The Contract Committee of Thailand’s Office of the Consumer Protection Board (OCPB) has issued the Notification Prescribing the Business of Selling Condominium Units Through Reservations as a Contract-Controlled Business B.E. 2567 (2024). The notification was published in the Government Gazette on October 3, 2024, and is expected to come into effect 120 days after the publication date (i.e., January 31, 2025). This notification aims to prevent condominium project business operators/developers from exploiting consumers. Under the notification, the business of selling condominium units through reservations refers to a business in which a consumer enters into a reservation contract with a business operator to reserve a condominium unit in a condominium building, by paying a reservation fee (or other benefit similar to a reservation fee) that is not a security deposit or down payment, and committing the consumer to enter into a subsequent sales contract to buy the unit. This also extends to the sale of condominium units reserved through electronic channels. The reservation contract must be written in Thai and must include material terms and conditions as specified in the prescribed reservation contract form attached to the Notification (“Standard Reservation Contract”). In addition, the reservation contract must not contain any of the following terms and conditions: Exemption or limitation of the business operator’s liability arising from its breach of contract. The business operator’s right to change the contract or various conditions imposing an additional burden on the consumer, exceeding what was agreed upon at the time the contract was made. The business operator’s right to terminate the contract with the consumer without written notice, or without the material breach of contract by the consumer. The business operator’s right to confiscate all or part of the payment unless the consumer is in breach of the contract. The business operator’s right to

Thailand’s Board of Investment (BOI) has issued a notification granting investment privileges to qualified new residential projects for low-income individuals. Notification No. Sor. 1/2567 Re: Promotion of Residential Activities for Low-Income People was published in the Government Gazette on May 3, 2024, and came into effect the following day. To be eligible for BOI promotion, at least 80% of the total residences in a project must meet the requirements for usable area and price. The minimum usable area is 24 square meters for condominium units and 70 square meters for town houses and detached houses. The residences can only be sold to individuals, and the sale price for each of these condominium units or houses (including the price of any land) must not exceed THB 1.5 million. Projects must also meet the following criteria: Projects must include a car park, closed circuit television (CCTV) throughout the project, a 24-hour security guard, cleaning staff, a common area, and other facilities in an appropriate proportion. The building plan and layout must be approved by the BOI. A permit for the construction of a building under building control laws and other relevant laws must be obtained. Approval must also be obtained from the Government Housing Bank prior to submission of the application to the BOI. However, ISO 9000, ISO 14000, or other similar international standard certification is not required. Under the notification, applications for such promotion must be submitted to the BOI by the end of 2025. New low-income residential projects promoted by the BOI will be granted a corporate income tax exemption for a period granted for A4-promoted activities (typically three years). For corporate income tax exemptions, the investment will only be calculated based on the construction costs for roads, other facilities, or public utilities that are commonly used within the

As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.