H&P Lawyers in Bangkok have prepared this legal article for June 2023 summarizing the most relevant new laws and regulatory amendments in Thailand.
On this regard our Bangkok lawyers would like to highlight the following relevant updates in the area of tax evasion, international trade, customs, Thailand Board of Investment BOI and medical cannabis:
ANNOUNCEMENT OF CUSTOMS OFFICE NO. 83 / 2566
From now on, the entrepreneur IS required by law to show the license Warehouse, Duty-free zone license, and License for business operating in the duty-free zone, which can be shown via an electronic way such as a monitor/screen. The entrepreneur can show all the licenses on the same monitor, with a minimum of 5 seconds per each license.
EXCHANGE OF INTERNATIONAL TAX INFORMATION
Starting on June 2023, Thailand will start to exchange tax and financial information with third parties to fight international tax evasion. The Thai Revenue Department will exchange information via three ways: A) on tax payers, both individuals and companies requested by other parties B) financial and tax information not requested by third parties C) annual reports based on the international tax agreements signed by Thailand.
The regulation is the Multilateral Competent Authority International Agreement on the Exchange of Country Reports, which Thailand signed last December 2022 and the Royal decree on information exchange on March 2023 implementing a global standard and improve transparency, according to the CRS requirements.
BOI ANNOUNCEMENT No. Por. 6 / 2565 FOR LTR VISA
There was a new announcement regarding Long Term Visa in Thailand made by the Board of Investment announcement amending the new criteria for a long-term visa to draw highly skilled workers to Thailand in the following sectors:
1) Automotive industry
2) Electronic Industry
3) Quality tourism industry
4) Agriculture, food, and biotechnology industry
5) Transport and logistics industry
6) Automation and robot industry
7) Aviation, aerospace, and aerospace industry
8) Biofuel and biochemical industry
9) Petrochemical and Chemical Industry
10) Digital Industry
11) Medical Industry
12) National defense industry
13) Industries that directly support the circular economy and are significant, such as fuel production from waste, water resource management, etc.
14) International Business Center (IBC)
15) Other industries by foreigners who apply for qualification certification must work using special skills in one of the following areas:
(1) research and development in targeted industries or targeted technologies, such as Biotechnology, Nanotechnology, Advanced Material Technology, Digital Technology
(2) human resource development in science and technology at the vocational level or higher education
(3) the application of artificial intelligence, automation, and robot technology in doing business
(4) digital planning and development to enhance production and service levels of businesses
(5) provision of services or advice on financial or marketing consulting
(6) Environment and energy management
(7) management or advice Consulting in the Incubation Program Acceleration Program and Innovation Support and startup ecosystems
(8) Alternative dispute resolution services
(9) promoting and supporting economic development trade and investment by the Foreign Chamber of Commerce and trade and investment promotion organizations from abroad.
THAILAND CUSTOM DEPARTMENT AND NEW ZEALAND CUSTOM SIGNED MRA
The Director General of the Customs Department Thailand and the New Zealand Customs Service Chief Executive signed the Mutual Recognition Arrangement (MRA) at the World Customs Organization. This agreement aims to increase the security of both countries’ chain and export markets, as Thailand is the second-largest economy in Southeast Asia and New Zealand’s 10TH trading partner.
NEW REGULATION FOR LABOR DEPARTMENT AND INVESTIGATIONS VIA ELECTRONIC SYSTEM
This regulation aims to increase the capability of the labor investigation system for employees and employers. The labor committee hopes this new regulation will go along in line with the aim of the current government to become a digital government.
UPCOMING MORE RESTRICTIVE REGULATION FOR MEDICAL CANNABIS BUSINESSES
Thailand will foresee regulatory changes in the medical cannabis sector after the elections results of May 2023. The most voted party during the last national elections announced that: “Operators and growers who comply with rules will have their business protected […] This is for those who have obtained licenses and registrations”.
Until now around 12,000 companies (2,000 only in Bangkok) have filed applications to sell, process and export medical cannabis in 76 provinces. Nevertheless, the vast majority of businesses in the sector have not applied yet for the licenses, what in the opinion of H&P Bangkok Lawyers can result in a dramatic setback for the foreign investors in the sector due to lack of compliance and licensing.
NATURAL SAND HS CODE 25.05: PROHIBITED FOR EXPORTATION
Last 15th of May, the Ministry of Commerce announced that natural sand is prohibited from being exported outside of Thailand. Nevertheless, there is an exemption for those who wish to export for research purposes or personal use with a maximum of 2 Kilograms.
If you need to consult with a lawyer in Thailand, please contact our law firm in Bangkok at [email protected]
