Our lawyers in Thailand of H&P have prepared a summary of the most relevant legal updates in February 2025 related to foreign investment, taxation and immigration law in Thailand as follows:
Section 153 ‘Alcohol Production License’ of Excise Tax Law amendment
The new law amended, section 153 ‘Alcohol Production License’ of Excise Tax Law, allows citizens to obtain the license and own distillation equipment, boosting reduction of monopolies held by large producers, empowering Thai alcohol as a soft power.
On January 2025, the House of Representative has approved the amendment of aforementioned law as the first step of reforming Thailand’s alcohol’s industries, ease restrictions, enabling individuals to obtain alcohol production licenses and own distillation equipment from previous law which had various restriction, obstructing the thai citizens to have the license.
New project announced by Minister of Finance: Cryptocurrency payment in Phuket
Mr. Pichai Chunhavajira, the Deputy Prime Minister and Minister of Finance plan a ambitious project in Phuket within this year to launch pilot crypto payments as an alternative to cash for tourist. The tourist may soon pay in bitcoin for goods and services in purpose of convenience and business opportunities.
The Minister said that no amendments to current laws would be necessary, as the government already has mechanisms required to support the initiative.
The tourist participating in the pilot crypto might be allowed to register their Bitcoins through Thai exchange and verify their identities before using coins to purchase goods and services in Phuket. Currently, the project is in experimental state.
The bill to legalize casinos and gambling was approved by Thai cabinet
On 13 January 2025, the Thai cabinet has approved the bill to legalize casinos and gambling. Nowadays, the casinos and gambling are illegal in Thailand, only some gambling is permitted such as stated-controlled horse races and official lottery.
According to the bill ‘Entertainment Complex’, the legal casinos would operate under the legal frameworks and the government. If the casinos and gambling is not held within area the government prescribe, it would be illegal.
Also, the interesting aspect of the bill is, even the private casinos is illegal but if the government collect the excise tax on gambling businesses or grant concessions to private entities to operate casinos, it would be considered ‘legal’.
Conditions of long-term resident visa was eased
The cabinet eased several conditions for granting long-term resident visas for wealthy foreigners and digital nomads with high incomes, on purpose of attracting more potential residents.
For Digital nomads, the cabinet agreed to reduce the lower income requirement for the employers based aboard which the foreigners seeking to work remotely from Thailand. The income requirement was reduced to 50 million USD from the former amount, 150 million USD which was excessively high and not reflective of the capabilities of foreign employees with stable employment.
For Wealthy Global citizens, the cabinet agreed to revoke the requirement for applicant to have an annual income at least 80,000 USD for two consecutive years before applying the visa.
Also, with long-term resident visa for Dependents, the cabinet agreed to increase the restriction on the number of dependents eligible under long-term resident visa from previously was at four, whereas other types of visas had no such restriction.
Additionally, the Thai cabinet also approved the BOI’s proposal to revoke most Smart visas and retaining only the Smart visa for startup business owners due to the revoked Smart visa categories were similar to the conditions for obtaining Long-term resident visas and the purpose to promote the Long-term resident visas as the primary type.
Corporate income tax has reduced into 10% in Special Economic Zone
On 13th January 2025, the cabinet approved a royal decree to implement the tax reduction. The Revenue Department has reduced the corporate income tax in Special Economic Zone (SEZs) from the standard rate of 20% into 10% for 10 years of accounting period to encouraging Thai economy.
The tax reduction applies to companies and juristic partnership engaging in targeted business and industries as determined by the Special Economic Zone Policy Committee, with business establishments located within the special economic zone, regardless of the location of their headquarters.
Additionally, this applies to income derived from the production of goods within the special economic zone or income generated from providing services that are utilized within the zone, for a continuous period of 10 years of accounting periods.
Special Economic Zone or SEZs include these following areas: Tak, Mukdahan, Sakaeo, Trat, Songkhla, Nong Khai, Narathiwat, Chiang Rai, Nakhon Phanom, and Kanchanaburi.
If you need to consult with a lawyer in Thailand, please contact H&P at [email protected]