Tag: Legal Updates

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Department of Intellectual Property Moves Toward AI-Enabled Examination and OECD-Aligned Governance Standards

Recent developments signal a significant shift in the modernization of intellectual property administration, with authorities introducing artificial intelligence (AI) – assisted examination tools, enhanced anti-corruption mechanisms, and governance reforms designed to improve transparency and efficiency. These initiatives reflect broader efforts to strengthen institutional integrity and align administrative practices with international standards associated with the Organization for Economic Co-operation and Development (OECD).

The measures are particularly relevant for businesses, innovators, and intellectual property rights holders, as they may influence the way trademark and patent applications are processed, how enforcement priorities evolve, and how emerging legal questions surrounding AI and intellectual property are addressed.

Governance and transparency reforms:

Transparency and accountability have become increasingly important considerations in public administration, particularly in areas where significant economic interests are involved. Intellectual property registration systems are especially vulnerable to concerns regarding administrative discretion because examination outcomes can have substantial commercial consequences.

To address these concerns, new initiatives have been introduced to strengthen anti-corruption safeguards and improve stakeholder confidence in the intellectual property system. These include increased engagement with private-sector stakeholders and the development of a dedicated Sandbox mechanism intended to serve as a centralized platform for receiving and monitoring complaints relating to alleged misconduct or corruption in administrative processes.

The proposed Sandbox framework appears intended not only to facilitate reporting but also to improve transparency in complaint handling and case monitoring. If implemented effectively, such a mechanism could provide greater visibility into administrative processes while helping identify systemic risks that may affect applicants and rights holders.

The reforms are consistent with international trends emphasizing integrity, accountability, and transparency within public institutions. They also reflect increasing recognition that the effectiveness of an intellectual property system depends not only on substantive legal protections but also on the credibility and predictability of administrative decision-making.

Expanding the use of AI in trademark examination:

One of the most notable developments is the growing use of AI technologies to support trademark examination functions. Authorities have introduced AI-powered image search capabilities that allow preliminary identification of potentially similar or conflicting trademarks before applications are filed.

For applicants, such tools may reduce the risk of filing marks that are likely to face objections based on similarity to existing registrations. Early identification of potential conflicts can help businesses refine branding strategies, reduce unnecessary filing costs, and improve the overall quality of applications submitted for examination.

From a regulatory perspective, AI-assisted searching may also contribute to greater consistency in examination outcomes. Similarity assessments often involve complex factual evaluations, and AI tools may help examiners identify relevant precedents and potentially conflicting marks more efficiently.

Nevertheless, AI-assisted examination does not alter the legal standards governing trademark registration. Questions concerning distinctiveness, likelihood of confusion, descriptiveness, and other statutory requirements remain subject to legal analysis and human review.

AI-assisted patent examination and prior-art searches:

Authorities have also expanded the use of AI technologies in patent examination processes. AI systems are being used to assist with prior-art searches and preliminary analysis of information obtained from international patent databases. These tools can support examiners in evaluating novelty and other patentability requirements by identifying potentially relevant references more efficiently than traditional search methods.

The introduction of AI-assisted patent examination reflects a broader global trend. Patent offices worldwide are increasingly exploring the use of machine learning and data analytics to manage growing application volumes, improve search capabilities, and reduce examination backlogs.

For applicants, improved search efficiency may ultimately contribute to more predictable examination outcomes and potentially shorter processing times. However, the quality of applications remains a critical factor. Authorities have identified deficiencies in patent drafting and claim preparation as continuing challenges, particularly among first-time applicants and smaller enterprises. Poorly drafted applications often require multiple rounds of amendment, increasing both costs and examination timelines.

As a result, businesses seeking patent protection should continue to prioritize high-quality patent drafting and strategic portfolio management despite the increasing availability of AI-assisted examination tools.

Reducing administrative discretion through digitalization:

The modernization effort extends beyond AI. Authorities have continued expanding digital service platforms, including electronic filing systems, online consultations, and electronic payment mechanisms. These initiatives are intended to reduce face-to-face interactions between applicants and officials while improving traceability throughout the application process.

Reducing direct interactions may help mitigate corruption risks and strengthen public confidence in administrative processes. Digital records also create auditable trails that can assist in internal oversight and compliance monitoring.

The increasing integration of digital technologies into intellectual property administration is consistent with broader government efforts to improve service delivery and enhance regulatory efficiency through digital transformation.

AI and copyright: maintaining a cautious approach

The relationship between AI and copyright remains one of the most closely watched issues in intellectual property law globally. While several jurisdictions are considering or implementing exceptions that permit text and data mining for AI training purposes, authorities have signaled a cautious approach that prioritizes the interests of creators and copyright owners.

Current copyright protection remains focused on works created by human authors. Authorities have also emphasized that the use of copyrighted materials for AI training should be subject to appropriate authorization and should strike a balance between technological innovation and the protection of creative industries.

Notably, there are currently no plans to introduce broad copyright exceptions specifically designed to facilitate AI training. This position contrasts with approaches under consideration in some other jurisdictions and suggests that rights holders may continue to enjoy relatively strong protections against unauthorized use of copyrighted materials in AI development.

For technology companies, AI developers, and businesses deploying generative AI systems, this means that copyright clearance strategies and licensing arrangements may remain important risk-management tools.

Growing enforcement challenges in the digital environment:

The rapid growth of online commerce has transformed the intellectual property enforcement landscape. Although overall infringement cases have reportedly declined, online infringement cases have increased dramatically, with authorities reporting a 286 percent increase in online-related violations.

This trend reflects the migration of counterfeit and infringing activities from physical marketplaces to digital platforms. In response, authorities have expanded cooperation with law enforcement agencies and major e-commerce platforms to facilitate enforcement actions against large-scale online infringers and improve mechanisms for removing infringing content and products.

Businesses should expect online enforcement to remain a significant regulatory priority. Rights holders may benefit from enhanced cooperation between government agencies and digital platforms, but they should also continue implementing proactive monitoring and enforcement strategies to identify and address online infringements promptly.

Looking ahead:

The combination of AI-assisted examination, digital transformation, governance reforms, and increased attention to online enforcement suggests that intellectual property administration is entering a new phase of modernization. While many of the announced initiatives remain at an early stage, they indicate a clear policy direction toward greater efficiency, transparency, and technological integration.

For businesses and rights holders, these developments may create opportunities for more predictable and streamlined administrative processes. At the same time, evolving approaches to AI, copyright, and digital enforcement will require continued monitoring as policymakers seek to balance innovation, economic competitiveness, and intellectual property protection.

Key Takeaways:

  • Businesses should expect continued digitalization of intellectual property services, including electronic filing, online consultations, and technology-assisted examination processes.
  • Authorities are expanding the use of AI-assisted tools in trademark and patent examination as part of broader efforts to modernize intellectual property administration.
  • AI is intended to support examination functions rather than replace human decision-making, with final determinations remaining subject to applicable legal requirements and expert review.
  • A proposed corruption-reporting Sandbox and related governance initiatives demonstrate increased emphasis on transparency, accountability, and OECD-aligned institutional standards.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thai Customs Department to Launch Reformed Tariff e-Service Platform to Enhance Transparency and Reduce Corruption Risks

The Thai Customs Department (“CD”) is planning to modernize its tariff classification system through a restructured platform known as the “Tariff e-Service,” which is expected to launch in approximately August 2026. The reform is intended to address longstanding inefficiencies in import and export procedures, strengthen tariff classification services, and mitigate corruption risks. More broadly, it aims to improve transparency, streamline customs procedures, and provide businesses with greater certainty in tariff classification and regulatory compliance.

Background

The digitalization of customs tariff classification in Thailand began in November 2017 with the introduction of the original Tariff e-Service system. That platform comprised two principal services:

(1) a tariff classification ruling information service; and
(2) an electronic Advance Tariff Ruling service.

The system was designed to reduce import-related risks by enabling importers to identify applicable tariff classifications and duty rates prior to importation, and to request Harmonized System (HS) codes in advance through an online channel, thereby supporting more predictable cost planning.

However, following nearly a decade of operation and amid evolving global customs practices, the system has become increasingly outdated. Businesses have found certain functions unduly complex and difficult to navigate, contributing to procedural inefficiencies and inconsistencies in practice. In addition, the CD has long faced challenges relating to bribery, unlawful interference, redundant procedures, and limited transparency — conditions that have created opportunities for misconduct on the part of both government officials and private-sector participants.

To address these challenges, the CD is introducing a reformed Tariff e-Service platform designed to provide businesses and the public with more accessible tariff classification information. The platform will serve both as an electronic tariff classification tool and as a centralized database of rulings issued since the original system was launched. By making classification information more readily accessible and reducing reliance on manual processes, the new system is expected to improve consistency, transparency, and efficiency in customs administration.

Principal Features of the New Tariff e-Service

The new Tariff e-Service represents a shift toward a fully digital, standardized, and more transparent customs framework. Manual and discretion-based procedures will be replaced by a unified self-service platform through which businesses and members of the public can search tariff classifications and submit advance tariff ruling requests online by uploading product specifications, technical information, and images.

The platform will be integrated with Thailand’s National Single Window (NSW), consolidating access to trade-related information from multiple government agencies through a single interface. The integration covers tens of thousands of tariff lines, including approximately 9,400 product categories subject to permit requirements from 23 government agencies.

The platform will also serve as a centralized information resource, enabling users to identify tariff classifications, applicable tax rates, and import and export requirements more efficiently. Notably, access to advance tariff rulings — previously available only to registered business operators — will be extended to the general public. Rulings issued through the system will remain legally binding for up to three years, providing greater certainty for business planning and reducing reliance on case-by-case interpretations by individual customs officers.

Key enhancements introduced under the reformed platform include the following:

  • Electronic tariff classification rulings — Rulings and notifications will be issued electronically rather than by post. The prior requirement to register as an importer or exporter has been removed, enabling both the general public and new market entrants to submit requests more easily. The system provides real-time status tracking, allows customs officers to upload supporting documents directly to the platform, and enables rulings to be linked directly to import declaration forms.
  • Enhanced search functionality — Users will be able to search for tariff information using product characteristics and other identifying details without requiring specialized customs expertise. The platform consolidates information from multiple sources, including World Customs Organization (WCO) classification opinions, appeal decisions, and advance tariff rulings, while also displaying information on prohibited and restricted goods under applicable laws and notifications.

Implications for Thailand’s Customs Regulatory Framework

The introduction of the reformed Tariff e-Service represents a significant development in Thailand’s customs regulatory landscape, aimed at modernizing administrative procedures, improving operational efficiency, and strengthening transparency in customs administration.

By reducing reliance on physical documentation and manual processing, the system is expected to:

  • shorten processing times and improve service delivery;
  • facilitate the electronic issuance of tariff rulings; and
  • provide businesses with greater certainty in planning, cost estimation, and compliance management.

Users will be able to request tariff rulings directly through the platform by submitting product information — including descriptions and images — with rulings delivered electronically. This is expected to simplify access to official customs interpretations and reduce administrative delays.

From a governance perspective, the platform strengthens accountability by ensuring that all procedural steps are recorded and traceable, thereby reducing opportunities for misconduct. The adoption of technologies such as artificial intelligence (AI) and 3D X-ray scanning is expected to improve inspection accuracy, support risk-based targeting, and reduce reliance on randomized physical checks. Overall, the reform is expected to contribute to a more efficient, transparent, and reliable customs system that better supports trade facilitation and regulatory compliance in Thailand.

Key Takeaways for Importers, Exporters, and Regulatory Stakeholders

Businesses should benefit from greater certainty, improved access to customs information, and a more streamlined overall customs process.

The CD plans to launch the reformed Tariff e-Service in approximately August 2026, replacing the original 2017 platform with a modernized, fully digital tariff classification system.

The new platform is designed to be fully paperless and traceable, improving accountability and reducing corruption risks.

Integration with the National Single Window (NSW) will connect users to the requirements of multiple government agencies through a single interface.

Advance tariff rulings will be more accessible and will remain legally binding for up to three years, providing greater certainty for business planning and compliance.

Key enhancements include electronic rulings, real-time status tracking, document upload functionality, and direct linkage to import declaration forms.

The reform directly addresses longstanding challenges, including procedural complexity, inconsistent interpretations, administrative delays, and excessive reliance on officer discretion.

The adoption of AI and advanced inspection technologies is expected to improve inspection accuracy, enhance risk-based targeting, and reduce dependence on randomized physical checks.

Author: Panisa Suwanmatajarn, Managing Partner.

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USTR Section 301 Forced-Labor Determinations: Implications for Thailand

Introduction

The Office of the United States Trade Representative (USTR) has determined that 60 economies, including Thailand, have failed to impose and effectively enforce prohibitions on the importation of goods produced with forced labor. The USTR concluded that these failures are unreasonable and burden or restrict U.S. commerce, making them actionable under Section 301(b) of the Trade Act of 1974.

The determination signals a significant shift in U.S. trade policy and global supply-chain governance. The USTR has emphasized that the U.S. will no longer tolerate conditions that allow foreign producers to gain cost advantages through the use of forced labor, thereby placing American workers and businesses at a competitive disadvantage. Increasingly, access to the U.S. market is being linked to compliance with internationally recognized labor standards.

Forced-Labor Determinations

The USTR’s Section 301 investigations found that permitting goods made with forced labor to enter global supply chains undermines efforts to eradicate forced labor and creates artificial cost advantages for non-compliant producers. According to the USTR, such practices distort market conditions, reduce the profitability of businesses that comply with labor standards, and expose U.S. producers to unfair competition in both domestic and export markets.

The USTR also rejected arguments that domestic labor laws alone are sufficient to address the issue, noting that such laws typically regulate production within a country’s borders but may not prevent the importation of foreign goods produced with forced labor. Consistent with this position, Thailand was identified as one of the economies that failed to impose and effectively enforce a prohibition on imports produced with forced labor. The USTR concluded that this failure undermines global efforts to eliminate forced labor and provides unfair competitive advantages to producers that rely on such practices.

Proposed Additional Duties (Import Tariffs)

To address these concerns, the USTR has proposed imposing additional ad valorem duties on imports from the investigated economies. The proposed tariff structure consists of two fixed rates:

• Tier 1 – 10% Additional Duty Rate

Applicable to economies that have implemented a forced-labor import prohibition, committed to doing so through reciprocal trade agreements, or established a partial regime aimed at preventing the importation of forced-labor goods. Examples include Canada, the European Union, Mexico, Indonesia, Malaysia, Taiwan, and the United Kingdom.

• Tier 2 – 12.5% Additional Duty Rate

Applicable to economies that have neither imposed nor effectively enforced a comprehensive forced-labor import prohibition. Thailand falls within this category, alongside several major U.S. trading partners, including China, Japan, South Korea, Switzerland, and Singapore.

Limitation of Duties

To mitigate unintended economic consequences, the USTR has proposed a number of exclusions and limitations under Annex A of the Federal Register notice. These include:

• Articles and components already subject to Section 232 of the Trade Expansion Act of 1962 relative to tariffs on steel and aluminum, thereby avoiding duplicate tariff treatment;
• USMCA-compliant goods originating from Canada and Mexico;
• Textiles and apparel eligible for duty-free treatment under CAFTA-DR;
• Informational materials, charitable donations, and accompanied personal baggage;
• Raw materials for which alternative domestic or non-U.S. sources are not reasonably available;
• Products whose inclusion could cause significant economic disruption or that cannot be produced in sufficient quantities within, or sourced outside, the U.S.; and
• Products for which additional duties would not materially advance the objectives of the investigation.

Opportunities for Stakeholder Participation

As the proposed duties have not yet been finalized, affected businesses and industry groups may participate in the rulemaking process through several procedural mechanisms:

• Hearing Requests – Submission of requests to appear as witnesses at the public hearings, accompanied by summaries of proposed testimony;
• Written Comments – Submission of detailed comments supporting product-specific exclusions or modifications to Annex A of the Federal Register notice;
• Public Hearings – Participation in hearings conducted by the Section 301 Committee at the U.S. International Trade Commission in Washington, D.C.; and
• Post-Hearing Rebuttals – Submission of rebuttal comments responding to positions advanced by other stakeholders during the hearing process.

Key Takeaways

• The USTR has determined that 60 economies, including Thailand, failed to impose and effectively enforce prohibitions on imports produced with forced labor, and these findings are actionable under Section 301(b) of the Trade Act.

• The USTR has proposed a two-tier tariff framework consisting of a 10% additional duty for economies with existing or partial forced-labor import prohibitions and a 12.5% additional duty for all other investigated economies.

• Thailand falls within the proposed 12.5% tariff category, potentially placing Thai exports at a competitive disadvantage relative to exports from economies subject to the lower rate.

• Annex A proposes several exclusions, including products already covered by Section 232 of the Trade Expansion Act measures, USMCA-compliant goods, CAFTA-DR textiles and apparel, certain scarce raw materials, and non-commercial articles such as books, donations, and accompanied baggage.

• The proposed measures are not yet legally effective. Interested parties may participate in the public comment and hearing process before any final action is adopted.

• The USTR has also proposed a textile mechanism that could permit certain volumes of apparel and textile imports from qualifying economies to enter the United States at reduced tariff rates. It remains unclear whether Thailand will qualify for this mechanism.

• Exporters should anticipate heightened supply-chain due diligence requirements, increased scrutiny from U.S. buyers, and potential shifts in sourcing strategies as companies seek to mitigate tariff exposure.

• U.S. consumers may experience higher prices if additional import costs are passed through the supply chain.

• The final scope, exclusions, and tariff rates remain subject to revision following the completion of the public consultation and hearing process.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOI: Incentive Reforms Target Aviation, AI and Sustainable Industries as Investment Applications Surge

Thailand’s Board of Investment (BOI) has continued to refine its investment promotion framework in 2026 through amendments to promoted activities and targeted incentive measures aimed at attracting high-value investment, strengthening industrial competitiveness and supporting the country’s transition towards a digital and sustainable economy.

The latest policy developments coincide with a substantial increase in investment activity. Investment promotion applications during the first quarter of 2026 exceeded THB 1 trillion, continuing the strong momentum seen in 2025 when applications reached a record level. The figures reflect increasing investor confidence in Thailand as a regional manufacturing, technology and innovation hub, particularly amid ongoing supply chain diversification and shifts in global production strategies.

Aviation and Air Transport Sector:

Among the recent initiatives, the BOI has expanded support for aviation and air transport-related activities as part of Thailand’s strategy to strengthen its position as a regional aviation and logistics hub. The revised promotion framework is expected to encourage investment in air transport services, aircraft maintenance, aviation support services and related infrastructure.

The measures complement broader efforts to improve transportation connectivity, facilitate cross-border trade and investment, and enhance Thailand’s competitiveness within the ASEAN region.

Smart and Sustainable Industries:

The BOI has also continued to enhance its policies supporting smart and sustainable industries, encouraging businesses to adopt advanced technologies, automation systems, energy-efficient machinery and environmentally sustainable production processes.

The policy direction reflects the government’s commitment to industrial upgrading, productivity enhancement and sustainability-driven growth. For investors, the reforms signal continued support for projects involving digital transformation, energy efficiency, carbon reduction and resource optimization. Such initiatives are increasingly aligned with the environmental, social and governance (ESG) expectations of global investors and multinational supply chains.

Digital and Artificial Intelligence Investments:

Digital technologies and artificial intelligence (AI) remain key priorities under Thailand’s investment promotion strategy. Recent investment trends indicate growing demand for projects involving data centers, cloud services, software development, AI applications and related digital infrastructure.

The continued emphasis on AI and digital transformation aligns with broader government objectives aimed at accelerating technological innovation, strengthening digital capabilities and attracting high-value industries. These developments further reinforce Thailand’s ambition to position itself as a regional technology and digital services hub.

Enhancements to the Long-Term Resident (LTR) Visa Program:

In parallel with investment promotion measures, the government has introduced adjustments to the Long-Term Resident (LTR) Visa program to facilitate the entry of foreign investors, executives and highly skilled professionals.

The revisions are intended to improve accessibility for qualified applicants and strengthen Thailand’s ability to attract global talent in strategic sectors. The combination of BOI incentives and LTR Visa benefits continues to form an important component of Thailand’s investment promotion strategy, particularly for multinational enterprises considering the establishment of regional headquarters, research and development centres or technology-focused operations in the country.

Continued Foreign Investment Momentum:

The strong investment figures recorded in early 2026 indicate that Thailand continues to benefit from global trends such as supply chain diversification, regionalization of manufacturing and increasing demand for digital infrastructure.

Investment activity has been concentrated in sectors including advanced electronics, AI-related businesses, digital infrastructure, clean energy, logistics and advanced manufacturing. The growth demonstrates continued investor confidence in Thailand’s investment ecosystem and the competitiveness of its incentive regime.

Key Takeaways:

  • The BOI continues to refine its investment promotion framework to attract high-value investments in strategic sectors, particularly aviation, digital technologies, artificial intelligence and sustainable industries.
  • Recent reforms demonstrate Thailand’s continued focus on industrial upgrading, technological innovation and environmentally sustainable growth.
  • Enhancements to the Long-Term Resident (LTR) Visa programme complement investment incentives by facilitating the attraction of foreign investors, executives and highly skilled professionals.
  • Record investment promotion applications in early 2026 indicate sustained investor confidence and Thailand’s growing role as a regional investment and manufacturing hub.

Businesses considering expansion into Thailand should review the availability of BOI incentives and assess how evolving promotion policies may support investment projects, regional headquarters, technology operations and sustainability initiatives.

Author: Panisa Suwanmatajarn, Managing Partner.

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Government Agencies Accelerate Work-from-Home Policies Through e-Office and Digital Government Initiatives

Introduction:

The public sector is continuing its digital transformation through expanded adoption of work-from-home (WFH) arrangements supported by electronic office systems and digital government infrastructure. In 2026, the government intensified these efforts as part of broader energy conservation measures while simultaneously advancing long-term public sector digitalization objectives.

Recent government directives signal a significant policy shift toward greater reliance on electronic document management, digital signatures, online collaboration tools, and cloud-based administrative platforms. Government agencies are therefore increasingly required to review and update internal regulations, operational procedures, and workforce management policies to support remote working arrangements without compromising public services, information security, or administrative accountability.

Cabinet Resolution Promoting Work-from-Home Arrangements:

On 10 March 2026, the Cabinet resolved that government agencies and state enterprises should immediately implement work-from-home measures for functions that do not directly involve public-facing services. The policy was introduced primarily as a response to energy concerns and rising fuel consumption, while also supporting broader governmental objectives relating to digital government development.

The Ministry of Digital Economy and Society (MDES) subsequently announced support for the policy through expanded utilization of the government’s e-Office platform and related digital systems. The initiative reflects the government’s continuing commitment to reducing paper-based administrative processes and promoting flexible work arrangements across the public sector.

e-Office as the Foundation for Remote Government Operations:

The e-Office platform serves as a centralized electronic office management system designed to enable government officials to perform their duties remotely while maintaining official administrative processes.

Core functionalities include:

  • Electronic document management (e-Document);
  • Digital workflow and document routing;
  • Electronic correspondence and records management;
  • Digital signature capabilities;
  • Online meeting and collaboration tools;
  • Task monitoring and reporting systems; and
  • Time attendance and work tracking functions through integrated Timesheet applications.

The system allows government personnel to access official documents, approve transactions, monitor workflow progress, and collaborate with colleagues from remote locations while preserving audit trails and administrative transparency.

According to government reports, more than 160 government agencies and local administrative organizations have already adopted the platform. Agencies may also utilize the Government Data Center and Cloud Service (GDCC) infrastructure to deploy e-Office solutions without incurring additional licensing costs.

Regulatory and Governance Considerations:

While technology enables remote work, successful implementation requires corresponding adjustments to internal regulations and administrative procedures.

Government agencies adopting WFH arrangements should review and update internal rules governing:

Performance Management and Supervision

Traditional attendance-based supervision may no longer be suitable in a remote work environment. Agencies should establish clear frameworks for:

  • Work assignment and delegation;
  • Deliverable-based performance measurement;
  • Reporting obligations;
  • Monitoring mechanisms; and
  • Accountability requirements for remote personnel.

The emphasis should shift from physical presence toward measurable outputs and documented performance indicators.

Working Hours and Attendance Controls

Although work may be performed remotely, agencies remain responsible for ensuring compliance with official working-hour requirements.

Appropriate measures may include:

  • Electronic attendance recording;
  • Timesheet systems;
  • Activity reporting requirements;
  • System log monitoring; and
  • Supervisor approval procedures.

Clear policies should be established regarding availability, response times, and communication expectations during official working hours.

Information Security and Data Protection

Remote access to government systems introduces cybersecurity and information security risks.

Agencies should establish policies addressing:

  • Secure remote access protocols;
  • Authentication requirements;
  • Use of government-issued devices;
  • Confidentiality obligations;
  • Storage and transmission of official information; and
  • Incident reporting procedures.

Particular attention should be given to sensitive government information and compliance with applicable cybersecurity and data governance requirements.

Continuity of Public Services

A fundamental principle of the government’s WFH policy is that public services must not be adversely affected.

Accordingly, agencies should identify:

  • Functions suitable for remote work;
  • Essential on-site operations;
  • Minimum staffing requirements;
  • Public service continuity plans; and
  • Escalation procedures for urgent matters.

Several agencies have adopted rotational work arrangements to balance operational efficiency with service delivery obligations.

Sector-Specific Implementation

Certain government sectors have already introduced tailored WFH frameworks.

For example, the Ministry of Public Health has implemented rotational remote-working arrangements designed to maintain uninterrupted healthcare services while reducing on-site staffing levels where operationally feasible.

Such approaches demonstrate that WFH implementation is not intended as a uniform solution across all agencies but rather as a flexible framework that must be adapted according to each organization’s operational requirements and public service responsibilities.

Implications for Government Agencies:

The 2026 policy initiative reflects a broader transition from temporary remote working measures toward institutionalized digital government operations.

Government agencies should therefore consider:

  • Updating internal regulations to formally recognize remote work arrangements;
  • Expanding deployment of e-Office and digital workflow systems;
  • Establishing objective performance evaluation frameworks;
  • Enhancing cybersecurity and data governance controls;
  • Developing clear WFH eligibility criteria; and
  • Ensuring uninterrupted public service delivery.

As digital government infrastructure continues to mature, WFH arrangements are likely to become a permanent component of public sector administration rather than merely an emergency or temporary measure.

Key Takeaways:

  • The Cabinet has directed government agencies and state enterprises to implement WFH arrangements for non-public-facing functions as part of energy conservation and digital transformation initiatives.
  • The government’s e-Office platform serves as a key technological enabler, providing electronic document management, digital signatures, workflow automation, online collaboration, and work tracking capabilities.
  • Agencies should revise internal regulations governing performance management, attendance monitoring, information security, and service continuity to accommodate remote work environments.
  • Cybersecurity, data protection, and accountability remain critical compliance considerations when implementing WFH policies.

The 2026 initiative represents a significant step toward long-term digital government operations and greater institutional adoption of flexible working arrangements within the public sector.

Author: Panisa Suwanmatajarn, Managing Partner.

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ETDA: Proposed Overhaul of Thailand’s Electronic Transactions Act – Modernizing for the Digital Economy

Thailand’s existing Electronic Transactions Act B.E. 2544 (2001, as amended) has served as the foundational legal framework for electronic transactions for over two decades. Enacted in an earlier era of digital adoption, it primarily addressed basic electronic signatures, data messages, and recognition of electronic records. However, it increasingly struggles to accommodate rapid technological advancements, including automated contracting systems, electronic transferable instruments (such as e-bills of lading), cloud-based data storage, digital identity solutions, and complex cross-border digital platforms.

Limitations in the current law—such as uncertainty around the reliability and evidentiary weight of electronic data, rigid requirements that do not flexibly support emerging technologies without additional regulations, and enforcement gaps—hinder full digital transformation. This creates friction for businesses adopting paperless processes, e-commerce, fintech, logistics, and other innovative models central to Thailand 4.0 and the broader digital economy.

Many jurisdictions have proactively updated their frameworks to address these challenges. The United Nations Commission on International Trade Law (UNCITRAL) Model Laws on Electronic Commerce, Electronic Signatures, and Electronic Transferable Records have influenced reforms worldwide. Countries like Singapore, the EU (with eIDAS and related directives), and others have introduced technology-neutral rules, enhanced trust services, liability frameworks for service providers, and specific provisions for electronic equivalents of negotiable instruments. These updates boost legal certainty, reduce compliance burdens, facilitate international trade, and stimulate innovation while maintaining consumer and business protections.

Key Changes in the Draft Act and UNCITRAL Alignment:

The Electronic Transactions Development Agency (ETDA) has proposed a comprehensive Draft Electronic Transactions Act for public hearing (comments due by June 15, 2026). The draft represents a substantial rewrite rather than a simple amendment. It shifts Thailand toward a more technology-neutral, principles-based, and trust-oriented framework, building on the original law’s foundations while incorporating newer UNCITRAL instruments.

Major Changes from the Current Law:

Broader Legal Recognition of Electronic Data and Transactions: Electronic records that are accessible, reusable, and retain integrity will satisfy requirements for “writing,” originals, retention, and evidence across civil, criminal, and procedural contexts. Electronic transactions become the default/preferred mode. This significantly expands functional equivalence beyond the 2001 Act’s more limited scope.

Electronic Signatures, Seals, Timestamps, and Notices: Reliable electronic methods (or ETDA-prescribed ones) fulfill signature, seal, timestamp, and registered mail requirements. Public announcements can shift to verified online platforms. New emphasis on electronic seals and reliable timestamps strengthens evidentiary value.

Reliable Methods, Certification, and Burden of Proof: Introduction of “reliable electronic methods” with ETDA recognition/certification. When approved systems are used, the burden and cost of disproving reliability shift to the challenger. This provides stronger legal certainty and incentivizes certified solutions.

Automated and Electronic Contracting: Explicit validation of contracts formed by automated systems (with or without human intervention), plus detailed rules on attribution, receipt acknowledgment, timing/place of dispatch, input error correction, and verification methods.

New Regime for Electronic Transferable Instruments: A dedicated framework for e-bills of lading, warehouse receipts, promissory notes, etc., including exclusive control (equivalent to possession), transfer, endorsement, amendment, integrity, and paper-electronic conversion. This is a major addition.

Regulation of Service Providers: Broader coverage of identity proofing, e-signatures, timestamping, data storage, and related services. Replaces rigid licensing with a voluntary certification (“trust mark”) scheme, risk management, cybersecurity, and complaint-handling obligations. Liability protections for compliant providers, with transitional recognition for existing licensees.

Strong UNCITRAL Alignment:

Builds on the original Act’s foundation in the Model Law on Electronic Commerce (1996) and Electronic Signatures (2001).

Incorporates the Electronic Communications Convention (ECC, 2005) — Thailand acceded in 2025 — for automated contracting and international rules.

Adopts principles from the Model Law on Electronic Transferable Records (MLETR, 2017) for e-transferable instruments.

Aligns with the Model Law on Electronic Identity and Trust Services (MLIT, 2022) through trust services, certification, and technology-neutral identity frameworks.

Supports overall technology neutrality and functional equivalence, enhancing interoperability under initiatives like the Framework Agreement on Cross-border Paperless Trade (CPTA).

Business Impacts and Preparation Steps:

The Draft Act would lower barriers to digital operations, reduce paper dependency, streamline contracting and record-keeping, and improve cross-border compatibility. Sectors like trade finance, logistics, e-commerce, fintech, cloud services, and digital identity providers stand to benefit significantly.

New compliance expectations include system reliability, risk management, cybersecurity, audits, and vendor due diligence. Businesses may need to update processes, contracts, policies, and user interfaces.

Businesses should prepare by:

Reviewing current electronic systems against emerging “reliable method” standards.

Assessing exposure as service providers or users.

Monitoring ETDA subordinate regulations, certifications, and guidance.

Updating contracts, terms, privacy notices, and record-retention policies.

Enhancing cyber security and complaint-handling mechanisms.

Current Status and Next Steps:

The Draft Act is currently in the public hearing phase (comments due by June 15, 2026). Following consultation, it will undergo refinement, Cabinet approval, parliamentary review, and publication in the Government Gazette.

Implementation is not immediate: The law would generally take effect 180 days after Gazette publication, with ETDA issuing subordinate rules, standards, and certification procedures (targeted within 180 days post-publication, though effective timelines may extend). Full industry adaptation and technical rollout could span months to years. Existing providers receive transitional support.

Key Takeaways:

The Draft Act modernizes Thailand’s electronic transactions framework through broader recognition, new instruments for digital trade, and a flexible certification model — strongly aligned with evolving UNCITRAL standards.

It addresses longstanding limitations while promoting trust, innovation, and paperless processes across private and public sectors.

Businesses should proactively assess impacts, strengthen systems, and participate in the ongoing public consultation.

Successful implementation will enhance Thailand’s digital economy competitiveness, though it requires coordinated regulatory and industry efforts over the coming years.

Author: Panisa Suwanmatajarn, Managing Partner.

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PDPA: PDPC Clarifies the Scope of “Health Data”

The Personal Data Protection Committee (PDPC) has recently issued an advisory opinion addressing whether the appearance of the Thai Red Cross symbol and the wording indicating organ donor status on Thailand’s new driver’s license constitutes sensitive personal data under Section 26 of the Personal Data Protection Act B.E. 2562 (2019) (PDPA). While the factual question concerned organ donor status, the more significant legal development lies in the PDPC’s interpretation of what constitutes “health data” under the PDPA.

The issue arose following the Department of Land Transport’s introduction of a new driver’s license format that allows license holders who have registered their intention to donate organs with the Thai Red Cross Society to display the Thai Red Cross symbol together with a statement indicating organ donor status on the face of the license. A private-sector organization sought clarification from the PDPC regarding whether such information should be treated as sensitive personal data under Section 26 of the PDPA.

The PDPC’s Interpretation of Health Data:

Section 26 of the PDPA imposes enhanced protection requirements on certain categories of sensitive personal data, including data concerning health. However, the PDPA does not provide a specific definition of “health data”.

In considering the issue, the PDPC examined various legislative and regulatory sources relating to healthcare information. The Committee observed that information concerning healthcare services, healthcare-related intentions and the expression of wishes regarding organ donation have traditionally been regarded as information connected with an individual’s health and healthcare status.

The PDPC emphasized that the information displayed on the driver’s license is not merely a symbol or administrative notation. Rather, it reflects an individual’s expressed intention relating to organ donation and is intended to be used by medical personnel and relevant authorities in circumstances where healthcare services and organ transplantation procedures may become relevant. As a result, the information is intrinsically connected to healthcare services and medical treatment.

On that basis, the PDPC concluded that the status of being a registered organ donor, as displayed on a driver’s license, constitutes health-related personal data and therefore falls within the scope of Section 26 of the PDPA.

A Broader Understanding of Health Data:

The opinion provides an important indication of how the PDPC is likely to interpret health data in future cases.

Traditionally, organizations often associate health data with medical records, diagnoses, treatment histories, laboratory results or information concerning physical and mental conditions. The PDPC’s reasoning suggests that the concept is broader.

The Committee’s analysis indicates that information may qualify as health data even where it does not reveal a specific illness or medical condition. Information that reflects an individual’s healthcare-related intentions, healthcare choices or participation in healthcare-related activities may also fall within the scope of health data where such information is sufficiently connected to healthcare services or medical treatment.

This interpretation reinforces the need for organizations to assess the nature and purpose of information being processed rather than relying solely on traditional assumptions about what constitutes medical information.

Practical Implications:

Although the PDPC classified organ donor status as health data, the opinion also contains practical guidance for organizations that routinely collect copies of driver’s licenses.

The Committee recognized that where a data controller collects a copy of a driver’s license solely for identification or verification purposes and does not collect, use or disclose the organ donor information for the purpose of identifying an individual’s donor status or obtaining health-related information, such processing should not automatically be regarded as the collection of health data under Section 26 merely because the information incidentally appears on the document.

This aspect of the opinion will be particularly relevant to banks, financial institutions, insurers, employers, telecommunications providers and other organizations that regularly collect copies of official identification documents as part of their business operations.

At the same time, organizations that specifically collect, use or disclose information concerning donor status or other healthcare-related declarations should carefully assess whether Section 26 applies and whether an appropriate legal basis exists for the processing of such sensitive personal data.

Key Takeaways:

  • The PDPC has confirmed that organ donor status displayed on a driver’s license constitutes health-related personal data under Section 26 of the PDPA.
  • The opinion suggests that health data is not limited to medical records or information concerning diseases and medical conditions.
  • Information reflecting healthcare-related intentions, wishes or decisions may also constitute health data where it is closely connected to healthcare services or medical treatment.
  • Organizations should review whether information they process could reveal healthcare-related intentions or decisions, even where it does not contain traditional medical information.

The incidental collection of such information as part of a driver’s license copy does not necessarily mean that the organization is processing health data, provided the information is not used for health-related purposes.

Author: Panisa Suwanmatajarn, Managing Partner.

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Introducing a 200% Tax Deduction Incentive for Digital Transformation of SMEs

Introduction:

As digital transformation continues to reshape business operations and competitiveness, the Thai Government has introduced a significant tax incentive aimed at encouraging small and medium-sized enterprises (SMEs) to adopt digital technologies. Pursuant to the Royal Decree Issued Under the Revenue Code (No. 802) B.E. 2569 (2026), eligible SMEs are entitled to claim a tax deduction of up to 200% of qualifying expenditures incurred for the acquisition of digital products and services.

The measure forms part of Thailand’s broader strategy to accelerate digital adoption, enhance productivity, and strengthen the competitiveness of domestic businesses in the digital economy.

Overview of the Tax Incentive:

Under the Royal Decree, qualifying SMEs may deduct eligible digital-related expenses at twice the actual amount incurred for corporate income tax purposes. The enhanced deduction applies to expenditures relating to digital products and services procured from vendors or service providers registered or certified by the Digital Economy Promotion Agency (DEPA).

The incentive covers a wide range of digital investments, including:

  • Software acquisition and licensing fees;
  • Cloud computing and digital platform services;
  • Enterprise resource planning (ERP) and business management systems;
  • Smart devices and digital hardware;
  • Digital technology consulting and implementation services;
  • Cybersecurity solutions and related digital services; and
  • Other digital products or services approved under the applicable DEPA framework.

The policy is intended to lower the effective cost of digital adoption while encouraging businesses to modernize their operations and improve efficiency.

Eligible Businesses:

To qualify for the enhanced deduction, a taxpayer must satisfy the SME criteria prescribed under the Royal Decree. Specifically, the business must:

  • Have paid-up registered capital not exceeding THB 5 million as of the end of the accounting period; and
  • Generate annual revenue not exceeding THB 30 million.

Only businesses meeting both conditions are eligible to claim the incentive.

Deduction Amount and Limitation:

Eligible expenditures may be deducted at 200% of the actual amount paid, subject to a maximum qualifying expenditure of THB 300,000.

For example, if an eligible SME incurs THB 150,000 in qualifying software or digital service expenses, it may claim a tax deduction of THB 300,000 when calculating its corporate income tax liability.

The incentive applies to qualifying expenditures incurred between 24 June 2025 and 31 December 2027.

Practical Tax Benefits:

The enhanced deduction effectively reduces the taxable profit of qualifying businesses and lowers their corporate income tax burden.

For instance, if a company purchases an eligible system for THB 300,000:

  • Under normal tax rules, the company may deduct THB 300,000 as an expense.
  • Under the Royal Decree, the company may deduct THB 600,000.

The additional THB 300,000 deduction reduces taxable income and can generate meaningful tax savings, particularly for growing businesses investing in digital infrastructure.

Beyond the immediate tax benefit, the incentive encourages SMEs to accelerate investments in technology that may improve operational efficiency, data management, customer engagement, and cybersecurity resilience.

Compliance Considerations:

Businesses seeking to utilize the incentive should carefully consider the following legal and tax compliance issues.

Verification of DEPA Registration:

The enhanced deduction is available only for qualifying purchases or services obtained from vendors and service providers that have been registered or certified under the relevant DEPA program. Businesses should conduct appropriate due diligence before entering into transactions.

Qualification of Expenditures:

Not all technology-related expenditures automatically qualify for the enhanced deduction. Businesses should review whether a particular expense falls within the categories recognized by the Royal Decree and relevant implementing regulations.

Interaction with Other Tax Incentives:

Companies receiving benefits under other incentive regimes, including Board of Investment (BOI) promotion programs or research and development tax incentives, should evaluate whether multiple incentives may be claimed concurrently and ensure compliance with any anti-double-dipping restrictions.

Policy Significance:

The introduction of the 200% tax deduction reflects Thailand’s continued commitment to promoting digital transformation among SMEs. By reducing the after-tax cost of digital investment, the Government aims to encourage broader adoption of modern technologies and strengthen the country’s digital economy.

For many SMEs, the measure presents a timely opportunity to invest in software, cloud solutions, cybersecurity systems, and digital business processes while simultaneously benefiting from substantial tax savings.

Key Takeaways:

  • Eligible SMEs with paid-up capital of not more than THB 5 million and annual revenue not exceeding THB 30 million may claim a 200% tax deduction for qualifying digital expenditures.
  • The incentive applies to expenditures on software, digital services, smart devices, cloud solutions, cybersecurity systems, and other approved digital technologies.
  • Qualifying products and services must be purchased from suppliers or service providers registered or certified by DEPA.
  • The enhanced deduction is available for expenditures incurred from 24 June 2025 through 31 December 2027.
  • The maximum qualifying expenditure eligible for the enhanced deduction is THB 300,000.
  • Businesses should maintain comprehensive supporting documentation and verify eligibility requirements before claiming the incentive.
  • The measure represents a significant opportunity for SMEs to reduce tax liabilities while accelerating digital transformation initiatives.

Author: Panisa Suwanmatajarn, Managing Partner.

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AI-Powered Assistant “Nok Krasip” Launched to Empower SME Retailers Through Digital Tools

The government has introduced “Nok Krasip” (Whispering Bird), an AI chatbot assistant integrated into the “Thung Ngern” mobile application. This forms part of the “Thai Help Thai Plus 60/40” program, designed to support small retailers and community businesses with practical digital solutions.

Program Context:

This initiative underscores efforts to strengthen the grassroots economy by equipping micro, small, and medium-sized enterprises (MSMEs) — particularly traditional shops — with accessible technology. The Thung Ngern application serves as a central platform for financial and business management, with the AI feature representing a key advancement in providing real-time insights.

Core Features of the AI Assistant:

Nok Krasip delivers user-friendly tools tailored for retailers with limited technical expertise:

•  Sales Analysis: Automatic summaries of daily sales performance, transaction trends, peak periods, and inventory suggestions.

•  Raw Material Price Monitoring: Real-time market price data for essential commodities such as meats and other inputs, drawn from official sources.

•  Cost and Profit Analysis: Simple calculations that compare input costs with selling prices to support better pricing and margin decisions.

•  Intelligent Chatbot: Instant answers to questions about the program and application functions, featuring preset options for quick navigation.

The assistant is available in Thung Ngern version 5.50.0 and higher for eligible registered users.

Legal and Regulatory Considerations:

The introduction of this AI tool carries several implications for businesses operating in the digital economy:

•  Data Privacy Compliance: Processing of sales, inventory, and transaction data requires adherence to the Personal Data Protection Act B.E. 2562 (PDPA). Platform operators should maintain clear consent mechanisms and transparent data handling practices, especially when information is shared with government entities.

•  Digital Transaction Governance: The tool supports broader goals of fair digital commerce and MSME empowerment, aligning with regulations on electronic transactions, consumer protection, and platform responsibilities.

•  Cybersecurity and Procurement Standards: Government-backed digital services typically involve cybersecurity requirements and public technology procurement rules.

•  Intellectual Property Aspects: Issues may emerge concerning ownership of AI-generated insights, underlying datasets, and developed algorithms.

Practical Guidance for Stakeholders:

•  Retailers and MSMEs: Participants should review the application’s terms of service and data policies prior to extensive use. While the AI can enhance operational efficiency, it should supplement — not substitute — professional financial advice.

•  Platform Operators and Partners: Entities involved in such ecosystems should monitor evolving rules on data governance and electronic transactions.

•  Risk Management: Businesses adopting AI tools are advised to implement robust cybersecurity protocols and include appropriate contractual safeguards regarding accuracy and liability.

Key Takeaways:

•  The AI assistant Nok Krasip provides accessible, practical tools that help small retailers analyze sales, control costs, and make informed decisions.

•  Integration into the Thung Ngern application advances digital inclusion for MSMEs participating in government support programs.

•  Stakeholders should prioritize PDPA compliance, data security, and clear policies when leveraging such government-supported AI platforms.

•  This development signals continued focus on technology-driven support for the traditional retail sector, potentially improving competitiveness and access to future financing opportunities.

This article provides general information only and does not constitute legal advice. Readers should seek qualified professional counsel for matters specific to their situation.

Author: Panisa Suwanmatajarn, Managing Partner.

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Employment: Supreme Court Judgment No. 9052/2559 Reinforces Protections for Older Workers in Thailand’s Private Sector

1. Background about retirement age in the private sector:

In Thailand’s private sector, no universal mandatory retirement age is fixed by statute for all employers. Retirement is primarily governed by employment agreements, internal work regulations, or company policies. Prior to the Labour Protection Act (No. 6) B.E. 2560 (2017), which introduced Section 118/1, the legal framework was less explicit. This amendment clarified that retirement—whether pursuant to agreement or employer policy—constitutes termination of employment, thereby entitling the employee to statutory severance pay under Section 118.

In the absence of a stipulated retirement age in contracts or policies, or where the stipulated age exceeds 60 years, an employee aged 60 or above may elect to retire upon 30 days’ notice, with severance payable. In practice, many private sector organizations set retirement ages between 55 and 60 years. However, the application of such policies must adhere to principles of fairness, consistency, and non-discrimination, particularly as Thailand addresses the challenges of an aging society.

2. Compulsory compensation? What does the labor law say?

Under Section 118 of the Labour Protection Act, termination of employment—including retirement initiated by employer policy—requires the employer to pay severance compensation based on the employee’s length of service. The prescribed minimum rates include:

•  1 year but less than 3 years: not less than 90 days’ wages;

•  3 years but less than 6 years: not less than 180 days’ wages;

•  10 years or more: not less than 300 days’ wages (with potential enhancements for longer service).

Retirement is explicitly treated as employer-initiated termination when enforced through policy or agreement, triggering these obligations. Employers cannot circumvent severance by characterizing retirement as voluntary resignation. Furthermore, the arbitrary or discriminatory application of retirement policies may expose employers to claims of unfair dismissal.

3. Ruling – Analysis of Supreme Court Judgment No. 9052/2559:

Supreme Court Judgment No. 9052/2559 stands as a landmark decision in Thai labour jurisprudence concerning unfair termination and age-related employment practices. The case involved a head editor of a Chinese-language newspaper who commenced employment at age 55 and served for approximately 22 years until his termination at age 77. The employer introduced a new retirement policy aimed at organizational restructuring and recruiting younger staff, offering statutory severance equivalent to 300 days’ wages.

The Central Labour Court initially upheld the termination as a legitimate exercise of managerial authority for business improvement, noting the provision of full severance and absence of personal malice. The Supreme Court reversed this decision, ruling the termination an unfair dismissal. The Court adopted a substantive justice approach, scrutinizing the specific circumstances rather than accepting the policy at face value.

Key elements of the Supreme Court’s reasoning were:

•  Nature of the Work: The position required specialized linguistic, editorial, and academic expertise in Chinese-language publishing. Such roles typically benefit from accumulated knowledge and experience, which increase with age, rather than physical capabilities that may decline.

•  Employee’s Performance Record: The plaintiff maintained exemplary performance with perfect attendance and no health-related issues. Notably, the employer had recently promoted him and increased his salary, actions inconsistent with claims of diminished capability.

•  Validity of the Retirement Policy: The newly introduced policy lacked clear, objective, equitable, and pre-announced criteria. It was viewed as an ad hoc measure rather than a transparent, consistently applied rule, rendering it an insufficient justification for termination, especially when motivated primarily by age.

The Supreme Court remanded the case for determination of damages, including interest at 7.5% per annum. The judgment emphasizes that while employers retain managerial prerogative, age-based retirement decisions must be supported by objective, job-related justifications and cannot serve as a pretext for the arbitrary replacement of experienced personnel. Although issued prior to the 2017 amendments, the ruling remains highly relevant and continues to guide the application of fairness standards in retirement and termination cases.

Key Takeaway:

Supreme Court Judgment No. 9052/2559, together with the statutory framework under the Labour Protection Act, underscores that chronological age alone does not justify termination in Thailand’s private sector. Courts will prioritize individual capability, performance evidence, and substantive fairness, particularly in knowledge-intensive roles. Employers are advised to maintain transparent, consistently applied, and objectively justified retirement policies supported by legitimate business needs. This jurisprudence strengthens protections for capable older workers while encouraging responsible workforce management practices in Thailand’s aging society.

Author: Panisa Suwanmatajarn, Managing Partner.

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