Legal Section - Doing Business
You will find here a series of summaries providing an overview of useful legal regulations, processes and legal issues for Doing Business in Thailand.
Employers deducting the value of annual holiday already taken when paying compensation to terminated employees
Under Section 67 of the Labour Protection Act, 2541 B.E. (1998) (“the LPA”), when employers terminate employees for reasons other than the fault of the employee as set out in Section 119 of the LPA, the employer is required to pay compensation to the employee for any unused annual holiday, in proportion to the length of time they were employed for that year. However, in some cases, the employee has already used annual holiday in excess of what they would be entitled to as of the date that the employer terminates employment.
Guidelines on the conditions for applying for BOI investment incentives for developing software, a digital platform, or content
The Board of Investment (“BOI”) recently issued Notification No. Por. 12/2566 (“the Notification”) pursuant to Notification Nos. Sor. 4/2564 and 9/2565 to establish clear guidelines for applying for investment incentives for digital and software businesses. The Notification became effective on 3 October 2023.
Governance of Digital Platforms
Over the past few years, the number of digital platform service providers has increased rapidly, and the Thai government is seeking to monitor those platforms to prevent possible damage to the public.
Foreign businesses providing loans to affiliates and subsidiaries
Under the Foreign Business Act, foreign businesses are generally restricted from providing loans unless they have first obtained a foreign business license (“FBL”).
Additional BOI conditions for majority foreign-owned entities to own land
Referring to the BOI’s Announcement No. 6/2022 dated 8 August 2022 regarding conditions for majority foreign-owned legal entities to own land for setting up an office and residential premises, the BOI issued additional conditions on 23 June 2023 under Announcement No. Por. 10/2566. The key additional conditions are as follows: