Category Archives: News & Articles

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]

The Kingdom of Thailand is set to implement a significant change in its entry requirements for travelers from visa-exempt countries. The introduction of the Electronic Travel Authorization (ETA) system will affect millions of tourists and business travelers who previously enjoyed visa-free entry. This new travel formalization is expected to streamline border processes but also introduce an additional step for those wishing to visit the Kingdom.

What is the ETA system?

The ETA is an online travel authorization that will be required for nationals of countries that are currently exempt from needing a visa to enter Thailand for stays up to 30 days. Similar to other nations that have adopted digital entry systems, the ETA will allow travelers to complete their entry application online before arriving in Thailand. Upon approval, travelers will receive an electronic authorization that must be presented upon arrival. The move aligns with global trends of digitalizing travel documentation, making it more efficient for both travelers and immigration authorities. According to the Thai government, the introduction of the ETA is designed to improve security, reduce border congestion, and allow for more efficient processing of incoming travelers.

Which countries are affected?

The new ETA requirement will affect all travelers entering Thailand under the visa exemption program. Currently, nationals from the 93 visa-exempt countries must apply for an ETA before their arrival. Citizens of these countries can expect to submit their ETA application online through the Thailand E-Visa portal. This process must be completed for each entry into Thailand and approval is expected within approximately one hour. There is no charge for each ETA registration.

Certain travelers, such as diplomatic passport holders or those not in high-ranking positions, are exempt from the ETA requirement.

Why is Thailand introducing the ETA?

This initiative aims to enhance border management while supporting international tourism. This new system offers several key benefits. Firstly, it will improve the monitoring of visitors but also ease congestion at immigration checkpoints. Besides that, it reduces illegal immigration and public health risks. By automatically flagging certain issues such as overstay records or criminal activity, the ETA system strengthens border security and ensures safer, more efficient travel.

 How does it work:

Under this system, travelers from visa-exempt countries would need to obtain prior authorization before their arrival. The process is expected to be straightforward, and applicants will need to provide personal information, travel details, and possibly proof of onward travel or sufficient funds. The ETA will be electronically linked to the traveler’s passport, so there will be no need for a physical visa stamp. Travelers can use the automated gates at immigration checkpoints using a QR code provided by the system.

Applicants can apply for an ETA through the Thailand E-Visa portal, with approval typically occurring within 24 hours. The process is designed to be fast and efficient, requiring minimal documentation. Airlines may ask to see proof of registration before allowing passengers to board their flight to Thailand.

When will it be implemented?

The ETA system will be fully implemented by middle of July 2025. Thai authorities are currently working on the specifics, with the goal of simplifying entry procedures, preventing potential security threats, and maintaining Thailand’s status as a premier Southeast Asian travel destination.

Please reach out to us at law@ilct.co.th for any further questions regarding this matter for professional legal advice.

Thailand introduces Electronic Travel Authorization (ETA) for Visa-Exempt Nationals in 2025 [please download]

Thailand is introducing a series of tax measures aimed at stimulating economic growth, encouraging local spending, supporting public health, and attracting skilled Thai professionals back to the country. These initiatives reflect the government’s commitment to boosting the economy in Thailand while drawing on global talents.

At the center of these efforts are two key programs: Easy e-Receipt 2.0, designed to drive consumer spending, and tax measures encouraging donations to public health institutions and the return of skilled Thai professionals to targeted industries.

Easy E-Receipt

Thailand’s Revenue Department is introducing Easy e-Receipt 2.0, a tax initiative designed to encourage electronic transactions and provide tax relief for individual taxpayers. This program, running from 16 January to 28 February 2025, allows deductions of up to 50,000 THB as an allowance for personal income tax on eligible expenses made within Thailand. By promoting the use of e-Tax invoices and e-Receipts, the initiative aims to streamline tax filing, reduce paperwork, and drive the country’s digital transformation. Sellers or service providers must receive approval from the Revenue Department to issue these documents.

The program is exclusively available to individual taxpayers who file personal income tax returns, while ordinary partnerships and non-legal entities are not eligible. Taxpayers can deduct up to 30,000 THB for expenses paid to VAT or non-VAT registrants. An additional 20,000 THB deduction applies to costs paid for OTOP (One Tambon One Product) items, as well as goods and services from community enterprises and social enterprises registered with the relevant government agencies. This provides an opportunity to support local businesses while benefiting from significant tax savings.

Only certain purchases remain eligible for deductions if the seller is a non-VAT registrant. These include books, newspapers, and magazines in both physical and digital formats, as well as OTOP products and products and services from community enterprises and social enterprises. These deductions make it easier for taxpayers to support local businesses and cultural products without losing tax benefits.

However, certain expenses are excluded from the program, such as alcohol, beer, wine, tobacco, fuel, cars, motorcycles, boats, and Long-term services that extend beyond the program period.

To ensure eligibility, taxpayers must receive an e-Tax Invoice (full form) or e-Receipt, which is automatically recorded in the taxpayer’s My Tax Account.

Tax Measures

Personal Income Tax and Corporate Income Tax for e-Donation

As part of efforts to boost public health funding, the government has extended tax benefits to encourage donations to medical and healthcare institutions. Effective from 1 January 2025 to 31 December 2027, this initiative allows individuals and juristic entities to deduct twice of e-donation for personal income tax and corporate income tax, respectively.

Individuals can deduct twice of e-donation amount and juristic entities can deduct twice of e-donation amount or asset value, provided that e-donation is paid or assets are transferred to specified organizations or foundations, such as Thai Red Cross Society, Siriraj Foundation, Chulabhorn Foundation.

Personal Income Tax Rate Reduction for Skilled Thai Employees and Tax Incentives for Employers

In parallel, the government is implementing tax measures to attract Skilled Thai professionals from overseas. This initiative is designed to align with national economic strategies, including the Promotion of Investment Act B.E. 2520 (1977), the National Competitiveness Enhancement Act for Target Industries Act B.E. 2560 (2017), and the Eastern Economic Corridor (EEC) Act B.E. 2561 (2018).

For Skilled Thai Employees returning to work in targeted industries can reduce personal income tax rates from a progressive rate of up to 35% of net taxable income to a 17% flat rate of taxable income for the period from the effective date until December 31, 2029, provided that the withholding tax amount has not been claimed as a tax refund or credit, either wholly or partially. The employers must file the appropriate form with the Revenue Department to report the name of the skilled Thai employees before making the first payment.

To qualify for these incentives, employees must meet specific criteria set forth by the Notification of the Director-General of the Revenue Department, such as holding Thai nationality, possessing at least a bachelor’s degree, and having two or more years of overseas experience.

For Employers in eligible industries are also incentivized to hire skilled Thai employees. Companies can claim 1.5 times the actual salary paid as a deductible expense for corporate income tax.

These initiatives highlight Thailand’s commitment to driving growth through local economic participation and global expertise. By encouraging consumer spending, supporting healthcare through donations, and incentivizing the return of skilled professionals. These efforts position Thailand as a leader in innovation and economic progress.

Please reach out to us at law@ilct.co.th for any further questions regarding this matter for professional legal advice.

Personal Income Tax on Easy e-Receipt Program and Tax Measures [please download]