Thailand’s Revenue Department has issued an order clarifying its recent order imposing personal income tax (PIT) on the offshore-sourced income of Thailand tax residents whenever it is brought into Thailand. The clarifying order, which was issued on November 20, 2023, confirms that the new rule will not apply to offshore-sourced income earned before January 1, 2024, which is the date the order comes into effect. This means that offshore-sourced income earned before January 1, 2024, will not be subject to PIT if it is brought into Thailand after the year 2023. This grandfather protection means that Thai tax residents will not have to pay PIT on offshore-sourced income earned before 2024 and brought into Thailand at any time after 2023. This is favorable to many who have earned income from offshore sources but may not have had sufficient time to revise their tax planning in response to the new rule. For more details on Thailand’s taxation of tax residents’ offshore-sourced income, or on any aspect of tax laws and regulations in Thailand, please contact Tilleke & Gibbins at [email protected].

In this article originally published by World Trademark Review, Tilleke & Gibbins senior associate David Mol shares advice on how to collaborate effectively with customs officials at Cambodian border points and ports, offering a guide on how to successfully monitor for—and enforce against—counterfeit and grey market goods.   Can rights holders record trademark and brand-related IP information with Customs and, if so, how?   At present, there is no formal customs IP recordal system in place in Cambodia. However, rights holders may consider: a request letter to Customs; or recordal of an exclusive distributorship. Request letter to Customs A request letter to Customs would be an effective measure in cases where a rights holder is aware of a specific customs checkpoint that is being used to smuggle infringing goods. The rights holder may request to set up a meeting with Customs at the checkpoint to provide officials with: guidance on the issue; the IP rights involved; and information on product identification. The rights holder may further request the official’s assistance in monitoring shipments for certain goods. Customs has been open and cooperative in the past, setting up direct communication lines between rights holders and border officials. Officials then: monitor shipments; exchange sighting reports; and set up inspections where applicable. However, this option is not directly regulated under any laws or regulations, and can only be considered as an ad hoc approach in cases where the rights holder is aware of issues at a specific checkpoint. We usually do not recommend using this approach to alert all checkpoints in Cambodia, as it is rather time-intensive, requiring close cooperation and active liaison with officials. Instead, targeting specific checkpoints has proven to work in our experience. A request letter to Customs may apply to all types of intellectual property. However, a recently issued regulation that addresses suspensions

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.

Similar to other types of corporate disputes, tax-related conflicts often begin with an earnest attempt to resolve matters outside the courtroom. The prospect of engaging in tax litigation can be daunting, given the potential strain on commercial relationships, the legal expenses, and the uncertainty surrounding its resolution. However, there are instances when tax litigation becomes the sole avenue for seeking redress. For individuals and entities contemplating the pursuit of tax-related legal remedies, the Thai legal system offers an accessible, impartial, and equitable platform for dispute resolution. Tax Litigation in Thailand provides an outline for navigating tax-related disputes within the Thai legal framework. It aims to equip readers with a fundamental understanding of procedures and practices within the Thai tax litigation landscape. The full guide is available through the button below.