Looking Back: 2021 and Gazing Into: 2022
Looking Back: 2021
2021 saw the continuation of existing measures and the introduction of new measures to manage the COVID-19 pandemic. These include, among others, (i) financial and tax measures to support businesses and individuals; (ii) extended deadline for tax payments; (iii) labour-related measures to assist employers and employees; and (iv) measures by the Board of Investment (BOI) to accelerate investment to stimulate Thailand’s economy and encourage businesses to adopt digital technologies.
Due to the disruption caused by the COVID-19 pandemic, the planned June 2021 implementation of the Personal Data Protection Act was delayed for certain types of data controllers for a further one-year period.
In the area of competition law, there were substantial inroads made by the enforcement of the 2017 Trade Competition Act and the issuance of guidelines to clarify its intended scope and application. For example, in mid-December 2021, the Office of the Trade Competition Commission (OTCC) issued a set of guidelines on the use of “fair” credit terms between business operators and small and medium enterprises.
Throughout the year, efforts to bring foreign e-service providers within the Thai taxation system continued by requiring them to register as value-added tax (VAT) registrants in Thailand under certain circumstances.
The following are some other key developments in 2021:
- amendments to the Civil Commercial Code to Change the Statutory Interest Rate; and
- new regulations on the dual-use items trade control measures.
Gazing Into: 2022
As the COVID-19 pandemic continues, we expect to see the furtherance of measures focussed on COVID-19 pandemic control and support. The Thai Cabinet, in September 2021, provided in-principle approval of various measures to promote foreign investment in Thailand through the issuance of new visa, work permit, tax and foreign land ownership incentives. The implementation of these measures will likely require the amendment of the relevant laws. Further legislative amendments may also be on the cards in 2022 due to the impact of the Initiative Process Act B.E. 2564 (2021), which sets out the process for introducing a bill, as well as an amendment to the Thai Constitution.
All of the provisions of the Personal Data Protection Act B.E. 2562 (2019) (“PDPA“) will become fully effective on 1 June 2022 after postponements in 2020 and 2021 of its coming into operation. A number of subsidiary laws are expected to be passed to set out further details of the requirements under the PDPA.
We expect increased enforcement of the 2017 Trade Competition Act, with the Office of the Trade Competition Commission (“OTCC“) clearly ramping up to receive and investigate an increased number of complaints. We expect that the focus of OTCC in 2022 will continue to be on investigation of unfair trade practices under Section 57 of the 2017 Trade Competition Act.
Environmental, Social, and Governance (“ESG“) factors are increasing in importance for stakeholders of Thai businesses in terms of operations and investment decisions. We expect increasing pressure on the Thai government to strengthen the environmental protection regime in Thailand. Some initiatives in this regard include the proposed amendments to the Enhancement and Conservation of National Environmental Quality Act 1992, which were put up for public hearing from 11 October 2021 to 8 December 2021, and are intended to, among others, strengthen the Pollution Control Department’s enforcement powers.
In brief, we expect the following key trends in 2022:
- a continuation of COVID-19 pandemic related measures to support investment, which will likely involve the amendment of the relevant laws;
- increased legislative action due to the operation of the Initiative Process Act;
- probable uncertainty over the implementation of the PDPA, which is set to be fully operational on 1 June 2022 (i.e. the full implementation may be further extended);
- increased enforcement under competition law; and
- increased focus on enhancing environmental protection and ESG principles for Thai business operations and investments.
Full Report
Click on the link below for the full report which provides summaries of the key legal developments related to the above areas.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
