1. Foreign investors, professionals, and retirees will be able to enjoy a number of new incentives in Thailand, as the government seeks to attract high-earning overseas residents to help the country’s COVID-19 recovery.
2. Thailand’s cabinet passed a resolution on September 14, 2021, introducing immigration, tax, and land ownership incentives aimed at foreign investors and skilled professionals. The incentives are part of an effort to stimulate Thailand’s economy which has been badly impacted by the COVID-19 pandemic.
3. According to a government spokesperson, the government expects the incentives to attract over a million foreign investors and professionals within five years, contributing over 1 trillion baht (US$30 billion) to the economy.
4. The incentives come in three categories: immigration, tax, and real estate.
5. In May 2021, Thailand’s Cabinet approved the draft amendments to the country’s Public Limited Companies Act in a bid to modernize the corporate process.
INCENTIVES1. Immigration - Qualified applicants can receive a 10-year long-term resident visa to live in Thailand, including for their spouses and children. Qualified applicants will also be issued an automatic work permit. This is a new type of visa that did not previously exist in Thailand.
2. As opposed to other types of visas, those on long-term resident visas will not have to submit written notices to relevant authorities to stay longer than 90 days in the country. Potentially, they will not be subject to restrictions on hiring foreign workers, such as the requirement that employers hire four Thai workers for every foreign one, although this remains to be determined.
3. Tax - Qualified applicants will be able to enjoy the same income tax rates as Thai citizens, as well as tax exemptions for income earned abroad. Further, they can apply for a 17 percent fixed income tax rate in accordance with the Eastern Economic Corridor scheme.
4. Land and property - Qualified applicants will be able to enjoy relaxed restrictions on foreign ownership and rent of land and property.
5. The incentives will be overseen by Thailand’s Office of National Economic and Social Development Council. They will be in place for five fiscal years from 2022-2026, at which point authorities will evaluate their performance and decide whether to extend them.
6. Potential applicants should note that while the Thai government has confirmed incentives in these areas, details in some areas, such as land and property, have not yet been made clear.
QUALIFIED PEOPLE
1. The incentives apply to four categories of foreigners: wealthy global citizens, wealthy pensioners, work from Thailand professionals, and highly skilled professionals.
2. Wealthy global citizens - People with at least US$80,000 in income over the last two years and at least US$1 million in assets can qualify for the incentives. Further, they must have medical insurance covering at least US$100,000 and invest at least US$500,000 in Thai government bonds or real estate.
3. Wealthy pensioners - Retired pensioners with a stable pension of at least US$40,000 per year and aged 50 or older can apply. They too must have medical insurance covering at least US$100,000 and invest at least US$250,000 in Thai government bonds or real estate.
4. Work from Thailand professionals - Foreign professionals who work remotely from Thailand (often referred to as digital nomads), with at least US$80,000 in income over the last two years and at least five years of work experience will be eligible.
5. Highly skilled professionals - This category refers to professionals with at least US$80,000 in income over the last two years or US$40,000 per year who work in targeted industries, including building infrastructure, logistical systems, and digital systems, or experts and researchers who work with state agencies or as university lecturers.
PANDEMIC RECOVERY
1. The incentives are part of an effort to stimulate Thailand’s economic recovery from the COVID-19 pandemic and encourage foreigners to travel, live, and work in the country. Over the five years of the incentives’ initial eligibility period, the government projects to collect 800 billion baht (US$24.1 billion) from investments, 270 billion baht (US$8.1 billion) from income tax collection, 70 billion baht (US$2.1 billion) from value-added tax, and 22 billion baht (US$662 million) from investment-related taxes.
2. The incentives are one of several measures aimed at encouraging foreigners to travel, live, and work in Thailand. Recently, Thai officials also relaxed a ban on alcohol sales in certain areas that were in place to discourage people from going to bars and clubs amid COVID-19 outbreaks. Earlier, Thailand launched the “Sandbox Reopening” program to allow certain parts of the country to loosen restrictions for foreign tourists.
3. To be noted, not all of the details are clear for the new incentives for foreigners, even though they were passed by the cabinet. More details about issues in need of clarification, such as what form will land incentives take and how applicants can prove their net worth, stand to surface in the months ahead.
AMENDMENTS TO THAILAND'S PUBLIC LIMITED COMPANIES ACT
1. In May 2021, Thailand’s Cabinet approved the draft amendments to the country’s Public Limited Companies Act in a bid to modernize the corporate process by allowing meetings between shareholders and directors to be held online, enabling the flexibility to send information between directors and shareholders electronically, and enabling shareholders to appoint a proxy electronically.
2. The Act has been previously amended in 1972, 1978, 1992, and 2008, with each amendment adapting the Act to contemporary business needs.
3. The proposed amendments aim to improve the efficiency of and bring consistency to Thailand’s corporate system and procedures that were impacted by the pandemic, as borders were closed and logistics disrupted, leading to the loss in competitiveness for local businesses.
4. Advertisement of company matters - Under the proposed amendments, any announcement of the public company’s matters can be done through electronic means, whereas currently, the Public Limited Company Act demands that any notices or statements made by public limited companies must be done through Thai-language/national daily newspapers distributed in the area of the company’s headquarter.
5. Advertising the board of directors and/or shareholder’s meeting - Meetings taking place between the company’s board of directors (BOD) or shareholders may be held via electronic or digital means in conformity with the relevant laws and regulations under the proposed amendments. The headquarter of the company shall be deemed the venue for such meetings.
6. Currently, meetings taking place between the company’s board of directors or shareholders shall be held in the region of the public company’s general headquarter area unless the articles of association of the company say otherwise.
7. Authority to summon the board of director meeting - There are two methods for calling a BOD meeting. The first method is for the chairman to call for the meeting since they will have the summoning rights. The second method is to allow the meeting to be initiated by at least two directors, who have requested upon the chairman call a board of directors meeting. If the chairman refuses to or is unable to call the meeting within a stipulated 14-day period, a deadlock can occur.
8. Under the proposed amendments, if the chairman is absent then the deputy chairman can also call for a BOD meeting. If the chairman and vice-chairman are absent, at least two of the directors will be empowered to call for the meeting within the 14-day period, thus also solving the problem when a deadlock occurs.
9. Delivery of letters and documents by the public company or board of directors - The proposed amendments provide that the company or BOD can send letters or documents to directors, shareholders, or creditors electronically. Those persons, however, must have declared their intentions to receive such documents and letters via electronic means.
10. Currently, all letters and documents must be mailed via a registered post to a chosen address provided by the recipient to the company. In the absence of a working address, the public company will mail the notice or document to the recipient’s home address.
11. Proxy appointment - Under the draft Act, a shareholder can appoint a proxy through electronic means provided it is safe and credible. Currently, the appointment of a proxy must be made in writing and in hard copy.
Source:
https://www.aseanbriefing.com/news/thailand-issues-new-incentives-to-attract-foreign-investors-professionals-and-retirees/
https://www.aseanbriefing.com/news/proposed-amendments-to-thailands-public-limited-companies-act/
