On August 25, 2026, Thailand’s cabinet approved in principle a draft amendment that would extend mandatory social security coverage to three categories of workers currently excluded from Thailand’s compulsory social security system. The amendment, proposed by the Ministry of Labour, would modify the Royal Decree Prescribing Businesses and Employees Excluded from the Social Security Act B.E. 2560 (2017). Newly Covered Workers The cabinet-approved proposal would remove the exclusions for the following three categories of employees, bringing them within Thailand’s mandatory social security system: Workers in seasonal cultivation (pho pluk), forestry (pa mai), and livestock (liang sat) businesses that do not employ workers year-round and whose operations do not include other types of business activities. Notably, fishery (pramong) workers were excluded from this amendment following objections raised at a Social Security Board meeting on April 30, 2025, because employers and employees in the fishery sector can already agree to opt into social security coverage under fishery labor laws. Domestic workers and other employees of individual employers where the work performed is not part of a business operation (e.g., housekeepers, gardeners, drivers). This group has actively demanded inclusion in the social security system. Workers employed in street-stall businesses operating fixed street stalls (kan kha phaeng loi). The rationale for including street-stall workers is that their employers have fixed, identifiable places of business that can be inspected. Accordingly, workers engaged in itinerant street hawking (kan kha re) remain excluded. The expanded coverage would apply to both Thai and foreign employees who possess valid identity documents and work permits, including migrant workers who have been granted special permission to work in Thailand. The Social Security Act B.E. 2533 (1990) does not restrict social security registration based on nationality, allowing these workers to register as insured persons under section 33. Employer Obligations and Employee

Thailand’s cabinet has approved two draft amendments aimed at improving labor-related judicial proceedings. The proposed amendments to the Act on the Establishment of Labor Courts and Labor Case Procedure B.E. 2522 (1979) and the Act on Procedures for Human Trafficking Cases B.E. 2559 (2016) are intended to make the process more efficient, appropriate, and fair. Key elements of these proposed amendments are outlined below. Expansion of Labor Court Jurisdiction Under the current framework, labor courts generally hear labor disputes, while criminal offenses under labor laws are handled separately. Matters involving both labor and criminal issues may therefore require the parties to pursue proceedings before different courts. To address this, the proposed amendments would expand the jurisdiction of labor courts to cover certain criminal offenses under labor laws. The government states that the change is intended to allow related issues to be heard by judges with expertise in labor law and to reduce the need for parallel proceedings. The proposed amendments also set out the following rules for cases involving multiple offenses. Where a single act gives rise to multiple offenses and at least one of those offenses falls within the jurisdiction of the labor court, the labor court may hear the related offenses as part of the same case. Where multiple connected acts give rise to different offenses, the labor court may hear the matters together or transfer part of the case to the appropriate court, taking into account convenience and the interests of justice. Criminal Offenses Covered The proposed amendments would extend labor court jurisdiction to criminal offenses under 11 labor-related laws, including laws concerning: Home workers protection Labor protection Labor protection in fisheries work Employment and job-seeker protection Management of foreign workers Social security Occupational safety, health, and working environment Compensation Maritime labor State enterprise labor relations

As part of its membership in Lex Mundi, Tilleke & Gibbins has released the latest edition of its Guide to Doing Business in Thailand, providing an overview of the legal, regulatory, and commercial considerations for companies establishing or expanding operations in Thailand. The 2026 edition offers practical insight into the country’s business environment, investment framework, and operational requirements. The guide covers a wide range of topics relevant to foreign and domestic investors, including: Investment incentives and promotion schemes Financial facilities and banking regulations Exchange controls and money transfers Import and export regulations Business structures and incorporation options Requirements for establishing a business Operational and compliance considerations Business cessation and insolvency procedures Employment and labor laws Taxation Immigration and visa requirements Prepared by Tilleke & Gibbins lawyers across multiple practice areas, the publication outlines key aspects of doing business in Thailand, including foreign investment restrictions, regulatory compliance obligations, corporate structures, employment requirements, and recent legal and economic developments affecting investors. The publication forms part of Lex Mundi’s Country Guides series, a global collection of jurisdiction-specific reference materials prepared by member firms around the world. Together, these guides help companies evaluate opportunities, compare regulatory environments, and plan international business activities across multiple markets. The full Guide to Doing Business in Thailand 2026 is available through the button below.

Every month, VAT-registered businesses in Thailand calculate their output and input VAT and file a return to pay the net amount due or claim a refund. Yet a common and costly dispute arises when a business that has paid input VAT to its supplier—and done everything asked of it—later finds that input VAT rejected on the grounds that the tax invoice was issued by “a person not entitled to issue tax invoices.” In these cases, a buyer may have confirmed the supplier’s VAT registration on the Revenue Department’s website, paid through the banking system, received a complete tax invoice, and kept full payment and inventory records. Even so, if the Revenue Department later determines that the supplier did not genuinely make the sale or collected the VAT without remitting it, the department can disallow the input VAT and assess additional tax, surcharge, and penalty—often more than a year after the transaction. A new article from tax and dispute resolution specialists at Tilleke & Gibbins in Bangkok examines how the Revenue Department and the courts approach these disputes, including two recent Supreme Court (Tax Division) decisions confirming that the taxpayer bears the burden of proving a supplier genuinely sold and delivered the goods and received payment. It considers why the VAT registration system offers no legal safe harbor, why the evidentiary burden falls hardest on online and cross-border transactions where buyers and sellers never meet, and how the Revenue Department’s own digital infrastructure could detect non-remitting suppliers at the source rather than shifting the loss to good-faith buyers. The article also sets out practical guidance: how to build a comprehensive “know-your-supplier” file at the time of a transaction, the procedural steps and strict deadlines for challenging a VAT assessment, and why dispute readiness belongs alongside tax planning at the center