Thailand

In recent years, the sports and entertainment industry has undergone a remarkable transformation, evolving into a highly commercialized and globally influential sector. Sponsorships in the sports and entertainment industry have expanded significantly. In Thailand, top-tier e-sports and boxing tournaments, the upcoming 2025 Southeast Asian Games, and a prospective racing Grand Prix all offer exceptional sponsorship opportunities for both local and international brands seeking valuable exposure in the Thai market. This shift reflects not only the growing financial stakes in sports, but also the strategic importance of sponsorships, especially given the expansion offered by new streaming platforms. As a result, sponsorship activities have become more diverse and sophisticated. Companies are not only sponsoring entire events but also individual athletes, teams, and even specific moments within a game. Broad-scale sponsorship differs tremendously from more granular, targeted individual deals. Sponsorship agreements are no longer simple transactions; rather, they are complex commercial arrangements that require careful negotiation, compliance with evolving regulatory frameworks, and alignment with broader marketing and brand strategies. Therefore, agreement structure is key. All parties involved in sponsorship agreements must pay close attention to the legal foundations that govern these relationships. A well-drafted and negotiated sponsorship contract not only delineates the rights and obligations of each party, but also serves as a safeguard against potential disputes and regulatory challenges. The following are some of the key legal considerations that the sponsor should consider before entering into the sponsorship arrangement. Defining and protecting sponsor rights A well-structured sponsorship package should grant the sponsor exclusive visibility and engagement opportunities across different types of media and event experiences. This includes rights to use key brand assets, access premium hospitality, and other tailored privileges. To protect the sponsor's investment, contracts should include exclusivity clauses and visibility guarantees, such as guaranteed social media reach, and athlete and team deliverables, so that impacts can be measured. Safeguarding brand reputation To protect the sponsor's image, agreements should include clear provisions that allow for swift disengagement in case reputational risk occurs. This is especially critical in athlete endorsements, where public conduct can quickly impact brand perception. A well-crafted morality clause can ensure that the sponsor can exit the partnership if actions or statements conflict with its values. Managing unforeseen disruptions Major events are vulnerable to unexpected disruptions, from extreme weather to political unrest. To protect both parties, sponsorship agreements should include clear provisions for handling such scenarios. These clauses help ensure flexibility and preserve commercial value by outlining how rights and obligations may shift if the event cannot proceed as planned. Guarding against ambush marketing Even with exclusive rights, sponsors remain vulnerable to ambush marketing, an especially acute risk in sports events. It is therefore essential for the sponsors to pre-verify that the host city or country enforces robust IP and anti-ambush laws, or can adopt ad hoc protections, and will actively cooperate to uphold sponsor exclusivity. The agreement should also obligate the rightsholder to deploy all feasible anti-ambush measures and monitor competitor activity so as to protect the sponsor's investment. At Baker McKenzie, we combine deep industry insight with global and local legal expertise to help clients structure sponsorship agreements that are commercially sound and resilient to risk. Whether advising on high-profile event partnerships or individual athlete endorsements, our team is committed to delivering strategic, forward-looking legal solutions that ensure long-term brand success. With a renowned global network and professionals located across more than 70 offices in over 40 countries, we can handle all your legal needs, regardless of whether you require a local, regional, or global perspective. For more information, please contact us. Contact Us Nuchaya Timrat Partner Tel: +66 (0) 2666 2824 ext. 1007 [email protected]   Nuchaya, with Baker McKenzie since 2007, specializes in Corporate/M&A, real estate, and hotel development. She advises on cross-border investments, joint ventures, and complex deals, including sports and entertainment projects. Her expertise spans foreign investment laws, restructuring, property development, and licensing.   Naris Asavathongkul Partner Tel: +66 (0) 2666 2824 ext. 1013 [email protected]   Naris, with Baker McKenzie since 2017, specializes in Corporate/M&A, joint ventures, and corporate reorganizations across diverse sectors. Recently active in sports and entertainment transactions, he also advises on technology, media, retail, and real estate. Recognized as a leading transactional lawyer, he delivers exceptional expertise in complex, high-value deals.

Supasit Boonsanong and Charuwan Charoonchitsathian joined our Bangkok office as Partners on September 1, 2025. Kobchai Nitungkorn, Carole Schertzinger, Phareeya Yongpanich and Thananya Pholchaniko also joined as Associates on the same date. Supasit brings over 15 years of experience as in-house counsel at a state-owned energy company, followed by more than two decades leading the energy practice at several major law firms. He has an extensive track record in energy, construction, project finance, corporate, and M&A matters. Charuwan is highly regarded not only in the energy sector but also in the technology, media and telecommunications (TMT) field, where she is ranked Band 1 in Chambers Asia-Pacific 2025. Her expertise further complements and broadens our service offering. We are confident that this expansion will enable us to deliver even more robust legal support to clients operating in Thailand and across the surrounding region in the energy and TMT sectors, as well as across a wide range of practice areas. For more information about our Bangkok office, please click here. View original article here.

September 22, 2025 Sumet Mingmolmolmitr (Senior Partner)  Companies in Thailand are encouraged to support their employees in pursuing higher education or other training programmes. Such initiatives not only enhance employees’ skills but also strengthen the company’s long-term growth and profitability. To promote this, the Revenue Department issued Order No. 122/2545, Re: Exemption of Income Tax Calculated from the Net Profit of Companies or Registered Partnerships Operating Businesses as Educational Institutions and Training Centres for Enhancing Employees’ Skills, and from Expenses on Education Purposes Made by Companies or Registered Partnerships dated 27 December 2002. Deductible Expenses Under this order, companies may fully deduct expenses incurred in supporting employees who: pursue further studies or training at public institutions or centres domestically or internationally; pursue further studies or training at private institutions or centres domestically or internationally; or participate in in-house-training sessions organised by the company itself or by an external service provider. These expenses are not considered prohibited under Section 65 Ter (13) of the Thai Revenue Code. To qualify for the deduction, however, the company must be able to demonstrate that the expenses were incurred for the company’s benefit, and the supported employees are required to return to work for the company. Additional Tax Incentive In addition, companies that provides financial support for employees to study or train at:  Government-established institutions or training centres, or  Institutions announced by the Ministry of Finance in the Royal Gazette, are also eligible to fully claim a tax exemption on its income equal to the amount paid for the employees’ education or training. This incentive is granted under the Royal Decree issued pursuant to the Revenue Code Governing the Exemption from Revenue Taxes (No. 437) dated 15 October 2005. These provisions highlight the Thai government’s commitment to encouraging workforce development while offering companies meaningful tax relief. To further navigate the rules and maximize available benefits, companies are encouraged to consult with a qualified tax counsel.

The Thai government has recently introduced new tax measures that reflect its dual commitment to digital transformation and the promotion of Thailand’s soft power through art. On August 19, 2025, the Cabinet approved a new tax measure designed to promote Thai visual arts as part of the country’s cultural diplomacy and soft power strategy. Tax Deduction for Art Purchases From January 1, 2025 to December 31, 2027, individuals will be entitled to claim the purchase of visual art pieces as an allowance for personal income tax. Key Features: Deduction limit: Up to THB 100,000 per tax year Eligible art forms: Painting, sculpture, printmaking, and new media Eligible sellers: National artists, artists who have received the Sipathorn Artist Award, or artists registered with the Contemporary Visual Arts Office Companies or public charity foundations/associations that sell or auction visual arts created by the specified artists Required documentation: A full-format tax invoice or receipt, including details of the art piece For Artists: From 2025 onwards, fine art artists will be able to deduct 60% of their income as expenses for  personal income tax , a significant increase from the current expense of 30% of income. This measure applies broadly to artists across all categories. e-Donation The Revenue Department has announced that, starting January 1, 2026, tax-deductible donations must be made exclusively through the electronic donation system (e-Donation). This will apply to donations made to temples, foundations, associations, funds, and other eligible organizations as stipulated in the Revenue Code. Objective of the e-Donation initiative: Support Thailand’s Digital Government Policy Provide taxpayers with a simpler, faster, and more transparent process Eliminate the need to retain paper receipts or evidence Facilitate faster tax refunds Reduce reliance on paper and encourage eco-friendly practices This digital shift aims to modernize the donation process, offering both efficiency and transparency, while aligning with the government’s broader digitalization strategy. At ILCT Ltd., we closely monitor such developments to help our clients navigate the evolving legal and tax landscape. Should you have any questions on how these measures may affect your personal or corporate tax planning, our tax and legal experts are ready to assist. About ILCT Ltd. ILCT Ltd. is a full-service law firm based in Bangkok, Thailand, with 59 years of experience providing comprehensive legal solutions to domestic and international clients. Our firm offers expertise across a wide spectrum of legal fields, including corporate and commercial law, mergers and acquisitions, intellectual property, dispute resolution, taxation, regulatory compliance, and foreign investment. Beyond these core areas, ILCT Ltd. delivers tailored legal services to meet the diverse needs of businesses operating in various industries, ensuring strategic, efficient, and compliant solutions in an ever-evolving legal landscape. Our multidisciplinary approach, combined with in-depth knowledge of Thai and international law, enables us to assist clients in navigating complex legal and business challenges with confidence and clarity. For more information, please contact us at: [email protected]