On October 3, 2023, Thailand’s Board of Investment (BOI) issued a new regulation clarifying the eligibility criteria for investment promotion under the BOI category “5.10 Development of software, platforms for digital services, or digital content.” To be eligible for BOI promotion under the digital activity category, projects must meet criteria related to local development, minimum investment amount, machinery and equipment, and development processes. These criteria for category 5.10 activities, along with the latest clarifications from the BOI, are detailed in the table below. Tax Incentives The BOI also clarified the method for calculating corporate income tax (CIT) exemptions. The CIT cap amount is calculated on an annual basis from the prescribed expenses incurred after applying for BOI promotion and occurring during the year for which the CIT exemption is claimed. The allowances include 100% of expenses for salaries for newly hired Thai IT personnel, technology-related training, and obtaining quality standards (such as ISO 29110). The revenue of projects that qualify for CIT exemption must be from sales or services directly related to software, platforms for digital services, or digital content developed as promoted by the BOI, including licensing fees, subscription fees, pay-per-use expenses, in-app purchase fees, usage fees, revenue sharing, advertising fees, and so on. For more details on BOI promotion for digital activities, or on any aspect of investment promotion in Thailand, please contact Athistha (Nop) Chitranukroh at [email protected] or +66 2056 5600, Napassorn Lertussavavivat at [email protected] or +66 2056 5662, or Thammapas Chanpanich at [email protected] or +66 2056 5561.

Thailand has released a notification adding new consumer protection provisions related to the collection of prepaid telecom service fees and combining several disparate regulations and resolutions. The Notification on the Criteria Relating to the Collection of Prepaid Telecommunications Service Fees was issued on September 4, 2023, and came into effect on September 21, 2023. The notification will be enforced as a general regulation and guideline for all telecom services other than fixed broadband services, which already fall under a comparable regulation.   Previously, Thailand’s National Broadcasting and Telecommunications Commission (NBTC) had issued several regulations to regulate the collection of prepaid telecom service fees. These include the NBTC Notification on Contract Standards, the NBTC Notification on the Maximum Service Fee Rate and Collection of Prepaid Telecommunications Service Fees, and the NBTC Notification on the Criteria Relating to the Collection of Prepaid Fixed High-Speed Broadband Service Fees. These are now subsumed by the new notification. Key requirements of the new notification on prepaid telecom fee collection are described below. Collection Approval Requirement Before collecting prepaid telecom service fees, service providers (SPs) must apply to the NBTC for approval by submitting the required forms and supporting documents. Changes to the criteria and methods of prepaid telecom service fee collection must also be reapproved. This provision aims to protect against fraud and money-laundering transactions. The NBTC will consider whether to approve an SP’s proposal for the maximum period to be covered by the prepaid service fees on a case-by-case basis. After the collection criteria and methods are approved by the NBTC, SPs must inform their users individually. SPs must also report to the NBTC by the 15th of every month after receiving the NBTC’s approval to collect prepaid service fees. Approvals of prepaid service fee collection granted by the NBTC prior to the

Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has issued the Notification of the NBTC Re: Measures to Protect Telecommunications Service Users’ Rights Regarding Personal Data, Privacy Rights, and Freedom of Telecommunications to replace the previous 2006 notification of the same name. The replacement notification supports compliance with the Personal Data Protection Act B.E. 2562 (2019) (PDPA), modernizes the regulations in response to technological change and the convergence of digital business, and enhances the protection of telecommunications users’ personal data, privacy rights, and freedoms. Key aspects of the replacement notification are highlighted below. User Data and Consent The notification specifies that “user’s personal data” includes name, address, ID number, mobile number, usage information, and user behavior that can identify the user. “User” does not include resellers of telecommunications services. To collect, use, or disclose users’ personal data for a purpose other than telecommunications service, service providers must obtain each user’s consent prior to or at the time of collecting the data. The consent (whether written or electronic) must be separate from the telecommunications service agreement. Service providers must clarify the purpose of collecting data, and they must honor users’ rights to opt in and opt out by providing clear and convenient channels for users to withdraw any of their information or cancel any services offered by the operator. Service providers must add an electronic channel for receiving requests from users to review, access, edit, change, or obtain a copy of their data. The electronic channel must also allow requests from users to suspend use or disclosure of their personal data and withdraw consent to collect, use, or disclose their personal data. In addition, service providers must have a system for verifying the identity of users who want to exercise the rights listed in this paragraph. Data Collection and Storage Collection

Introduction The idea of the metaverse rose to prominence in the public discourse in 2021, most notably when Facebook renamed itself Meta and announced a new focus on launching a virtual, immersive world. The initial excitement around the metaverse has since faded, with worsening economic conditions having a particularly acute effect on companies in the technology sector. When Meta CEO Mark Zuckerberg announced in March 2023 that artificial intelligence (AI) was the company’s “single largest investment,” many took this as a sign of the company shifting focus away from the metaverse. However, there remains significant interest in the metaverse from both businesses and consumers. Zuckerberg himself reaffirmed Meta’s focus on the metaverse, highlighting how developments in AI will improve virtual reality (VR) and augmented reality (AR) technology. Meanwhile, Roblox, a metaverse gaming platform, announced that in Q1 2023, its number of daily active users had increased to 66 million. Most recently, the announcement by Apple of its new ‘Vision Pro’ AR headset is reported to have renewed interest in the metaverse among developers. A particular area of interest in the developing metaverse is digital fashion and retail. In its Metaverse Fashion Trends Report 2022, Roblox found that nearly three in four users aged 14 to 24 spend money on digital fashion items. Roblox itself has partnered with fashion brands Burberry, Gucci, Tommy Hilfiger, and others, to offer experiences and items for use on the platform. In March 2023, Decentraland, a metaverse platform with a decentralized governance structure, hosted the Metaverse Fashion Week, featuring brands such as Adidas, Coach, and DKNY. As businesses continue to invest and look for opportunities to expand into the metaverse, whether through traditional e-commerce or more innovative digital asset offerings, it is important that they consider the ways in which new and existing laws apply