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On June 20, 2022, the Personal Data Protection Committee announced the four notifications regarding the Personal Data Protection Act B.E. 2562 (2019) (PDPA). The intention of the notifications is to avoid the creation of a too large burden to small and medium size businesses and also lays down rules for execution of the Act.

Following, a summary of the notifications:

• • the Notification of the PDPC Re: Rules and Procedures for the Preparation and Maintenance of the Record of Processing Activities by the Data Processor B.E. 2565 (2022), which grants 180-day grace period and thus will be effective by the end of the year, establishes guidelines for Data Processors to create, organize and maintain the records of their activities concerning data processing;
  • the Notification of the PDPC Re: Exemption to the Record of Processing Activities Requirement for Data Controllers that Are Small Businesses B.E. 2565 (2022) provides an exemption from recording the data processing activities as prescribed by the PDPA and it applies to small and medium size enterprises (defined as) companies in the manufacturing industry having no more than 200 employees or less than THB 500 million in annual revenue; and b) companies operating in the service or trading sectors having no more than 100 employees or less than THB 300 million in annual revenue), as well as to community enterprises, social enterprises, cooperatives, foundations, associations, religious organizations, non-profit organizations, and household activities, except certain services and activities that are not exempted;
  • the Notification of the PDPC Re: Security Measures of the Data Controller B.E. 2565 (2022) establishes general requirements Data Controllers must put in place with regard to data security measures. In particular, it requires the data controller to make its personnel and users aware of privacy and security measures, to review the implemented security measures whenever it is necessary, or when there is a change in technology, or if a data breach incident happens, and to set security measures requirements for its data processor; and
  • the Notification of PDPC Re: Rules for the Consideration of the Imposition of Administrative Penalties by the Expert Committee B.E. 2565 (2022) is set procedure for the issuance of administrative fines to Data Controllers and Data Processors at the early stage of the PDPA enforcement. As such, administrative fines will be issued only in cases of serious or repeated violations, while in cases of non-serious violations Data Controllers and Data Processors may receive warnings and administrative orders to cease and desist from the activities in breach of the regulation.

As the Expert Committee which will be appointed under the PDPA has the power to impose the penalty as an administrative fine by taking into consideration the level of severity of non-compliance, the business size of the data controller or the data processor, or other circumstances, the Notification on the Criteria for issuing Administrative fines and orders of the Expert Committee is therefore meant to limit the consequences on SMEs which are not ready to comply, as the administrative penalties are quite severe and may apply to the data controller or the data processor, or any juristic or natural persons violating the PDPA’s provisions, in the form of a monetary fine up to five million Baht.

In this context, it is useful to mention that failure to comply with the requirements under these subordinate regulations may, apart from the administrative penalties, lead to the imposition of other penalties on natural or juristic persons, including:

• • Criminal penalties, which may apply when an offender violates a law which interferes with normal operations of society. Where there is a violation of the PDPA, criminal penalties can be imposed against the data controller if the data subject or any other person suffers any damage, its reputation is impaired, or such person becomes the subject of scorn, hatred, or humiliation, in the measure of imprisonment up to six months, or a fine up to 500,000 Baht, or both. If any of these acts is performed with the intention of receiving unlawful benefits, punishment increases to imprisonment up to one year, or a fine up to one million Baht, or both. Criminal penalties can also be brought against other persons who perform duties relating to personal data protection according to the PDPA, in the measure of imprisonment up to six months, or a fine up to 500,000 Baht, or both;
  • Civil penalties, which may be enforced when the data controller or the data processor who holds the personal data of the data subject causes damages to the latter as a consequence of their failure to comply with the PDPA, either intentionally or negligently. The data subject can claim actual compensation from the data controller or the data processor for such damage, including all actual expenses spent by the data subject to prevent or suppress such damage. In addition, the court shall also sentence the data controller or data processor to pay punitive damages to the data subject not exceeding twice the amount of the actual compensation proved.

According to the Minister of Digital Economy and Society, another four subordinate regulations are expected to be issued soon.

For any inquiries related to PDPA compliance and related secondary regulations, we invite you to contact ILCT Ltd. via email at law@ilct.co.th.

The Personal Data Protection Committee issues notifications regarding enforcement of the PDPA and its penalties Download

On June 21, 2022, the Cabinet of the Royal Thai Government has decided to exempt the Personal Income Tax (PIT) collection from foreign actors when working on films shot in Thailand in the next five years, with the expectation of increasing the revenue in Thailand, publicizing and promoting the image of Thailand through foreign films, and developing the skills and potential of personnel in Thai film industries.

In general, foreign actors or actresses shall be liable to pay PIT in Thailand on income derived from shooting films in the Kingdom. The said income may be exempted from PIT under the Avoidance of Double Taxation Agreement between Thailand and the foreign country in which the foreign actor has its tax residency.

However, the new measures exempt actors and actresses from PIT under the conditions that the actor or actress is domiciled abroad, and receives an income due to his or her performance in a foreign film produced by a company or juristic partnership incorporated under foreign law which obtains a filmmaking permit under the law governing films and videos.

In addition, it is useful to remind that the Department of Tourism provides measures to promote foreign film shooting in the form of cash rebates at the rate of 15-20% of the expenses incurred in the country – with the ceiling being fixed at 75 million baht – when the funds are obtained from foreign sources and paid to Thai individuals or Thai juristic persons.

For any inquiries related to regulation on movie production in Thailand or taxation regulation, please contact ILCT Ltd. via email at law@ilct.co.th.

Foreign actors to be exempt from paying Personal Income Tax in Thailand Download

In an attempt to attract ‘high-potential’ foreigners to stay in Thailand to stimulate domestic spending and investment, on January 28, 2022, the Cabinet of the Royal Thai Government approved a long-term visa (10 years) dedicated to wealthy and highly skilled professionals, retirees, and nomad workers in the country.

The new regulations were proposed in two drafted Ministerial Announcements by the Ministry of Interior and the Ministry of Labor. The plan targets four groups of high-potential foreigners:

• • Wealthy foreigners – wealthy individuals holding at least USD 1 million in assets
  • Retirees – individuals aged 50 years and older who have an annual income or stable income
  • Work-from-Thailand professionals – remote workers working for well-established overseas companies
  • High-skilled professionals – professionals or experts in targeted industries working for business entities, higher education institutions, research centers, specialized training institutions in Thailand, or Thai government agencies.

According to the Ministry of Interior’s Announcement, the regulations will provide for the long-term resident visa (LTR visa) under the conditions specified as follows.

The Long-term resident visa (LTR) can be requested for up to four family members (including spouses and children under 20). The qualifications and conditions are determined by the Board of Investment, being the designated authority to handle the application procedure.

As announced on June 16, 2022, starting from September 1, 2022, foreigners can submit a request for a qualification endorsement letter together with evidence and documents required by the Board of Investment, Royal Embassies, or Consulate Generals in foreign countries, or other channels to be determined by the Board of Investment.

The steps for applications and stipulations for the LTR Visa approval are:

1. 1. Register and submit an online application for a qualification endorsement letter for the LTR visa, together with all supporting documents.
   2. Within 20 working days, after the completed documents are received, applicants will be notified of the results.
   3. Qualified applicants may then proceed with applying for LTR visa issuance at the Royal Thai Embassies/the Royal Thai Consulate-Generals overseas, or Immigration Offices in Thailand, within 60 days from the issuance date of the endorsement letter. The visa will be valid for initially 5 years plus an extension for another 5 years, with the total validity period capped at 10 years.
   4. After receiving the visa, foreigners can apply for a work permit. The LTR Visa comes with the benefit of facilitation services for visa and work permit, thus, applicants who work in Thailand may collect digital work permits at the Department of Employment at the One Stop Service Centre for Visa and Work Permit, Chamchuri Square Building, Bangkok, or provincial labour offices. The processing fee is 3,000THB per annum to maintain a digital work permit.
   5. Foreigners applying for a work permit are allowed to start working right after submission without having to wait for the work permit issuance itself. However, the validity of the work permit is as follows:
2. • If they are employed, their work permits shall be valid for the same period as the employment contracts, but not more than 5 years starting from the issuance date of the work permit. Their work permits can be extended according to the term of their employment contract, for up to 5 years at a time.
   • Those who are self-employed can apply for the work permits for up to 5 years, and the permits can be renewed for not more than 5 years each time.

Foreigners can apply for a change in the visa type after receiving an LTR Visa, in compliance with the regulations of the Immigration Bureau.

If the foreigners fail to comply with the requirements specified for each eligible category, their LTR Visa shall be revoked.

On May 10, 2022, the Government Spokeswoman Rachada Dhnadirek, announced that the cabinet approved a 50% reduction of the processing fee for the 10-year-visa with multiple entries, from 100,000THB to 50,000THB. The approval will be effective 90 days after the Ministry of Interior’s announcement and publication in the Government Gazette.

Other privileges that will benefit the LTR Visa holders are:

• • Exemption from the “four Thais to one foreigner” employment requirement ratio
  • Fast track service at international airports in Thailand
  • 17% personal income tax for high-skilled professionals
  • Residential Address reporting only once a year, in lieu of every 90 days.

For any inquiries related to immigration, visa requirements and related regulations, including general immigration regulations, please contact

Cabinet approves long-term visas to attract high-potential foreigners Download

Starting from July 1, 2022, the Thailand Pass registration scheme to enter Thailand will be removed.

Following, we summarize the updated conditions and requirements to enter Thailand, starting from July 1, 2022 (as provided on the TAT website).

Fully vaccinated* international travelers are only required to show proof of either a certificate of vaccination or a negative RT-PCR or professional ATK test result within 72 hours of travel. These can be in print or digital format. Random checks will be made on arrivals at Thailand’s international airports or land border checkpoints (in 22 provinces).

Unvaccinated or not fully vaccinated international travelers who are randomly checked and who are unable to show proof of a pre-arrival negative test will be required to undergo a professional ATK test at the point of entry.

The 10,000US$ health insurance requirement for foreign visitors will also be removed, starting on the same date.

Please, be aware of any other immigration requirements, such as visa requirements or similar.

*Travelers are considered to be fully vaccinated after two doses of any vaccine approved for use by Thai authorities (namely Oxford/Astra Zeneca, Moderna, Pfizer /BioNTech, Janssen (Johnson & Johnson), Sinopharm (Beijing), and Sinovac).

On March 8, 2022, the Thai Cabinet of the Royal Thai Government has approved in principle two different sets of tax measures, as we explained in our dedicated article on Tax Relief Measures on Digital Assets and Startups.

The two draft Royal Decrees proposed by the Ministry of Finance exempt the following from VAT:

• the transfer of cryptocurrencies or digital tokens (Digital Assets) in the digital asset exchanges approved by the Securities and Exchange Commission of Thailand and the Minister of Finance; and
• the transfer of cryptocurrencies (Retail Central Bank Digital Currency or Retail CBDC) issued by the Bank of Thailand under the Cryptocurrency development and testing project for public use.

A new decree promoting digital asset investments in Thailand has just come into force. The Government has formally introduced a (VAT) exemption for transfers of digital assets made on digital asset exchanges. This was enacted by two royal decrees which were published in the government gazette on May 24, 2022, as follows:

1. 1. The Royal Decree issued under the Revenue Code Re: VAT exemption (No. 744) B.E. 2565 (2022), which rules that the trading of digital assets on digital asset exchanges shall be exempt from VAT; and
   2. The Royal Decree issued under the Revenue Code Re: VAT exemption (No. 745) B.E. 2565 (2022) which rules that trading in Thailand’s Retail CBDC issued by the Bank of Thailand under the Cryptocurrency development and testing project for public use shall be exempt from VAT.

The VAT exemptions under both royal decrees shall apply to transactions that occurred from April 1, 2022, to December 31, 2023.

For any inquiries related to taxation on digital asset businesses or digital assets and related regulations, including Startup and investments regulation, please contact ILCT Ltd. via email at law@ilct.co.th