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

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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. 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:
    • 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

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Tourism Authority of Thailand (TAT) updates the regulations to enter Thailand

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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).

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VAT exemption for trading cryptocurrencies or digital tokens

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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. 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

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Evolution of the Thai regulatory regime on hemp and cannabis, for business opportunities

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Commercial opportunities open up, as, from June 9, 2022, cultivation of cannabis and hemp plants will be partially decriminalized in Thailand.

The Thai law defines Cannabis sativa L. subsp. Indica as “cannabis“, and Cannabis sativa L. subsp. Sativa having no more than 1.0 % THC by dry weight in its leaves and inflorescence as “hemp“. The Narcotic Actof 1979classified cannabis and hemp as category 5 narcotics, whichmeant all activities related to the plants were strictlyregulated by the Act.

Currently, the extent to which the production and use of cannabis, hemp, and related products are legal or not is a topic of great debate and concern in the country. In fact, in 2019, Thailand became the first Southeast Asian country to legalize the medical use of substances listed as category 5 narcotics, with Amendment (No. 7) of the Narcotics Act B.E. 2522 (1979) giving the Narcotics Control Committee the duty to advise the Ministry of Public Health whether to issue the appropriate license to produce, dispose of, import, export or possess the substances.

Following the delisting, a series of implementing regulations were issued to allow applications for the license to produce, dispose of, and processing of the materials for specified purposes only and under strict official control, namely:

  1. for the purposes of implementing the objectives of Stateagencies, except for the purposes under items 2 to 6below, in which cases the State agency shall apply for alicense according to their intended purposes;
  2. for utilization of fibers in accordance with tradition and culture, and only for use within the family, provided that each family is allowed to have not more than one rai [2 ½ rai = 1 acre] of the cultivated land;
  3. for commercial or industrial purposes;
  4. for medical purposes:
  5. for the purposes of study, test, research, or propagation;
  6. for the purposes of producing certified seeds.

Applicants for the license must meet these very strict qualifications, and private entities or group of farmers are only eligible for a cannabis license if they operate jointly with a state agency.

Based on the new Narcotic Code that came into force at the end of 2021, the Notification RE Naming Category V Narcotics has iust been issued and will come into force on the 9 June 2022, once again defining extracts from all parts of the cannabis genus plants containing THC not exceeding 0.2% by weight, which are permitted to be extracted from cannabis or hemp planted within the country, and designating extracts from cannabis or hemp seeds planted within the country as an exception not regarded as Category V Narcotics. Thus, from 9 June 2022, hemp/cannabis extracts containing THC not exceeding 0.2% by weight will be delisted from narcotics List 5 according to the Notification of the Ministry of Public Health. As a result, the public is allowed grow hemp/cannabis plants at home, but the products cannot be used for commercial purposes without additional licenses. The Deputy Secretary-General of the Food and Drug Administration also added that those interested in importing the above-mentioned substances would have to seek permission in accordance with the Plant Propagation Act B.E. 2518 and the Plant Quarantine Act, B.E. 2507, if it is an extract imported from abroad, it is classified as a dangerous drug.

At the same time, a new separate draft bill providing details on the legal use of cannabis, including its production and commercial use, and guidelines on recreational use, was recently presented to the Parliament for its review and approval.

Ms. Mananya Thaiset, Deputy Minister of Agriculture and Cooperatives, revealed since the latest notification of the Minister of Public Health, the Department of Agriculture and Cooperatives has been preparing to issue and implement all regulatory and practical measures to support the farmers with this opportunity. In particular, the Department of Agriculture has the power to curb the free import of seeds and inflorescences of cannabis genus from abroad, according to the Plant Quarantine Act (1964). Moreover, the Department is also drafting agricultural standards and good agricultural practices for cannabis, hemp and kratom as guidelines for planting, protecting, harvesting, and post-harvesting, aimed at raising the quality of cannabis and hemp plants to international standards.

As of now, the regulation for the processing and commercialization of cannabis and hemp components, by-products and end-products is still under review, and it is unclear whether and when the country will see a complete legalization of cannabis and hemp.

You can contact ILCT for further clarifications on the issue and potential opportunities. Meanwhile, we will follow up and report on any further legal development.

 

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Thailand: Fast-Track Trademark Filing System

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In its continuous efforts to improve the efficiency of IP-related registration services in Thailand and to reinforce filing services in the digital age, the Department of Intellectual Property (DIP) has implemented a “Fast-Track Trademark Filing System” that provides three processes, namely for new trademark applications, for renewal applications, and for trademark registration certificates to be presented to other Thai Government Agencies by business owners.

 

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Thailand: Patents – Deadline Extension

Thailand: Patents – Deadline Extension for office action response and document submission

News & Articles

Due to the current outbreak of COVID-19, which is becoming increasingly spreading in Thailand, and the implemented public health countermeasures, Thailand Department of Intellectual Property (DIP) has announced an extension for office action response and document submission for: Patent for Invention, Petty Patent and Design Patent to help ease burden of applicants affected by COVID-19.

This announcement became effective on July 12, 2021. The detail of this announcement is summarized below.

  1. New Extension Date: Any deadlines for office action response or document submission as requested by the examiner that originally fall between July 12 – August 31, 2021
    will be automatically postponed to August 31, 2021.
  2. New Response/Submission Date: Applicants with the response or submission deadline as mentioned in (1) may also provide office action response or submit the required document within September 1 – 30, 2021.

Any applicants that do not wish to take advantage of this extension may still submit the office action response or submit the required document as per the original deadline.

In conclusion, applicants that are eligible as stipulated in (1) will now have until September 30, 2021 to respond to office action or submit the required document. If you need further assistance, please contact: ipgroup@ilct.co.th

 

 

 

 

 

Announcement on New Regulations for Offering and Trading of Digital Assets

Announcement on New Regulations for Offering and Trading of Digital Assets

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Announced earlier this month, the Thai Securities and Exchange Commission (“SEC”) has implemented two new regulations regarding the offering and trading of digital assets (i.e. digital tokens). The detail of this announcement is explained below.

1). Restricted Digital Tokens

Digital Asset Exchange shall not offer or trade the following digital tokens:

  1. Meme token (meme coin) means any digital tokens without any real collateral or value supporting it. The value of a meme coin mostly depends on social media or internet trends. In a sense, meme coin is considered an internet’s joke that is popular and eventually became a meme coin available for trading.
  2. Fan token means any digital tokens that represent a personal preference toward a specific individual, club, or group. Generally, a fan token awards the owner with exclusive rights to a specific individual, club, or group. This could be in a form of voting rights, VIP experiences, or exclusive merchandise from the said individual, club, or group.
  3. Non-fungible token (NFT) is a unique digital token that cannot be traded with any other tokens. NFT generally represents an exclusive right to a certain piece of digital art or music (e.g. Beeple or ShadyCon). It can be said that NFT is a new form of collectible, in this case, a “digital collectible”.
  4. Any digital tokens to be utilized in a blockchain transaction issued by the Digital Asset Exchange itself, or any individuals or entities that may have a connection to the Digital Asset Exchange, include the following:
    1. Members of the Board of Directors, CEO, or any persons with the authority to manage the business;
    2. Spouse or any persons that can be considered as being in a relationship with those mentioned in (A);
    3. Any legal entities that have the authority to manage the business of those mentioned in (A);
    4. Any head offices, subsidiaries, or affiliates of the Digital Asset Exchange.

2). Special Exemption

Any persons or entities as listed in (4) shall be eligible for a special exemption on offer or trade of a digital token provided that they strictly follow the rules and regulations as set forth within the whitepaper.

This announcement shall take effect from June 11, 2021.

Should you require further assistance, please contact us at: law@ilct.co.th.

 

 

Thailand: Postponement of Personal Data Protection Act (PDPA) Enforcement

Thailand: Postponement of Personal Data Protection Act (PDPA) Enforcement

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Effective on May 9, 2021, the Royal Thai Government Gazette has published the official postponement of the enforcement of Thailand Personal Data Protection Act B.E. 2562 (2019) (PDPA) to June 1, 2022.

Thailand’s PDPA was originally scheduled to come into effect on June 1, 2021. The PDPA is considered as the first local law designed to govern data protection in the digital age. It is comparable to the European General Data Protection Regulation (GDRP). Key aspects of the PDPA include: data processing, data collection, data storage, and data consent protocols.

The PDPA has created multiple challenges for both local businesses and foreign businesses alike. Seeing the enforcement challenges with the ongoing COVID-19 crisis, the PDPA has been postponed for one additional year.

With this being said, businesses are still required to comply with the Data Protection Standard as prescribed by MDES. The standard includes such regulations as:

  • Implementation of adequate data access and storage protocols;
  • Assignment of user access management and responsibilities to prevent unauthorized access;
  • Implementation of data logs including data deletion log, data transfer log, and data amendment log.

In conclusion, businesses are given one additional year to implement adequate data protection protocols. As such, it is encouraged that proper understanding and preparation be made ready before the PDPA comes into full effect on June 1, 2022.

As this is not an official announcement in the Royal Thai Government Gazette at this time, we will keep you posted on the development as the information becomes available. Should you require further assistance please contact: law@ilct.co.th.

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