Thailand Legal News
BOI increases the e-monitoring report frequency from twice a year to quarterly
The Board of Investment (BOI) has amended its e-monitoring notification of project progress reports from twice per year to quarterly. As a result, promoted businesses must now submit reports within 30 days after the end of March, June, September, and December each year.
This progress-reporting obligation applies from the date of issuance of the investment promotion certificate until the promoted person obtains an operating license, and also applies to promoted businesses whose certificates previously required report submissions in February and July.
https://www.boi.go.th/upload/content/por8_2569_6a0e6ed158b7b.pdf
BOI’s Thailand FastPass (Investment Acceleration Scheme)
To attract major investment, the Board of Investment (BOI) has launched the Thailand FastPass system, which provides dedicated support to expedite (fast-track) approval and licensing processes for qualifying projects. To qualify, a project must meet all of the following requirements:
- Application Status: A formal investment promotion application must have been submitted.
- Minimum investment Value: THB 1 billion (approx. EUR 26 million) (excluding land and working capital).
- Industry & Technology: Must operate in a targeted, high-tech industry eligible for 8+ years of Corporate Income Tax (CIT) exemption (e.g., Biotech, EV/parts, Advanced Electronics, Digital, AI, etc.).
- Additional requirements: Must demonstrate high-level economic benefits for Thailand, such as significant hiring of Thai personnel, strong local supply chain integration or technology capability enhancement
Upon granting, the Thailand FastPass status will have a validity period of two years, and is subject to compliance with performance milestones, and requires completion of at least 20% of the total investment value within six months of receiving the status.
https://www.boi.go.th/upload/content/por1_2569_695f584d3b2b8.pdf
Incentive for automotive industry efficiency upgrade
The Board of Investment (BOI) has issued incentive measures for automotive business operators, covering both traditional and electric vehicles (Battery Electric Vehicle: BEV, Plug-in Hybrid Electric Vehicle: PHEV, and Hybrid Electric Vehicle: HEV), to incentivize the integration of automation, robotics, and advanced digital solutions into production lines. In order to qualify, a project must meet all of the following requirements:
- existing automotive projects (whether previously BOI-promoted or not), and new investment projects.
- Minimum Investment: THB 1 million (approx. EUR 26,000), excluding land and working capital.
- Investment Scope: The projects must propose an investment plan for automation/robotics, and demonstrate a plan for product development (e.g., energy-efficient, smart or safe technologies).
The eligible projects will be entitled to the following benefits:
- Import duties exemption: Exemption from import duties on machinery.
- CIT exemption: 50% Corporate Income Tax (CIT) exemption for 3 years, calculated based on the investment value of automation/robotics.
- Increased to 100% CIT exemption for 3 years if at least 30% of the automation/robotics machinery value involves domestic manufacturing
- For already-operational existing projects, the exemption period commences from the date of the first revenue following receipt of the investment promotion certificate.
Applications must be submitted by the last business day of 2027.
https://www.boi.go.th/upload/content/4_2569_696d9eabe86ff.pdf
Cabinet Resolutions
Draft Defective Goods Liability Act (Lemon Law)
The Cabinet approved the draft Defective Goods Liability Act, commonly referred to as the “Lemon Law”. Based on the current public announcements, the draft entails the following key features:
- Scope of application
The draft Act applies to both B2C (business to consumer) and B2B (business to business) sales and also covers hire-purchase, exchange contracts (subject to the final wording). However, used goods, live animals, goods sold in auction, and goods prescribed by ministerial regulation are excluded.
- Presumption of pre-existing defect
A defect appearing within a set period (generally 6 months) after delivery is presumed to have existed at delivery, shifting the burden of proof to the seller. The different goods may subject to different assumption poriod, for example, 6 months for general goods, 1 year/10,000 km. for cars, and 6 months/5,000 km. for motorcycles, which is similar to the provision under the German law
- Remedies for defects
Buyers may claim repair, replacement, price reduction, or contract rescission, depending on the nature and severity of the defect. Buyers may also be entitled to claim damages and reasonable expenses.Not every defect entitles buyers to replacement or rescission. In principal, repair is generally the first-line remedy unless the defect is material or the seller fails to repair the goods within the prescribed timeframe.
- Special provisions for specific goods
The draft Act sets special timeframes and remedies for certain goods, including vehicles (cars and motorcycles) and electrical, electronic, or engine-driven appliances. These include shorter replacement periods for material defects, different repair periods for general goods, motorcycles, and cars, and additional remedies for vehicles where safety-related defects cannot be properly rectified.
- Other notable provisions
The draft Act also invalidates pre-agreed contractual terms that are less favourable to buyers. It further allows hire-purchasers and financed users under third-party financing arrangements to exercise the buyer’s rights under the Act, including, in certain cases, the right to postpone or withhold instalment payments while the defective goods are being repaired or replaced.
Having stated the above, this is currently only a Cabinet-approved draft. It must still pass through the parliamentary process (House of Representatives and Senate), during which its content may be further amended, before enactment.
https://www.bangkokpost.com/business/general/3271821
Draft amendments to the Immigration Act and Hotel Act
The Cabinet approved amendments to the Immigration Act and Hotel Act in relation to the foreigner reporting requirements.
The same with the draft Defective Goods Liability Act, the draft Acts, as detailed below, must still pass through the parliamentary process (House of Representatives and Senate), during which their content may be further amended, before enactment.
The key proposed changes under the draft Acts are as follows:
- Increase flexibility to the 90-day report requirements
Under the current law, foreigners staying in Thailand for more than 90 days are required to notify the Immigration Bureau of their place of residence every 90 days. The draft amendment removes this as a statutory obligation, and confers the power to the Commissioner-General of the Royal Thai Police to prescribe regulations in relation to reporting requirements and limits the scope to matters of national security, public order, or public welfare.
- Increase flexibility in the annual permanent residence issuance quota
The current law imposes a fixed statutory cap on the number of foreigners who may be granted permanent residence per year . The draft amendment will remove these fixed caps from the Act and confer the power to set such caps to the Minister, subject to Cabinet approval, to announce annual quotas.
- Remove reporting obligations by foreigners
The amendments eliminate several overlapping reporting obligations, including a foreigner’s obligation to self-report, address changes and inter-provincial travel. Hotel operators’ foreign guest reporting obligation under the Immigration Act is also removed, leaving the reporting duties under the Hotel Act as the sole reporting channel.
However, house and premises owners still retain their duty to notify the Immigration Bureau of a foreign national taking up residence through electronic notification, as the electronic notification will be expressly permitted.