Cabinet submission by late December 2025, target a July 1, 2026, rollout for the 2026 tax year, with the Securities and Exchange Commission (SEC) finalizing eligible assets.

What Stakeholders Should Prepare for in the Revised Framework:

1. Individual Investors and High-Net-Worth Clients

•  Model 2025-2026 tax scenarios incorporating potential 1x equalization and the 200,000-baht exemption tranche; prioritize dividend-yield stocks (e.g., banking sector at 5-7%) for tax-free income.

•  Stress-test portfolios for five-year horizons with switch flexibility, using the 25% loan collateral as a safety net.

2. Financial Institutions and Brokerage Firms

•  Upgrade platforms for dynamic TISA tracking, including multiplier calculations and exemption reporting; prepare for a surge in retail accounts (targeting 5-10 million users initially).

•  Collaborate on educational webinars to demystify self-directed options, focusing on ESG to capture the 1.2x premium.

3. Listed Companies and Investor Relations Teams

•  Accelerate ESG disclosures and dividend policies to qualify for incentives, anticipating 20-30% retail ownership growth; leverage TISA for targeted retail roadshows.

4. Tax Practitioners and Certified Financial Planners

•  Integrate TISA into holistic plans, phasing out expiring ThaiESG limits (down to 100,000 baht by 2027); advise on the new child investment exemptions under Section 40(4) to enable intergenerational wealth transfer.

Key Takeaways:

•  TISA’s initial design drew valid industry fire for weak stock incentives and high-earner disincentives, but December 11 announcements signal responsive tweaks toward NISA-like exemptions and flexibility, preserving the 800,000-baht cap while adding a 200,000-baht tax-free layer.

•  Reforms prioritize low-income access (1.3x deductions) but eye balanced multipliers to sustain high-earner flows, potentially averting market liquidity dips and injecting 500 billion-1 trillion baht yearly into equities.

•  With Cabinet review imminent and 2026 implementation on track, stakeholders must adapt swiftly: recalibrate models, enhance platforms, and educate on self-directed perks to capitalize on this pivot toward enduring savings culture.

•  Beyond TISA, holistic reforms—like monetary easing and governance upgrades akin to Japan’s “three arrows”—remain essential for true market revitalization.

This evolving TISA framework could yet emerge as a game-changer, fostering inclusive long-term investing if revisions temper fiscal conservatism with bold incentives. Early movers in compliant portfolios and advisory services will reap the rewards of Thailand’s maturing capital markets.

Related Article: Tax: Understanding TISA – New Tax-Incentivized Individual Savings Account for Thai Equities – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

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Progress in Thai–U.S. Trade Negotiations

On 12 December 2025, Thailand’s Minister of Commerce announced that the United States had conveyed a positive signal regarding the advancement of bilateral trade discussions. Washington indicated its intention to request the United States Trade Representative (USTR) to commence technical-level negotiations on tariffs and trade matters with Thailand.

This announcement follows intensified high-level engagement between both governments. In recent discussions, the U.S. President identified trade as a principal priority, committing to accelerate negotiations and reaffirm previous undertakings. The Department of Trade Negotiations within Thailand’s Ministry of Commerce has confirmed that technical-level discussions between Thailand and the United States are currently underway, with the 19% tariff rate on Thai goods remaining in effect. However, the resumption of technical-level dialogue indicates that future adjustments may be possible, underscoring the importance for businesses to remain vigilant and prepared.

Furthermore, the Thai Minister of Commerce reported that during her meeting with the U.S.–ASEAN Business Council (USABC), American companies and USABC members consistently advocated for both governments to expedite trade negotiations to unlock additional commercial and investment opportunities. Accelerated progress would benefit U.S. companies operating in Thailand, Thai exporters, and American consumers by facilitating access to high-quality products at competitive prices. This is particularly significant for sectors where the United States maintains import dependency, including Thai jasmine rice and other agricultural commodities, as well as broader manufacturing and supply-chain operations connected to Thailand.

The development has been characterized as an encouraging indication that the U.S. administration shares Thailand’s commitment to strengthening economic relations through a stable and predictable trade and taxation framework, notwithstanding broader geopolitical considerations. According to the Minister, such a framework would support sustainable growth in bilateral trade and investment while providing enhanced certainty for cross-border business planning.

Implications for Investment Structuring and Risk Management

The renewed trade engagement between Thailand and the United States necessitates a reassessment of existing investment structures and contractual arrangements. Export-oriented enterprises and operations integrated into U.S.-linked supply chains should evaluate corporate structures, transfer pricing mechanisms, and long-term commercial agreements to ensure continued operational efficiency under both the current tariff regime and potential future modifications. Strategic legal and tax planning can assist investors in mitigating compliance and cost-related risks while maintaining flexibility to capitalize on more favorable trade conditions as negotiations advance.

Conclusion

These developments represent a favorable outlook for investors and businesses with exposure to Thai–U.S. trade relations. Renewed momentum in bilateral negotiations reinforces confidence in Thailand as a strategic trade and investment destination while emphasizing the critical importance of proactive legal and regulatory planning. Investors, importers, exporters, and multinational corporations are advised to monitor these negotiations closely, as forthcoming developments regarding tariffs, trade regulations, and approval processes may directly impact investment structures, operational costs, and market access opportunities.

Author: Panisa Suwanmatajarn, Managing Partner.

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Quick Big Win Program: Strengthening Thai SMEs Through Integrated Financial and Tax Measures

The Cabinet has approved a comprehensive policy package under the “Quick Big Win” Program designed to strengthen small and medium-sized enterprises (SMEs), which form a cornerstone of Thailand’s national economy. With an allocated budget of THB 21.75 billion, the program delivers immediate and measurable economic outcomes through enhanced access to financing, reduced financial burdens, and improved SME competitiveness.

The program is implemented in coordination with relevant government agencies and state-owned financial institutions to ensure efficient and timely execution of all measures.

Policy Rationale

The policy framework provides Thai SMEs with essential support to facilitate economic recovery and sustain their vital role in driving production, employment, and investment. The program addresses critical economic challenges, including:

  • Escalating operational costs
  • Intensified competition from foreign businesses
  • Ongoing liquidity constraints affecting SME operations

Key Program Components

I. Financial Measures: Strengthening SME Liquidity

  1. SMEs Quick Big Win Credit Guarantee Program

Implemented by the Thai Credit Guarantee Corporation (TCG) with a budget of THB 10.5 billion, this program enables SMEs to access timely financing from financial institutions at competitive interest rates. The program minimizes additional fees beyond standard guarantee charges, thereby reducing both direct and indirect burdens for SMEs and participating financial institutions.

The program comprises three distinct components:

Credit Guarantee Program for General SMEs (SMEs Go Big)
Provides credit guarantees to general SME operators, facilitating access to adequate financing from financial institutions to support business operations and enhance lender confidence.

Credit Guarantee Program for Micro SMEs (SMEs Smart Win)
Offers tailored credit guarantees for micro-SMEs, enabling small-scale entrepreneurs to obtain formal funding with reduced barriers and improved financial inclusion.

Credit Guarantee Program for Contractors and Procurement-Related SMEs (SMEs Quick LG)
Supports SMEs engaged in construction, procurement, or contracting activities with government agencies, state-owned enterprises, and private sector entities through credit guarantees for Letter of Guarantee (LG)-based financing.

  1. Additional Financial Support Programs

Low-Interest Business Revival Loans by Government Savings Bank (GSB)
This initiative supports the revitalization of Thai businesses under the “Reinvent Thailand” framework, with eligibility criteria and loan conditions established in consultation with the Thai Bankers’ Association, the Thai Chamber of Commerce, and the Federation of Thai Industries.

Sustainable Thai Credit Program (Phase 3) and SME Thai Chaiyo Loan by Bank for Agriculture and Agricultural Cooperatives (BAAC)
These programs provide targeted financial support to SMEs while promoting sustainable business practices.

Export Market Expansion Support by EXIM Bank
This program assists Thai SMEs in expanding into international markets without requiring government budget compensation.

II. Tax Measures: Promoting Fair Competition

1.    Revenue Department Initiatives

      e-Tax Project

Promotes SME adoption of electronic tax systems through support from larger corporate partners. The Revenue Department provides   

tax incentives, expedited VAT refunds, and compliance certification for eligible SMEs.

Fast Track Tax Refunds

Streamlines and accelerates corporate income tax refunds for low-risk taxpayers through a centralized Fast Track system utilizing   

PromptPay transfers.

2.   Customs Department Initiative

De Minimis Value (DMV) Adjustment
Effective 1 January 2026, import duties will be imposed on all goods purchased through online platforms from the first baht. This measure ensures a level playing field and enhances the competitiveness of domestic businesses.

III. Additional Support Measures

PromptBiz for Government Procurement
Connects government procurement and payment data with financial institutions, enabling SME contractors to access secure and expedited financing through verified contract and payment information.

SME Incentives in Public Procurement
Certified SMEs with annual revenue up to THB 500 million and e-Tax compliance receive additional scoring advantages in government contract evaluations, promoting equitable access to procurement opportunities and encouraging tax compliance.

Thai E-Commerce Platform Development
To reduce reliance on foreign platforms with high transaction fees, the government plans to establish a domestic e-commerce platform. This initiative will empower SMEs and local entrepreneurs, including agricultural producers, to conduct digital trade efficiently and contribute to national economic growth.

Program Benefits

The Quick Big Win Program delivers three primary benefits:

  • Enhanced Liquidity for SMEs Across Key Segments – Improved access to working capital and operational funding
  • Improved Competitiveness and Operational Efficiency – Reduced costs and streamlined administrative processes
  • Expanded Opportunities and Access to Funding – Broader participation in government procurement and export markets

Current Program Status

Following the dissolution of Parliament, the Quick Big Win Program remains fully operational. As the program received Cabinet approval on 2 December 2025, its implementation continues under the authority of the relevant government agencies and state-owned financial institutions in accordance with Cabinet resolutions.

Conclusion

The Quick Big Win Program represents a comprehensive governmental approach to strengthening Thai SMEs amid persistent economic challenges. By integrating credit guarantees, low-interest financing, tax facilitation, and fair-trade measures, the program directly addresses liquidity constraints while building long-term competitive capacity. Coordinated implementation among government agencies and state financial institutions ensures effective and timely delivery of support. These integrated measures expand access to funding, promote fair competition, and encourage digital transformation and sustainable business practices. The program reinforces the critical role of SMEs in sustaining production, employment, and investment, thereby contributing to Thailand’s economic recovery and long-term sustainable growth.

Author: Panisa Suwanmatajarn, Managing Partner.

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U.S. Expands Tariff Exemptions on Key Agricultural Products: Implications for Global Trade

On 14 November 2025, the U.S. government issued an executive order entitled “Modifying the Scope of the Reciprocal Tariff with Respect to Certain Agricultural Products” (the “Executive Order“), which updates and expands the exemptions previously provided under the reciprocal tariff regime established on 2 April 2025.

The issuance of this Executive Order follows mounting political pressure arising from nationwide increases in consumer prices for supermarket goods. Over the past year, distributors have raised prices on beef, coffee, chocolate, and other common food products, primarily attributable to existing tariff measures.

On 17 November 2025, a White House spokesperson reiterated the U.S. government’s commitment to its tariff policy, emphasizing that it has generated trillions of dollars in investment and employment within the United States and facilitated unprecedented trade agreements that have benefited U.S. workers, industries, and farmers.

Exempted Products

The Executive Order introduces new exemptions covering a wide range of agricultural products—particularly items that the United States either cannot produce domestically or cannot produce in sufficient quantities. These include bananas, coffee, tomatoes, avocados, coconuts, oranges, pineapples, black tea, green tea, and spices such as cinnamon and nutmeg.

Although the tariff relief is intended to ease pressures on retail food prices, experts caution that global supply constraints may continue to drive costs upward. Coffee and beef remain particularly vulnerable given tight global supply conditions and the cumulative impact of the existing tariff framework.

Analysis of Key Exempted Products

Beef: The exemption for beef follows months of sharp price increases, partly driven by prior tariff policies. A severe supply squeeze—exacerbated by high tariffs on major suppliers and historically low U.S. cattle inventories—has pushed supermarket beef prices up by 12–18%.

Coffee: Coffee has emerged as one of the most visible examples of the unintended effects of tariff policy. The 50% tariff on Brazilian coffee, one of the United States’ top three suppliers, has significantly raised costs throughout the supply chain. As the U.S. does not cultivate its own coffee beans, businesses have had limited options to mitigate these cost increases.

Cocoa: Cocoa prices have faced similar upward pressure. While futures prices have softened slightly, they remain more than double pre-pandemic levels (approximately USD 5,300 per metric ton), driven by tariff measures and poor harvests in Côte d’Ivoire and Ghana.

Stakeholders Affected by the Modified Reciprocal Tariffs

The Executive Order modifying the scope of reciprocal tariffs on key agricultural products affects multiple stakeholders across the global supply chain. The primary groups include:

1. Importers, Distributors, and Retailers

  • U.S. businesses importing and distributing beef, coffee, cocoa, and other exempted products will experience changes in cost structures due to revised tariffs.
  • Retailers will benefit from reduced costs, potentially moderating consumer prices; however, global supply constraints may continue to impact pricing.

2. Foreign Exporters and Producers

  • Exporters, including Thai agricultural and food companies, will gain new market opportunities under the revised exemptions.
  • Producers in key exporting countries (e.g., Brazil for coffee, Côte d’Ivoire and Ghana for cocoa) will need to adjust production, harvesting, and logistics to meet changing U.S. demand.

3. Investors and Policy Makers

  • Investors in agricultural commodities and related industries may adjust their strategies in response to tariff changes and market signals.
  • Trade regulators and government agencies will oversee compliance with the modified tariff framework to ensure proper implementation and facilitate smooth trade flows.

Conclusion

The Executive Order modifying reciprocal tariffs on key agricultural products represents a significant development for international trade and market dynamics. By expanding exemptions for products such as beef, coffee, cocoa, and various fruits and spices, the policy aims to alleviate retail food price pressures while responding to political and economic concerns domestically. Although the relief provides opportunities for exporters—particularly within Thailand’s agricultural and food sectors—global supply constraints and market volatility will continue to impact prices. Stakeholders across the supply chain, including importers, distributors, exporters, producers, investors, and policy makers, must monitor regulatory updates closely, adjust strategies accordingly, and ensure compliance to capitalize on emerging opportunities under the revised tariff framework.

Author: Panisa Suwanmatajarn, Managing Partner.

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Quick Big Win Policy: Enhancing SME Growth, Competitiveness, and Economic Development

On 14 November 2025, the Ministry of Finance announced a comprehensive support package for small and medium-sized enterprises (SMEs) (the “Package“) under the government’s “Quick Big Win” policy. The Package is scheduled for consideration by the Economic Policy Committee.

1. Financial Measures: Strengthening SME Liquidity

The Ministry of Finance will provide low-interest loans (soft loans) to facilitate SME access to funding and enhance existing credit guarantee programmes.

Additionally, a new credit guarantee facility funded by the Financial Institutions Development Fund (FIDF) will be launched with more flexible terms to improve SME loan accessibility. The Bank of Thailand (BOT) is finalizing operational details to ensure seamless implementation.

2. Tax Measures: Promoting Fair Competition

Two tax-related initiatives have been prepared to support SME competitiveness:

  • Customs Measures – Import duties will be imposed on all goods purchased through online platforms from the first baht, effective 1 January 2026. This measure aims to ensure a level playing field and enhance the competitiveness of local businesses.
  • Revenue Measures – The tax authority will expedite tax refund processes to return liquidity to SMEs more efficiently.

3. Demand-Side Measures: Increasing Public Procurement from Thai SMEs

Government agencies will be encouraged to increase procurement of products from Thai SMEs. Government purchase orders will be recorded in a digital system, enabling SMEs to use verified orders as supporting documentation for bank loan applications and thereby improve their access to financing.

Key Benefits for Thai Citizens

1. Strengthened SMEs and Enhanced Employment Opportunities

Improved access to loans and credit guarantees enables SME growth, creating additional employment opportunities and increasing household incomes.

2. Fairer Market Competition

Customs measures on low-value imports protect local businesses, providing Thai SMEs with enhanced competitive opportunities and enabling them to offer diverse product ranges.

3. Support for Local Products and Economic Growth

Government procurement of Thai SME products increases sales opportunities and financial stability, stimulating broader economic development.

Conclusion

The Quick Big Win Policy provides a strategic framework for strengthening Thailand’s SMEs through financial support, equitable tax measures, and increased government procurement. By improving access to credit, promoting fair competition, and supporting domestic sales, the Package enhances SME growth, employment generation, and economic stability. The initiative represents a comprehensive approach to empowering SMEs as a key driver of Thailand’s sustainable economic development.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Targets 2026 as Investment-Driven Growth Year with Fast-Track Initiatives to Unlock 300 Billion Baht in Private Projects

The government has signaled a decisive shift toward investment-led economic growth for 2026, moving away from short-term consumption stimulus toward structural upgrades in human capital, industrial capabilities, and large-scale private-sector projects. After a series of fiscal measures helped the economy avoid a sharp slowdown in the final quarter of 2025, authorities now believe sustainable recovery must be anchored in accelerated private investment rather than continued household spending support.

Comprehensive Package:

It is expected that the Cabinet will pass the resolution to adopt a comprehensive package centered on three flagship programs designed to remove bottlenecks and catalyze new capital expenditure:

1.  The “Thailand Fast Pass” initiative, which will immediately unlock over 60 ready-to-proceed large-scale projects totaling more than 300 billion baht in committed investment for 2026. These projects, awaiting approval for investment promotion privileges, have been delayed by regulatory hurdles. The majority fall within high-growth sectors, including data centers, clean energy facilities, electric vehicles (EV), and printed circuit boards (PCB). Fast-track approvals will cover factory construction permits, water allocation, electricity connections, and other critical licenses, with Cabinet resolutions used to override remaining obstacles. The mechanism will later be institutionalized under ongoing regulatory reform efforts to prevent future delays.

2.  A 10 billion baht competitiveness enhancement fund for small and medium-sized enterprises (SMEs), providing subsidized upgrades of machinery, automation adoption, and cost-reduction measures to transition factories toward Industry 4.0 standards.

3.  An ambitious reskilling and upskilling program targeting 100,000 workers to meet demand in new S-curve industries, with a focus on advanced manufacturing, artificial intelligence, clean energy, and digital infrastructure.

In parallel, separate debt resolution frameworks for farmers and SMEs are being finalized, incorporating debt restructuring, interest relief, supply-chain financing, tax incentives for prompt payment, and mandatory transformation plans to prevent recurrence of non-performing loans. These measures are scheduled for Economic Cabinet review in the following weeks.

The strategy reflects recognition that Thailand can no longer rely on legacy advantages and must rapidly position itself as a regional hub for clean energy manufacturing, data center development, EV supply chains, and advanced electronics to remain competitive in a shifting global investment landscape.

Key Takeaways for Investment Opportunities:

•  2026 marks a clear policy pivot to private investment; expect significantly faster project execution in promoted sectors.

•  Data centers, renewable energy (especially floating solar and direct power purchase agreement), EV ecosystem, and PCB/electronics manufacturing face imminent regulatory clearance, creating a narrow window for early-mover positioning.

•  SME transformation subsidies and workforce upskilling will improve local supplier quality and capacity, indirectly supporting foreign investors reliant on Thai supply chains.

•  Debt relief programs combined with mandatory modernization requirements will strengthen the balance sheets of domestic partners in agriculture and manufacturing segments.

•  Overall easing of the regulatory environment, starting with the 300 billion baht fast track batch, signals broader structural improvement in Thailand’s ease of doing business ranking for large projects.

Author: Panisa Suwanmatajarn, Managing Partner.

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U.S.-Thailand Reciprocal Trade Framework: Opening New Digital Frontiers for U.S. Investment in Thailand and Thai Expansion into the American Market

Introduction:

Announced on October 26, 2025, the U.S.-Thailand Framework for a Reciprocal Trade Agreement marks a pivotal step toward deeper economic collaboration, with a clear emphasis on digital trade, services, and investment. Building on historic agreements—namely the 1966 Treaty of Amity and Economic Relations and the 2002 Trade and Investment Framework Agreement—this initiative removes longstanding obstacles, creating a more open and equitable environment. It empowers American companies to invest confidently in Thailand’s fast-growing digital ecosystem while providing Thai digital firms with meaningful access to the world’s largest consumer market, driving innovation and shared prosperity in an increasingly connected region.

Core Digital Provisions of the Framework:

The agreement introduces balanced, forward-looking commitments to modernize cross-border digital commerce. Thailand pledges to:

•  Refrain from imposing digital services taxes or measures that discriminate against U.S. digital offerings

•  Guarantee seamless cross-border data flows for legitimate business purposes

•  Advocate for a permanent WTO ban on customs duties for electronic transmissions

•  Eliminate film screen quotas

•  Reduce foreign ownership caps in telecommunications

•  Abolish mandatory in-country processing for retail payments using Thai-issued debit cards

These reforms, combined with efforts to curb distortions from state-owned enterprises and bolster supply chain security, establish a fair and predictable digital playing field for both nations.

Strategic Advantages for U.S. Digital Investment in Thailand:

American firms stand to gain significant leverage in Thailand’s digital economy, which now connects over 70 million users and serves as a vital node in ASEAN’s digital transformation. Eased telecom ownership rules enable U.S. companies to acquire stakes in local carriers, fund 5G rollouts, and co-develop next-generation infrastructure. Fintech innovators can now integrate payment systems, digital wallets, and blockchain services directly into Thailand’s banking ecosystem, accelerating financial inclusion.

A standout benefit is the assurance of unrestricted cross-border data movement. This allows U.S. enterprises to establish or partner with data centers in Thailand—positioning them as low-cost, low-latency hubs for regional operations. Cloud giants and enterprise IT providers can bypass forced localization mandates, streamline compliance, and serve Southeast Asian customers more efficiently.

Content platforms, e-commerce operators, and cloud service providers also benefit from non-discriminatory treatment and robust data protections, enabling localized offerings and scalable market presence. Emerging fields such as cybersecurity and AI gain from bilateral national security cooperation, opening doors to joint R&D and trusted technology partnerships. U.S. firms are advised to conduct thorough regulatory reviews, join trade working groups, and set up regional headquarters to fully exploit these openings.

Pathways for Thai Digital Companies into the U.S. Market:

The principle of reciprocity creates tangible inroads for Thai digital businesses in the United States. With guaranteed data mobility and non-discriminatory policies, Thai fintech and e-commerce players can deliver mobile payments, cross-border marketplaces, and SaaS solutions directly to American users and enterprises. Thai telecom providers can form U.S. subsidiaries or strategic alliances, bringing proven models of affordable, high-coverage connectivity to underserved communities or innovation ecosystems.

Streaming services and digital content creators from Thailand can distribute media globally without electronic transmission duties, thanks to WTO alignment. Digital health stands out as a high-potential sector. Drawing on Thailand’s advanced telemedicine networks, wearable health tech, AI diagnostics, and cost-effective remote care systems—honed under its universal healthcare model and near-total mobile penetration—Thai firms are uniquely equipped to tackle U.S. pain points in rural access, chronic care, and healthcare affordability.

The agreement’s data flow provisions enable secure integration of Thai platforms with U.S. electronic health records, supporting cross-border consultations and real-time monitoring. Thai AI startups can collaborate with American hospitals, insurers, and pharma companies to co-create FDA-cleared diagnostic tools. Thailand’s leadership in medical tourism data and health analytics further positions its firms to deliver backend optimization services to U.S. providers.

Success hinges on proactive compliance—especially HIPAA adherence and FDA clearance for software-based medical devices—along with strategic partnerships with U.S. health systems and venture investors. Participation in American accelerators and joint health-tech initiatives will accelerate validation and funding. Strengthened IP protections under the framework provide critical safeguards for Thai innovations in this regulated space.

Thai ventures in AI, cybersecurity, and digital health can also attract U.S. capital and form enduring alliances, supported by enhanced intellectual property rules and resilient supply chain collaboration. To thrive, Thai companies must align with U.S. standards, engage in bilateral forums, and secure relevant certifications to earn trust in a competitive landscape.

Conclusion:

The U.S.-Thailand Reciprocal Trade Framework lays a solid foundation for mutual digital advancement—enabling U.S. firms to deploy strategic data centers and expand operations in Thailand, while empowering Thai enterprises, especially in digital health, to scale into the American market. This balanced partnership fuels innovation, sharpens global competitiveness, and reinforces digital leadership across the Indo-Pacific. Businesses on both sides should closely track the agreement’s finalization and engage government and industry stakeholders to seize these high-impact opportunities.

Author: Panisa Suwanmatajarn, Managing Partner.

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