Thailand: Conditions on International Flights during COVID-19 Pandemic

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To flatten Thailand’s COVID-19 curve, the Civil Aviation Authority of Thailand (“CAAT”) had imposed a ban on all international flight entering Thailand since April 3, 2020. Nevertheless, seeing the stabilization of the local cases and effective social distancing protocol for the past months, Thailand will be resuming international flight, effective from July 1, 2020.

According to CAAT’s Notification re: Conditions for International Flight Permit to Thailand, CAAT has stipulated several conditions for special flights and passenger flights inbound for Thailand.

To flatten Thailand’s COVID-19 curve, the Civil Aviation Authority of Thailand (“CAAT”) had imposed a ban on all international flight entering Thailand since April 3, 2020. Nevertheless, seeing the stabilization of the local cases and effective social distancing protocol for the past months, Thailand will be resuming international flight, effective from July 1, 2020.

According to CAAT’s Notification re: Conditions for International Flight Permit to Thailand, CAAT has stipulated several conditions for special flights and passenger flights inbound for Thailand.

1). Special flights

The following types of aircraft are eligible for CAAT’s permission for incoming, outgoing, flyover and/or landing in Thailand:

  • State or military aircraft
  • Emergency landing aircraft
  • Technical landing aircraft (no embarking of passengers)
  • Aircraft on a humanitarian, medical or relief mission
  • Aircraft for repatriation
  • Cargo aircraft

2). Passenger Flights

For passenger aircraft to be given with CAAT’s permission, passengers or persons on board must be one of the following categories:  

  1. Thai nationals
  2. Person invited by the Thai government
  3. Non-Thai nationals, who are spouse, parents or children of a Thai national
  4. Non-Thai nationals holding a valid certificate of residence or permission for residence
  5. Non-Thai nationals holding a valid working permit, including spouse and children of the same
  6. Carriers of necessary goods (must depart immediately after the mission has been completed)
  7. Aircraft crew members (must have a complete travel itinerary)
  8. Foreign students, including parents or guardians of the same
  9. Foreign nationals seeking medical assistance/treatment in Thailand (excluding COVID-19)
  10. Diplomats, international organization representatives or foreign government representatives, including spouse, parents, or children of the same
  11. Foreign nationals with a special arrangement permitted by the Thai authorities

Passenger flights under the above conditions must also adhere to all local regulations (i.e. Thai immigration law, communicable diseases law, air navigation law, and the Emergency Decree on Public Administration in Emergency Situation). Additionally, all passengers must comply with all COVID-19 related screening process (e.g. COVID-19 RT-PCR), as well as, 14-day state required quarantine. Please refer to our previous article on Thailand’s COVID-19 immigration rules, procedures and required documents (see: Immigration Rules)  

We will provide further updates on further regulation, tourism related travel and travel bubble as the information becomes available in the near future. For any assistance, please contact us at law@ilct.co.th.  

By:

Chart Chotiphol

Counsel/Business Development

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Thailand Labour Corner: Impacts of Covid-19 on Employment

Thailand Labour Corner: Impacts of Covid-19 on Employment

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Right and Obligation for Employers and Employees

Confronting Covid-19 pandemic, both employers and employees face many new work-related challenges. Especially with its flu-like symptoms, employers have a duty to implement workplace health, safety and preventative protocols. Likewise, employees are also obligated to act with social responsibility, comply with health guidelines and work rules. This is a two-way street to control and reduce the Covid-19 chain-of-infection.

Under the Communicable Diseases Act B.E. 2558 (2015) (“CDA”), Labour Protection Act B.E. 2541 (1998) (“LPA”) and Occupation Safety, Health and Environment Act B.E. 2554 (2011) (“OSHEA”), both employers and employees should be aware of the below.

What employers should know:
• Employers are required to provide a safe and hygienic working environment, and must carry all related expenses;
• Employers must report all suspected Covid-19 infections within 3 hours upon discovery to related authorities (call “1422”);
• Employers may refer to their employment contract or exercise its managerial rights to request employee to work-from-home;
• Employers should consider special work rules for susceptible employees (i.e. older adults and immunocompromised); and
• Employers are entitled to issue a warning letter of suspension/termination to employee whom was found to violate specific work rules in relation to Covid-19 prevention protocol. For instance, if the work rules restrict traveling to high-risk countries, any action found to be in violation can be a serious ground for suspension or termination.

What employees should know:
• Comply with the health guideline and respect social responsibility. For example, imposing a 14-day self-quarantine after a trip to high-risk country as per the list set by the Ministry of Public Health and World Health Organization for the good of the public;
• Stay home and/or request to work-from-home when sick, but acting in good-faith;
• Employees are entitled to 3 days of sick leave without having to provide a medical certificate;
• Employees are also allowed 30 days of paid sick leave per year; and
• Employees may request voluntarily unpaid leave (upon employer’s discretion).

During these trying times, all must comply with the health guideline to put an end to this pandemic as soon as possible. Regardless of roles, employers and employees have duties to society as a whole. Act in good faith, observe the rules and help one another when needed.

In view of this turmoil, the Thai government is preparing multiple relief policies for both employees and employers, such as: social security contributions by the employers, Vat refund and tax incentives. We will provide further updates once the policies are in effect.

By:

Chart Chotiphol

Counsel/Business Development

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Amendment to Thailand’s Civil & Commercial Code

Amendment to Thailand’s Civil & Commercial Code

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As of June 9, 2020, the Thai Cabinet has introduced an Amendment to Thailand’s Civil & Commercial Code (“Amended CCC”). The Amended CCC was introduced to update both Civil & Commercial Code up to the current practice and standard. The Amended CCC has been approved by the Thai Cabinet and currently in the final stage of pending parliamentary approval.

Below are the key amendments to the Civil & Commercial Code (CCC):

  1. Formation of a partnership limited or company limited may now be applied at any Company and Partnership Registration Office as announced by the Thai minister (Section 1016);
  2. The Thai minister may also waive related fee and reduce the required documents to be submitted in relation to partnerships and limited companies (Section 1020/1);
  3. Memorandum of Association (“MOA”) will become void if a limited company fails to be established within a three-year period;
  4. MOA that had been registered prior to the enforcement of the Amended CCC and had exceeded the three-year period shall be granted a 180 days extension from the effective date of the Amended CCC, the said MOA will become void if it passes the extension period;
  5. Companies which have company seals must affix their company seals on all share certificates (Section 112);
  6. In support of the social distancing guideline (“New Normal”), the Board of Directors’ meeting may now be held without having to be present in person or in the same venue (unless restricted by company’s Articles of Association).
  7. Following (6), New Normal meeting must comply with all related Ministerial Regulations (i.e. Security Standard for Electronic Meetings issued by Thailand Ministry of Digital Economy and Society) and once complied, directors attending the Board of Directors’ meeting via electronic means shall be deemed present at the meeting and have the rights to vote (read more on this: here);
  8. Notice of shareholders’ meeting (i.e. Annual General Meeting and/or Extraordinary General Meeting) must be sent to all shareholders whose names are on the company’s share register book via registered mail with acknowledgement of receipt.
  9. Companies with bearer shares must still make an announcement via local newspaper in addition to sending the notice of shareholders’ meeting to all shareholders (Section 1175).

Overall, this Amended CCC was designed to further promote the ease of doing businesses in Thailand. Companies are encouraged to stay-up-to date on the latest amendments and regulations. For further details and updates, please contact us at law@ilct.co.th.  

By:

Chart Chotiphol

Counsel/Business Development

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สรุปสาระสำคัญของร่างพระราชบัญญัติแก้ไขเพิ่มเติมประมวลกฎหมายแพ่งและพาณิชย์

สรุปสาระสำคัญของร่างพระราชบัญญัติแก้ไขเพิ่มเติมประมวลกฎหมายแพ่งและพาณิชย์

News & Articles , ,

ล่าสุด เมื่อวันที่ 9 มิถุนายน 2563 ที่ประชุมคณะรัฐมนตรีได้มีมติเห็นชอบร่างพระราชบัญญัติแก้ไขเพิ่มเติมประมวลกฎหมายแพ่งและพาณิชย์ ภายใต้หลักการและเหตุผลที่ต้องการลดขั้นตอนของข้อกฎหมายในบางมาตราที่ไม่เหมาะสมกันกับสภาพการณ์ในปัจจุบัน เพื่อให้การดำเนินธุรกิจของทั้งหุ้นส่วนและบริษัท มีความคล่องตัวมากขึ้น และสอดคล้องต่อการนำเทคโนโลยีในปัจจุบันมาใช้ในการปฏิบัติงาน และดำเนินธุรกิจได้มากยิ่งขึ้น อีกทั้งยังเป็นการเสริมสร้างศักยภาพในการแข่งขันของประเทศ เป็นการสร้างภาพลักษณ์ที่ดีในการประกอบธุรกิจในประเทศไทยที่มีความสะดวกรวดเร็ว และง่ายขึ้น ซึ่งจะไปสอดคล้องกับตัวชี้วัดของธนาคารโลก (Word Bank) และเป็นผลดีต่อการประเมินความยากง่ายในการประกอบธุรกิจในประเทศไทย ทำให้มีการพัฒนา และยกระดับความสามารถในการแข่งขันขององค์กรธุรกิจให้ทัดเทียมนานาประเทศ

ลำดับ

สาระสำคัญของร่างพระราชบัญญัติ

หมายเหตุ

1.

กำหนดให้การยื่นขอจดทะเบียนห้างหุ้นส่วนและบริษัท สามารถยื่น ณ สำนักงานทะเบียนหุ้นส่วนบริษัท แห่งใดก็ได้ ตามที่รัฐมนตรีประกาศกำหนด

จะตรงกันกับมาตรา 1016 ที่ได้รับการแก้ไขเพิ่มเติมตามคำสั่งหัวหน้าคณะรักษาความสงบแห่งชาติที่ 21/2560 ลงวันที่ 4 เมษายน 2560 อยู่แล้ว

2.

กำหนดให้รัฐมนตรีมีอำนาจลด หรือยกเว้นค่าธรรมเนียมในการจดทะเบียน การขอตรวจเอกสาร การขอสำเนาเอกสารพร้อมคำรับรอง และค่าธรรมเนียมอื่นๆ ที่เกี่ยวข้องกับห้างหุ้นส่วนและบริษัท

จะตรงกันกับมาตรา 1020/1 ที่ได้รับการแก้ไขเพิ่มเติมตามคำสั่งหัวหน้าคณะรักษาความสงบแห่งชาติที่ 21/2560 ลงวันที่ 4 เมษายน 2560 อยู่แล้ว

3.

กำหนดให้หนังสือบริคณห์สนธิ ที่จดทะเบียนไว้สิ้นผลลง หากมิได้ดำเนินการจดทะเบียนจัดตั้งบริษัทภายในสามปี

ส่งผลดีต่อผู้ประกอบธุรกิจรายอื่นที่ประสงค์จะใช้ชื่อบริษัทที่ซ้ำกับชื่อบริษัท จดทะเบียนของหนังสือบริคณห์สนธิที่สิ้นผลนี้ ต่อไปนี้สามารถนำไปใช้ได้

4.

กำหนดให้มีการประทับตราบริษัทในใบหุ้นทุกใบ เฉพาะในกรณีที่บริษัทมีตราประทับ

เพื่อเพิ่มความชัดเจนของมาตรา 1128 เดิม ตามคำสั่งหัวหน้าคณะรักษาความสงบแห่งชาติที่ 21/2560 ที่ระบุเพียงว่า “ในใบหุ้นทุกๆ ใบ ให้กรรมการอย่างน้อยหนึ่งคนลงลายมือชื่อเป็นสำคัญ”

5.

กำหนดให้การประชุมคณะกรรมการสามารถดำเนินการได้ด้วยเทคโนโลยีอย่างหนึ่งอย่างใด ซึ่งทำให้กรรมการไม่จำเป็นต้องปรากฎตัวในที่ประชุมก็ได้ เว้นแต่ข้อบังคับของบริษัทจะกำหนดห้ามไว้ ทั้งนี้การจัดประชุมดังกล่าวต้องเป็นไปตามหลักเกณฑ์ วิธีการ และเงื่อนไขที่กำหนดไว้ในกฏกระทรวง และให้ถือว่ากรรมการ ซึ่งใช้การติดต่อสื่อสารนั้น ได้เข้าร่วมประชุมกรรมการ และให้นับเป็นองค์ประชุม และมีสิทธิออกเสียงในที่ประชุมด้วย

เพื่อสนับสนุนให้การประชุมคณะกรรมการสามารถดำเนินได้ในรูปแบบการประชุมผ่านสื่ออิเล็กทรอนิกส์ ตามกฎกระทรวงที่จะออกและมีผลใช้บังคับ ซึ่งคาดว่าน่าจะสอดคล้องกับมาตรฐานการรักษาความมั่นคงปลอดภัยของการประชุมผ่านสื่ออิเล็กทรอนิกส์ ที่ออกโดยกระทรวงดิจิทัลเพื่อเศรษฐกิจและสังคม พ.ศ. 2563 ลงวันที่ 12 พฤษภาคม 2563

6.

กำหนดให้การส่งคำบอกกล่าวเรียกประชุมใหญ่ผู้ถือหุ้น ให้ส่งทางไปรษณีย์ตอบรับไปยังผู้ถือหุ้นทุกคนที่มีชื่อในทะเบียนผู้ถือหุ้นของบริษัทเท่านั้น ถือว่าเป็นการส่งคำบอกกล่าวโดยชอบด้วยกฎหมาย เว้นแต่ในกรณีที่บริษัทมีหุ้นชนิดที่ออกให้แก่ผู้ถือ ให้ส่งด้วยวิธีการโฆษณาในหนังสือพิมพ์แห่งท้องที่เพิ่มเติมด้วย

เดิมมาตรา 1175 กำหนดให้ส่งทั้งทางไปรษณีย์ตอบรับ และลงประกาศโฆษณาในหนังสือพิมพ์

7.

กำหนดบทเฉพาะกาลรองรับกรณีที่มีการจดทะเบียนหนังสือบริคณห์สนธิก่อนวันที่พระราชบัญญัตินี้ใช้บังคับ และเมื่อนับระยะเวลาตั้งแต่วันที่มีการจดทะเบียนหนังสือบริคณห์สนธิ จนถึงวันที่พระราชบัญญัตินี้ใช้บังคับแล้วมีระยะเวลาเกิน 3 ปี แต่ปรากฏว่ายังมิได้จดทะเบียนจัดตั้งบริษัท ให้สามารถดำเนินการจดทะเบียนบริษัทได้ภายใน 180 วัน นับแต่วันที่พระราชบัญญัตินี้มีผลใช้บังคับ

 

ทั้งนี้ ร่างพระราชบัญญัติฉบับนี้จะถูกเสนอต่อรัฐสภา เพื่อออกเป็นกฎหมายต่อไป หากต้องการสอบถามข้อมูลเพิ่มเติม กรุณาติดต่อสำนักงานที่หมายเลข 02-679-6005

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Thailand: COVID-19 Public Health Countermeasures

News & Articles

Communicable Diseases Law and Regulations

As of March 2020, COVID-19 (“Coronavirus”) has spared across to more than 50 countries in every habitable continent with at least 105,000 confirmed cases and raising. Responding to the crisis, the Thai government have made critical efforts to quell this looming threat.

To prevent further outbreaks, public health countermeasures were implemented to reduce the chain-of-infection and spread of Covid-19, of which include restriction, containment and prevention protocols. Effective from March 1, 2020, Covid-19 has been officially classified “dangerous communicable disease” by the National Communicable Disease Committee (“NCDC”). Proceeding this, the Ministry of Public Health has issued an announcement under Communicable Diseases Act B.E. 2558 (2015) (“CDA”) effectively enforcing public health countermeasures against Covid-19 outbreaks.

CDA Need-to-Know:

At present, the World Health Organisation (WHO) and the Thai government have deemed that the following countries are of “high-risks”, these include: Japan, Singapore, South Korea, Italy, China, Hong Kong, Macau, Taiwan, India and Iran. The list is likely to grow in the coming weeks or even days.  

1). Personal Right and Responsibility

Under the CDA, it is expected that all, whether be locals or foreigners to observe social responsibility. As such, all should comply with the following:

  1. Avoid traveling to high-risk countries;
  2. Travelers arriving/returning from high-risk countries should consider a 14-day self-quarantine;
  3. Suspected infection or sign of related respiratory symptoms such as: coughs, sneezing, fever or any flu-like symptoms should be reported immediately;
  4. Follow appropriate health and hygiene guideline (i.e. regularly washes hands etc.); and
  5. Do not panic and refer to official health guideline/announcement.

2). Authorities of Health Officials

In compliance with the CDA, related authorities/officials/communicable disease control officer have the following authorities:

  1. To summon and question suspected individuals;
  2. May request health examination and quarantine specific to the disease’s incubation period (14 days for Covid-19);
  3. May enter domicile, dwelling or buildings (from sunrise to sunset or business hours) for the purpose of inspection, the inspection may continue until it is satisfied;
  4. May request to remove or destroy all suspect contaminated objects/properties;
  5. May order a temporary closure of a place of business, such as: market places, factories, theaters or educational institutions; and
  6. May request examination and quarantine those entering the Kingdom of Thailand.

Failure to comply with the order of a communicable disease control officer will result in fine, imprisonment or both.

In the absence of vaccines and antiviral drugs, public health countermeasures are of utmost important to keep Covid-19 from further spreading. The current restriction, prevention and surveillance protocols are necessary to understanding Covid-19 and ultimately halt the pandemic. The current pandemic forces society to confront many difficult challenges, many of which transcend legal, scientific or ethical implications. Although it is important to respect individual rights, but compliance is necessary to protect the public health interest as a whole.

By:

Chart Chotiphol

Counsel/Business Development

For the full article (PDF) please download hereDownload
Special Tax Deduction & Exemption Schemes

Special Tax Deduction & Exemption Schemes

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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

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Land and Building Tax Regulations & Extensions

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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

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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

News & Articles

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

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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

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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

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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.

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