Legal Update Blog
Automotive Industry Thailand: Advancing towards the EV center of Southeast Asia
Over the next five years, the BOI anticipates an investment volume of more than USD 5.5 billion for electric vehicles (EV) and EV-related investments in Thailand. Import duties and excise taxes will also be significantly reduced. The automotive industry in Thailand will thus further expand its leading role in the Asia-Pacific region. There are great opportunities for vehicle manufacturers, but especially for suppliers, in a flourishing production market.
Investment Thailand: The BOI Thailand Promotes Joint Ventures in the Automotive Industry with Tax Waiver
Watch out investors in the automotive industry: The Thailand Board of Investment (BOI) is promoting Joint Ventures manufacturing automotive parts until 31.12.2025. Anyone investing in Thailand’s automotive industry has the option of extending the general exemption from corporation tax by 2 and up to 8 years. The regulation applies to both newly established Joint Ventures in Thailand as well as to existing companies that take on Thai partners.
In addition, access to the Japanese automotive industry beckons with the addition of a Thai partner.
Validity of Electronic Signatures: Thai Business Law
The electronic signature (“e-signature”) of contracts in Thailand is regulated by the Electronic Transactions Act B.E. 2544 (“ETA”). The law represents a significant facilitation of business transactions in Thailand. Even foreigners can use the e-signature to process their contractual agreements with Thai companies. However, this does not apply to every contract, so you should always exercise caution when using electronic signatures.
Have you ever thought about signing a contract without holding the documents in your hand? Sanet Legal & Accountancy the Thai, English and German speaking lawyers in Thailand, will clarify whether and how this is permissible and when such contracts are legally binding.
When a Bonus Payment Becomes Mandatory: Labor Law in Thailand
As a general rule, a bonus agreement in a Thai employment contract is a voluntary benefit. However, under certain circumstances it may become mandatory. A clause that would eliminate the bonus in the event of a negative annual result would also be unlawful.
In the business world, employers particularly value those employees who perform productive work and are committed to the company. Many employers therefore offer employees the chance of a bonus in order to motivate them to work hard and commit to the company. Employees are usually paid such a bonus at the end of the year, depending on their performance. The amount of the bonus is at the discretion of the employer.
Yet, a legal dispute often arises when the employer exercises its discretion not to pay a bonus to individual employees or to all employees. The Thai Supreme Court has now delivered a judgment on the bonus in the Thai employment contract.
The New Destination Thailand Visa: A 5-years Visa with a Doctor’s Appointment
The new destination Thailand visa, specifically tailored for “digital nomads” – people who work from anywhere – allows for a long-term stay to work and travel in Thailand. Interestingly, this visa is also suitable for those who wish to participate in certain activities or medical treatments in the Kingdom.
BOI Thailand – Incentives and Procedure
A Production in Thailand is massively promoted by the Thailand Board of Investment (BOI). The financial incentives are high, yet the ISO-regulated procedure for a BOI Approval requires good knowledge of the BOI Thailand’s expectations towards the investor and a thorough application process.
The Sanet Group, which has been a reliable partner for Western companies since 2004 when it comes to finding a strategy and setting up sales or production in Thailand, explains the main features:
Thailand’s New Plan: Taxes on World Income?
It was only at the end of last year that the current interpretation was announced, according to which foreign income imported into Thailand must be taxed in Thailand. Now the government is announcing the next bombshell: Tax residents are to pay tax on their entire global income in Thailand.
New Boost for Investment in Thailand: Relaxation of Real Estate Law Planned!
The Thai Ministry of the Interior has been commissioned to examine the implementation of new regulations. In addition to an extension of rental and leasehold rights from 30 to 99 years, majority foreign ownership of up to 75% of residential properties is also intended to be possible in the future. The aim of the regulations is to boost Thailand’s economy and to create more opportunities to encourage investment in Thailand.
Eco-Friendly Investments: BOI’s Framework for Energy and Environmental Sustainability
Thailand Board of Investment (BOI) has introduced new guidelines to promote sustainable development. Effective April 30th, 2024, the guidelines encourage businesses to adopt energy-saving practices, renewable energy, and pollution reduction measures. In return, companies can receive significant tax and customs incentives. This initiative positions Thailand as a prime destination for eco-conscious investors, aligning economic growth with environmental responsibility.
Ensuring Data Privacy in HR and Recruitment: Understanding Thailand’s PDPA
In 2022, Thailand introduced the Personal Data Protection Act (PDPA) to establish clear guidelines for safeguarding personal data. As technology advances, the threat of data breaches rises, making these guidelines essential. The PDPA defines the duties of data controllers, like companies handling employee data, to ensure proper data management and protection.
Human Resources (HR) and recruiting departments, which frequently collect and manage personal data through job applications, employee records, and healthcare information, must comply with the PDPA. To meet these regulations, HR departments should follow several key guidelines for data protection.
BOI Promotion Thailand: Congrats to Spaleck Thailand
Sanet is proud of having successfully guided Spaleck GmbH on its path to direct market entry into Thailand and Southeast Asia.
After successfully managing the legal challenges, Sanet now will also handle the payroll and accounting services in Thailand and CREATING CAREERS, Sanet Group’s Thai recruitment agency will engage the right sales and service team.
The additional establishment of a production facility in Thailand is now firmly in the management’s sights. This new venture is expected to bring considerable additional tax and customs benefits, which will further strengthen Spaleck’s competitiveness.
The success story began in 2021 …
Sanet Legal Ltd. becomes “Sanet Legal & Accountancy“: Accounting in Thailand
The Sanet Group in Bangkok is now offering accounting services in Thailand for international SMEs. Sanet Legal Ltd. will thus be formally renamed “Sanet Legal & Accountancy” from April 2024.
Three “SME Packages” include everything needed for legally compliant and management-oriented accounting, such as accounting, monthly reports, tax declarations and reports tailored to the needs of both well-established companies and start-ups.
Under the guidance of a certified auditor, Sanet also offers payroll services, BOI reporting and audits for local and international SMEs.
In close cooperation with the lawyers under the common umbrella, shareholder resolutions and meetings will be prepared and implemented in a legally secure manner.
Thus, the Sanet Group further rounds off its position as a comprehensive service partner for Thailand-based corporations.