Special Tax Deduction & Exemption Schemes

Special Tax Deduction & Exemption Schemes

As the tax season approaches, the Thai Government has rolled out a series of new tax deduction and exemption schemes for both individual and corporate taxpayers. This is an effort to provide economic relief, as well as to stimulate local economy from the hard-hitting impacts of COVID-19. The tax deduction and exemption schemes are as follows.

(1). Tax Deduction Scheme on Loan Related Interest Payments

Under the current Revenue Code, interest payment(s) of loans for the purpose of rent, lease or construction of residential buildings may be used for the deduction of personal income tax for the year 2021 onwards. To be eligible for this deduction scheme, taxpayers must appropriately present an evidence showing that the loan interest payment(s) had been paid appropriately to the tax authority.

With this being said, an announcement made on 24th December 2020 by Thailand’s Revenue Department (RD) laid down two new regulations to the existing deduction scheme. Stipulated in this new announcement, taxpayers that have made a loan agreement with (1) a bank (2) a finance company, securities company and credit foncier company (3) an insurance company or (4) a secondary mortgage corporation must follow the below regulations: 

  1. For a loan agreement made on or after 1st January 2021 – Taxpayers must declare their intention to apply for the tax deduction scheme to the loan officer for submitting with the tax authority;
  2. For a loan agreement that was made before 1st January 2021 – Taxpayers may choose not to apply for the tax deduction scheme, but still must provide the tax authority with an evidence of loan interest payment issued by the loan officer.

(2). Other Tax Exemption Schemes

Personal Income Tax

Individual taxpayers that have received the benefits from the four governmental programs will be eligible for tax exemption in 2020 and 2021, the mentioned governmental programs are as follows:

  •  Rao-Mai-Ting-Gun (โครงการเราไม่ทิ้งกัน);
  • Tiew-Duai-Gun (โครงการเราเที่ยวด้วยกัน);
  • Kon-La-Krueng (โครงการคนละครึ่ง);
  • KumlungJai (โครงการกำลังใจ).

Corporate Income Tax

Companies may deduct the expenses made on the investment or the service fee of (1) e-Withholding Tax System or (2) e-Tax Invoice & e-Receipt System in the amount of 2 times of the related actual expenses made from 1st January 2020 to 31st December 2022.

Withholding Tax

Tax rate for assessable income (e.g. 3% on service fees, copyright licensing fees or 5% on rental fees etc.) paid via e-Withholding Tax System from 1st October 2020 to 31st December 2022 has now been reduced to 2% tax rate (from the said 3% and 5% tax rates).

Overall, taxpayers are encouraged to pay attention to these deduction and exemption schemes to utilize the benefits to their fullest extent. For any assistance on your tax matters, please contact law@ilct.co.th

By:

Chart Chotiphol

Counsel/Business Development

Land and Building Tax Regulations & Extensions

Effective since March 2019, the Thai government had introduced the Land and Building Tax Act B.E. 2562 (2019) (“LBTA”). The LBTA obligates land and building owners to pay applicable tax. The tax collection process under the LBTA was originally scheduled to commence in January 2020. However, given the implementation difficulties such as: land appraisal and payment process, all applicable deadlines have been extended.      Moreover, the government had also introduced tax reduction scheme for specific land types, as well as, COVID-19 related tax relief.

1). Extension of Land & Building Tax Collection

Due to the current implementation difficulties, all previous LBTA related deadlines were extended for another 4 – 5 months. For instance, deadline for mailing of the tax assessment form has been extended to June 2020 (originally February 2020) and deadline to pay the said tax has been extended to August 2020 (originally April 2020).

Overall, the extension of all related deadlines is designed to provide more breathing room to both the authorities and taxpayers alike.

2). Lands & Buildings Tax Collection Scheme

Under LBTA Section 37, collection of lands and buildings tax are separated into 4 main types, these are:

  1. Land for agricultural purpose;
  2. Land for residential purpose;
  3. Land for other purpose (excluding A and B);
  4. Untendered land.

Each type is subject to their individual tax rate. Land for agricultural purpose is subject to a tax rate of not exceeding 0.15% of the tax appraisal value (excluding aquaculture and textile activities). Whereas land for residential purpose is subject to a tax rate of not exceeding 0.3% of the tax appraisal value. With this being said, specific types of land, such as: those that are pending sale, under an ongoing development project or hotel may be considered as exceptions to the typical tax collection scheme.

Additionally, the Thai cabinet has introduced and approved COVID-19 land & building tax relief scheme, which took effect on June 10, 2020. This tax relief scheme is designed to provide additional tax relief during COVID-19 pandemic. Under the COVID-19 land & building tax relief scheme, taxpayers are eligible for a 90% reduction to the usual appraised value for the 2020 tax payment covering all land types.

3). Lands & Buildings Tax Exemptions

The LBTA also provided additional tax exemption to the taxpayers for the first home and/or agricultural land. A first home including land owned by an individual with an appraised value under THB 50,000,000 is eligible for tax exemption. Primary residential building excluding land (e.g. apartment or condominium) with an appraised value under THB 10,000,000 is also eligible for tax exemption.

Moreover, agricultural land owned by an individual within a designated agricultural area with an appraised value under THB 50,000,000 is also exempted. However, the same with an appraised value over THB 50,000,000 will only be eligible for 3 years tax exemption (2020 – 2022).

4). Lands & Buildings Tax Reductions 

Lastly, the Royal Decree Re: Reductions on Land and Building Tax B.E. 2563 (2020) was introduced to further clarify and prescribe tax reduction rates and requirements for each land type.

Taxpayers should be attentive to the applicable reduction rates and their respective requirements to ensure maximum tax reduction. For example, a land owned via inheritance and used for residential purpose is eligible for 50% tax reduction, but it must be owned by an individual along with a valid inheritance transfer before March 13, 2019. Furthermore, land under development for home plus land, apartment complex or industrial estate are typically eligible for 90% tax reduction for 3 years from the initialization of the development project.

In the same way, schools, sporting venues, entertainment venues, zoos and airfields are typically eligible for 90% tax reduction, but without a fixed period. Nonetheless, these land types must comply with their respective laws and regulations to be eligible for such reduction.

Seeing multiple regulations, exemption and reduction scheme, taxpayers are encouraged to stay up-to-date and be attentive to fully utilize the benefits and remain in compliance with applicable laws. For more information on the latest land and tax regulations, please contact law@ilct.co.th.

By:

Chart Chotiphol

Counsel/Business Development

Thailand: Capital Market and Securities Bulletin Annual General Meeting (AGM) during Covid-19 Pandemic

Thailand: Capital Market and Securities Bulletin Annual General Meeting (AGM) during Covid-19 Pandemic

Thailand: Capital Market and Securities Bulletin Annual General Meeting (AGM) during Covid-19 Pandemic (English Language, download pdf)  และคำแนะนำเกี่ยวกับการจัดประชุมผู้ถือหุ้นในสถานการณ์การระบาดของโรคติดเชื้อไวรัสโคโรนา 2019 (Thai Language, download pdf)

Delisting Particular Parts and Extract of Cannabis and Hemp from Controlled Narcotics

Man has known Marijuana (aka Cannabis, Weed, Pot or Mary Jane etc.) since time immemorial. The use of marijuana can be traced back to as early as 500 BC. Although, marijuana is commonly known for its psychedelic property or “the high effect”, it was discovered that ancient civilizations used marijuana as a form of herbal medicine and remedy. Despite this, marijuana was first criminalized around the 19th century in an effort to ramp up the war on drugs.

With the rise of modern medicine backed by multiple medical researches, it was discovered that marijuana can be used to treat various medical conditions such as: Alzheimer, cancer, epilepsy, mental health issues (schizophrenia and PTSD) and many more. This paradigm shift has slowly altered the public’s opinion and perception on the use of marijuana, where it is no longer seen as a mere narcotic. Naturally, the movement to decriminalized marijuana has been spreading around the globe with some countries that have already decriminalized marijuana for both medical and recreational uses.

In Thailand, the Thai Narcotic Act B.E. 2522 (“Narcotic Act”) listed marijuana and hemp as Class 5 Narcotics. Activities relating to (1) growing (2) importing/exporting (3) selling (4) owning (5) owning for the purpose of selling or (6) consuming/smoking of these substances are not allowed and will be met with heavy fines and imprisonment.  

The recent Thailand Ministry of Public Health’s Announcement Relating to Listing of Narcotics in Class 5 which was published in the Royal Government Gazette on December 14, 2020 (the “Announcement”) has now removed particular parts and extracts of marijuana (cannabis) and hemp for medical purposes from the list of controlled narcotics.

Under the Announcement, parts and extracts of marijuana and hemp shall not be considered as Class 5 Narcotics, provided that they are fully authorized to be grown or produced in Thailand by the Ministry of Public Health. The delisted parts and extracts of marijuana and hemp are:

  1. Parts and extracts of marijuana (Cannabis), including:
    • Bark, stem, fibre, branch and root;
    • Leaf (without inflorescences & flowers);
    • Cannabidiol extract (CBD) with tetrahydrocannabinol (THC) amount not exceeding 0.2% of the total weight;
    • Residue or sludge deriving from cannabis extraction process with tetrahydrocannabinol (THC) amount not exceeding 0.2% of the total weight.
  2. Parts and extract of Hemp (Cannabis sativa), including:
    • Bark, stem, fibre, branch and root;
    • Leaf (without inflorescences & flowers);
    • Cannabidiol extract (CBD) with tetrahydrocannabinol (THC) amount not exceeding 0.2% of the total weight;
    • Hemp seed, hemp seed oil or hemp seed extract;
    • Residue or sludge deriving from hemp extraction process with tetrahydrocannabinol (THC) amount not exceeding 0.2% of the total weight.
  3. The Announcement came into force on December 15, 2020.

In short, the Announcement released specific parts and extracts of marijuana and hemp from the controlled narcotics list if they are used for medical, academic research and production of health products purposes only. The use of these substances for purposes other than those mentioned is still prohibited.

While there are many challenges ahead, the initial unlocking parts/extracts of marijuana and hemp may be a good step toward future medical advancement. Jurisdictions that have already decriminalized marijuana have shown rather promising results and more are expected to be seen. Science and law must progress hand-in-hand on this sensitive subject. By establishing a proper framework, it will be possible to gain the full benefit from these controversial plants.  

For more information regarding laws and regulations on the limited use of marijuana and hemp in Thailand, please contact law@ilct.co.th

By:

Chart Chotiphol

Counsel/Business Development

ILCT IP Team shared insight on IP assets management when a business is on the verge of closing down

ILCT IP Team shared insight on IP assets management when a business is on the verge of closing down

Ratinuch Kawnachaimongkol, our Intellectual Property Practice partner shared her insight with AsiaIP on how to manage a Company’s IP assets once a threat of closing looms.

Key takeaways are as follow:

In Thailand, there is no specific law that addresses this situation. However, some IP laws have provisions regarding the status of an IP right after the shutdown. For example, the country’s trademark law states that if the owner of a registered trademark ceases to have its office or address or its company is dissolved in Thailand, its trademark registration may be cancelled by the Trademark Registrar pursuant to Section 59 of the Thai Trademark Act.

Thus, before the closure of a company, it is advisable to complete the assignment of the IP to a particular person while the company directors are still authorized to do so in the name of the company.

Can the company owners/founders license or transfer ownership of the IP to themselves?

As the company and directors/shareholders are viewed as different legal entities, the company as the IP owner may license or assign the IP to its directors/shareholders as long as the applicable law is complied with.

Should IP be sold before or after the shutdown?

Selling and assignment of IP prior to the shutdown also helps to avoid complications arising from the closure of a company.

Can the developer of a technology who was an employee of the company, continue to work on that technology on his own after the company folds up (say, he forms his own company and continues to work on the technology for his own firm)?

In the absence of an agreement containing such clauses, the patented invention is owned by the company or employer.

Under this circumstance, to enable the original developer of the technology or employee in this case to use such invention on his own after the shutdown without infringing any IP rights of the employer, the said patented invention must be assigned from the company to its employee before the shutdown. The developer can also sell his patented technology to another person.

Does the same hold true for trade secrets? For example, can a member of a restaurant’s kitchen staff who developed a secret recipe for the restaurant, use the same recipe when the business closes and he decides to open his own food venture?

The owner of a trade secret is a person who discovers, invents, complies or creates trade information that is eligible for protection as a trade secret under Section 3 of the Thai Trade Secret Act. In the absence of the agreement providing otherwise, the developer of a trade secret could, therefore, be regarded as the owner of a trade secret who can continue using the same after the closure of his previous employer’s shop.


Trademark 101: The Basics

What is a trademark?

A trademark is a type of Intellectual Property (IP) asset, it is simply a word, symbol, design or any combinations that represent your company’s name, products and/or services.  There is a wide range of trademarks. As the owner, you may design your trademark to represent your products or services. Examples of commonly seen trademarks are shown below. 

Should I register my trademark?

Short answer, YES! It is a good idea to register your trademark, by registering you will be able to claim legal ownership and exercise your exclusive rights over your trademark. Notwithstanding, there are also numerous advantages once you registered your trademark, few examples are discussed below.

I). Brand Protection & Development

Let’s face it, it is not easy building your own brand, let alone protecting it. Your brand is essentially the core asset of your business. Trademark registration will help to prevent others from unlawfully copying/using your trademark. Moreover, registration will also provide safe space for brand expansion, as well as, bolstering consumers/investors’ confidence over your brand.

II). Intangible Assets

Did you know that a registered mark can be sold or licensed? Generally, reputable trademarks are very attractive to potential buyers. By registering your trademark, it tells the buyers that your trademark is secured and not subject to copycats.

In addition to selling your mark, you may choose to “license”. Simply put, you may grant “temporary rights/temporary usage” to others for using your trademark. Under this method, you will be able to gain income via licensing, this is called “royalty fee”. There are few options to grow your business via IP assets, and licensing is one of such.

III). Global Recognition

One important fact, you need to register your trademark in specific country that you intend to sell your products or services. For example, if you would like to operate your business in the US, Thailand and China, you must register your trademark in each of these countries separately to be granted exclusive rights.

In essence, trademark gains strength as it become widespread. The more consumer recognition the stronger your trademark will become.

Trademark Related Symbols

The above two symbols represent the status of a trademark and its level of protection. The symbol “R or ®” shows that your mark is fully registered under the law. Whereas, the symbol “TM or ™” shows that you are using this mark but it is not yet registered, most used “TM” as a way of notifying others that this is their mark. With this being said, misused of these symbols can result in penalties. Thus, be mindful of your usage.  

To sum up

As discussed here, there are many advantages to owning a fully registered trademark. While some are still on the fence about investing in their trademark, DON’T BE! The investment you will be making is small compared to risks of not registering at all. Although, it is possible to directly register your trademark with respective Intellectual Property Offices (e.g. DIP, USPTO or EUIPO) by yourself, but it is more advisable to seek an assistance from experts to ensure a smooth process.

In this globalized world, Intellectual Property assets, such as: trademarks and patents are critical to your business. If used properly, these assets will be invaluable. Trademark acts as your brand, represents your business reputation and provides real legal tools against misuse.

Are you interested or would like to know more about trademarks? Contact us to receive consultations on your trademark or other intellectual property rights, our experts are ready to assist you.

By:

Chart Chotiphol

Counsel/Business Development

Thailand: New Announcement on Holding of Annual General Meeting

Thailand: New Announcement on Holding of Annual General Meeting

On November 2, 2020, Thailand Department of Business Development (“DBD”) had made an Announcement re: Convening of the Meeting of Juristic Persons under Section 9 of Emergency Decree on Public Administration in Emergency Situation B.E. 2548 (No. 10) B.E. 2563 (“Announcement No. 10”) regarding the cancellation of COVID-19 related postponement to holding the Annual General Meeting (“AGM”) which will become effective on December 1, 2020. 

Background:

Earlier this year, due to COVID-19 pandemic and implemented public health regulations, DBD’s previous announcement made on March 4, 2020 (“Old Announcement”) had allowed Juristic Entities, including: limited company, public company, trade association and chamber of commerce (“Juristic Entities”) to postpone their scheduled AGM to a later date. Seeing that the pandemic is now under control and the public health regulations had been relaxed, Announcement No. 10 will effectively cancel the AGM postponement order made under the Old Announcement.

Final Deadline:  

Overall, Juristic Entities that have yet to hold their AGM will now be required to hold the AGM no later than November 30, 2020. Any Juristic Entities failing to hold the AGM by the said deadline will be liable to fine payments as stipulated by the DBD.

Finally, Juristic Entities should timely schedule and hold the AGM to avoid fines and remain in compliance with the latest regulations. Should you need further assistance or any guideline regarding holding the AGM, please contact law@ilct.co.th

By:

Chart Chotiphol

Counsel/Business Development

Extension-of-Stay and Special Tourist Visa for Foreigners

On September 30, 2020, the Ministry of Interior (“MOI”) had made two announcements in relation to permitting foreign nationals to remain in Thailand under special circumstances. Due to the ongoing COVID-19 pandemic, MOI will be permitting an extension-of-stay, as well as, granting Special Tourist Visa (“STV”) to foreigners.

1). Extension-of-Stay

Foreigner who has entered into Thailand under Section 35 of the Thai Immigration Act, B.E. 2522 (“IA”) and has been allowed to stay in Thailand on a temporary basis under Section 37(5) of the same (e.g. tourism, education or business purposes etc.) shall be allowed to remain in Thailand until October 31, 2020.

Furthermore, foreigner under this criterion whose residence report (i.e. the requirement to notify his/her residence to the immigration officer for every 90 days) has been overdue is now allowed to make such report to the immigration officer by October 31, 2020 without any fines.  

2). Special Tourist Visa (STV)

Foreigner may also enter and stay in Thailand under the Special Tourist VISA (“STV”) scheme. The STV scheme is primarily aim toward medical tourists and those who intend to traverse the terrain of Thailand on a long-stay basis.

The STV must be applied at the Thai Embassy of the applicant’s Country-of-origin. After grant, Foreigner with STV will be eligible for a 90-day stay. After the first 90-day stay period has ended, foreigner may apply at the local immigration office (with applicable fees) for another 90-day as the first extension, and another 90-day as the second extension. Overall, foreigner will be able to remain in Thailand for a total of 270 days. Nonetheless, foreigner must remain in Thailand at all times to be eligible for the mentioned extensions.

To be eligible for STV, foreigner must meet the following requirements:

  1. Must be a foreign national who intends to stay in a long term;
  2. Must comply with Thailand’s COVID-19 public health policies and regulations;
  3. Must accept a mandatory 14-day quarantine in an Alternative Local State Quarantine (“ALSQ”) at their own personal expense;
  4. Must provide proof of payment for ALSQ;
  5. Must have a health and accident insurance policy covering the stay period with an OPD expense coverage not less that THB 40,000 and IPD expense coverage not less than THB 400,000 in total;
  6. Proof showing such foreigner’s accommodation after the 14-day quarantine, which could be one of the followings:
    • Proof of payment for an accommodation after the 14-day quarantine has ended;
    • A copy of a title deed for a condominium owned by the foreign visitor or relatives;
    • Proof of condominium or house rental;
    • Proof of down payment for buying or leasing a condominium or house.

Overall, foreign nationals are encouraged to stay up-to-date on the latest announcement to avoid any unnecessary fines and remain in compliance with the latest immigration rules. For further any assistance, please contact us at: law@ilct.co.th.  

By:

Chart Chotiphol

Counsel/Business Development

The Law to End Laws

The most recent development in Thai law which would benefit business and society at large is the Act on the Rules governing the Preparation of Draft Bills and Assessment of their Effectiveness when passed into Law, B.E. 2562 [2019] (the “Act”) which, among other things,  empowers the courts to refer certain laws and regulations which are no longer necessary, or which are not in keeping with the times, or which impede the livelihood or occupation of the people (for the purpose of this article, “obsolete law(s)”), to (in the case of the courts of justice) the President of the Supreme Court for submission to the Supreme Court’s general meeting (sitting as a full court), to determine and declare whether such laws or regulations are obsolete.

The effect of the Supreme Court declaring a particular law or regulation obsolete would enable the court of justice concerned to exercise its discretion not to enforce the sanction under that law and prescribe other sanctions which it considers appropriate in the case before it.

This Act applies to Administrative Courts and Military Courts mutatis mutandis.  

The Act, as its long name suggests, requires state agencies (as defined) to issue laws and regulations only to the extent that is necessary, and to repeal or amend existing laws and regulations which have outlast their usefulness or are not keeping with the times.  It sets out procedures for holding public hearings of the proposed legislation and assessment of its possible impact which, together with the public opinion, must be taken into consideration when drafting the legislation.

However, this article will not deal with the procedures that state agencies must follow when proposing legislation, but will focus on the more significant aspect of the Act which empowers the courts of justice to refuse to enforce the sanctions under the obsolete laws.

I. Scope

The Act covers:

Laws:  defined as Organic Laws (implementing constitutional provisions), Acts of Parliament and Codes.

Regulations [or Rules]: defined as the regulations pursuant to the law governing administrative procedure, which creates a burden on the people, or the failure to comply with them incurs punishment, or results in the deprivation of rights, or affects personal status.  

These are the subordinate legislation or regulations which implement the acts of parliament.

II. Enabling provision

Section 6 of the Act provides that when a court of justice is going to enforce a legal provision which incurs criminal punishment, administrative sanction, or other sanctions which would adversely affect the violator, if, by its own cognition, or as a result of a reasoned objection from a party in the case, it appears, in the court’s opinion, that such legal provision is not in accord with section 5, first paragraph, of the Act[1], and: i) is not a case within the jurisdiction of the Constitutional Court;  and  ii)  there is no prior ruling by the general meeting of the Supreme Court on that question (i.e. that it is an obsolete law), shall send its opinion to the President of the Supreme Court for submission to the general meeting of the Supreme Court (sitting as a full court) for determination.

Pending such determination, the court proceedings may continue, but no judgment may be issued until the general meeting of the Supreme Court has determined the question.  In the event that the general meeting of the Supreme Court determines that such legal provision is obsolete law, the trial court or the Court of Appeal, depending where the case lies, may elect not to sentence, or to issue a lighter sentence than that prescribed by law, or may prescribe sanctions different from what that law stipulates, as the case may be.  Such determination by the general meeting of the Supreme Court shall serve as precedent for all cases under the jurisdiction of the courts of justice.  In such event, the administrative authority responsible for implementing such legislation shall proceed to amend it to be consistent with section 5, first paragraph, promptly.

III. Analysis

This is indeed a new development in Thai law whereby the legislative branch vests the judiciary with the authority to elect not to apply sanctions under laws which have outlived their usefulness, or which are not in line with present day conditions and which impose unnecessary burden on the livelihood or occupation of the people.  It must be noted that the courts have no power to repeal the obsolete law, but can prescribe sanctions different from what that law stipulates.  The duty to repeal or amend the obsolete law rests with the agencies under the executive branch responsible for implementing such law. 

In the past, Thailand has undergone various attempts to reform its regulatory regime to make the country more competitive with other countries and to do away with laws which are no longer suitable with the times, but its effort has gained little success.  The Act enables a party in a court case involving an obsolete law to raise his objection with the Court of First Instance (the trial court) or the Court of Appeal to have the court apprise the President of the Supreme Court to have the general meeting of the Supreme Court declare such law or regulation to be inconsistent with section 5, first paragraph of the Act, enabling the respective court to exercise its discretion not to impose criminal punishment, or to impose a lighter sentence than what is prescribed by such law or regulations, or to prescribe other sanctions different from what is prescribed by such laws or regulations in the case before it.

The laws and regulations mentioned above include announcements and orders having the force of law, i.e. the subordinate legislation and official directives which affect people in their daily lives.

The unique procedure of the Act which enables the courts to ‘weed out’ obsolete laws is an innovative and a more practical way of deregulating the legal system and keeping it attuned to the current requirements of society. The Act is certainly a quicker way of implementing law reforms as compared to the time it would take the other machinery of government to come to grips with the problem.

By:

Prof. Jayavadh Bunnag

 

Regulations for Online Advertisement of Alcoholic Beverages

Regulations for Online Advertisement of Alcoholic Beverages

On August 8, 2020, the Office of the Prime Minister has made an official announcement in the Government Gazette regarding the Regulations for Online Advertisement of Alcoholic Beverages. This announcement is in addition to the previous regulations stipulated by the Alcoholic Beverage Control Act, B.E. 2551 (2008) (“ABCA”), the Ministerial Regulations Prescribing Bases, and the Conditions on Displaying of Picture & Symbol for Advertising or Public Relations of Alcoholic Beverages, B.E. 2553 (2010) (“Ministerial Regulations”).

About the New Announcement

Due to the evolution of social media and online media platforms, more and more retailers/distributors have switched to online advertisements. As an effort to further control alcohol related advertisements by removing positive associations of brands from the consumption of alcoholic beverages, the Prime Minister has issued the following announcements in accordance with the recommendations of the National Alcoholic Beverage Policy Committee:

  1. Online sale/advertisement of any alcoholic beverages directly to the consumers is prohibited, this includes: in a manner of persuading another to drink or buy alcoholic beverages via online media platforms;
  2. This announcement does not bar any purchase or payment of alcoholic beverages via electronic methods (i.e. E-payment or Fintech);
  3. This announcement will become effective on December 7, 2020.

Scope of Advertisement

Despite this additional announcement, it is still possible to advertise alcoholic beverages as long as the advertisement content is in compliance with the ABCA and Ministerial Regulations. For instance, advertisements originated from outside of Thailand are exempted by a provision of the ABCA. With this being said, retailers/distributors should still follow the stipulated regulations, several examples are prescribed below:

  • Any symbols that may be used to illustrate alcoholic beverages must not occupy more than 3% of the total advertisement space;
  • The symbol must be accompanied by a health warning statement either in English or Thai (e.g. alcohol can decrease driving ability);
  • The symbol should be displayed for less than 5% of the total advertising time, while not exceeding 2 seconds of the total advertisement;
  • Advertisement that contains positive quality of an alcoholic beverage is prohibited (e.g. the beverage has health benefits);
  • Display of the actual beverage, packaging or container is prohibited;
  • Using lotto, lucky draw, free-sample or promotional activity in relation to promoting alcoholic beverages is prohibited;
  • Using a person of fame or minors to promote alcoholic beverages is prohibited.

Final Advice

In conclusion, the new announcement merely emphasizes that the previous regulations stipulated by the ABCA and Ministerial Regulations shall also apply to online media platforms. To this end, advertisement of alcoholic beverages in a “tasteful manner” is still acceptable. Be aware that violations of the ABCA and/or Ministerial Regulations will result in fines, imprisonment or both. For our previous guideline on Advertisement of Alcoholic Beverages, please see: Link.

For further assistance or advice on how to safely construct your advertisement content or compliance evaluation, please contact us at: law@ilct.co.th 

By:

Chart Chotiphol

Counsel/Business Development

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