Insights

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.

Across boardrooms and executive meetings this year, I’ve noticed something striking: executives are talking a lot about roles - but not enough about capability. The focus is almost always on vacancies - what's open, what’s urgent, and who can fill it. But in a market shaped by demographic shifts, emerging tech, and increasingly fluid career paths, the real risk isn’t an open role. It’s a critical capability gap - one you may not realise you have until it's too late.

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.

At the start of every year, the same urgency kicks in: "We need someone now." A resignation lands, a new project begins, a headcount is approved - and suddenly, we're back on the treadmill of reactive hiring. But what if 2026 is the year we stop doing that? Not long ago, I was speaking with the COO of a regional industrial group in Thailand. His team had just made two senior hires where both came with strong profiles, ticked the usual boxes and six months in, were underwhelming.

The Thai Revenue Department (TRD) sets higher tax collection targets each year, increasing pressure on both the tax authority and taxpayers. The TRD is accelerating its transformation towards an AI-enabled, data-driven administration to enhance operational effectiveness and improve overall tax collection.

As the year closes, leadership teams across Thailand are finalising their 2026 strategies - refining targets, outlining transformation plans, and setting bold growth ambitions. But amid all this planning, one critical question often gets overlooked: Are the people who will carry this strategy into 2026 the right ones to do it? In my recent conversations with CEOs and CHROs, the answers to this question are rarely clear. Many leaders think they’ve got the right team - but they haven’t pressure-tested that belief. The world is changing fast, and the leadership qualities required even two years ago may not match what’s needed next year.

This tax news will be of interest to: Thai companies that are part of multinational enterprise (MNE) groups and engage in intercompany transactions. Introduction The Thai Revenue Department (TRD) has implemented an artificial intelligence (AI)–driven big data analysis system to improve operational efficiency, review taxpayers’ data, and assess potential risk areas or red flags. The system classifies taxpayers as either “good” or “risky”. If potential red flags are detected, the system notifies the TRD to consider initiating a tax audit. You may refer to our transfer pricing (TP) series Part 1: Potential Red Flags. In addition, the TRD has recently launched the QUICK BIG WIN scheme, which allows eligible taxpayers to receive tax refunds within a significantly shortened timeframe and without undergoing a tax audit if they meet the scheme’s criteria. This aims to enhance taxpayer liquidity and support business operations.

In recent months, I’ve written about what it takes to create real momentum within organisations: how leadership, structure, process, and culture each play a role in determining whether the strategy translates into performance. But as we enter the final quarter of the year, I find myself reflecting on something even more fundamental.

This tax news will be of interest to: Thai companies that are part of multinational enterprise (MNE) groups and engage in intercompany transactions. In our Part 3: we have provided guidance on how companies can minimise risks during a tax/TP audit related to intra-group services, as well as examples of evidence and supporting documents. In this article, you will find guidance on how to minimise risk related to royalty transaction.

Last month, we talked about structure, how the way you organise your business should serve your strategy, not the other way around. But there’s something even more invisible, yet equally critical, shaping whether strategy turns into real results. And that is culture.

Thailand’s newly amended Organic Act on Anti-Corruption (No.2) B.E. 2568 (2025) marks a significant shift in corporate compliance expectations. With expanded whistleblower protections and stricter enforcement mechanisms, companies operating in Thailand must act swiftly to align their internal controls and reporting systems with the new legal landscape.

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