You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

July 3, 2019

Amnesty Made Available to Illegal Hotel Business Operators in Thailand

Subscribe to Updates

On June 12, 2019, Order No. 6/2562 of Thailand’s National Council for Peace and Order (NCPO) entered into force.

The order grants amnesty to business operators running premises that are not compliant with certain provisions of the Hotel Act B.E. 2547 (2004), City Planning Act B.E. 2518 (1975), or the Building Control Act B.E. 2522 (1979), including hotels providing accommodation services only and hotels providing both accommodation and dining services as stipulated under the Ministerial Regulations Describing other Types of Buildings Used in a Hotel Business Operation B.E. 2559 (2016).

Under this order, non-compliant hotel business operations are exempt from enforcement of certain city planning regulations and local building control regulations until August 18, 2019 provided that, within 90 days of the order’s effective date, they:

  • report the hotel’s non-compliance with relevant laws to local authorities;
  • rectify or modify the hotel’s fire safety system to comply with Ministerial Regulation No. 47 B.E. 2540 (1997), issued under the Building Control Act B.E. 2522 (1979); and
  • install a number of fire extinguishers calculated based on the size of the property.

The local authority will inspect the building within 30 days of the hotel operator’s report. If any non-compliance is found, the operator will need to rectify them within 30 days.

The amnesty will cover the following violations that began before the effective date of the order, until the date of the local authority’s inspection report:

  1. Operating a hotel business without a hotel license (Section 15 of the Hotel Act);
  2. Using land in violation of city planning regulations (Section 27 of the City Planning Act);
  3. Modifying a building without a building modification permit (Section 21 of the Building Control Act);
  4. Using a building under its control without obtaining a building modification certificate (Section 32 of the Building Control Act);
  5. Unauthorized change of use (Section 33 of the Building Control Act).

Once the building is in compliance with the order, the local authority will notify the Registrar in writing and the business operator will be able to continue their hotel business without penalty for the offences described above.

If an operator of a hotel or accommodation business with no more than four rooms, and with capacity for no more than 20 guests, cannot comply with the law due to land usage restrictions (other than in the laws cited in items 1–5 above), the relevant authorities will present the situation to the National Land Policy Commission, which will recommend solutions to the Cabinet.

Operators of non-compliant hotels or accommodation services should take advantage of this development and immediately proceed with the above steps and rectifications to avoid any criminal liabilities. For more details, please contact Chaiwat Keratisuthisathorn at [email protected] or +66 2056 5507.

Related Professionals

Practices

Real Estate

Location

RELATED INSIGHTS​ 

March 21, 2023
Thailand has issued a royal decree officially reducing the land and building tax due in 2023. The Royal Decree on Land and Building Tax Reduction (No. 3) B.E. 2566 (2023), which was announced and published in Thailand’s Government Gazette on March 19, 2023, and came into effect the following day, will effectively reduce land and building tax payments by 15% in 2023 for the following types of land and buildings: Land or buildings used for agricultural purposes; Land or buildings used for residential purposes; Land or buildings used for other purposes; and Vacant or unused land or buildings. Owners of these types of land or buildings are therefore only required to pay 85% of the land and building tax normally owed for 2023. Furthermore, owners of certain types of land or buildings that were eligible for tax reduction of 50% or 90% under the Royal Decree on Land and Building Tax Reduction B.E. 2563 (2020) will enjoy an additional 15% reduction of the tax amount that was reduced by 50% or a continuation of the 90% tax reduction, depending on the circumstances. For more details on these measures, or on any aspect relating to Thailand’s land and building tax, please contact Chaiwat Keratisuthisathorn at [email protected] or +66 2056 5507.
Read More
February 22, 2023
The Contract Committee of Thailand’s Consumer Protection Board has issued a new notification relating to home renovation business operations. The Notification of the Contract Committee Re: Services for Providing Renovations of Buildings for Residential Purpose as a Controlled Business in Relation to Details Regarding Payment Receipts B.E. 2566 (2023) (the “Notification”) was published in the Government Gazette on February 13, 2023, and will come into effect after 90 days (i.e., on May 14, 2023). Once the new Notification is effective, a contractor who provides residential building renovation services will be required to provide a receipt for the payment received from the customer which contains specific details, terms, and conditions as required under the Notification. Key Definitions Under the Notification, a “service for providing renovations of buildings for residential purposes” is defined as a business in which a business operator is engaged by a customer to make additions, modifications, alterations, repairs, or improvements to a building (including any house or any structure) which can be used for residential purposes, either in whole or in part. “Residential purposes” means for residing in the building (in whole, or in any part), whereby the building will not be sold, leased out, hire-purchased, or subject to other arrangements relating to the building with compensation or other benefits involved. Key Required Content The Notification requires that the payment receipt be provided by the business operator to the customer immediately upon receiving payment in whole or in part. The receipt must be clearly legible in Thai language, with a minimum font size, and include the following material terms and conditions: Details about the business operator, customer, and service, including contact information, milestones and payments, the daily penalty rate, and other related information. If the business operator is unable to complete the work within the agreed period,
Read More
January 4, 2023
Thailand has announced a reduction of the government fees for registering sale and mortgage of certain types of immovable property or condominium units in 2023. The reductions were detailed in two notifications issued by the Ministry of Interior dated December 26, 2022, and published in the Government Gazette on January 3, 2023. These two notifications, which will remain in effect through December 31, 2023, are part of the government’s efforts to strengthen the real estate business sector and encourage property ownership. They set government fees for registration of sale and mortgage of immovable property or condominium units as follows: Sale of immovable property or condominium unit: 1% of the officially assessed value (reduced from 2%) Mortgage of immovable property or condominium unit: 0.01% of the mortgage amount (reduced from 1%) The above reduced rates apply only to the sale and mortgage to Thai individuals of detached houses, semidetached houses, row houses, commercial buildings, and the land surrounding these buildings, as well as of condominium units. The property sale price, officially assessed value, and mortgage amount each must not exceed THB 3 million (approximately USD 90,000). To qualify for the reduced mortgage registration rate, the sale and mortgage must be registered at the same time. For more details on the reduced fees, or on any aspect of property law in Thailand, please contact Chaiwat Keratisuthisathorn at [email protected].
Read More
December 29, 2022
On December 20, 2022, Thailand’s cabinet approved draft legislation providing further Land and Building Tax reductions of 15% in 2023, on top of current reductions in tax rates, on some types of taxable property. When enacted, the legislation will provide further tax reductions only for the property types in the table below. Moreover, in early December, Thailand’s Ministry of Interior promulgated an announcement extending the deadline for tax assessment notification and tax payment (including by scheduled installments) by another two months from the previous statutory deadline of December 20, 2022. The key deadline extensions are shown in the table below. The Land and Building Tax is a property tax collected annually, with rates varying based on the purpose of use—agricultural, commercial, industrial, or residential. Owners or possessors of land or buildings are liable for Land and Building Tax, which is computed based on the officially appraised value of the property. For more information on Thailand’s Land and Building Tax, please contact Auaychai Sukawong at [email protected] or Chaiwat Keratisuthisathorn at [email protected].
Read More