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Updates to Thailand’s Investment Promotion Regime

Overview of Recent Amendments to Investment Promotion Measures in Thailand

Pursuant to the Investment Promotion Act B.E. 2520 (1977), as amended, Thailand has established a comprehensive framework and institutional mechanisms for promoting investment. The primary objectives are to create an investment-friendly environment, foster industrial development, and promote equitable income distribution by granting investment incentives to business activities deemed significant and prioritized.

In furtherance of these objectives, the Board of Investment (BOI) issued Notification of the Board of Investment No. 9/2565 regarding Measures for the Promotion of Industries Critical to National Development (“BOI Notification No. 9/2565“). This notification establishes the categories of business activities eligible for investment promotion, together with the applicable conditions, criteria, and privileges granted to promoted projects, as detailed in the Schedule of Investment-Promoted Activities annexed thereto.

To align with Thailand’s evolving economic development policies and strategic direction, accommodate the rapid expansion of industrial activities, and enhance incentives for investors, the BOI issued two notifications dated 5 June B.E. 2568 (2025), which were published in the Royal Gazette on 22 January B.E. 2569 (2026). These notifications revise and update the investment promotion framework to reflect current economic and industrial conditions by amending certain categories of business activities eligible for investment promotion as prescribed in the Schedule of Investment-Promoted Activities. The key amendments are summarized below:

1. Notification of the Board of Investment No. Sor. 5/2568

Amendment to the List of Activities Eligible for Investment Promotion under BOI Notification No. 9/2565

This notification is issued pursuant to BOI Notification No. 9/2565, which prescribes the categories of business activities and conditions eligible for investment promotion as set forth in the Schedule of Investment-Promoted Activities. Certain categories have been amended to focus on investments that create added value, promote the adoption of modern technologies in the manufacturing sector, enhance the development of supply chains to ensure Thailand’s export-oriented production attains international recognition and delivers maximum benefits, and accommodate the rapid expansion of data center businesses by supporting Thailand’s advancement toward becoming a digital hub of the ASEAN region.

This notification revises the categories of business activities and conditions eligible for investment promotion with respect to 32 categories under the Schedule of Investment-Promoted Activities. The majority of these are activities that generate added value for the national economy, including the machinery and automotive industry, electrical appliances and electronics industry, metals and materials industry, public utilities, digital industry, and creative industry. Additionally, investment promotion for metal cutting activities (Category 5.4.10) has been discontinued and removed from the list of promoted activities. This notification applies to business operators who submit applications for investment promotion on or after 1 July B.E. 2568 (2025).

2. Notification of the Board of Investment No. Sor. 6/2568

Investment Promotion Measures for Tourism-Related Businesses in Secondary Cities

The public sector has provided support for tourism development in secondary cities, which are provinces that are not widely known but possess high tourism potential. To promote tourism, distribute income equitably, and sustainably expand economic opportunities to local communities, investment promotion measures have been introduced for tourism-related businesses located in designated secondary cities.

This notification revises the criteria and conditions for investment promotion applicable to certain categories of tourism-related businesses (including cruise terminals, hotels, international exhibition centers, and similar establishments), totaling 12 items under the Schedule of Investment-Promoted Activities. The location of the establishment serves as a key criterion for granting enhanced and more beneficial investment promotion privileges, such as extended periods of corporate income tax exemption, to create incentives for both domestic and foreign investors to invest in secondary cities and extend investment promotion benefits to tourism businesses located therein. This notification applies to business operators who submit applications for investment promotion on or after 5 June B.E. 2568 (2025).

Key Observations

1. Discontinuation of Metal Cutting Activities (Category 5.4.10)

Business activities previously eligible for investment promotion under Category 5.4.10 (metal cutting activities) are no longer entitled to apply for BOI promotion, as the BOI has formally discontinued investment promotion for this category. Businesses operating in the affected sectors should conduct a careful review of their current operations to determine whether they may qualify under other eligible promoted activities. Where necessary, they should consider restructuring their investment structures or business operations to ensure ongoing compliance with the revised BOI investment promotion framework.

2. Enhanced Incentives for Tourism-Related Businesses in Secondary Cities

Tourism-related businesses located in secondary cities, whether newly established or existing, may have opportunities to receive investment promotion incentives at a higher level than previously available, including longer and more favorable tax incentives, which may serve as a catalyst for increased investment. Conversely, businesses located in primary cities may not be entitled to the same level of preferential treatment as those located in secondary cities, which may result in heightened competitive pressure regarding operational costs.

Status and Legal Effect

These two notifications are issued pursuant to Section 16 of the Investment Promotion Act B.E. 2520 (1977), as amended, and shall be applied in conjunction with the Investment Promotion Act B.E. 2520 (1977) and BOI Notification No. 9/2565. In the event of any inconsistency or conflict between the conditions or criteria, the provisions of these two notifications shall prevail and be applied on a case-by-case basis to the relevant promoted businesses, taking into account the prevailing economic circumstances at the relevant time.

Furthermore, additional or amending notifications concerning investment-promoted activities may be issued in the future to reflect Thailand’s evolving economic conditions. Investors are therefore advised to closely monitor regulatory developments in order to formulate, review, and adjust their investment strategies in a timely and appropriate manner.

Conclusion

These two BOI notifications constitute a significant component of Thailand’s current legal and policy framework governing investment promotion. They clearly reflect the government’s policy orientation toward enhancing national competitiveness, promoting targeted high-value industries, supporting regional economic development, and refining the investment promotion regime to ensure its alignment with rapidly evolving economic and technological landscapes.

Related Article: Thailand BOI Launches New SME Efficiency Enhancement Measures (Notification No. 5/2568) – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand BOI Launches New SME Efficiency Enhancement Measures (Notification No. 5/2568)

The Thailand Board of Investment (“BOI”) has issued BOI Notification No. 5/2568 Re: Measures to Enhance the Efficiency of Small and Medium-Sized Enterprises (“SMEs”), introducing a comprehensive incentive framework aimed at strengthening the competitiveness of SMEs. The measures are designed to encourage SMEs to modernize their operations through technological upgrades, enhanced operational efficiency, digital transformation, improved energy efficiency, and diversification into new industries.

This notification took effect on 5 June 2025 and applies to all investment promotion applications submitted on or after that date.

Purpose of the Measure

This measure aims to strengthen the resilience and long-term competitiveness of SMEs by promoting investments that enhance operational efficiency, elevate business practices to internationally recognized sustainability standards, and facilitate the transition into emerging industries. These initiatives are intended to enable SMEs to better align with global production requirements and environmental expectations.

Eligibility Requirements

To be eligible for the incentives under this measure, an applicant must satisfy all of the following conditions:

  • The company must have at least 51% Thai shareholding, and more than half of its authorized directors must be Thai nationals.
  • The company’s total revenue, calculated on a consolidated basis and inclusive of both BOI-promoted and non-promoted activities, must not exceed THB 500 million in aggregate over the preceding three fiscal years.
  • The company must be registered under the SME ONE ID system prior to the submission of the investment promotion application.

Conditions

The BOI permits existing SME projects to apply for incentives under this measure, subject to the following conditions:

  • This measure applies to existing SME projects, irrespective of whether they currently receive BOI investment promotion, provided that the project falls within an activity category eligible for promotion at the time of application. Projects classified under the BOI’s excluded activities or policies shall not be eligible.
  • Projects that have previously been granted BOI promotion may reapply under this measure upon the expiry of their existing corporate income tax (CIT) exemption or reduction period, or in cases where no CIT exemption was granted at the time of the original promotion.

Required Efficiency Improvement or Transition Activities

To be eligible under this measure, applicants must implement one or more of the following efficiency enhancement or business transition activities, subject to approval by the BOI:

  • Upgrading or replacing machinery and automation systems to enhance operational efficiency;
  • Adoption of digital technologies, including system integration software, artificial intelligence (AI), machine learning (ML), big data analytics, and electronic payment systems;
  • Upgrading production processes or operational systems to align with Industry 4.0 standards;
  • Improving energy efficiency or adopting renewable energy solutions within business operations;
  • Obtaining internationally recognized sustainability or quality certifications (e.g., GAP, FSC, PEFC, ISO 22000, ISO 14064); and
  • Transitioning business operations into new industries or activity categories eligible for BOI investment promotion.

1. Submission and Approval of the Investment Plan

  • Applicants are required to submit a comprehensive investment plan detailing the proposed improvement measures or transition activities.
  • Investment plans involving Industry 4.0 upgrades must be reviewed and approved by the National Science and Technology Development Agency (NSTDA).

2. Minimum Investment Requirement

  • The investment in efficiency improvement must be no less than THB 500,000, excluding the cost of land and working capital.

Rights and Benefits

Eligible SME projects are entitled to the following incentives:

  • Import duty exemption on machinery
  • Corporate income tax (CIT) exemption for up to five (5) years, equivalent to 100% of the qualifying investment amount (excluding land and working capital)
  • The CIT exemption period commences once the project generates revenue and must be utilized within three (3) years from the date of the promotion certificate.

Conclusion

BOI Notification No. 5/2568 represents a significant policy initiative to strengthen Thailand’s SME sector. By promoting modernization, digital transformation, energy efficiency, and sustainability, the measure supports SMEs in enhancing productivity and aligning with international standards.

Overall, the scheme is expected to accelerate the long-term competitiveness and resilience of SMEs while contributing to Thailand’s broader industrial transformation.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s New Import Duty Framework for Low-Value Goods: A Policy Shift Toward Competitive Neutrality

On 4 December 2025, the Thai Customs Department issued Customs Notification No. 219/2568 (2025), introducing significant reforms to Thailand’s import duty regime for low-value goods (LVGs). This measure eliminates the long-standing import duty exemption for LVGs as part of a broader policy initiative to address competitive imbalances between imported and domestically supplied goods and to restore tax neutrality in the Thai market. The Notification took effect on 1 January 2026 and remains in force until superseded by subsequent regulation.

Legal Background: Evolution of Import Duty Rules for LVGs

Historically, LVGs were exempt from import duty under Customs Notification No. 191/2561 (2018), which granted duty-free treatment for imported goods with a customs value not exceeding THB 1,500. This exemption was originally designed to reduce administrative burdens associated with customs clearance of small-value shipments.

However, the rapid expansion of cross-border e-commerce has resulted in LVGs being imported into Thailand on a substantial commercial scale, often in direct competition with domestically supplied goods. Over time, the exemption increasingly deviated from its original administrative rationale and raised concerns regarding fair competition and unequal tax treatment.

This measure was expressly temporary and applied only until 31 December 2024, after which the exemption regime reverted to the framework established under Notification No. 191/2561 (2018).

To establish a more sustainable policy framework, the Customs Department subsequently issued Customs Notification No. 219/2568 (2025), which formally repealed Customs Notification No. 191/2561 (2018). Consequently, the previous import duty exemption for LVGs has been fully revoked and is no longer in effect.

Current Import Duty Framework for LVGs

Under Customs Notification No. 219/2568 (2025), the following provisions now apply:

  • Imported goods with a customs value of less than THB 1 remain exempt from import duty.
  • Imported goods with a customs value of THB 1 or more are subject to import duty in accordance with the applicable tariff classification under Thailand’s customs tariff schedule.

Anticipated Benefits

  • Enhanced competitive equity: Domestic businesses, particularly small and medium-sized enterprises (SMEs), benefit from more equitable market conditions, as imported goods are now subject to import duty treatment comparable to locally supplied goods.
  • Improved tax neutrality: The revised framework reduces disparities in tax treatment between imported and domestically supplied goods, promoting a more level playing field.
  • Strengthened customs enforcement: These changes enhance customs oversight of large-scale commercial imports previously classified as low-value shipments, improving revenue collection and trade compliance.

Potential Challenges

  • Increased costs for cross-border sellers and consumers: Goods previously imported duty-free may now incur import duties, resulting in higher overall costs for end consumers and cross-border merchants.
  • Enhanced compliance obligations: Overseas sellers and e-commerce platforms face additional customs formalities and documentation requirements, potentially increasing operational complexity.
  • Administrative burden: The shift may require significant adjustments to existing logistics and compliance infrastructure.
  • Practical and Operational Implications
  • Pricing adjustments: Importers, logistics providers, and e-commerce platforms should revise their pricing structures to reflect increased exposure to import duties and maintain competitive positioning.
  • Process and system updates: Customs declarations, tariff classifications, and internal compliance systems require comprehensive review and updates to ensure alignment with the new regulatory framework.
  • Transitional considerations: Market participants may experience temporary operational adjustments and should implement appropriate change management procedures to facilitate smooth adaptation to the new regime.

Future Policy Considerations

In addition to the revised import duty framework, the Customs Department has indicated interest in simplifying the import duty structure for LVGs through the application of a single, uniform duty rate rather than multiple rates determined by product tariff classification. From a policy perspective, preliminary discussions suggest that collecting import duties on LVGs at an average rate of approximately 10% may be insufficient to achieve meaningful competitive balance. A higher rate—potentially in the range of 30%—has been discussed as more likely to establish parity between domestic and foreign businesses.

However, under the current caretaker government, the Customs Department lacks the authority to issue emergency decrees to amend the customs tariff schedule. Consequently, any modifications to duty rates or tariff structures will require legislative action following the formation of a new government.

Conclusion

The new import duty framework for low-value goods represents Thailand’s strategic policy response to the rapid growth of cross-border e-commerce and reflects a clear commitment to competitive fairness and tax neutrality. While these changes may result in increased costs and compliance obligations for certain overseas sellers and importers, they also strengthen customs enforcement capabilities and create more equitable conditions for domestic businesses.

Businesses engaged in importing goods into Thailand should conduct comprehensive reviews of their pricing strategies, customs classifications, and logistics and compliance processes to ensure ongoing adherence to the new regulatory framework. Early preparation and proactive adaptation will be essential to maintaining operational efficiency and market competitiveness under the revised regime.

Author: Panisa Suwanmatajarn, Managing Partner.

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Advancing the ASEAN Power Grid through LTMS-PIP Phase 2

The regional energy landscape has achieved a significant milestone with the execution of the Energy Wheeling Agreement (EWA) under Phase 2 of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP Phase 2). This agreement involves the Electricity Generating Authority of Thailand (EGAT), Électricité du Laos (EDL), and Tenaga Nasional Berhad (TNB) of Malaysia, representing a sophisticated evolution in multilateral cross-border electricity trade within Southeast Asia.

The EWA represents a substantial advancement from the project’s inaugural phase, doubling the capacity for multilateral cross-border electricity commerce from 100 megawatts (MW) to 200 MW over a two-year period. This enhanced mechanism facilitates the transmission of electricity generated in Laos and Malaysia to Singapore, utilizing the existing grid infrastructure of Thailand and Malaysia as transmission corridors.

Transmission Framework

The Transmission Framework establishes the structural and operational parameters for cross-border power flows under LTMS-PIP Phase 2. It delineates institutional roles, capacity allocations, and operational protocols that enable coordinated electricity transfers across multiple jurisdictions.

Under LTMS-PIP Phase 2, the transmission framework operates through a multidirectional power trade arrangement:

  • Lao PDR Supply Stream: Up to 100 MW of renewable hydropower from Laos, transmitted through Thailand and Malaysia to Singapore
  • Malaysia Supply Stream: Up to 100 MW of electricity from Malaysia directly to Singapore

This integrated framework enables a total seamless transfer capacity of 200 MW, representing a robust commitment to regional energy integration and demonstrating the technical feasibility of multilateral power trade in ASEAN.

Strategic National Contributions

The success of LTMS-PIP transcends technical achievement, serving as a strategic blueprint for the ASEAN Power Grid (APG). Each participating nation fulfills a critical role in this collaborative energy framework:

Thailand (EGAT)

Serving as the primary wheeling partner, EGAT manages the transmission of power across Thai territory. This role positions Thailand’s transmission infrastructure as a cornerstone of the APG, facilitating regional grid integration and strengthening overall energy stability. Thailand’s participation generates revenue through wheeling charges while enhancing national energy security.

Laos (EDL)

As the renewable energy supplier, EDL reinforces its commitment to the APG by providing clean hydropower resources. LTMS-PIP Phase 2 expands Laos’ participation in the regional electricity market, promoting sustainable development objectives and positioning the nation as a key renewable energy exporter within ASEAN.

Malaysia (TNB)

As both a wheeling partner and electricity supplier, TNB plays a dual role in facilitating the framework while actively participating in regional power trade. TNB’s involvement supports Malaysia’s Ministry of Energy Transition and Water Transformation in building a resilient, interconnected ASEAN energy infrastructure, while generating export revenue and strengthening regional energy cooperation.

Conclusion

The successful integration of cross-border electricity trade among Thailand, Laos, and Malaysia under LTMS-PIP Phase 2 establishes a functional model for multilateral energy cooperation within ASEAN. By harmonizing technical standards and optimizing grid utilization through the EWA, the participating nations have progressed from bilateral trade arrangements to a sophisticated regional exchange mechanism.

This partnership not only maximizes existing infrastructure efficiency but also serves as the primary pathfinder project for the broader APG initiative. LTMS-PIP Phase 2 demonstrates that coordinated technical frameworks and sustained political commitment can successfully address the energy needs of multiple nations while advancing toward a sustainable, low-carbon future. The project’s achievements provide valuable insights and operational precedents for future multilateral power integration initiatives across the ASEAN region.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOI Unveils Draft National Semiconductor Roadmap Aiming to Attract Over 2.5 Trillion Baht in Investments

The Board of Investment (BOI) has presented the draft National Strategy for the Development of the Semiconductor and Advanced Electronics Industry to the National Semiconductor and Advanced Electronics Policy Committee. This comprehensive roadmap, prepared since April 2025 with the assistance of a leading global consulting firm, outlines a long-term vision to position Thailand as a leading hub for semiconductor production in the region.

The strategy builds upon Thailand’s existing strengths in downstream activities, such as outsourced semiconductor assembly and testing (OSAT) and integrated circuit design, while advancing capabilities across the full value chain—from upstream wafer fabrication to high-value design and production. The ultimate objective is to achieve “Made-in-Thailand Chips” by 2050, fostering a complete and integrated semiconductor ecosystem.

Strategic Focus and Targets:

The roadmap targets investments exceeding 2.5 trillion baht over the 25-year period from 2026 to 2050. It also aims to develop more than 230,000 highly skilled personnel to support industry growth.

Emphasis is placed on five product categories where Thailand demonstrates strong potential and alignment with domestic industries:

•  Power chips

•  Sensor chips

•  Photonics chips

•  Analog chips

•  Discrete chips

These segments are closely linked to key sectors including automotive, electronics, telecommunications, data centers, artificial intelligence, automation, and medical applications.

Phased Development Approach:

In the initial five-year phase (2026–2030), efforts will concentrate on leveraging current advantages in OSAT, IC design, and advanced electronics, while initiating investments in wafer fabrication and nurturing domestic enterprises to emerge as leading players. Subsequent phases will progressively expand the value chain toward full self-reliance in high-value production.

Five Key Driving Mechanisms:

To realize these ambitions, the strategy proposes action across five critical areas:

1.  Investment Incentives — Provision of financial support, including grants and long-term low-interest loans, to attract priority projects.

2.  Human Capital Development — Establishment of specialized curricula, industry-academia collaborations (both domestic and international), and vocational training programs to build expertise in semiconductor engineering and advanced research.

3.  Technology Advancement — Upgrading national research centers and fostering partnerships among government, private sector, and academic institutions for research and development.

4.  Infrastructure Enhancement — Development of dedicated clusters, reliable utilities (including clean energy), water systems, and robust disaster management capabilities.

5.  Business Environment Improvement — Streamlining approvals and permits, negotiating international trade agreements, and implementing government procurement mechanisms to support local enterprises.

Competitive Positioning and Supporting Context:

Although, Thailand’s semiconductor industry remains in its early stages compared to regional leaders such as Singapore and Malaysia, or competitors including Vietnam and the Philippines, the country possesses competitive advantages in infrastructure, workforce quality, business environment, and downstream industries.

From 2018 to November 2025, the electrical and electronics sector attracted 1,748 investment promotion applications totaling 1.17 trillion baht, representing 19% of all promoted investments and underscoring its status as the leading sector. The global semiconductor market is projected to reach 1 trillion U.S. dollars by 2030, presenting significant opportunities for strategic growth.

Key Takeaways:

•  Thailand’s national semiconductor roadmap targets over 2.5 trillion baht in investments and the development of more than 230,000 skilled professionals by 2050.

•  Focus is directed toward five high-potential chip categories that align with the country’s established industrial strengths.

•  A five-pillar approach addresses incentives, talent, technology, infrastructure, and business facilitation to build a complete ecosystem.

•  The strategy emphasizes transitioning from assembly-focused activities to high-value design and fabrication, aiming for “Made-in-Thailand Chips” and regional leadership in the sector.

•  This initiative positions the semiconductor industry as a key driver of long-term economic competitiveness amid rapid global technological and supply chain evolution.

Author: Panisa Suwanmatajarn, Managing Partner.

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Online Platform: ETDA’s Push for New Rules on Social Commerce to Safeguard Thai Consumers

In a move to tighten oversight on digital marketplaces, Thailand’s Electronic Transactions Development Agency (ETDA) is gearing up to introduce new regulations targeting social commerce platforms. This initiative aims to close loopholes in consumer protection, ensuring that online transactions meet stringent standards amid the growing popularity of buying and selling via social media. The announcement comes as platforms like Facebook argue they fall outside traditional e-commerce definitions, prompting ETDA to expand its regulatory net.

The backdrop for these changes is rooted in Thailand’s evolving digital economy. With e-commerce booming, the existing Electronic Transactions Committee’s announcement—set to take effect on December 31, 2025—already mandates that e-commerce platforms sell or advertise products adhering to standards from the Thai Industrial Standards Institute (TISI) and the Food and Drug Administration (FDA). However, social media giants such as Facebook have claimed exemption, citing the absence of integrated payment systems and separate user accounts for transactions. ETDA has countered this, stating, “Facebook has informed ETDA that they do not fall under the category. We are therefore preparing a new announcement to cover Facebook, as it cannot be denied that Facebook is widely used as a platform for buying and selling goods known as social commerce, which requires strict product standards.”

This conciliatory approach by ETDA also considers international trade dynamics, particularly U.S. policies under President Donald Trump, which threaten trade retaliation against countries restricting American platforms. By avoiding overly restrictive measures, Thailand seeks to balance consumer safety with open trade, preventing potential barriers for U.S.-based companies operating in the region.

Beyond social commerce, the new rules will extend to space-sharing platforms like Airbnb. ETDA plans to enforce standards for user safety, identity verification, and tenant rights, addressing common issues such as leaks or power outages. Additionally, concerns over monopolistic practices in delivery services—previously requiring platforms to offer at least three shipping options—have been shifted to the Trade Competition Commission (TCC) for handling and streamlining regulatory responsibilities.

These developments underscore Thailand’s commitment to fostering a secure digital ecosystem. As social commerce continues to thrive, with platforms blending social interaction and shopping, the need for robust oversight has become evident. ETDA’s efforts aim not only to protect consumers from substandard or unsafe products but also to promote fair competition and innovation in the online space.

Key Takeaways:

Future Implications: This could set a precedent for more comprehensive digital platform governance in Thailand, boosting trust in online transactions.

Expanded Regulation: ETDA’s new announcement will include social commerce platforms like Facebook, requiring them to enforce product standards from TISI and the FDA to plug consumer protection gaps.

Consumer Focus: The rules prioritize Thai buyers’ safety by mandating quality controls on goods sold online, effective from late 2025 onward.

International Considerations: A balanced approach avoids trade conflicts with the U.S., aligning with global digital trade norms.

Broader Scope: Space-sharing services like Airbnb will face new safety and rights standards, while delivery monopolies fall under TCC jurisdiction.

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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Tax Obligations and Compliance for Foreign Residents in Thailand

Under Thailand’s taxation framework, foreign individuals residing in the country are subject to specific tax obligations, particularly when they are also liable for taxation in other jurisdictions. This article provides a comprehensive overview of the Thai tax system for individuals residing in Thailand for 180 days or more, including the requirements for filing tax returns, allowable deductions, the application of Double Taxation Agreements, and penalties for non-compliance.

Tax Residency and Taxable Income in Thailand:

According to Thai tax law, an individual who resides in Thailand for a cumulative period of 180 days or more within a calendar year (1 January to 31 December) is classified as a “tax resident of Thailand.” Tax residents are subject to Personal Income Tax (PIT) on the following categories of income:

  1. Income Derived from Sources Within Thailand:
Such income is taxable regardless of whether it is paid within Thailand or abroad.
  1. Foreign-Sourced Income:
Such income is subject to Thai PIT if it is earned on or after 1 January 2024 and remitted to Thailand in any year. However, foreign-sourced income earned prior to 1 January 2024 is exempt from Thai PIT, even if remitted to Thailand on or after 1 January 2024.

Tax Return Filing Requirements:

Thai tax residents who earn income from sources within Thailand or who remit foreign-sourced income to Thailand (as described above) are required to file a tax return with the Thai Revenue Department within 31 March of the following year for the preceding calendar year’s income.

Deductions and Allowances:

Not all income is subject to taxation, as certain types of income are exempt, including severance pay up to a specified amount, retirement benefits, and bank interest that has already been withheld at source. Additionally, taxpayers may claim deductions for various expenses based on the type of income received.

Double Taxation Agreements (DTAs) and Tax Credits:

To mitigate the risk of double taxation, Thailand has entered into DTAs with various countries. These agreements aim to prevent income from being taxed in both Thailand and the country where it was earned. Foreign residents subject to Thai PIT may be eligible for either a tax exemption or a foreign tax credit, depending on the provisions of the applicable DTAs and the type of income involved.

Penalties for Non-Compliance:

Failure to comply with the above requirements results in fines and surcharges.

Conclusion:

Foreign residents in Thailand who meet the 180-day residency threshold must carefully navigate their tax obligations to ensure compliance with Thai tax law. This includes understanding the scope of taxable income, both from Thai and foreign sources, fulfilling tax return filing requirements, leveraging allowable deductions and DTAs benefits, and adhering to deadlines to avoid penalties. By maintaining accurate records and submitting properly certified documentation, taxpayers can effectively manage their tax liabilities and ensure compliance with the Thai Revenue Department’s regulations. 

Source: International Comparison December 2025: Antea

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Cannabis: Stricter Controls with New Draft Ministerial Regulation

The Ministry of Public Health (MOPH) is progressing with a new draft ministerial regulation to impose tighter oversight on cannabis, prioritizing medical applications and consumer safeguards amid a notable decline in commercial outlets.

The draft, titled “Ministerial Regulation on Permits for Research, Export, Sale, or Processing of Controlled Herbs for Commercial Purposes (No. .. ) B.E. ….”, has received Cabinet approval and is undergoing review by the Office of the Council of State prior to final approval.

This update replaces the 2016 regulation, which is deemed insufficient for the evolving cannabis landscape. It introduces targeted mechanisms for commercial export, sale, and processing to safeguard public health and minimize community disruptions.

Principal Requirements Under the Draft Regulation:

•  Restricted Sales Venues: Commercial distribution limited to medical treatment facilities (with physician prescriptions and supervised dispensing), pharmacies, herbal product outlets, or traditional Thai medicine practitioner sites.

•  Staffing Standards: At least one employee certified by the Department of Thai Traditional and Alternative Medicine must be on duty during business hours.

•  Operational Guidelines: Mandatory efficient systems for odor and smoke elimination to avoid public nuisance; premises must be legally owned or possessed; dedicated storage with controlled temperature, humidity, separation from other items, and no direct floor contact.

•  Transitional Provisions: Current licenses are valid until expiry, but all renewals, new permits, or pre-enactment applications must adhere to the updated standards.

The MOPH has affirmed sufficient qualified medical professionals nationwide to support the framework and guaranteed uninterrupted access for patients requiring cannabis therapeutically through hospital-based prescriptions.

Recent data indicate substantial industry contraction: As of late 2025, 18,433 registered establishments existed nationwide, 8,636 expiring licenses in 2025, only 1,339 (15.5%) were renewed, resulting in over 7,297 closures and an estimated 11,136 remaining. Further expirations are anticipated: 4,587 in 2026 and 5,210 in 2027.

Many operators appear to be closing in anticipation of the elevated compliance thresholds rather than adapting.

Key Takeaways:

•  Medical-Centric Shift: Sales confined to regulated health-related venues, emphasizing prescription-based access over general retail.

•  Mandatory Business Upgrades: Requirements for infrastructure, storage, environmental controls, and trained personnel will challenge existing operators.

•  Industry Downsizing: Thousands of outlets have already closed without renewal, foreshadowing further consolidation.

•  Patient Protections: Therapeutic users assured continued supply via national hospital networks.

•  Implementation Timeline: Final enactment expected soon after review; broader policy direction may vary with future administrations.

Author: Panisa Suwanmatajarn, Managing Partner.

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The Repeal of Selected National Council for Peace and Order (NCPO) Announcements and Orders in Thailand

On 29 December 2025, the Royal Gazette published the Act on the Repeal of Certain Announcements of the National Council for Peace and Order, Orders of the National Council for Peace and Order, and Orders of the Head of the National Council for Peace and Order That Are No Longer Necessary and Inappropriate for the Present Circumstances, B.E. 2568 (2025). This legislation repeals 55 such instruments in total: 48 take effect immediately on 30 December 2025, while 7 are repealed subject to specific conditions or transitional measures aligned with the original provisions.

This act represents a significant effort to eliminate remnants of the military junta’s authority, known as the National Council for Peace and Order (NCPO), which governed Thailand following the coup d’état on 22 May 2014.

Historical Context of the NCPO and Its Instruments:

The NCPO seized power in 2014, suspending the constitution and imposing martial law. During its rule until the 2019 elections, the junta issued hundreds of announcements and orders under absolute authority granted by Section 44 of the interim constitution. These instruments—comprising announcements by the NCPO, orders by the NCPO, and orders by its head—totaled over 500 and addressed political restrictions, administrative reforms, economic projects, security measures, and public order.

Many suppressed political activities, limited freedom of expression, and bypassed standard legislative processes, including environmental assessments and urban planning requirements for major projects. Although the NCPO dissolved in July 2019, Article 279 of the 2017 Constitution preserved the legal force of these instruments, requiring parliamentary action for repeal.

Previous partial repeals occurred in 2019 through NCPO Head Order No. 9/2562, which revoked approximately 61-87 instruments deemed to have achieved their objectives. Further limited repeals followed, but numerous orders persisted, prompting calls from civil society and political parties to address those infringing on rights or outdated.

Legislative Process Leading to the 2025 Repeal Act:

Efforts to repeal NCPO instruments gained momentum post-2019. In 2024-2025, multiple draft bills emerged from the Cabinet and opposition parties. The Cabinet initially proposed repealing 23 instruments in July 2024. Parliamentary committees, chaired by figures such as Chaturon Chaisang (Pheu Thai Party), consolidated these into broader legislation.

The House of Representatives approved the consolidated bill in July 2025, repealing up to 55 orders following debates on civil liberties, environmental safeguards, and administrative efficiency. The Senate endorsed it without opposition in September-October 2025. The final act, published on 29 December 2025, reflects this bipartisan consensus to align governance with democratic norms.

Scope and Impact of the Repeal:

The act targets instruments no longer necessary or incompatible with current conditions. The 48 fully repealed items include those restricting political expression, online monitoring, and certain security measures. The 7 conditionally repealed ones likely involve complex areas, such as urban planning exemptions for industrial projects or southern border administration, where transitional provisions prevent abrupt disruptions (e.g., potential lawsuits or policy gaps).

This repeal partially dismantles the NCPO’s legacy by restoring standard legal processes and enhancing civil liberties. However, some orders remain in force, particularly those integrated into permanent laws or requiring separate amendments. Ongoing reviews suggest potential future repeals.

In summary, this 2025 legislation marks a deliberate step toward normalizing Thailand’s legal framework, reducing the enduring influence of the 2014 coup-era junta while balancing continuity in governance. It underscores the role of parliamentary oversight in transitioning from authoritarian measures to democratic principles.

Author: Panisa Suwanmatajarn, Managing Partner.

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