Category Archives: News & Articles

General overview

Since July 1, 2025, the Thai daily minimum wage has undergone several adjustments. The minimum daily wage has indeed been increased depending on the province, now ranging from THB 337 to THB 400.

The THB 400 minimum wage rate, previously limited to a few areas, now also applies to Bangkok, in addition to Chachoengsao, Chonburi, Phuket, Rayong, and Ko Samui (Surat Thani district). This brings the total to five provinces and one district where the top-tier rate is enforced.

Moreover, the THB 400 rate now applies nationwide to two specific sectors: hotels (Types 2–4 only) and entertainment establishments, as defined by Thai law.

These changes were officially announced in the Royal Gazette on 17 June 2025 and took legal effect on 1 July 2025.

Sectoral and geographic expansion

The extension of the THB 400 rate to Bangkok reflects a recognition of rising living costs and increased economic activity in the capital. It also aligns the capital’s wage floor with other key industrial and tourism-driven provinces. By applying this rate to all businesses operating in the hotel and entertainment sectors, regardless of their location, the government reinforces its efforts to standardize wage protections in industries that attract both domestic and foreign capital.

The government has also standardized the THB 400 rate across the hospitality and entertainment sectors, but with an important caveat: the wage increase applies only to hotel Types 2, 3, and 4, as defined by the Hotel Act , B.E. 2547 (2004).

Hotel Classification under the The Hotel Act:

• Type 1 Hotel: Provides only lodging, with no more than 50 guest rooms – not subject to the THB 400 rate
• Type 2 Hotel: Provides lodging with more than 50 guest rooms, or lodging with a restaurant
• Type 3 Hotel: Provides lodging, dining services, and either entertainment venues or meeting/seminar rooms
• Type 4 Hotel: Offers full services, including lodging, dining, entertainment, and conference facilities

The nationwide THB 400 minimum does not apply to Type 1 hotels, making this an important compliance point for smaller-scale or boutique lodging operators.

Entertainment venues, on the other hand, include establishments such as nightclubs, pubs, bars, karaoke lounges, and massage parlors, as defined under the Service Place Act, B.E. 2546 (2003).

Equally important is the government’s decision to apply the THB 400 rate to all employers operating in the hotel and entertainment sectors, nationwide. This applies regardless of business size or location and includes both domestic and migrant workers, such as those from Cambodia, Laos, Myanmar, and Vietnam, who are registered under MOUs with the District Labor Office.

While the wage brackets remain intact, this update significantly broadens the categories of businesses and employees subject to the highest rate. Employers with multi-location operations or those in regulated sectors may need to update internal payroll systems and reallocate workforce budgets accordingly.

Strategic considerations for foreign investors

For foreign investors, particularly those active in hospitality, tourism, or consumer services, the nationwide application of the THB 400 rate may have practical and financial implications. Investors considering expansion into regional Thailand must now take into account a potentially higher wage floor for sector-specific activities. In Bangkok and other newly affected areas, the increased labour cost should be factored into operational planning, especially for labour-intensive enterprises.

Our employment law team is available to assist with wage compliance reviews, policy updates, and strategic workforce planning under Thai labour law.

Provincial wage breakdown

Thailand’s minimum daily wage rates are now as follows:

• THB 400: Bangkok, Chachoengsao, Chonburi, Phuket, Rayong, Ko Samui (Surat Thani), and nationwide for hotel and entertainment businesses
• THB 380–372: Applied in districts such as Mueang Chiang Mai and Hat Yai, and provinces including Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon
• THB 337: Narathiwat, Pattani, and Yala, currently the lowest rates in the country

Employers should consult the full wage table to confirm the applicable rate for each location of operation. A visual breakdown by province is available for reference.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with 59 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, please contact us at: law@ilct.co.th

Thailand’s Minimum Daily Wage Update: Effective 1 July 2025 [Please download]

Cannabis Re-Criminalization in Thailand: A Legal Overview

Thailand has experienced significant legal transformation concerning cannabis regulation in recent years. Once categorized under stringent narcotic laws, cannabis moved through phases of decriminalization and, as of June 26, 2025, has now been officially re-criminalized. This article provides a structured analysis of the legal landscape surrounding cannabis in Thailand, spanning the period prior to decriminalization, the decriminalized phase, and the current re-criminalization framework.

Cannabis Policy Before 2022

Before 2022, cannabis was classified as a Category 5 narcotic under the Narcotic Act B.E. 2522 (1979). This legal classification included cannabis among Thailand’s most strictly prohibited substances, alongside opium and psilocybin mushrooms. Possession, distribution, cultivation, or consumption of cannabis constituted a criminal offense. The penalties imposed were severe, including significant monetary fines and custodial sentences. While certain medical research activities involving cannabis were allowed under tightly regulated conditions, these exceptions were rare and did not reflect a broader recognition of the plant’s medicinal potential. Cannabis was regarded by the Thai legal system primarily as a dangerous narcotic, and its use was widely stigmatized both legally and socially.

2022–2025: Decriminalization and Commercial Expansion

On June 9, 2022, Thailand became the first country in Asia to decriminalize cannabis by removing it from the controlled narcotics list. This move aimed to promote economic development, wellness applications, and agricultural innovation. Private cultivation of cannabis was permitted following official registration, and products containing less than 0.2% THC were allowed for general use. However, the lack of a comprehensive regulatory framework led to a surge in cannabis cafes and dispensaries. Although the policy officially limited use to medical and health-related purposes, the absence of prohibitions on recreational use resulted in widespread public consumption, especially among tourists and younger consumers.

Since June 26, 2025: Legal Re-Criminalization and Reinforcement of Medical-Only Use

In response to mounting concerns over public health and the proliferation of recreational cannabis use, Thailand officially reintroduced restrictive cannabis regulations, published in the Royal Gazette and effective immediately as of June 26, 2025, without interim provision to protect dispensaries. While not reclassified as a narcotic under the Narcotic Act, cannabis, specifically the flowering buds, has now been designated as a “controlled herb” under the Protection and Promotion of Thai Traditional Medicine Knowledge Act B.E. 2542 (1999).

Under the new framework, the sale, possession, and consumption of cannabis are strictly limited to certified medical purposes. A valid medical prescription issued by a licensed practitioner, valid for no more than 30 days, is required to legally obtain cannabis. Recreational use is now explicitly prohibited. Violations may result in criminal penalties, including imprisonment of up to one year and a fine of 20,000 baht.

The regulation also introduces further restrictions: online sales, vending machine distribution, and sales near schools, temples, or other sensitive areas are banned. Public smoking of cannabis remains prohibited and constitutes a public nuisance offense. Cannabis can only be consumed within licensed premises under medical supervision, and dispensaries must now employ certified medical or traditional practitioners to oversee usage.

Additionally, businesses engaged in cultivation, importation, or sale of cannabis products must comply with Good Agricultural and Collection Practices (GACP) standards and submit monthly transaction records using official forms (Phor.Tor.27, 28, and 29) to the Department of Thai Traditional and Alternative Medicine. These changes mark a significant regulatory tightening compared to the permissive environment of 2022–2025, signalling the government’s intent to reclaim control over the cannabis market and reframe its usage strictly within a medical context.

Failure to comply with these operational restrictions may result in administrative penalties, license suspension, or, in cases involving fraud or public nuisance, criminal charges under the Protection and Promotion of Thai Traditional Medicine Knowledge Act B.E. 2542 (1999).

Business Implications and Strategic Considerations

This legal shift carries profound implications for investors and operators in the cannabis sector. The rapid expansion of cannabis-related businesses between 2022 and 2025, particularly wellness and recreational dispensaries, now confronts a highly restrictive regulatory environment. Business models must be urgently revised to ensure full legal compliance, with a strict focus on medical cannabis supported by partnerships with licensed healthcare providers.

While the recreational cannabis market has effectively been dismantled, investment potential remains in pharmaceutical-grade cannabis, hospital-supply chains, and international exports permitted under the Single Convention on Narcotic Drugs (1961), as implemented through Thailand’s Narcotic Act B.E. 2522 (1979) and relevant FDA licensing regulations. The extent of the law’s impact will hinge on the rigor of enforcement and the evolution of supporting regulations. For both domestic and foreign stakeholders, thorough legal due diligence and close monitoring of policy developments will be critical to mitigating legal and financial exposure.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with 59 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, please contact us at: law@ilct.co.th

Thailand’s Legal Reversal on Cannabis: Restriction to Medical Use Only [Please download]

On June 17, 2025, the Thai Cabinet approved a major tax measure aimed at promoting Thailand as a leading digital asset hub in the world. This reform introduces a clear and strategic fiscal incentive designed to stimulate investment, attract digital asset platforms, and enhance Thailand’s competitive position in the global crypto economy. With growing regional competition and the increasing adoption of blockchain-based financial products, the Thai government is seeking to modernize its regulatory framework and offer concrete benefits to both local and international participants in the digital asset space.

Scope and Conditions of the Tax Exemption

The core of the reform lies in a sweeping exemption from personal income tax on capital gains derived from the sale of digital assets, which are cryptocurrencies and digital tokens. This tax measure will be effective from January 1, 2025, to December 31, 2029, establishing a five-year period during which qualifying gains will be fully exempt from personal income tax. The declared objective of the policy is to support the growth of Thailand’s digital economy by attracting both retail and institutional players into its regulated market.

To benefit from this exemption, individual investors must meet one essential condition : the sale of the digital assets must occur through an operator licensed under the Digital Asset Business Operation Law. This includes three types of regulated entities : digital asset exchanges, digital asset brokers, and digital asset dealers. Only transactions processed through these authorized platforms will be eligible for the exemption. This condition is critical to the policy’s design, as it ensures that tax benefits are tied to regulatory compliance, investor protection, and traceability. It also incentivizes market participants to operate within Thailand’s legal infrastructure, reinforcing the country’s position as a responsible and innovation-friendly jurisdiction.

Previous Tax Framework

This new framework marks a significant departure from the previous tax regime. Prior to this reform, capital gains from digital asset sales were subject to a 15% withholding tax, automatically deducted at the time of the transaction. Moreover, net capital gains after deducting capital losses had to be included in the taxpayer’s annual personal income tax return. This could expose individuals to further taxation based on Thailand’s progressive income tax brackets, which range from 0% to 35%.

By contrast, the new measure removes both the withholding obligation and the requirement to declare such gains, provided the transactions meet the specified regulatory criteria. This simplification not only reduces the tax burden on compliant investors but also clarifies their obligations and minimizes the risk of non-compliance.

The reform also signals a shift in tone: from passive regulation to active promotion of digital asset innovation. It reflects an understanding that tax policy is not just a tool for revenue generation, but also a lever for economic strategy. For investors and crypto-native businesses, this means a renewed opportunity to enter or expand operations in Thailand with greater certainty, lower cost, and legal clarity.

However, the opportunity comes with responsibility. Investors must ensure that all transactions are conducted through approved operators and maintain accurate records of their activities. For professionals involved in fund structuring, token offerings, or advisory services, understanding the nuances of the new system is essential to properly guide clients and assess eligibility.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with 59 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, please contact us at: law@ilct.co.th

Thailand’s 2025 Digital Asset Tax Reform: Key Implications for Investors and Platforms [Please download]

Before entering Thailand, it’s important to understand the differences between Non-Immigrant B & Non-Immigrant O Visas.

While the Non-Immigrant B Visa is ideal for professionals, teachers and entrepreneurs, the Non-Immigrant O Visa is designed for spouses, parents of Thai citizens, retirees and volunteers.

We’ve also listed for you the most common mistakes made when applying for a visa, a legal review can save you time, money, and trouble !

Thailand has many doors, but the right key matters. Which visa path are you considering ?

Living in Thailand as an Expat : Key Differences between Non-Immigrant B and O Visas

Bangkok’s 2026 Pet Law: What Pet Owners and Landlords Must Know

The Ordinance on Animal Keeping and Release Control B.E. 2567, issued in 2024, will come into force on 10 January 2026. This new regulation, introduced by the Bangkok Metropolitan Administration (BMA), seeks to establish a comprehensive legal framework for responsible pet ownership in the capital. Aimed at improving public hygiene, reducing stray animal populations, and preventing the transmission of diseases such as rabies, the ordinance introduces a range of obligations for pet owners and strengthens the enforcement powers of local authorities.

Pet Registration, Identification, and Public Services

A central aspect of the new regulation is the mandatory registration and microchipping of all dogs and cats residing in Bangkok. Owners must register their dogs and cats within 120 days of birth or within 30 days of bringing the animal into the city. The documentation required includes proof of identity and residence, a rabies vaccination certificate, and a sterilisation certificate if available. Microchipping is also compulsory and must be performed by a licensed veterinarian. The microchip must be linked to the owner’s information, thereby enhancing traceability and accountability.

To facilitate compliance, the BMA has activated several support services through its municipal veterinary clinics. These services, provided free of charge in selected facilities, include pet registration, microchipping, rabies vaccination, and sterilisation. The BMA also plans to collaborate with mobile veterinary clinics and animal welfare groups to enhance outreach, ensure broader access to services, and promote public awareness on responsible pet ownership.

In the event of a registered pet’s death, the ordinance does not explicitly require owners to report it or prescribe specific procedures for carcass disposal. However, it is advisable for owners to notify their local district office to ensure that registration records remain accurate, particularly given the numerical caps per property that may affect future registrations. Additionally, owners are encouraged to handle the remains in a sanitary and environmentally responsible manner, which may involve burial on private property, cremation, or coordination with veterinary clinics or municipal services, in accordance with applicable local regulations.

Property-Based Restrictions and Legal Implications

The ordinance imposes specific limits on the number of dogs and cats that may be kept within a property, based on its size:

• • For apartments ranging from 20 to 80 square metres, a maximum of one dog or cat is permitted.
  • Apartments larger than 80 square metres may accommodate up to two dogs or cats.
  • Land plots up to 20 square wah (approximately 80 m²) may host two dogs or cats, increasing progressively to six for properties exceeding 100 square wah.

These provisions aim to prevent overcrowding and reduce hygiene risks and animal-related disturbances in residential areas.

Importantly, different rules apply to other species. For example:

• • Small birds may be kept at a density of up to five per square metre.
  • Large birds, such as ostriches, require at least 50 square metres per animal.
  • Poultry (e.g. chickens, ducks, geese) are limited to one per four square metres.
  • Small mammals, including goats, sheep, pigs, and ponies, may be kept at a rate of three animals per 200 square metres.
  • Large mammals, such as cows, buffaloes, deer, and horses, require a minimum of 200 square metres per animal.
  • Aquatic animals, such as fish, are not subject to numeric limits but must be maintained in sanitary conditions that do not create a nuisance to others.

These restrictions may also require updates to rental contracts and condominium bylaws to ensure alignment with the new regulatory framework. Furthermore, the ordinance reinforces the civil liability of pet owners in the event of damage or injury caused by their animals, potentially impacting insurance policies and legal risk assessments for both owners and property managers.

The enforcement of these provisions will fall under the responsibility of the Bangkok Metropolitan Administration, primarily through the Department of Veterinary Services and local district offices. These authorities will oversee pet registration, conduct inspections, and ensure overall compliance. Their enforcement role is further supported by partnerships with civil society actors and specialised agencies.

Public Conduct Rules and Specific Handling Requirements

All pet owners are required to maintain control over their animals in public areas. This includes the mandatory use of a leash, prohibition against leaving animals unattended, and the obligation to remove animal waste immediately. Animals must not cause a nuisance or pose any threat to the public.

In addition, the ordinance introduces specific regulatory measures for certain dog breeds classified by authorities as requiring specific handling protocols due to their physical capabilities and strength. These breeds include the Pit Bull Terrier, Bull Terrier, Staffordshire Bull Terrier, Rottweiler, and Fila Brasileiro. Owners of these breeds must obtain special authorisation and adhere to stricter conditions: the animals must wear a muzzle and be kept on a leash not exceeding 50 cm in length when in public. Furthermore, they may only be handled by individuals aged between 10 and 65 years. These measures are designed to ensure the safety of both the animals and the wider community, without discriminating against specific breeds.

Non-compliance with the ordinance may result in substantial penalties. Failure to register or microchip a pet within the prescribed timeframe can lead to fines of up to 25,000 baht. Similarly, violations such as allowing pets to roam freely without a leash or failing to clean up waste in public areas are also subject to financial penalties, depending on the severity of the infraction.

Transitional Provisions and Community Impact

The ordinance includes transitional provisions allowing current owners who exceed the permitted number of animals to retain them, provided they are duly registered and do not cause disruption to the community. To remain in compliance, these owners must notify their local district office by 9 April 2026. Failure to do so may result in inspections and potential enforcement measures. Owners will be allowed to retain their animals provided they regularise their position within the timeframe stipulated by the BMA.

This clause balances regulatory enforcement with the protection of existing pet ownership arrangements, encouraging compliance without excessive disruption.

In sum, the Ordinance on Animal Keeping and Release Control B.E. 2567 (2024) represents a significant shift in Bangkok’s approach to pet regulation. It imposes structured responsibilities on pet owners while providing a framework that enhances animal welfare and public safety. Legal practitioners, landlords, and residents should familiarise themselves with its provisions to ensure full compliance and mitigate the risk of administrative or legal complications.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with over 50 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, please contact us at: law@ilct.co.th

Bangkok’s 2026 Pet Law: What Pet Owners and Landlords Must Know [please download]

Background and Legal Framework

Since the promulgation and enactment of the Labor Protection Act in 1998, employees and employers alike have been anticipating the implementation of the regulations concerning the establishment of the Employee Welfare Fund, provided under Chapter 13 of the Labor Protection Act and under the purview of the Department of Labor Protection and Welfare. Now, the anticipation is finally over. In November 2024, the Employee Welfare Fund regulations were published in the Royal Gazette, providing a legal framework for the long-awaited Employee Welfare Fund and imposing a legal requirement for employers meeting the specific criteria to contribute to the said Fund, effective from 1 October 2025 onwards. The implementation of the Employee Welfare Fund provides protection for employees in cases of death, termination of employment, retirement, and other specific scenarios provided by the newly published Ministerial Regulations. This article aims to summarize the key points of the regulations in effect, with particular emphasis on the duties of employers who are under its obligation to implement under these regulations.

Scope of Application and Employer Obligations

As the Ministerial Regulations were promulgated under the power of Section 130 of the Labor Protection Act, the businesses required to enroll their employees in accordance with Section 130 are as follows:

• Businesses with more than ten employees
• Businesses with fewer than ten employees, as prescribed by Royal Decree

The above shall not apply to employers who have already established a Provident Fund pursuant to the Provident Fund Act, provided that such fund is duly registered and fully compliant with the requirements prescribed under the Act, including minimum contribution rates, governance obligations, and reporting standards. Employers whose internal funds do not meet these criteria would not be exempt from contributing to the Employee Welfare Fund. Although the law appears to require that employers subscribe to this social welfare fund for those employees who are not members of the company provident fund (whether by choice or otherwise), a labor official stated that the Department of Labor Protection and Welfare would issue further clarification on this point. It also remains to be clarified whether this welfare scheme applies to registered migrant workers, who represent a significant portion of the workforce in Thailand and are typically covered under national social protection systems.

Contribution Rates and Payment Mechanism

These Ministerial Regulations also include provisions governing the rates of Contributions and Supplementary Contributions that both employers and employees who are members of the Employee Welfare Fund must contribute. For the first five years from the effective date until 30 September 2030, the contribution rates for both employers and employees are fixed at a monthly rate of 0.25% of the individual employee’s salary. After five years, from the 1st of October 2030 onwards, the rate will increase to 0.5%. The regulations further establish guidelines for contributions. Of particular importance is the requirement that employees’ contributions shall be deducted before salary payments and deposited directly into the Employee Welfare Fund through the appropriate governmental channel.

Sanctions for Non-Compliance and Recommended Employer Action

Any employers subjected to this legal requirement should consider and review the regulations carefully as any failures to contribute will result in a penalty of 5% on the contributions amount, the supplementary contributions and/or the deficient amount, not including other penalty related to the filing of the relevant documentation. Additionally, the labor inspector may also issue an order to rectify any non-compliance of the laws which, if not cure, may result in a criminal prosecution for the employer or the directors in the case the employer is a juristic person. In response to the new enactment of Ministerial Regulations, employers should check and review their work rules to ensure that a Provident Fund has already been implemented in their workplace. If not, employers must implement the new Employee Welfare Fund regulations as they take effect on 1 October 2025.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with over 50 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, please contact us at: law@ilct.co.th

New Thai Welfare Fund Regulations : Key Obligations for Employers [please download]

Effective 1 May 2025, the Kingdom of Thailand will implement the Thailand Digital Arrival Card (TDAC), a mandatory online system that replaces the long-standing TM6 paper form. This transition forms part of the government’s broader digitalization initiative and signifies a substantial procedural transformation for inbound foreign nationals. Stakeholders involved in cross-border mobility and compliance should promptly assess the potential operational and legal ramifications of this change.

Overview of the Thailand Digital Arrival Card (TDAC)

The TDAC is a digital platform through which travelers are required to submit their personal and travel details prior to entering Thailand. The system is designed to apply to all foreign nationals arriving by air, land, or sea. As currently drafted, exemptions appear to apply only to transit passengers who do not undergo immigration clearance and to individuals holding a Border Pass for specified entry points.

Nonetheless, the current draft does not expressly address whether the TDAC requirements extend to certain categories of foreign nationals who may benefit from special privileges or immunities, including:

• Foreign government representatives visiting Thailand on official invitation;
• Diplomats and consular officers traveling under diplomatic or official passports;
• Officials of international organizations (e.g. United Nations personnel) traveling with internationally recognized documents such as the Laissez-Passer;
• Individuals covered by immunities and protections under international agreements to which Thailand is a party, including the Vienna Conventions on Diplomatic and Consular Relations (1961 and 1963, respectively).

In line with national legislation, it is also worth noting that members of diplomatic and consular missions, as well as international officials of the United Nations and its specialized agencies performing their duties in Thailand, are exempted from the Work Permit requirement under the Thai Foreign Employment Act. This reinforces the relevance of clarifying whether such individuals should also be exempted from the TDAC framework.

To ensure legal certainty and facilitate seamless compliance, it would be beneficial for the relevant authorities to provide additional clarification as to whether these categories are subject to, or exempted from, the TDAC procedures.

Application Process and Requirements

Travelers must complete the TDAC online within 72 hours before arriving in Thailand. The official submission portal is accessible at tdac.immigration.go.th. The process consists of the following steps:

1. Access the Portal: Select “Arrival Card” on the TDAC homepage.
2. Enter Personal Data: Input name, date of birth, nationality, and passport information.
3. Provide Travel Information: Include expected date of entry, means of transport, purpose of visit, and address in Thailand.
4. Health Declaration: Report any countries visited in the 14 days preceding arrival.
5. Review and Confirm: Verify the accuracy of all entries.
6. Submit and Receive Confirmation: Provide an email address to receive the TDAC in PDF format for presentation at immigration control.

Compliance Concerns and Legal Observations

At present, the draft text provides no specific penalties or legal sanctions for failure to complete the TDAC. This omission raises concerns regarding enforceability and compliance certainty. In the absence of defined legal consequences, the practical implications for travelers who arrive without a valid TDAC remain ambiguous and could create confusion at points of entry.

Additionally, the proposed implementation date of 1 May 2025 may prove overly ambitious. Given the potentially broad scope of application, including short-term visitors and first-time travelers unfamiliar with the digital entry procedures, this short lead time could result in widespread non-compliance. Adequate public dissemination, stakeholder training, and transitional measures are strongly advised to ensure seamless adoption.

Recommendations for Stakeholders

Entities responsible for international mobility—such as legal counsel, travel coordinators, corporate mobility departments, and travel agencies—should update internal protocols to reflect the TDAC requirement. Timely communication with affected travelers is critical to minimizing disruption.

In parallel, Thai authorities are urged to issue further guidance clarifying the categories of foreigners subject to the TDAC, the applicable sanctions (if any), and any transitional grace periods. Without such clarity, the rollout of the TDAC may generate legal uncertainty, particularly in cases involving internationally protected individuals.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with over 50 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, please contact us at: law@ilct.co.th

Legal Update: Introduction of the Thailand Digital Arrival Card (TDAC) and Its Implications for Foreign Entrants [please download]

Introduction

Thailand’s Foreign Business Act B.E. 2542 (1999) (FBA) establishes strict limitations on foreign ownership in designated business sectors in that foreigners are required to have a license prior to the commencement of business in Thailand, in order to safeguard local enterprises. Under the FBA, the restricted businesses are categorized in three (3) Business Lists as attached to the FBA.  List One Businesses are absolutely prohibited to foreigners. List Two Businesses may be operated by foreign investors only when they have obtained a permission from the Minister of Commerce, with the approval of the Cabinet.  Certain industries under List Three Businesses remain entirely off-limits to foreign investors unless they obtain foreign business licenses under Section 17 of the FBA from the Director General of the Department of Business Development, with the approval of the FBA Committee.  Despite these legal restrictions, many foreigners attempt to circumvent the law by utilizing nominee shareholders to be Thai-majority owned company so that they are not subject to the FBA or indirectly controlling businesses. This article outlines the legal parameters of the FBA while analyzing four key sectors where foreign violations are prevalent: retail and small shops, hospitality and lodging, travel services, and wellness businesses.

Hospitality and Lodging

Ownership Regulations

The hospitality sector, including hotels and guesthouses, is heavily regulated under List 3 (17) of the Foreign Business Act (FBA) and tourism laws, which generally require Thai-majority ownership. However, hotels are among the business activities promoted by the Board of Investment (BOI), meaning that foreign-majority ownership is possible if the business is approved by the BOI. Foreigners may also hold management roles without requiring a Foreign Business License (FBL). Additionally, under the Condominium Act, foreign ownership is restricted to a maximum of 49% of the total unit space or saleable floor area within a condominium building, ensuring that Thai nationals retain majority ownership of the remaining units.

Legal Risks and Government Actions

In popular tourist destinations such as Phuket and Pattaya, unauthorized involvement in hotel operations is a recurring issue. Many foreigners attempt to control villas and accommodations through nominee shareholders, directly violating Section 36 of the Foreign Business Act (FBA). In addition to these illegal ownership structures, an increasing number of investors—both foreign and Thai—have been found renting out condominium units on a daily basis, effectively operating unlicensed hotels without the necessary Foreign Business License (FBL) (in case of a foreign owner) or hotel permit. This practice violates the Hotel Act, which mandates proper licensing for short-term rentals, as well as condominium regulations that typically prohibit daily rentals to preserve residential integrity and security. These unregulated operations not only bypass taxation and regulatory oversight but also create unfair competition for legally operated hotels and accommodations. When detected, authorities impose severe penalties, including license revocation, asset confiscation, and criminal prosecution. Both foreign and Thai investors engaged in these illegal schemes face business bans, heavy fines, and potential imprisonment, underscoring the significant risks of operating outside the legal framework.

Travel Services and Tour Operators

Legislative Framework

To safeguard the interests of local businesses, the Tourism Business and Guide Act (1992) requires travel agencies to maintain at least 51% Thai ownership, while only Thai nationals are legally allowed to work as tour guides. Additionally, tour operator businesses are completely prohibited for foreigners under this Act. These regulations are designed to ensure that revenue generated from the tourism industry primarily benefits Thai citizens.

Non-compliance with these restrictions can result in severe penalties under Section 37 of the Foreign Business Act (FBA) and the Tourism Business and Guide Act, including fines, suspension of business activities, or even imprisonment, depending on the nature and severity of the violation.

Unlawful Practices and Consequences

Despite these legal safeguards, foreign operators frequently exploit nominee arrangements to establish travel agencies or hire unlicensed foreign tour guides, violating the Tourism Business and Guide Act and work permit laws. Such activities can result in business shutdowns, fines of up to 500,000 baht, and criminal charges. Foreigners found working as tour guides without proper authorization face immediate deportation, blacklisting, and severe legal repercussions, reinforcing the government’s commitment to preserving employment opportunities for Thai nationals in the tourism sector.

Wellness and Spa Enterprises

Operational Restrictions

Traditional Thai massage and wellness businesses fall under the protection of Thai labor laws, prohibiting foreigners from working as massage therapists. The FBA further restricts foreign ownership in these enterprises since it is regarded as “service business” under List 3 (21) of the FBA.  The foreign business license as well as specific licenses are required to be obtained prior to the commencement of business in Thailand, ensuring that these cultural and economic assets remain under Thai control.

Regulatory Crackdowns and Legal Liabilities

Due to the high demand for wellness services, foreign investors often attempt to operate spas and massage centers unlawfully. Government agencies frequently conduct inspections to enforce work permit regulations, leading to mandatory closures, fines of up to 1 million baht, and criminal charges for those found in violation. Additionally, foreign workers employed without legal authorization face immediate deportation and long-term blacklisting, underscoring the strict enforcement of labor and business laws in this sector.

Conclusion

Thailand’s Foreign Business Act and related regulations serve as protective measures to prevent unauthorized foreign control over key industries. Despite these legal constraints, non-compliance remains a widespread issue, leading to significant legal and financial consequences for those involved. Given the government’s reinforced enforcement efforts, foreign investors must fully understand and adhere to local laws. Seeking expert legal counsel before establishing a business in Thailand is essential to ensuring compliance, avoiding penalties, and securing legitimate investment opportunities within the country.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with over 50 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, please contact us at: law@ilct.co.th

Foreigners Operating in Restricted Thai Businesses: Legal Implications and  Regulatory Framework [please download]

Thailand’s recent legalization of same-sex marriage marks a major milestone in the region, making it the first Southeast Asian country to recognize marriage equality. As of January 22, 2025, same-sex couples will be able to legally register their marriages, gaining the same legal rights and responsibilities as opposite-sex couples.

One of the key areas affected by this legislative shift is taxation. In Thailand, marital status plays a crucial role in determining tax liabilities, access to tax incentives, and eligibility for tax exemptions. With the introduction of marriage equality, same-sex couples will now be subject to the same tax regulations as their heterosexual counterparts, ensuring equal treatment under the law.

How Marriage Equality Affects Personal Income Tax

Married couples in Thailand have different options when it comes to filing their personal income tax returns. They can choose to:

1. 1. File separate tax returns as individuals;
   2. File a joint return together; or
   3. File a joint return while keeping employment income separate.

In cases where certain types of income cannot be clearly attributed to one spouse, the law requires couples to split the income equally. However, there is an exception for income categorized under Section 40 (8), which can be divided based on mutual agreement. This provides couples with some flexibility in managing their tax liabilities.

Inheritance Rights for Spouses

In Thailand, inheritance laws provide significant protections for surviving spouses, ensuring financial security after the loss of a partner. Under Thai law, a surviving spouse is exempt from paying inheritance tax on any specified assets received from their deceased partner. This provision now extends equally to same-sex spouses, granting them the same legal rights and protections in matters of inheritance. This alignment reflects Thailand’s commitment to equality in family law and financial matters.

Gift Tax Rules for Married Couples

The introduction of marriage equality has also led to standardization in Thailand’s gift tax regulations. In general, the country imposes a 5% tax on income that exceed specific thresholds. However, income as a sustentation, support or gift given by spouse, ascendants, and descendants in the event of a formal ceremony, on customary, occasion, or under moral responsibility are exempt from tax up to a limit of 20 million THB per tax year.

For married couples, this means that any financial sustentation, support or gifts—such as cash, jewelry, or vehicles—given by one spouse to the other will be tax-free up to the 20 million THB threshold. If the total value of income exceeds this limit, the excess amount will be subject to a 5% gift tax.

Looking Ahead

The legalization of same-sex marriage in Thailand represents more than just a social and legal victory—it also brings practical implications, particularly in the realm of taxation. These changes ensure that all legally married couples, regardless of gender, are granted equal rights and obligations when it comes to tax matters.

While the legal framework is now in place, the practical application of these tax rules may require further clarification and ongoing adjustments. Same-sex couples are encouraged to stay informed about their tax responsibilities and seek professional advice when necessary to fully understand their rights and optimize any available benefits.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with over 50 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, please contact us at: law@ilct.co.th

The Impact of Same-Sex Marriage on Taxation in Thailand [please download]

Thailand’s Financial Business Hub Bill: A Transformative Step for Foreign Investment

Strengthening Thailand’s Position as a Financial Hub

Thailand has long been a pivotal economic center in Southeast Asia, leveraging its strategic location, infrastructure, and skilled workforce to attract foreign capital. To stay competitive on the global stage, the Thai Cabinet approved the Financial Business Hub Bill on February 4, 2025. This legislative initiative aims to modernize investment regulations and solidify Thailand’s reputation as a premier financial hub.

Currently under review by the Council of State, the proposal will return to the Cabinet before proceeding to parliamentary approval. Once enacted, the new framework will align with global best practices, fostering long-term stability and investor confidence. By reducing regulatory uncertainty and enhancing transparency, this reform underscores Thailand’s commitment to strengthening its role in the regional financial landscape.

The Role of the One-Stop Authority (OSA)

A key pillar of this reform is the establishment of the One-Stop Authority (OSA), a centralized body designed to streamline licensing and regulatory processes. Tasked with overseeing compliance and facilitating operations for financial service providers, the OSA will play a crucial role in simplifying approval procedures.

Notably, the OSA will handle licensing for cryptocurrency exchanges, blockchain enterprises, and digital wallet providers in alignment with Thailand’s Digital Asset Act. By standardizing these processes, the bill enhances regulatory transparency, positioning Thailand as a strong competitor to established financial hubs like Singapore and Hong Kong. The OSA’s efficiency-focused framework aims to eliminate bureaucratic obstacles, making it easier for both local and international firms to navigate compliance requirements. A clearer regulatory structure is expected to attract institutional investors and multinational corporations looking to expand their presence in Thailand.

Incentives and Economic Impact

To attract foreign investment, the bill introduces a range of incentives, including competitive tax rates, exemptions from key provisions of the Foreign Business Act, relaxed foreign ownership restrictions for commercial and residential properties, and simplified visa and work permit procedures for foreign professionals.

These measures are expected to boost foreign direct investment (FDI), particularly in sectors such as fintech, blockchain, and investment banking. The regulatory overhaul will impact multiple financial sectors, including banking, insurance, securities trading, and digital finance. By encouraging fintech and blockchain innovation while ensuring compliance with anti-money laundering (AML) and data security regulations, the initiative strengthens Thailand’s credibility as a regional financial hub.

A more investment-friendly regulatory environment is likely to drive competition, diversify financial products, and accelerate economic modernization. Additionally, supportive policies will encourage corporate expansion, further integrating Thailand into ASEAN’s economic network and broadening the scope of its financial services industry.

Future Prospects and Strategic Considerations

With a strong emphasis on regulatory efficiency, the Financial Business Hub Bill represents a transformative step toward establishing Thailand as a major financial center. The framework is designed to facilitate knowledge transfer, talent development, and cross-border investment, benefiting both local and international enterprises.

Clearer legal protections will also enhance investor security, ensuring that Thailand meets global expectations in financial governance and corporate accountability. The expected influx of foreign financial firms is likely to create a ripple effect, benefiting industries such as legal, consulting, and technology services.

As implementation nears, investors and businesses should closely monitor upcoming changes and position themselves to capitalize on Thailand’s evolving financial landscape. This reform is more than a regulatory update—it marks a strategic shift toward solidifying Thailand’s role in finance, innovation, and investment opportunities.

Companies looking to expand in Southeast Asia should consider Thailand’s newly structured financial regulations and strategic advantages, making it an attractive destination for financial and fintech ventures.

About ILCT Ltd.

ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with over 50 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity.

For more information, visit our website: www.ilct.co.th

Thailand’s Financial Business Hub Bill: A Transformative Step for Foreign Investment [please download]