Insights

Effective 1 August 2026, Central Registration Office Order No. 2/2569 Regarding Criteria and Supporting Documents for Registration of Partnerships and Limited Companies Involving Foreign Shareholders or Foreign Authorised Signatories (the “Order”) repeals previous Orders Nos. 2/2568 and 1/2569. The Order was introduced to strengthen the integrity and credibility of company registrations, enhance transparency regarding the source of investment funds, and prevent nominee arrangements used to circumvent restrictions under the Foreign Business Act. It also supports the Government’s efforts to address concealed ownership structures and suspicious financial transactions.

As AI becomes part of everyday business operations, organisations should be prepared for evolving regulatory expectations. This article examines Thailand's emerging AI governance framework and highlights practical steps businesses can take today to strengthen compliance, governance and responsible AI use.

Listen to The Practical EP.1 and discover how taxation shapes economies, supports public services and drives sustainable national development.

Thailand is taking a significant step toward enhancing its investment climate. The Department of Business Development (DBD) has introduced a draft Ministerial Regulation aimed at reducing restrictions on foreign investment by exempting select business activities from the need to obtain permission under the Foreign Business Act B.E. 2542 (1999).

In late December 2025, the Department of Business Development (“DBD”) issued four Orders of the Central Partnerships and Companies Registration Office, together with an Announcement of the Central Partnerships and Companies Registration Office (collectively, the “Orders”), to strengthen corporate registration controls. The summary of the Orders is set out below.

On 5 June 2025, the Board of Investment (“BOI”) published Announcement No. Por 8/2568, by virtue of the Investment Promotion Act B.E. 2520 (1977). This announcement revises the Criteria for Approval of Positions for Foreign Nationals, Placement of Foreign Nationals in Approved Positions, and Extension of Position Terms and Personnel under Sections 25 and 26.

Thailand’s position on Article 12 (Royalties) of the recent 2025 OECD report reflects a robust commitment to source-based taxation for cross-border payments. Unlike the OECD’s preferred move towards residence-based taxation for royalties, Thailand continues to advocate for the right of the state where the income arises to collect tax. By expanding the definition of royalties and establishing clear source rules, Thailand ensures that a broad spectrum of payments for technology, equipment, and expertise remains subject to local withholding tax.

In the recent 2025 OECD report, Thailand has reaffirmed its position as a "Non-Member Economy" that prioritizes source-based taxation. By maintaining specific reservations on Article 5 - Permanent Establishment or “PE”, Thailand aims to ensure that foreign enterprises contributing to its economy through sustained physical or economic presence do not circumvent local tax obligations. These positions reflect a cautious approach toward the global trend of narrowing PE definitions, focusing instead on traditional and service-based activities.

The Royal Thai Government Gazette has announced the Labour Protection Act (No. 9), B.E. 2568 (2025) (“Amendment No. 9”), which amends key provisions under the Labour Protection Act B.E. 2541 (1998) (“Labour Protection Act”). The amendments are effective from 7th December 2025 introduce new protections, leave entitlements and employer compliance requirements.

The rapid shift toward hybrid and remote work has created a complex challenge for multinational enterprises: when does an employee’s home office create a taxable presence, or Permanent Establishment (PE), in another country? The recent 2025 OECD report addresses this head-on, providing much-needed clarity through revised commentary on Article 5 (Permanent Establishment or PE). For businesses with cross-border talent, these changes offer a more practical framework for assessing tax exposure in jurisdictions where employees may be working remotely.

Cloud & Software Services and Withholding Tax: Where Does Thailand Draw the Line?

Building a Sustainable Business – 360 Degrees explores six key pillars for sustainable growth, combining strategic insights, best practices, and real-world examples to help businesses build resilience and thrive in an uncertain economy.

Thailand’s Cabinet Approves Draft Financial Hub Act to Boost Global Investment To position Thailand as a key global financial hub, the Thai Cabinet approved the draft Financial Act on February 4, 2025, as proposed by the Ministry of Finance. This legislation seeks to attract foreign financial businesses to invest in Thailand, while simultaneously fostering the development of the nation’s financial industry, workforce, and infrastructure to meet international standards.

Last year, the Thai Revenue Department (“TRD”) issued Departmental Instructions No. Paw 161/2023 and Paw 162/2023 concerning foreign-sourced income. According to these instructions, any Thai tax resident with foreign-sourced income will be taxed in Thailand when such income is remitted into the country, regardless of when you remit it.

The legal division of the Thai Revenue Department (“TRD”) recently addressed whether a virtual office can be registered as a place of business for Value Added Tax (“VAT”) purposes.

On 15 March 2024, the Board of Investment (“BOI”) published an Announcement No. Sor 2/2024 by virtue of the Investment Promotion Act 1977, to promote investment in digital businesses in response to changing business operations and technology in the digital industry.