Thailand’s Department of Business Development (DBD) has released a new notification to emphasize and encourage the online issuance of company affidavits and certification of corporate documents, in an effort to prevent further spread of COVID-19 in Thailand. This notification, which was announced on January 7, came into effect on January 11, 2021. The new notification repeals and replaces a similar DBD notification issued on April 10, 2020, during the first wave of the pandemic, and notes that requests to issue company affidavits and certify corporate documents can be processed through the DBD’s e-service system via the DBD website (www.dbd.go.th). In using this online system, applicants can choose to receive the documents either as PDF e-certificates or in paper form. The digital signature of the relevant DBD official will appear on the documents using a public key infrastructure (PKI) encryption—an accepted cryptographic practice that binds digital identifiers to people and organizations and verifies any amendments to the information or digital signature. In accordance with Thailand’s laws on electronic signatures, a digital signature by a DBD official is deemed as legitimate as an ink signature on paper. The authenticity of both electronic and paper documents issued by the DBD can be verified via the document’s QR code and through the reference number at the bottom of the document. For paper documents, the authenticity can also be verified by checking the micro-text (which is illegible when photocopied), and the DBD watermark (which disappears or becomes obscured when photocopied). Anyone can verify a legal entity’s current information on the DBD’s website through the “DBD DataWarehouse+” or “DBD Service” portals. The DBD e-certificate service described in the new notification is now available for public use. Even though the DBD had already introduced an online system for this service in 2020, the new notification highlights this implementation to encourage wider use in response to the COVID-19 outbreak.

On November 26, 2020, the Notification of the Ministry of Finance Re: Addition to Other Business Relating to Digital Assets B.E. 2563 (2020) (the Digital Asset Business Notification) and the Notification of the Ministry of Finance Re: Licensing of Digital Asset Business No. 2 B.E. 2563 (2020) (the Digital Asset Business Licensing Notification) were published in the Thai Government Gazette. Additional Digital Asset Businesses The new Digital Assets Business Notification adds two new categories of digital assets business to the list prescribed in the Royal Decree on Digital Asset Businesses B.E. 2561 (2018). Digital Asset Fund Manager is defined as a person who manages funds from digital assets for another person for benefits, or holds themselves out to the general public as being ready to do so, in the ordinary course of business. It does not include the management of digital assets as prescribed by the Securities and Exchange Commission (SEC). Digital Asset Advisory Service is defined as a person who provides consultations to other people, directly or indirectly, regarding the value of digital assets; the suitability of investment in digital assets; or the buying, selling, or exchanging of any digital assets in the ordinary course of business in return for service fees or other compensation. However, this does not include consultations as a part of or relating to a digital asset exchange, digital asset broker, digital asset dealer, digital asset fund manager, or other personal consultation as prescribed by the SEC. Additional Digital Asset Licensing Requirements The Digital Asset Business Licensing Notification amends the definition of “License Applicant” to include cryptocurrency exchanges, digital token exchanges, cryptocurrency brokers, digital token brokers, cryptocurrency dealers, digital token dealers, cryptocurrency fund managers, digital token fund managers, cryptocurrency advisory services, and digital token advisory services. Additional requirements for granting licenses have also been added in the new Digital Asset Business Licensing Notification, including: the licensee must never have been denied a license or had a license revoked in the last six months from the date of the application submission; the licensee’s application must not be a replacement of a previous application that has been withdraw by the licensee; and, the licensee must not currently be under any legal proceedings for any violation of law. The digital assets business must commence within 180 days after receiving licensing approval. Digital Asset Fund Managers and Digital Asset Advisory Services already in operation are required to apply for a license from the SEC within 90 days after this Digital Asset Business Licensing Notification comes into force (i.e. by February 25, 2021). Once an application has been filed with the SEC, the applicant is allowed to continue operating their business until the SEC issues an order to decline the application. The Digital Asset Business Licensing Notification also updates the application fees. For more details on these notifications, or on any aspect of Thai law relating to digital assets or currencies, please contact Charuwan Charoonchitsathian at [email protected], Nopparat Lalitkomon at [email protected] or Teelada Rujirawanichtep at [email protected]  

At a meeting on December 21, 2020, the Thai Board of Investment (BOI) approved a series of stimulus packages aimed at encouraging local and foreign investment, as the government seeks to boost Thailand’s economic recovery from the COVID-19 pandemic. The additional investment incentives, which will be promoted by the BOI in the upcoming year, include a number of sector- and project-specific stimulus measures.   Additional Tax Incentives for Large-Scale Projects Projects in target industries with investment of at least THB 1 billion (approx. USD 33 million) over a 12-month period, starting from the issuance of the BOI promotion certificate, will be entitled to an additional 50% corporate income tax (CIT) deduction for a period of five years, calculated on top of the standard 5–8 year CIT exemptions offered under the normal BOI tax-incentive scheme. To obtain this special tax incentive, eligible projects may apply to the BOI from January 4 to December 30, 2021.   Stimulus Package for Digital Economy and Software Industry Projects that support digital technology adoption, such as software integration, artificial intelligence, machine learning, or big data analytics, may benefit from 50% CIT exemptions on profits generated from their existing BOI projects for an additional three years. Applications for the exemption must be submitted by the end of 2022.   Application Deadline Extensions for Special Economic Zones and Five Southern Provinces Measures relating to special economic zones cover more than 300 investment promotion categories, with both tax and non-tax incentives, including an additional tax incentive for target industries such as textiles, agriculture, home furniture, jewelry, and others. These incentives are available to projects located in the border areas of Thailand (i.e., the 10 special economic zones in the provinces of Chiang Rai, Kanchanaburi, Mukdahan, Nakhon Phanom, Narathiwat, Nong Khai, Sa Kaeo, Songkhla, Tak, and Trat), with the BOI accepting applications for these incentives until the end of 2022. The BOI has also extended investment project deadlines for five southern provinces (Narathiwat, Pattani, Satun, Songkhla, and Yala) by an additional two years, again up to the end of 2022.   New Special Economic Zone for the Genomics Industry Genomics technology, which enables advancements such as embryo examination during in-vitro fertilization (IVF), precise cancer detection, and development of innovative medicines, vaccines, and biological products, is targeted by Thailand as a growth industry worth approximately THB 70 billion (USD 2.35 billion) per year. The BOI has thus granted the Genomics Thailand project, located at Burapha University in the Eastern Economic Corridor (EEC), equivalent status to other special EEC zones, including the EEC of Innovation, Digital Park Thailand, and the Energy Efficiency & Conservation Authority. Investors in this new genomics economic zone will be entitled to the same additional BOI tax incentives as other EEC investment projects.