Thailand’s Ministry of Interior has extended the deadlines for payment of the 2024 land and building tax and related procedures by two months. The announcement was published in the Government Gazette on November 30, 2023. According to the new timeline in the ministry’s announcement, the official land and building tax assessment forms will be sent to taxpayers by the end of April 2024 (extended from February 2024) while the deadline for payment of land and building tax has been extended to June 30, 2024 (from April 30, 2024). For payments made in installments, the announcement also extended the deadline for each installment as follows: For more details on these measures, or any aspect of Thailand’s land and building tax, please contact Chaiwat Keratisuthisathorn at [email protected] or Supranee Arjjit at [email protected].

On November 6, 2023, Thailand’s Department of Lands issued a circular letter clarifying that the use of units in condominium buildings for hotel business operations is not allowed. Circular Letter No. Mor Tor 0517.3/Wor 23302, which was sent to all provincial governors in Thailand, explains this by emphasizing that although the Condominium Act (No. 4) B.E. 2551 (2008) rules that some condominium units can be used for commercial operations purposes, the term “commercial operations” does not include hotel business operations. This is in accordance with the Condominium Act’s primary aim of safeguarding the rights of condominium unit owners for residential purposes rather than for the purpose of commercial or hotel business operations. The circular letter also references Opinion of the Council of State No. 710/2550, which specifies that the commercial operations allowed under the Condominium Act are those providing services to the co-owners of a condominium building (e.g., convenience stores and restaurants) and further specifies that these commercial condominium unit areas must have separate exits and entrances that do not disturb the residents of the condominium building. In light of these considerations, using a condominium building for hotel business operations is not permissible, regardless of whether consent is obtained from the co-owners of the condominium building or whether the condominium building’s purpose is changed from residential to hotel purposes (whether in whole or in part). To use a condominium building for hotel business operations, the building owner would have to first cancel the condominium building’s registration under the Condominium Act so that it is no longer regarded as a condominium building. Then it can be used for hotel business operations, provided that the building and business operator comply with the requirements under the hotel law and other relevant laws and regulations (e.g., Building Control Act, Town and Country Planning

The commercial real estate sector in Southeast Asia is a dynamic and innovative space, but businesses also face an array of complex legal challenges. With real estate investments transcending borders and regulations, businesses in the region confront a legal environment that demands a clear understanding of the rules and procedures in each jurisdiction. Authored by legal experts at Tilleke & Gibbins, Commercial Real Estate Law in Southeast Asia is a comprehensive resource that addresses the legal issues relevant to enterprises involved in the commercial real estate sector. The guide explores the nuances of commercial real estate law in Cambodia, Laos, Myanmar, Thailand, and Vietnam, providing an overview of the regulatory framework and legal environment governing property transactions in these countries. Within the guide, readers will find detailed sections dedicated to each country, offering in-depth insights into the legal instruments, regulatory authorities, and procedural requirements that shape the commercial real estate landscape. Each section outlines the real estate activities that are permissible, those that are restricted, and the associated liabilities and penalties for noncompliance. The full Commercial Real Estate Law in Southeast Asia guide is available through the button below.

On August 25, 2023, Thailand’s Ministry of Interior issued the Ministerial Regulation Prescribing the Types of Hotels and the Criteria for Hotel Business Operation No. 2 B.E. 2566 (2023), which amends the threshold for hotel license exemption and hotel business operation requirements specified in the similarly named ministerial regulation from 2008. The ministerial regulation, issued by virtue of the Hotel Act B.E. 2547 (2004), adjusts the hotel type classifications and introduces new compliance requirements for other types of structures that can be used as hotels (e.g., rafts, tents, or containers). The 2023 ministerial regulation was announced and published in the Government Gazette on August 30, 2023, and will come into effect after 60 days (i.e., on October 29, 2023), amending certain provisions in the original 2008 ministerial regulation. Key changes and new requirements under the 2023 ministerial regulation are detailed below. Hotel License Exemption Threshold The 2023 ministerial regulation raises the threshold for exemption from the requirement to obtain a hotel license. Under the new rules, accommodations with up to 8 rooms accommodating no more than 30 guests (previously no more than 4 rooms and 20 guests) are not regarded as hotels under the Hotel Act, and thus, a hotel license is not required. Hotel Types The 2023 ministerial regulation also changes the definition of the types of hotel accommodations that require a hotel license under the Hotel Act. The new classifications are: Type 1: Hotels with up to 50 guest rooms only. Type 2: Hotels with more than 50 guest rooms only, or hotels with (1) guest rooms and (2) a dining room, restaurant, or kitchen. Type 3: Hotels with (1) guest rooms, (2) a dining room, restaurant, or kitchen, and (3) an entertainment venue under the law governing entertainment venues, or a conference room. Type 4: Hotels