Thailand visa -Juslaws & Consult Co., Ltd
 Tax Incentive for New Startup Businesses

24 Mar Tax Incentive for New Startup Businesses

Another generous tax incentive for investors in Thailand is now launching. On 18th April 2016, Royal Decree (No. 603) was promulgated to support and promote Small and Medium Enterprises (“SMEs”) by exempting a broad range of SME activities from Corporate Income Taxes for 5 fiscal periods.  The purpose for the incentive is to strengthen the country’s competitive capabilities by encouraging investments in SMEs which use technology and innovation in a list of targeted businesses.

Who is entitled for this incentive?

A company or juristic partnership newly formed under the laws of Thailand satisfying the following conditions:

1. Set up and registered between 1st of October 2015 to 31st of December 2016;

2. Paid-up registered capital is not more than THB 5 million in the fiscal period;

3. Income derived from the sales of goods and service is not more than THB 30 million in the fiscal period, and

4. Not less than 80% of its total income must be derived from the sales of goods and/or services in a “New Engine of Growth” business or from a connected business thereof.

What is a New Engine of Growth business?

A New Engine of Growth business is an industrial business whose technological base will be used for producing goods and providing services, and those business shall be certified by the National Science and Technology Development Agency (“NSTDA”). The following are the industrial businesses which are entitled to obtain the tax incentives:

1. Food and Agriculture

2. Saving energy, Production of alternative and clean energies

3. Biotechnology Base

4. Medical and Public Health

5. Tourism, Service and Creative Economy

6. Advanced Materials

7. Textile, Garment and Decorations

8. Automotive and Parts

9. Electronic, Computer, Software and Information Service

10. Research, Development and Innovation or New Industrial

If the SMEs’ operators meet the specified conditions above, they can apply for inclusion in the incentive program via within 31st December 2017. The Revenue Department will notify the applicant of approval or rejection within 15 working days.

Property Purchase Pitfalls

07 Mar Property Purchase Pitfalls

Purchasing Property In Thailand
It is recommended that you discuss your options and the process of purchasing in Thailand as a foreigner as it is essential to know the legalities involved in such an acquisition of property by foreigners before making any decisions on your purchase whether this is a condominium, land, house or a villa anywhere in Thailand.  Foreigners may own condominiums freehold and outright 100% therefore making this option the least complicated and the best option for a foreigner wishing to purchase property in Thailand.  Thailand condominiums always have a foreign quota of 49% which means that only 49% of the total space of a condominium can be owned by foreigners on a freehold title. The other 51% refer to Thai Nationals. Before purchasing a condominium in Thailand, it is advised to ensure that the foreign quota has not exceeded.

Title Deed Search
A title deed to outline the property in which is purchased is usually not provided up front. For this reason, it is suggested that before making any such deposits or purchases, a title deed copy is obtained from the seller in which the original is contained at the relevant land department and a title deed search should be performed so as to avoid any negligent misrepresentations in the future with regards to the property that you wish to purchase.  This will determine the true legal owner of the land and determine as well whether there are any registered encumbrances on the actual property such as a mortgage or a lease.   This investigation will also investigate whether there you are permitted to build upon the land by determining what kind of title deed the property possesses. It can also be determined with a detailed due diligence the environmental zoning areas, residential and planning codes.

Reserving Your Property
Once a title search has been performed and you are happy to proceed with your purchase, it is usually requested by the developer or the seller that you make a first initial deposit or a reservation fee in order to reserve the property to provide for consideration.   The seller will then reserve the property for you until the actual due date for the sales contract for the remaining payment. Note that the remaining payment should not be made until the actual transfer at the land department. Please bear in mind that if you decide to not go through with the contract, that in usual cases the reservation deposit will be forfeited. It must also be noted however, that sometimes a reservation fee is requested prior to such obtainment of title deed.

Sales and Purchase Agreement
When you have provided the reservation deposits, the contracts should be provided to you by the developer or the Seller. Usually if this is a developer, they will have a copy in English and in Thai. Regardless, once you have received a copy of the contract, it is recommended that before signing such a contract, that you review this with a Lawyer or Solicitor. A review of the Sales and purchase agreement will involve identifying your rights as a buyer in order to protect your interest in the event that the Seller defaults in the completion of a property development, or in the event that there was a breach of contract. This will also determine the various taxes payable and the whether the payment method is appropriate.

Pitfalls in Purchasing Property in Thailand: Unfinished Projects-
this occurs in the event that there are condominiums, villas, houses, townhouses and any kind of residual or even business real estate are meant to be completed within a stipulated time as specified in a contract. If this occurs buyers will have recourse by Civil law as breach of contract and be able to demand that the project be finished within due course and/or the monies paid by the individual buyers be returned with full interest within a specified time period. To avoid this kind of situation, it is important to check the development company background of the project in order to determine whether the company has a good reputation and their prior projects timeline and execution.

Ownership Disputes-
this arises as a result of property disputes of ownership as there may be forgery of documentation when purchasing property or in a nominal structure. Although this is not a common occurrence, there are times when title deeds have been forged or signatures have been forged in order to sell a property and retrieve money that is not rightfully theirs to begin with. The buyers are then at a loss with not only a loss of money but nothing to gain from anything being paid. With this, sufficient evidence would be transfer slips, prior written and/or signed agreements, and identification and/or names of the fraudulent party or parties. It is always important to remember that no matter in what situation to always have track record of payments being made although the development or company may seem legitimate and well known.

this occurs when an owner of one property has built over their boundaries and have encroached onto another’s land. This is also a common occurrence however mostly out in rural areas in Thailand as most of the area is agricultural land. There are times when houses are built upon these agricultural lands without the knowing of the exact boundaries, hence having to encroach upon another’s land or property. This also includes disputes that arise in the event of a high rise building blocking the view of another high rise building. This usually occurs in areas of beachfront property. There is no such avoiding of such acts, however, there is always recourse to such acts upon your property

easements are described as a right of way such as a passage or a pavement in which may be the property of another however, is needed to be utilized in order to get to another property as a right of way. In this event, there are some occasions where some parties act upon an action of trespass, whereas it may not be as it is essential to pass through their property to get to another. There is not such avoiding of an easement upon your land or upon another’s, however, there is always a recourse in which a Court of law will have to interfere in this instance in order to grant a right of easement. Whether purchasing a condominium, villa or a house, it is suggested that prior to making such a purchase, once you have found something of interest, to contact a lawyer or solicitor before proceeding. At Jus Laws & Consult we offer specialized services with our knowledgeable lawyers on local and International law to assist with foreign acquisition of property. Contact us today at our office either in Bangkok or in Phuket for free basic consultation!

Class Action Proceeding in Thailand

11 Oct Class Action Proceeding in Thailand

On 8th April 2015 the amendment of the Civil Procedure Code B.E. 2558 (2015) was promulgated in the Royal Thai Government Gazette. This amendment to the Civil Procedure Code introduced class actions, a type of lawsuit which is new to the Thai legal system.

Originating from Anglo-Saxon law the class action is a kind of lawsuit in cases with several injured parties who do not all have to start their own legal actions in order to receive a court reward out of the class action case. Therefore, the class action can provide efficiency and facilitate justice in certain cases with a large number of parties. It can bring justice for injured persons who would otherwise not seek compensation. Even small claims of numerous people can add up to a considerable or even huge value of the aggregated claims. The typical model case would be a consumer protection case with many injured individuals against the responsible corporation. In theory class actions strengthen the procedural rights of less privileged social groups. Can the practice of class action in Thailand keep this promise? We will monitor class action cases.

The initial concept of draft law on Class Action Act was mainly adopted from the United States Federal Rules of Civil Procedure. It might be worth to carefully study the application of the US class action law in Thailand as class actions until now foreign to the Thai legal system are well-established in the United States. This even more as the new Thai class action is surprisingly vague regarding central issues, e.g. regarding the group of people who shall be bound and entitled by the class action called “class members” under the new law (the new law contains a provision for the opting-out of class members, but is not clear as to whether a person will be a class member eo ipso by fulfilling the statutory requirements or whether a constitutional act is required).

On the other hand the new class action amendment contains provisions for the procedure during and in preparation of court hearings, e.g. regarding evidence owned by the counterparty, the testimony and questioning of parties, matters in dispute etc. which in such detail are not even regulated in the Thai Civil Procedure Code for all other types of procedures which involve no class action.

There are limitations as to what extent US interpretations and precedents can be used to interpret the new Thai class action law, as the common law system of the US is based on different principles and a different legal culture than the Thai system which follows the continental-European civil law.

The introduction of the class action into the Thai Civil Procedure Code amounts to an exception to the fundamental principle that the right to sue lies only with the party who is affected in their own rights. This principle which is comparable to the Anglo-Saxon “locus standi” governs the Thai civil procedure as prescribed in Section 55 of the Thai Civil Procedure Code: only the persons whose rights are involved is entitled to submit a lawsuit to a civil court. By contrast, under the new class action law a plaintiff and the plaintiff’s attorney will have an extraordinary leading role and submit a lawsuit for all “class members” who will be bound by the decisions of the court in the class action case. This also means that the class members will automatically forfeit their rights to bring a new lawsuit as Section 144 of the Civil Procedure Code prescribes that an adjudicated case may generally not tried again. If a person regarded as a class member wishes to avoid being bound by the class action case, they would need to formally opt-out.

The class action lawsuits which may be filed must involve wrongful acts or breach of contracts or other forms of losses arising from specific laws; environment law, consumer protection law, security and exchange law, competition law and labor law as well.

The plaintiff of class members can file a lawsuit together with a request to commence a class action to the Court. Thereafter, the Judge will consider and send the copy of those to the defendant. If the request is approved, the Judge will send the notice to class members and publish on the well-known newspaper 3 days continually so in case any member would exclude from this class (opt-out), shall send a correspondence to the Court within the prescribed period. The notice shall include the important information i.e. the rights of the class member, binding of final judgment, detail of Court and case.



1.  What is the class action?

Class action is a special kind of lawsuit which allows to bring claims of many people who will not all become plaintiffs themselves to a civil court, typically in cases with many injured people or consumer cases.


2. What is the definition of “Class” under this law?

A group of persons (more than 2 persons) having identical rights arising from common issues of fact and law and possessing identical characteristics that are specific to the class even if there are variations in the type of damages suffered by each person.


3. Which is the Court jurisdiction for this class action?

All Courts of Justice (except District Court) e.g. Civil Court, Provincial Court, Tax Court, Labor Court, Central Intellectual Property and International Trade Court etc. but not includes Administrative Court and Constitutional Court.


4. What is prescription period under this law?

The prescription period depends on the kind of claim as regulated in the Civil and Commercial Code. Once the Court allows to proceed in class action, a prescription of each class member will stop running when the class action suit was filed.


5. How to opt-out of the class?

– Giving a notice of opting-out of the class to the Court within the prescribed period which specified in the notice which sent by the Court to each member;

– If failure to give notice to opt-out of the class after the expiration of the period prescribed by the Court, he/she shall request the leave to the Court and be allowed.


6. What is the effect after opting-out of the class?

If he/she opted-out of the class, he/she has the right to file a separate individual lawsuit on own behalf, but not in the form of class action. Moreover, he/she cannot file a motion to intervene or join as a plaintiff in the class action.


7. Will the defendant notice about the class action proceeding?

Yes, the Court will send the lawsuit together with a request of class action to the defendant. Thereafter, the Court will question both parties before approving the class action proceeding.


8. What is the condition for class action proceeding?

The Court will allow to proceed as a class action if found that:

1. The case and allegations on which its bases its case are clear and are equally applicable to both the plaintiff and the class members;

2. The plaintiff can demonstrate specific and sufficient identical characteristics apply to the Class;

3. The number of class members is numerous and it would be burdensome and inconvenient if proceeding under non-class action;

4. Proceeding under class action would provide justice more efficiently than proceeding under the non-Class Action; and

5. The plaintiff can sufficiently demonstrate that he/she is one of the class members and meets the qualifications of the law; and that the plaintiff and the plaintiff’s attorney will represent the class effectively and fairly.

9. Who is the class representative and what’s her/his role?

A class representative will be appointed by the class members to be a plaintiff. The class representative must share a common cause of action and have common arguments with the class member.

He/she would exercise due diligence in guarding the interests of the class since the interests of the class representative coincide with those of the class, and in guarding those interests, the claims and arguments raised by the class representative would also be beneficial to the class.

10. What’s the role of plaintiff’s attorney?

The plaintiff’s attorney is the person who prepares the list of injured person who suffered damages from the same facts and laws. The plaintiff’s attorney also files evidence and advance all expenses pertaining to the costs of proceedings, which includes the cost of seeking evidence and costs of publicizing and sending notices of the class action to class members.

11. What’s the enforcement procedure in class action?

The judgment will bind plaintiff and all class members, however, each member cannot enforce it by him/herself because the Director General of the Department of Legal Execution would make arrangements with respect to enforcement of the class action judgment whereby a class member can submit an application for repayment of the judgment debt from a legal execution officer within the time period prescribed by the Court.

However, a class member has the right to file an objection to another class member’s application for repayment of judgment debt. If an objection is filed against a class member’s application, the legal execution officer should conduct an inquiry hearing and make one of the following orders:

1. Dismiss the application for repayment of judgment debt

2. Grant full repayment

3. Grant partial repayment

Thailand visa

As there are a growing number of expats in Thailand, it is important to remember how it is that you can actually reside in Thailand legally. There a few permanent visas’ that are
available to those who wish to remain in Thailand for a long period of time.

There are generally three categories of visa’s in which foreigners can be on in order to reside in Thailand for up to a year with extensions that may be granted:

1. Marriage Visa: a marriage visa is a type of visa that can be obtained when an individual is married to a Thai national. The requirements and characteristics of a the
visa are as follows:

  1. Must have been married to a Thai national and registered your marriage here in Thailand.
  2. You may first enter on non-immigrant b visa or another 1 year visa, and can have the visa converted.
  3. Initial 90 day period granted but can be extended
  4. 90 day reporting to the Immigration Department to ensure you are within the country.
  5. Permitted to work in Thailand
  6. Permitted to open a savings account in Thailand.

2. Non-Immigrant B Visa: a type of visa that is applicable if you wish to work for a company in Thailand, or you are applying for your own company in Thailand. The requirements and characteristics of the visa are as follows:

  1. Must be able to provide relevant company documents from the employer or your own company including but not limited to:
    1. Company Affidavit
    2. List of Shareholders
    3. Company Objectives
    4. Memorandum of Association
    5. Articles of Association
  2. Must have an employment offer letter
  3. If applying for your own company- must be able to show your position in the company.
  4. Visa validity of 3 months up to one year however can be extended
  5. Permitted to work in Thailand
  6. Permitted to open a saving account in Thailand

3. Retirement Visa:

  1. type of visa which can be used to retire in Thailand a. Must be at least the age of 50 years old
  2. Must have at least 65,000 baht on a monthly basis from a pension with a proven pension statement OR
  3. Must have at least 800,000 baht in an account untouched for at least three months.
  4. If applying outside the country- must provide a police clearance and a health certificate.
  5. Permitted to open a savings account
  6. Not permitted to work in Thailand

As you can see from the above long term visas there are quite a few. Aside from those mentioned above, there is are visas that allow you to stay for a short visit. If you wish to find out more about various types of visas in order to visit or stay in Thailand, contact us today at our Bangkok office or at our Phuket office for a free basic consultation!