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

Thailand Special Tourist VISA

Thailand Special Tourist VISA

As an effort to restore the local tourism industry has been affected heavily by COVID-19, the Thai government is proceeding with a new tourism scheme that will allow foreign visitors to remain in Thailand for up to 270 days. This new tourism scheme is called “Special Tourist VISA”.

On September 15, 2020, the Thai Cabinet has approved a Special Tourist VISA scheme (“STV”). The STV scheme is primarily aimed toward foreign visitors with the intention to stay in Thailand on a long-term basis. The STV is expected to be announced in October 2020 and will take effect till September 2021.

Requirements

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

  1. Must be a foreign national with a long-stay intention;
  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. 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.

Terms-of-Stay & Extension

Provided that the requirements are met, foreign visitors may apply for STV at their local Thai embassy.

Foreign visitors granted with STV will be eligible for 90-day stay. After the first stay period has ended, foreign visitors 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. To this end, foreign visitors must remain in Thailand at all times to be eligible for the second or third extensions.

Overall, the STV scheme is mostly aimed toward medical tourists and those who intend to traverse the terrain of Thailand on a long-stay basis. While the STV scheme is not intended for the typical tourists, it is expected that the Thai government will introduce additional tourism schemes in the coming months. If you required any assistance or have further questions, please contact: law@ilct.co.th

By:

Chart Chotiphol

Counsel/Business Development

Interlink of Corporate Documents between Thailand Revenue Department & Department of Business Development

Interlink of Corporate Documents between Thailand Revenue Department & Department of Business Development

In accordance with the National Council for Peace and Order No. 21/2560 issued on April 4, 2017 to facilitate the ease of doing business in Thailand.

As of August 31, 2020, Thailand Revenue Department (“RD”) has announced a waiver on the requirements for juristic entities to submit company’s Affidavit and other related corporate documents as required by law to RD.  From now on, all juristic entities will no longer be required to retrieve the aforesaid documents manually from the Department of Business Development (“DBD”) since it is now the duty of RD to obtain such corporate documents of a company via direct database interlinkage with DBD.

As such, all juristic entities will no longer be required to submit with RD, the following documents:

  • A Copy of Company Affidavit;
  • A Copy of Memorandum of Association (MOA);
  • A Copy of List of Shareholders.

Overall, this is an effort to reduce the documentary burden for doing business in Thailand in the New Normal era.

By:

Chart Chotiphol

Counsel/Business Development

Extension to Land and Building Tax Payment & Objection Filing Deadlines

On August 28, 2020, Thailand Ministry of Interior (“MOI”) has issued a notification circular (“Notification”) regarding an extension to the payment of Land and Building Tax, as well as, extension for filing an objection to tax appraisal value of the same. Similarly, the Governor of Bangkok metropolitan has also issued an announcement (“Announcement”) regarding the same in connection to the Land and Building Tax payment deadlines.

Due to the current implementation difficulties and ongoing COVID-19 Public Health Countermeasure Regulations, the Notification and Announcement were issued in additional to the previously announced extension to further provide more breathing room to both the local authorities and taxpayers alike.

1). Notification – Extension for Tax Collection & Objection Filing

The Notification has further granted each local authority with the power to extend the collection deadlines for Land and Building Tax which was previously due within August 31, 2020. Subject to each provincial governor and authority’s discretion, the tax collection deadlines may now be extended as appropriate.

Moreover, taxpayers may also file an objection to the land & building tax appraisal value issued by the local authority. Taxpayers may file such objection within 30 days of having received the notification of the tax assessment.  Different from the previous 30-day response deadline, the Notification has further allowed the local authority in-charge to extend the response deadline to the said objection on a case-by-case basis. 

If applicable, taxpayers should file an objection within 30 days after having received the appraisal evaluation report as the local authority may reject such objection if it is not timely filed.

2). Announcement – Extension of Land & Building Tax Payment

In accordance with the Announcement, all previous tax payment deadlines for Bangkok metropolitan shall be extended as follow:

  • Deadline to pay Land and Building Tax shall be extended till the end of October 2020 (no additional penalties and surcharges);
  • Payment of the Land and Building Tax by way of installment payment shall be extended as follows:
    • 1st installment – within October 2020
    • 2nd installment – within November 2020
    • 3rd installment – within December 2020

Overall, taxpayers are encouraged to stay up-to-date to all related Land and Building Tax deadlines and respective provincial announcements to avoid any unnecessary fines and to be able to fully utilize the benefits applicable under the laws. For more information on the latest land and tax regulations, please contact law@ilct.co.th.

By:

Chart Chotiphol

Counsel/Business Development

Amazing Thailand Safety and Health Administration

In the past decade, Thailand has always been one of the top tourist destinations in Southeast Asia. During normal times, Thailand had welcomed foreign visitors from all around the world, up to nearly 40 million foreign arrivals in 2019. Overall, the tourism industry usually accounted for approximately 11% of the local GDP.

With COVID-19, the once buzzling tourist destinations such as: Bangkok, Chiang Mai and Phuket are now deserted, this effect has been felt across the country. As an effort to revive COVID-19 struck tourism industry, the Thai authorities has introduced a program called Amazing Thailand Safety and Health Administration (“SHA”).

What is SHA?

Amazing Thailand Safety and Health Administration or SHA is a program spearheaded by the Tourism Authority of Thailand (TAT) and Ministry of Public Health (MOPH). The main objective of SHA is to elevate the health and safety standard of the local tourism business owners/operators, as well as, ensure confidence for visitors in the time of ‘New Normal’ by encouraging local businesses to put in place COVID-19 spread prevention measure and awarding them the SHA. SHA is applicable to the tourism related sectors, which are:

  • Restaurants;
  • Hotels and convention centres;
  • Tourist attraction spots;
  • Transport providers;
  • Travel agencies;
  • Spas and beauty salons;
  • Shopping centres and shopping malls;
  • Sport participation travels;
  • Theatres;
  • Souvenir shops and the like.

To obtain SHA certification, business owners and operators must ensure that their business places have adopted proper health monitoring and preventive measures. Each sector has different criteria that must be satisfied in order to be awarded with SHA logo. For Instance, hotels are required to minimize point-of-entry, set up health monitoring station (i.e. temperature check) and keep an orderly record of all staff and visitors.

Those who meet the criteria as stipulated by TAT and MOPH may apply for SHA. If approved, businesses will be awarded with SHA logo (see Fig. 1). Moreover, relevant authorities may also conduct post-audit as necessary, and withdraw SHA logo if the business fails to maintain the stipulated criteria.

How to apply?

Business owners and operators may apply SHA for free, this can be done via a direct TAT application or via an online website (SHA Website). Those who are successfully awarded with SHA certification will also be officially listed in the TAT’s database.

Fig. 1 – SHA logo that can be used to display that the business had passed the required criteria.

COVID-19 is merely one of the many challenges that we will face in this ever-changing world. Despite all the negative effects contributed by COVID-19, it also compelled positive changes as a whole. Overall, business owners/operators are encouraged to join the SHA program and adapt to the New Normal as a mean to revive the slumbering tourism industry.

By:

Chart Chotiphol

Counsel/Business Development

ILCT Represented Rodenstock Management and Compass Partners in EUR 1.5 Bn Acquisition Deal

Apax Funds (Apax) has announced a EUR 1.5 billion acquisition deal to secure a leading manufacturer of premium ophthalmic lenses, Rodenstock Group (Rodenstock).

In this acquisition deal, ILCT acted for Rodenstock and Compass Partners for the sale of its shares in Rodenstock Group by way of conducting a full-blown due diligence investigation on Rodenstock Thailand. The works include: reviewing corporate structure/documents, material contracts, insurance policies, financial agreements, employment contracts, real estate/litigation matters and intellectual property assets etc.

Palawi Bunnag, our partner was the leading attorney of this deal.

Since this was a full-blown due diligence investigation, apart from our corporate department, we had also bought in our IP team, litigation team and real estate team to assist with the case, commented by Palawi Bunnag

This deal was published in Lawyer’s Monthly Magazine – May 2021 Issue on Page 75. To read online magazine click here: read more.

 

ILCT’s Corporate M&A Team has been nominated as Thailand’s Recommended law firm by Legal 500

We are pleased to announced that our Corporate M&A team has been nominated as Thailand’s recommended law firm by Legal 500.

Our Corporate M&A team employed personnel of diverse educational and technical backgrounds, most of whom are multilingual (Thai, English, Chinese, Japanese, French, Italian and Spanish), to form teams to deal with each matter by applying maximum diversified expertise. By this method and through our inter-office matrix system, we have developed an internationalist approach and have been able to service a wide cross-section of corporate and individual clients.

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