ILCT Ltd.

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]

Cannabis Re-Criminalization in Thailand: A Legal Overview Thailand has experienced significant legal transformation concerning cannabis regulation in recent years. Once categorized under stringent narcotic laws, cannabis moved through phases of decriminalization and, as of June 26, 2025, has now been officially re-criminalized. This article provides a structured analysis of the legal landscape surrounding cannabis in Thailand, spanning the period prior to decriminalization, the decriminalized phase, and the current re-criminalization framework. Cannabis Policy Before 2022 Before 2022, cannabis was classified as a Category 5 narcotic under the Narcotic Act B.E. 2522 (1979). This legal classification included cannabis among Thailand’s most strictly prohibited substances, alongside opium and psilocybin mushrooms. Possession, distribution, cultivation, or consumption of cannabis constituted a criminal offense. The penalties imposed were severe, including significant monetary fines and custodial sentences. While certain medical research activities involving cannabis were allowed under tightly regulated conditions, these exceptions were rare and did not reflect a broader recognition of the plant’s medicinal potential. Cannabis was regarded by the Thai legal system primarily as a dangerous narcotic, and its use was widely stigmatized both legally and socially. 2022–2025: Decriminalization and Commercial Expansion On June 9, 2022, Thailand became the first country in Asia to decriminalize cannabis by removing it from the controlled narcotics list. This move aimed to promote economic development, wellness applications, and agricultural innovation. Private cultivation of cannabis was permitted following official registration, and products containing less than 0.2% THC were allowed for general use. However, the lack of a comprehensive regulatory framework led to a surge in cannabis cafes and dispensaries. Although the policy officially limited use to medical and health-related purposes, the absence of prohibitions on recreational use resulted in widespread public consumption, especially among tourists and younger consumers. Since June 26, 2025: Legal Re-Criminalization and Reinforcement of Medical-Only Use In response to mounting concerns over public health and the proliferation of recreational cannabis use, Thailand officially reintroduced restrictive cannabis regulations, published in the Royal Gazette and effective immediately as of June 26, 2025, without interim provision to protect dispensaries. While not reclassified as a narcotic under the Narcotic Act, cannabis, specifically the flowering buds, has now been designated as a “controlled herb” under the Protection and Promotion of Thai Traditional Medicine Knowledge Act B.E. 2542 (1999). Under the new framework, the sale, possession, and consumption of cannabis are strictly limited to certified medical purposes. A valid medical prescription issued by a licensed practitioner, valid for no more than 30 days, is required to legally obtain cannabis. Recreational use is now explicitly prohibited. Violations may result in criminal penalties, including imprisonment of up to one year and a fine of 20,000 baht. The regulation also introduces further restrictions: online sales, vending machine distribution, and sales near schools, temples, or other sensitive areas are banned. Public smoking of cannabis remains prohibited and constitutes a public nuisance offense. Cannabis can only be consumed within licensed premises under medical supervision, and dispensaries must now employ certified medical or traditional practitioners to oversee usage. Additionally, businesses engaged in cultivation, importation, or sale of cannabis products must comply with Good Agricultural and Collection Practices (GACP) standards and submit monthly transaction records using official forms (Phor.Tor.27, 28, and 29) to the Department of Thai Traditional and Alternative Medicine. These changes mark a significant regulatory tightening compared to the permissive environment of 2022–2025, signalling the government’s intent to reclaim control over the cannabis market and reframe its usage strictly within a medical context. Failure to comply with these operational restrictions may result in administrative penalties, license suspension, or, in cases involving fraud or public nuisance, criminal charges under the Protection and Promotion of Thai Traditional Medicine Knowledge Act B.E. 2542 (1999). Business Implications and Strategic Considerations This legal shift carries profound implications for investors and operators in the cannabis sector. The rapid expansion of cannabis-related businesses between 2022 and 2025, particularly wellness and recreational dispensaries, now confronts a highly restrictive regulatory environment. Business models must be urgently revised to ensure full legal compliance, with a strict focus on medical cannabis supported by partnerships with licensed healthcare providers. While the recreational cannabis market has effectively been dismantled, investment potential remains in pharmaceutical-grade cannabis, hospital-supply chains, and international exports permitted under the Single Convention on Narcotic Drugs (1961), as implemented through Thailand’s Narcotic Act B.E. 2522 (1979) and relevant FDA licensing regulations. The extent of the law’s impact will hinge on the rigor of enforcement and the evolution of supporting regulations. For both domestic and foreign stakeholders, thorough legal due diligence and close monitoring of policy developments will be critical to mitigating legal and financial exposure. 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]

On June 17, 2025, the Thai Cabinet approved a major tax measure aimed at promoting Thailand as a leading digital asset hub in the world. This reform introduces a clear and strategic fiscal incentive designed to stimulate investment, attract digital asset platforms, and enhance Thailand’s competitive position in the global crypto economy. With growing regional competition and the increasing adoption of blockchain-based financial products, the Thai government is seeking to modernize its regulatory framework and offer concrete benefits to both local and international participants in the digital asset space. Scope and Conditions of the Tax Exemption The core of the reform lies in a sweeping exemption from personal income tax on capital gains derived from the sale of digital assets, which are cryptocurrencies and digital tokens. This tax measure will be effective from January 1, 2025, to December 31, 2029, establishing a five-year period during which qualifying gains will be fully exempt from personal income tax. The declared objective of the policy is to support the growth of Thailand’s digital economy by attracting both retail and institutional players into its regulated market. To benefit from this exemption, individual investors must meet one essential condition : the sale of the digital assets must occur through an operator licensed under the Digital Asset Business Operation Law. This includes three types of regulated entities : digital asset exchanges, digital asset brokers, and digital asset dealers. Only transactions processed through these authorized platforms will be eligible for the exemption. This condition is critical to the policy’s design, as it ensures that tax benefits are tied to regulatory compliance, investor protection, and traceability. It also incentivizes market participants to operate within Thailand’s legal infrastructure, reinforcing the country’s position as a responsible and innovation-friendly jurisdiction. Previous Tax Framework This new framework marks a significant departure from the previous tax regime. Prior to this reform, capital gains from digital asset sales were subject to a 15% withholding tax, automatically deducted at the time of the transaction. Moreover, net capital gains after deducting capital losses had to be included in the taxpayer’s annual personal income tax return. This could expose individuals to further taxation based on Thailand’s progressive income tax brackets, which range from 0% to 35%. By contrast, the new measure removes both the withholding obligation and the requirement to declare such gains, provided the transactions meet the specified regulatory criteria. This simplification not only reduces the tax burden on compliant investors but also clarifies their obligations and minimizes the risk of non-compliance. The reform also signals a shift in tone: from passive regulation to active promotion of digital asset innovation. It reflects an understanding that tax policy is not just a tool for revenue generation, but also a lever for economic strategy. For investors and crypto-native businesses, this means a renewed opportunity to enter or expand operations in Thailand with greater certainty, lower cost, and legal clarity. However, the opportunity comes with responsibility. Investors must ensure that all transactions are conducted through approved operators and maintain accurate records of their activities. For professionals involved in fund structuring, token offerings, or advisory services, understanding the nuances of the new system is essential to properly guide clients and assess eligibility. 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]

This legal summary provides an overview of new regulations outlined in SEC notifications effective from June 1st, 2024, concerning the issuance of sustainability-themed digital tokens.The summary is intended for all token issuers in Thailand looking to offer investors opportunities to invest in digital assets linked to sustainability projects. The amended regulations aim to support Thailand’s Environmental Social and Governance fund or ESG fund in investing in sustainability-related products and contributing to the national sustainability strategy, while also fostering the growth of the country’s digital economy. There are four notifications amending regulations on sustainability-themed tokens, detailed as follows: Notification of the Securities and Exchange Commission No. Kor Jor. 9/2567 Re: Initial Public Offering of Digital Tokens (No. 11): Adds a requirement for an independent external reviewer to: Provide opinions or certify that the framework for public offerings of digital tokens meets standards equivalent to issuing debt instruments. Provide opinions or certify impact reports of projects associated with the digital token. The independent external reviewer must possess experience, expertise, or mechanisms for evaluating or certifying related to environment, society, sustainability, or the success of sustainability indicators and goals. This includes experience with sustainability-themed debt instruments or sustainability-related digital tokens. To sell sustainability-themed digital tokens, prospective issuers must first obtain SEC approval. Once approved, issuers must disclose information as required by SEC regulations. In addition, during public offerings of sustainability-themed digital tokens, prospective issuers must disclose additional information outlined in the annex of this notification, in addition to the information listed within. Before the token sale: The issuer must disclose specific sustainability-related information, such as the management and use of sale proceeds, progress reports on sustainability-related projects, investor risks, and project evaluation processes. After the token sale: The issuer must also disclose sustainability-related information post-sale, such as progress on sustainability-related projects, opinions or certifications by an independent external reviewer, any material changes in circumstances, and the appointment of a new external reviewer. Notification of the Securities and Exchange Commission No. Kor Jor. 10/2567: Exempts application and filing fees for the following digital tokens: Green tokens Social tokens Sustainability tokens Sustainability-linked tokens This fee exemption is effective until May 31st, 2025. Notification of the Securities and Exchange Commission No. Kor Jor. 11/2567 Re: Offering of Digital Tokens in a Private Placement (No. 3): The requirements in this notification are identical to those under Notification of the Securities and Exchange Commission No. Kor Jor. 9/2567, with the main distinction being that Notification of the Securities and Exchange Commission No. Kor Jor. 11/2567 pertains to token issuers intending to offer digital tokens through initial coin offering (ICO) portals. Notification of the Securities and Exchange Commission No. Kor Jor. 12/2567 Re: Rules, Conditions, and Procedures for Granting Approval of Initial Coin Offering Portals (No. 11): Sets out requirements for ICO portals, specifically: Requiring token issuers to disclose sustainability-related information as specified by the SEC. Facilitating token issuers in these disclosures. ICO portals are responsible for ensuring that token issuers comply with their disclosure obligations. ICO portals that commenced operations before this notification came into effect have a grace period to comply. This summary provides a brief overview of the new requirements for selling sustainability-themed digital tokens that took effect last month. Compliance with these varied requirements can be complex, and we strongly recommend seeking professional legal assistance. Feel free to contact us at [email protected] for further guidance.  

In accordance with the regulations of the Kingdom of Thailand, nationals of 93 specific countries and territories are eligible for visa exemption under certain conditions. This exemption applies for purposes such as tourism, business engagements, urgent work, or ad-hoc work, allowing a stay of up to 60 days. An extension of stay for an additional period not exceeding 30 days may be granted at the discretion of the immigration officer. It is important to note that any extension beyond the initial 60 days up to a total of 90 days requires the applicant to apply for an appropriate visa in Thailand. Eligibility and Application Process Nationals eligible for visa exemption include citizens from: Albania, Andorra, Australia, Austria, Bahrain, Belgium, Bhutan, Brazil, Brunei, Bulgaria, Cambodia, Canada, China, Colombia, Croatia, Cuba, Cyprus, Czechia, Denmark, Dominica, Dominican Republic, Ecuador, Estonia, Fiji, Finland, France, Georgia, Germany, Greece, Guatemala, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Korea (ROK), Kosovo, Kuwait, Laos, Latvia, Liechtenstein, Lithuania, Luxembourg, Macao, Malaysia, Maldives, Malta, Mauritius, Mexico, Monaco, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Panama, Papua New Guinea, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Tonga, Trinidad and Tobago, Turkey, Ukraine, UAE, UK, USA, Uruguay, Uzbekistan, and Vietnam. The following countries have bilateral agreements for visa exemptions with Thailand: Argentina, Chile, and Myanmar (International Passports Only) For individuals requiring necessary or urgent work or ad-hoc work in Thailand, a notification must be submitted in person at any international airport or labor office within the country. This process, which takes one working day, can only commence after the foreign national has entered Thailand. The work activity must be completed within 15 days. Types of Work Permitted The types of necessary or urgent work permitted include: Organizing conferences, trainings, seminars, exhibitions, or trade fairs Conducting special academic lectures Aviation superintendent Occasional internet audits Technical issue resolution Quality control or inspection of products/goods Inspection or improvement of production processes Machinery and equipment system inspection or maintenance Machinery installation and maintenance Electric train technician Aircraft or aircraft equipment system technician Consulting work on machinery maintenance or control systems Machinery demonstration and testing Movie filming and slide photographing Recruitment for overseas job placement Technical skill testing for overseas job placement Destination Thailand Visa (DTV) Destination Thailand visas can also be applied for through the Thai e-visa website. This type of visa costs 10,000 THB and is valid for 5 years (multiple entries), with a 180-day stay per entry. It is available for foreigners who are digital nomads, remote workers, and freelancers, as well as those participating in activities such as: Muay Thai courses Thai cooking classes Sports training Medical treatment Seminars Musical festivals Spouses and dependent children of DTV holders are also eligible. Visa on Arrival (VOA) Nationals from the following 31 countries and territories are eligible to apply for a visa on arrival at immigration checkpoints for tourism purposes. This visa costs 2,000 THB and allows for a stay of up to 15 days for a single entry. The list of eligible countries and territories is as follows: Armenia, Belarus, Bhutan, Bolivia, Bulgaria, China, Costa Rica, Cyprus, El Salvador, Ethiopia, Fiji, Georgia, India, Kazakhstan, Kyrgyzstan, Malta, Mexico, Namibia, Nauru, Papua New Guinea, Paraguay, Romania, Russia, Saudi Arabia, Serbia, Seychelles, Taiwan, Tunisia, Uzbekistan, Vanuatu, and Venezuela.  Non-ED Plus Visa Non-ED Plus Visas is designed to support international students studying at universities in Thailand at the bachelor's degree level or higher. The benefits of this visa include: Exemption from Re-Entry Permit: Students can leave and re-enter Thailand during their studies without needing a re-entry permit. Extensions of Stay: Universities or institutions will handle visa extension applications on behalf of the students. Extended Stay for Graduates: After graduation, students can extend their stay in Thailand for up to 1 year to seek employment, travel, or engage in other activities. They are also eligible to apply for a new type of visa in Thailand if they secure employment. For more detailed information regarding visa exemptions, extensions, and application procedures, interested parties are advised to contact the Thai Immigration Bureau or the Department of Employment. Additionally, updates and specific requirements can be accessed through the Thai e-Visa portal (www.thaievisa.go.th). The visa exemption scheme facilitates ease of travel and temporary stays for nationals of eligible countries and territories visiting Thailand for tourism, business, or short-term work engagements. It is imperative for travelers to familiarize themselves with the specific conditions and requirements to ensure compliance with Thai immigration regulations. Please reach out to us at [email protected] for any specific legal advice regarding this matter.