Tag: immigration

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Special Permission for Certain Classes of Aliens to Stay in the Kingdom for Highly Skilled Manpower, Investors, Executives and Startups Entrepreneurs

On 27 September 2022, the Cabinet approved in principle the draft Notification of Ministry of Interior on Special Permission for Certain Classes of Aliens to Stay in the Kingdom for Highly Skilled Manpower, Investors, Executives and Startups Entrepreneurs (No…) B.E. (….) (“Notification”) which was proposed by the Ministry of Interior. The purpose of this draft Notification is to add the numbers of targeted industries under the Smart Visa Program from 13 to 18 industries. This will attract and gather highly skilled manpower, investors, executives and startups entrepreneurs capable of developing the targeted industries to apply for the Smart Visa in order to bring in technology and knowledge to the Kingdom.

Additional targeted industries are as follows:

  1. National defense industry;
  2. Industries that facilitate the circular economy directly and significantly, for example, fuel production from waste, water resources management, etc.;
  3. Environmental management and renewable energy;
  4. Technology innovation and startup ecosystem management; and
  5. International business center.

Those who have obtained this type of visa are eligible for several benefits such as exemption from applying for a work permit, reporting himself/herself to the Immigration Bureau once a year instead of every 90 days, and unlimited travel back into the Kingdom (Re-entry permit). Furthermore, the spouse and legitimate child have the same right to stay and work as the primary visa holder. Therefore, those involve in this matter should be aware of this draft Notification for expanding opportunities for the growth of their industries.

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Thailand – Removal of COVID-19 from Being Prohibited Diseases

On 20 September 2022, the Cabinet has approved a draft Ministerial Regulation Prescribing Prohibited Diseases for Aliens Entering into or Having Residency in the Kingdom (No ..) B.E. …. (“Ministerial Regulation”) as proposed by the Ministry of Interior and considered by the Office of Council of State.

The purpose of this draft Ministerial Regulation is to amend the previous Ministerial Regulation enacted in 2020 by removing coronavirus 2019 or COVID-19 from being prohibited diseases for aliens entering into the Kingdom or having residency in the Kingdom as the current situation of  COVID-19 tends to be better.

Therefore, the remaining prohibited diseases applied for aliens entering into the Kingdom are as follows:

(1) Leprosy

(2) Tuberculosis

(3) Elephantiasis at the stage that its appearance is disgusting to society

(4) Drug addiction

(5) Third phase of syphilis

The remaining prohibited diseases applied for aliens having residency in the Kingdom are as follows:

(1) Leprosy

(2) Tuberculosis

(3) Elephantiasis at the stage that its appearance is disgusting to society

(4) Drug addiction

(5) Alcoholism

(6) Third phase of syphilis

The draft Ministerial Regulation will be enforced on the date following its publication in the Government Gazette.

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Extension of the Period for Permission of Certain Groups of Aliens to Stay in the Kingdom of Thailand as a Special Case

On 20 September 2022, the Cabinet has approved a draft “Notification of the Ministry of Interior regarding the Extension of the Period for Permission of Certain Classes of Aliens to Stay in the Kingdom of Thailand as a Special Case” which was proposed by the Ministry of Interior.

This notification is intended to stimulate the tourism industry in Thailand and the tourist spending during their stay in the Kingdom of Thailand in order to restore the economy in regard to the tourism industry and remedy the impact of the epidemic Coronavirus Disease 2019 (COVID-19) situation.

five women sitting on tree trunk

This notification was issued by virtue of Section 17 of the Immigration Act B.E. 2522, with important principles of extending the period of permission for certain types of aliens to stay in the Kingdom of Thailand as a special case as follows:

  1. For aliens who entered the Kingdom of Thailand temporarily for tourism purposes under Article 6, paragraph 2 of the Ministerial Regulations prescribing Rules, Procedures, and Conditions for Inspection, Exemption and Change of Type of Visa B.E.2545 (2002) (“Ministerial Regulations”), i.e.aliens who apply for a visa at the immigration checkpoint or visa on arrival, are permitted to stay in the Kingdom of Thailand not exceeding 30 days.
  2. Aliens holding a passport of countries whose government has entered into an agreement with the Thai government in regard to visa exemption regarding the period of stay of not exceeding 30 days according to Article 13(1) of the Ministerial Regulations are permitted to stay in the Kingdom of Thailand not exceeding 45 days.
  3. Aliens entering the Kingdom of Thailand for temporary who are exempted from visa type Por. 30 according to Article 13(3)(a) of the Ministerial Regulations are permitted to stay in the Kingdom of Thailand for a maximum period of 45 days.

This notification will be enforced from 1 October 2022 to 31 March 2023, in order to encourage visitors to Thailand and increase tourist spending. This will help to restore the economy in regard to the tourism industry and remedy the impact of the epidemic COVID-19 situations.

Author: Panisa Suwanmatajarn, Managing Partner

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Intercountry Adoption for Children

Intercountry adoption is when an individual or a couple becomes a legal parent of children by adopting and raising them in another country. Those children will have better opportunities to live in a healthy environment and good education which has an excellent effect on children themselves and society.

Thailand ratified the Hague Convention on the Protection of Children and Co-operation in Respect of Intercountry Adoption B.E. 2536 (1993) (“Hague”) to ensure that the intercountry adoption is in the child’s best interest and the adoption process is legal. For this purpose, the Thai government established the Child Adoption Centre of the Department of Social Development and Welfare (DSDW), a central authority, who will make a final decision on allowing for adoption.

white and multicolored love is love banner

For adoption of child in Thailand, the overseas adoptive parents must submit an application to the central authority or agency of their own country. Then, the central authority or agency will contact and coordinate with the competent authorities in Thailand (i.e.  Sahathai Foundation, Friends For All Children Foundation, Pattaya Orphanage and Thai Red Cross Children Home). These Thai authorities will consider the qualifications of overseas adopters under the Thai Civil and Commercial Code. For example, the adoptive parents must be at least 25 years old and must be at least 15 years older than the adopted child. Moreover, one of the important qualifications of adopters is that they must be a married couple or a single female who is qualified to adopt the child under the law of their own country.

The Thai competent authority will consider the qualifications of overseas adopter under many factors such as age difference, health and mind. Then, the Thai authority will send the documents and its opinion to the DSDW for final approval. The consideration process and decision of adopting Thai child is required to be taken place in Thailand as mentioned above.

Please note that currently Thailand is still not accepting the legal status of homosexual marriage and the intercountry adopter must have married status (between man and woman), so it is still impossible for LGBTQ couples to adopt the Thai child. However, there is a draft civil partnership bill allowing a legal homosexual status providing the right for adoption as a married couple. If the draft civil partnership bill is approved and become enforced and related laws have been revised to be in line with, the LGBTQ couple is able to apply for adopting the child in Thailand under the conditions as specified in such relevant Thai laws and approval of DSDW.

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Long Term Resident Visa (LTR Visa)

  • Categorizing to be under the tourist visa
  • Aiming to attract foreigners with capacity of wealth and talent to contribute and generate income to Thailand’s domestic market and support the local economic growth subject to the relevant regulations.
  • Targeting size of the LTR visa is about 1 million of wealthy or talented foreigners who aim to get resident in the kingdom for the next 5 years.
  • Revocation of the LTR visa can be due to incompliance to the Ministry of Interior’s announcement and unable to meet with the qualifications as prescribed.
five women sitting on tree trunk

Qualifications

TypesQualifications
Wealthy global citizens  1.       Owning at least 1 million USD assets globally; or
2.       Having at least 80,000 USD income for 2 years continuously; or at least 500,000 USD investment in assets in Thailand
Wealthy retirees  1.       Owning at least 80,000 USD assets globally; or in case of owning assets between 40,000 – 80,000 USD, they must invest in Thai property for at least 250,000 USD; or
2.       Having 50 years older with annual pension or stable income
Work-from Thailand professional  1.       Owning assets between 40,000 – 80,000 USD for 2 years continuously; or having at least master’s degree or owning intellectual property or receiving a series of funding; or
2.       Working for a SET-listed corporation or business operates for at least 3 years with total revenue of 150 million USD in the last 3 years; or
3.       Having at least 5 years of experience in the specified fields over the past 10 years.
Highly skilled professional  1.       Highly skilled professional holding of assets between USD 40,000 – 80,000 for 2 years continuously; or having at least a master’s degree in science and technology or having special expertise relevant to the job assignment in Thailand; or
2.       No work experience required for PhD degree in the relevant fields of the targeted industries; or
3.       Working in the business in any targeted industries with at least 5 years of experience 
Highly skilled professional working with government agencies  1.       No minimum personal income; or
2.       No work experience required; or
3.       Employing with higher educational institution, research institution, specialised training institution or Thai government agencies
Dependants  Spouse and children under 20 years old of LTR visa holder (maximum of 4 dependents in total per one LTR visa holder)  

Key privileges for LTR visa holders

  1. 10 years renewable visa.
  2. Fast track service at international airports in Thailand
  3. 90 days report extending to 1 year report and exemption of re-entry permit
  4. Permission to work in Thailand (digital work permit)
  5. Immigration and work permit facilitation service at one stop service center for visa and work permit

Relevant Authorities

Board of Investment, Immigration Bureau and Ministry of Labour.

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Foreigners: Land Ownership in Thailand

In response to the announcement of the Ministry of Interior allowing a foreigner to reside in the Kingdom on a special visa type and term (“LTR Visa”), the Land Department is currently considering and undergoing drafting of qualifications, conditions and methods of allowing the LTR visa holder to buy and own land.

The foreigner must continuously invest in Thailand for not less than 40 million baht for three years on targeted business such as investment in infrastructure funds or real estate investment trust to obtain land for a residential purpose only not exceeding 1 Rai.

However, private entities of the opinion that the minimum investment of 40 million baht is insufficient due to differences in currency, suggesting specifying specific and clear conditions and qualifications and zoning that the foreigner can own. The public also expresses negative feedback as it considers as bias decision towards the white collar which will make the price of immovable property jump to the point where the native cannot afford to own a residential house or land. On the other side, the real estate business operators are in favor of this proposal as it will endorse the business itself, including relevant businesses such as interior, construction and furniture businesses in which we will need to wait for consideration of the Land Department on this issue.

Author: Panisa Suwanmatajarn – Managing Partner, The Legal Co., Ltd.

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Draft Announcement of the Prime Minister  Office and Ministry of Interior on Determining Numbers of Foreigner Who Will Have Residence in the Kingdom B.E. ….

The Cabinet has approved a draft Announcement of the Prime Minister Office and Ministry of Interior on Determining Numbers of Foreigner Who Will Have Residence Permit in the Kingdom B.E. …. (“Announcement”) as proposed by the Ministry of Interior.

man in black suit sitting on chair beside buildings

Many foreigners nowadays travel to the kingdom and they would like to have their residence permit for many purposes such as working , investment, marriage or family visitation. All of these foreigners’ entrance can enhance the nation’s economic stability.

According to the Immigration Act B.E. 2522 (1979), the Minister of Interior under approval of Cabinet is able to announce for quotas of foreigners who will have residence permit in Thailand which are not exceeding 100 persons per nationality per year for the year 2021 and foreigners who have no nationality who will have residence permit in Thailand which are not exceeding 50 persons per year. However, those foreigners must receive approval from the immigration officer and Minister of Interior including complying with relevant rules and regulations before granting the residence permit in Thailand.

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Board of Investment Actions according to Economic and Investment Stimulus Measures

On 10th May 2022, the Cabinet approved in principle a draft Regulation of Prime Minister Office on Setting up of Visa & Work Permit  Service Center (No. ..) B.E. …. and a draft Announcement of Board of Investment on Rules and Conditions for Special Non-Immigrant Visa (Long Term Resident Visa: LTR) and a draft Announcement of Board of Investment on Rules and Conditions for Special Non-Immigrant Visa (Smart Visa) No. .. B.E. …. as proposed by the Board of Investment.

Key summary of the above-mentioned draft rules and regulations are as follows:

four boats on sea
  • LTR visa holders and their dependents including foreign cinematographer staffs as proposed by the Creative Economy Agency are allowed to use the service of this visa and work permit service center. The Board of Investment will be in charge of this service center.
  • There are 4 types of foreigners who are eligible to apply for the LTR visa, i.e. wealthy global citizen, wealthy pensioner, work from Thailand professional and high skilled professional and their spouse and children.
unknown celebrity wearing black dress carrying black leather bag
  • The applicant under the LTR visa is required to show a health insurance having coverage of not less than 50,000 USD and having period of coverage not less than 10 months or holding a Thai social security or money deposited in Thai or foreign account for not less than 12 months in the amount of not less than 100,000 USD. The applicant is also required to show a personal income at least such as average of 80,000 USD per year within 2 years. The employment or service contract with an entity in Thailand or overseas is required. The documents showing experiences of working in target industries no less than 5 years except the applicant who will work for educational institute or research or special coaching institute operated by Thai government or government authority or applicant who graduates in doctorate degree or equivalent.
  • The applicant who would like to apply for a Smart Visa is required to be a specialist on science and technology in the target industries certified by the Strategic Talent Center or related organizations. There is a direct investment or through an investment company in the business from the applicant not less than 20 million THB in the industry using technology base for its manufacturing or service.

low angle photography of high rise building

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Business Incorporation and Relevant Registrations in Thailand

Setting up a company in Thailand requires at least 3 or more individuals to subscribe their shares at the incorporation stage. Then, such subscribers shall conduct a statutory meeting for a company establishment to appoint the director(s) of the company and hand over the business to the director(s). The director(s) shall call for shares subscription either in kind or in cash and register for incorporation within 3 months from the statutory meeting.

The company’s director(s) can be both Thai and foreigner. This does not affect the ownership of shares in the company or types of the company whether it is a Thai company or a foreign company under Thai law. However, in the event that the director(s) is a foreigner and receive salary from the company, this shall be considered as an employee who is required to apply for a work permit in order to work in Thailand legally.

Once the company has already been established and if the company has an employee, social security registration is required. In addition, if the company has its income more than 1,800,000 baht per year, the company is required to register for value added tax (VAT) number.

money cash euro pay

Last but not least, other registrations or procedures may be required for any other specific types of business. For example, specific licenses are required for operating the restaurant business, securities business, tourism business, etc. The business owners need to seek consultation and check the relevant laws whether the business requires any other specific registrations or procedures.

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Key Issues You Need to Know When Doing a Business in Thailand

On the scenario that a foreigner is exploring the business opportunity and would like to establish a company for operating its business in Thailand, if more than 49% of shares are held by foreigner(s) (either individual(s) or entity(ies)), the company is considered as a foreign company under the Foreign Business Act B.E. 2542 (“FBA”). In this case, certain restrictions in doing businesses will be applied and the company cannot hold ownership over the land subject to international agreements/treaties that the country of nationality of such foreigner(s) has entered into with Thailand and/or privilege policies granted by the government of Thailand.

For some restricted business under the FBA, if the foreign company would like to do so, a specific foreign business license is required. However, some types of business are exempted from the provisions of FBA such as the businesses related to the securities exchange and financial institutes. but, those exempted businesses from the provisions of FBA may be, on the other hand, regulated, supervised or monitored by other specific laws and regulations of relevant authorities such as the Bank of Thailand. 

It is noteworthy that the numbers of foreign individual working or representing the company, even as a director or authorized director, will not impact the ownership of shares in the company.

The requirements on visa and work permit for foreign employee(s)/director(s) play a significant role on the elements of business operation. The specific ratio of Thai employees to each foreign employee will be applied when considering the matters of visa and work permit. The size of investment is also a matter attribute to the requirements for granting visa and work permit to the foreign employee(s)/director(s).

Last but not least, the issues of tax and dividend are among major questions and concerns how the laws and practices work here in Thailand.  The corporate income tax is currently imposed in the range of 15% – 20% of the net profit subject to certain exemptions. Also, the dividend distribution is subject to tax implications, but may be deducted or credited under the applicable double taxation agreement that Thailand have entered into, and regulatory corporate provisions before its distribution.

In the nutshell, the business and investment opportunities in Thailand is wide open for foreign investors. You are totally welcome here in Thailand, but it is for your best advantage to be fully aware of restrictions with good strategies and structure planning.