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New Law Update

Topic 1. Latest Law Update

Interesting News

1. Extension of the VAT Rate Reduction until 2025

According to Royal Decree No. 790 B.E. 2567, the extension of the VAT rate reduction has been announced, lasting until September 30, 2025, as an amendment to Royal Decree No. 646.

Under Section 80 of the Revenue Code, the VAT rate is reduced to 6.3% for the sale of goods, provision of services, and imports in all cases. This rate has been effective since October 1, 2017, and will continue until September 30, 2025. This tax reduction measure aims to ease the tax burden on businesses and individuals, stimulating the economy and promoting domestic consumption.

2. Exempt personal income tax for profit sharing or other similar benefits obtained from holding or possessing digital tokens for investment.

In the case where a person who receives a share of profits or other benefits of the same nature from holding or possessing digital tokens for investment under Section 40 (4) (c) of the Revenue Code and the payer has already withheld tax at source under Section 50 (2) of the Revenue Code at a rate of 15 percent of the share of profits or other benefits of the same nature, when the due date for filing a list of assessable income arrives, they shall be exempt from including the share of profits or other benefits of the same nature in the calculation for income tax for the share of profits or other benefits of the same nature received from January 1, 2024, and only in the case where the person who receives the income does not request a refund of the withheld tax or does not request a credit for the withheld tax, whether in whole or in part (Royal Decree No.789)

3. Royal Decree Exempting VAT for Cryptocurrency and Digital Token Transfers

According to Royal Decree No. 788 B.E. 2567, the exemption of Value-Added Tax (VAT) for the transfer of cryptocurrency and utility digital tokens has been announced, effective from January 1, 2024, onwards.

Cryptocurrency, or digital currency, is a digital asset designed to function as a medium of exchange, similar to traditional currency, but intangible. Utility digital tokens, on the other hand, provide holders with rights to receive goods or services as agreed upon.

This VAT exemption applies to transfers made through digital asset exchanges, brokers, or digital asset dealers, supporting the growth of the digital asset business in Thailand.

4. The Excise Department has issued regulations for paying subsidies for EV packages, EV 3.5, up to 100,000 baht/car

Disbursement of the budget for subsidies under the measures to support the use of electric vehicles, Phase 2 (EV 3.5), by paying subsidies to entrepreneurs as follows:

In addition, the conditions are set for those who receive support from this project to produce cars to offset imports by 2026 at a ratio of 1:2 of the amount imported during 2024-2025 or to produce to offset imports in 2027 at a ratio of 1:3 to stimulate domestic investment and push Thailand to become a center for electric vehicle production in the region.

5. Marriage Equality Law.

On September 24, 2024, the Royal Gazette published the Civil and Commercial Code Amendment Act (No. 24) B.E. 2567 (2024), also known as the “Marriage Equality Law.” The key content of the amendment is the recognition of marriage between individuals, no longer limited to just male and female couples. This also includes revisions to the wording in the Civil and Commercial Code to reflect the current society, which now recognizes greater gender diversity. Importantly, this law allows people of all genders to engage in betrothals and marriages, granting them equal rights, duties, and family status as heterosexual couples.

An interesting aspect of this law is that any couple registering their marriage, once the amended Civil and Commercial Code recognizing marriage equality takes effect, will be entitled to rights, duties, and benefits under other laws that specify rights for “spouses” or “husband and wife.” For instance, under Section 1458 of the Civil and Commercial Code regarding marriage registration, the wording has been changed from “male and female” to “two persons.” Therefore, once the law comes into effect (from January 22, 2025), if individuals of diverse genders legally register their marriage, they will be entitled to rights, duties, and benefits under various laws that grant rights to “spouses” or “husband and wife,” such as:

• Right to use a spouse’s surname : According to the Name Act B.E. 2505 (1962), Section 12, spouses have the right to use each other’s surname or retain their own original surname.
• Consent for medical treatment : Under the National Health Act B.E. 2550 (2007), Section 8, in situations where a patient is unable to make medical decisions, the patient’s legal heir must be informed. A spouse is recognized as a legal heir under the Civil and Commercial Code (Section 1629, second paragraph).
• Tax benefits : Gifts from a spouse, up to 20 million baht per tax year, are exempt from personal income tax (Section 42(27) of the Revenue Code). Additionally, spouses are eligible for a 60,000-baht tax deduction (Section 47(1)(b) of the Revenue Code).
• Exemption from inheritance tax for a spouse: Under the Inheritance Tax Act B.E. 2558 (2015), Section 3(2), inheritance received by a spouse from the deceased is exempt from inheritance tax.
• Right to file for divorce due to infidelity : Under the amended Section 1516(1) of the Civil and Commercial Code, if one spouse supports or engages in a sexual relationship with another person outside the marriage, the other spouse can file for divorce. The spouse filing for divorce is also entitled to compensation from both the spouse and the third party involved (Section 1523). In summary, the Marriage Equality Law replaces terms like “husband/wife” with “spouse” and removes gender-specific conditions for actions such as filing for divorce or claiming compensation, ensuring equal treatment for all genders in accordance with the principles of marriage equality.