Thailand is preparing to revise its investment incentive framework in line with the OECD’s Global Minimum Tax (GMT) rules, as the Thailand Board of Investment (BOI) prepares to introduce Qualified Refundable Tax Credits (QRTC) to mitigate the impact on multinationals operating in the country. The move responds to the enforcement of Pillar Two of the OECD’s Base Erosion and Profit Shifting (BEPS) framework, which requires a 15 percent minimum effective tax rate for multinational corporations with consolidated revenues over EUR 750 million, effective since January 1, 2025.

Approximately 1,500 companies in Thailand—mostly foreign multinationals, alongside about 100 Thai firms—are expected to be impacted. In response, the Commission on National Competitiveness Enhancement for Targeted Industries, for which the BOI acts as secretariat, has approved amendments to Thailand’s 2017 Competitiveness Enhancement Act to introduce QRTC-compatible incentives such as refundable tax credits for activities including R&D, advanced skills development, production efficiency, and sustainable investment.

These refundable tax credits, compliant with OECD QRTC standards, will be treated as income under Pillar Two rules and can be used either to offset tax liabilities or claimed as cash refunds, supporting business liquidity.

To operationalize the reform, the Revenue Department is preparing parallel regulatory changes to ensure full legal alignment. The legislative package is now awaiting Cabinet approval before entering the formal legislative process.

In addition to legal reforms, the BOI has received an extra THB 10 billion (USD 290 million) injection into its Competitiveness Fund. This funding will support industries affected not only by GMT but also by the recently imposed 19 percent U.S. reciprocal tariff, which is expected to reduce Thai exports and threaten investment competitiveness.

According to BOI Secretary-General Narit Therdsteerasukdi, the fund will be used to attract high-value investment in advanced semiconductors, upstream batteries, AI, digital industries, and biotechnology, and to accelerate technology transfer and workforce development. The BOI’s broader strategy includes previously introduced support for companies transitioning to modern production technologies, including AI-enabled automation. [Board of Investment] [Bangkok Post]

Thailand’s Board of Investment (BOI) has approved revised incentive measures to support high-potential startups in the Pre-Series A to Series A funding stages—early investment phases where startups typically begin scaling operations and attracting institutional capital. The policy targets startups in strategic deep tech sectors, including agriculture and food, biotechnology, robotics and automation, artificial intelligence, medical technology, and green industries.

Under the revised policy, qualified Thai startups may receive matching funds of up to THB 20 million (USD 620,000) to accelerate scaling and innovation.[Board of Investment]

Thailand’s Revenue Department is drafting a law to exempt Thai tax residents from personal income tax on foreign-sourced income if it is brought into the country within two years of being earned. The proposal, which may be applied retroactively once passed, is intended to encourage the repatriation of an estimated THB 2 trillion (USD 58 billion) in foreign earnings currently held offshore by Thai individuals.

The move comes in response to stricter rules introduced in 2024, which eliminated previous tax planning options. Under current regulations, foreign income is now taxable regardless of when it is brought into Thailand, so long as the taxpayer resides in the country for at least 180 days within the tax year.

The proposed change would restore a deferral-based tax exemption, aimed at boosting domestic liquidity and investment without requiring legislative repeal of the 2024 rule.

Separately, the cabinet in June approved a five-year tax exemption on capital gains from digital assets and cryptocurrencies, effective from January 1, 2025, to December 31, 2029, as part of efforts to attract foreign funds via Thailand’s crypto markets. [Bangkok Post]

Thailand’s Personal Data Protection Committee (PDPC) has imposed over THB 15 million (USD 435,000) in fines across five major personal data breach cases, including a widely publicized incident involving a private hospital that leaked over 1,000 pages of patient medical records, which were later found being used as wrappers for street snacks.

The hospital, located in Ubon Ratchathani province, outsourced the destruction of sensitive documents to a small, family-run business without proper oversight. Instead of destroying the files, the contractor stored them at home, leading to their leakage. The documents—including clearly identifiable medical information—were discovered wrapped around a popular Thai street food, and were first publicized in May 2024 by an influencer.

The PDPC fined the hospital THB 1.21 million (USD 37,000) for violating Thailand’s Personal Data Protection Act (PDPA), particularly its provisions governing the handling of sensitive personal data under Section 26. The disposal contractor was fined THB 16,940 (USD 520). This marked one of the most prominent enforcement actions since the PDPA became fully effective in 2022.

In a separate case, a government agency and its IT contractor were each fined THB 153,120 (USD 4,440) after a cyberattack exposed the personal data of over 200,000 citizens, which was subsequently offered for sale on the dark web. Investigators found that the agency failed to implement basic cybersecurity protocols, such as strong passwords, risk assessments, or a data processing agreement with the vendor.

Other cases concluded by the PDPC include breaches by three private companies:

· A computer and electronics company was fined THB 7 million (USD 203,000).

· A cosmetics firm was fined THB 2.5 million (USD 72,500).

· A collectible toy company and its data processor were fined THB 500,000 (USD 14,500) and THB 3 million (USD 87,000), respectively.

Since mid-2024, the PDPC has concluded six major data breach cases. [South China Morning Post] [Bangkok Post 1] [Bangkok Post 2]

Thailand has formally agreed to adopt stricter Rules of Origin standards in trade with the United States, proposing a Regional Value Content (RVC) threshold of 50 percent—up from the typical 40 percent—under a new bilateral trade agreement aimed at curbing origin fraud, particularly involving Chinese goods. The proposed RVC rule requires that at least half the value of a product’s components originate from Thailand or its designated regional partners, excluding China, whose goods remain subject to higher U.S. tariffs.

The move comes as part of Thailand’s broader acceptance of U.S. terms in exchange for a reduced reciprocal tariff rate of 19 percent, down from a potential 36 percent, which is expected to save THB 300 billion (USD 8.7 billion) in export-related costs. The deal was acknowledged at a special Cabinet meeting on August 1 and will now move to Parliament for formal approval, along with required amendments to Thai customs and tariff regulations.

The Thai Customs Department will intensify inspections on high-risk products flagged by the U.S.—notably solar panels—and enforce stricter oversight on transshipped goods, particularly those suspected of minor processing in Thailand to disguise Chinese origin. A U.S. watchlist of goods at risk of origin fraud has already been submitted to Thai authorities, who are expected to set up traceability systems based on purchase orders, shipping records, and potentially AI-driven digital tracking systems.

While Washington has not yet confirmed acceptance of Thailand’s 50 percent RVC proposal—amid speculation it may push for a 60 percent threshold—Thai negotiators maintain that the move demonstrates good faith and a willingness to align with U.S. anti-circumvention priorities. Officials stressed that this agreement is country-specific and will not set a precedent for future trade deals with other partners, where WTO norms will continue to apply. [The Nation]

Thailand’s coffee industry continues to grow in defiance of broader economic pressures, driven by rising consumption and changing consumer preferences. According to the Department of Business Development (DBD), Thais now consume an average of over 340 cups per person annually, pushing the domestic market value to THB 65 billion (USD 1.88 billion) in 2025—an 8.33 percent increase from the previous year.

Despite stagnant overall industry revenues and declining producer profits due to rising input costs and fierce competition, demand for fresh and specialty brews continues to grow, particularly among younger consumers who prioritize lifestyle experiences and sustainability. Coffee bean imports reached THB 8.38 billion (USD 242 million) between January and May 2025, far outpacing exports at THB 2.41 billion (USD 70 million), due to limited domestic supply of specialty-grade beans—only 5,000 tons of the 40,000–50,000 tons produced annually meet specialty standards.

The sector is also seeing a wave of entrepreneurship, with 415 new coffee businesses registered in the first half of 2025—an 8.92 percent year-on-year increase—most of them small enterprises, one-third based in Bangkok. Business models remain bifurcated: franchise chains, which enjoy 17.5 percent average profit margins, and independent shops, which account for 94.4 percent of the market but face thin margins averaging 4.6 percent.

Technology is playing a pivotal role in market resilience. Around 22 percent of coffee shop sales now come from delivery services, while more than 50 percent of payments are made through digital platforms. [The Nation]

Thailand’s labor market is undergoing structural adjustment in 2025, with employers increasingly prioritizing flexible employment models, AI-related skillsets, and expanded employee benefits, according to the Hiring, Compensation & Benefits (HCB) Report 2025 by Jobsdb by SEEK. Based on a nationwide survey of 702 employers, the report outlines three major shifts defining workforce strategy this year.

First, large firms are rapidly increasing part-time and contract hiring: part-time permanent roles in companies with over 100 employees rose from 20 to 42 percent, while contract part-time roles increased from 19 to 28 percent. This reflects continued caution following cost-driven restructuring in 2024 and a push for greater operational flexibility. Still, full-time hiring is rebounding, with over 53 percent of employers planning new hires in the first half of 2025. Demand remains strong in HR, admin, sales, and accounting roles.

Second, firms are strengthening their employee value proposition (EVP) through holistic benefit enhancements. Benefits such as birthday leave, paternity leave, and family care leave each increased by 15 percent, while family-focused workplace infrastructure like nursing rooms and education allowances is becoming more common. Additionally, 85 percent of companies adjusted salaries to match inflation, and 84 percent offered bonuses averaging two months’ pay to retain staff during continued economic volatility.

Third, AI skills are now seen as foundational across job categories. While AI use in recruitment is still emerging, 65 percent of employers assess AI competency in interviews, and over a third already use AI tools to draft postings and screen candidates. Skill assessments rely on interviews (51 percent), portfolio reviews (42 percent), and dedicated tests (33 percent). [Bangkok Post]

Myanmar’s Cybersecurity Law No. 1/2025 officially took effect on July 30, 2025, introducing far-reaching regulations for online activity, digital platforms, VPN services, and cybersecurity providers. Enacted by the military-led State Administration Council (SAC), the law significantly expands the government’s authority over digital infrastructure under the pretext of national security.

Key provisions include:

· Extraterritorial enforcement: Myanmar citizens can be penalized for violations committed outside the country, reinforcing the SAC’s effort to control dissent and surveillance beyond its borders.

· VPN regulation: While the use of VPNs is not explicitly prohibited, VPN service providers must be approved by a yet-to-be-designated ministry. Unlicensed providers face 1–6 months imprisonment and fines of MMK 1–10 million (USD 476–4,760) for individuals, or MMK 10 million (USD 4,760) minimum for organizations.

· Digital platform licensing: Platforms with over 100,000 users must obtain licenses, valid for 3–10 years, or face fines starting at MMK 100 million (USD 47,600).

· Government oversight: Authorities can take control of digital or cybersecurity services for national defense or upon request by state agencies.

· Penalties for online activities: Harsh sanctions apply for actions ranging from unsolicited communications to cyber misuse, online theft, and unlicensed online gambling, with prison terms ranging from 6 months to 7 years, and fines up to MMK 20 million (USD 9,530).

The law marks a major shift in Myanmar’s digital governance, posing significant compliance burdens on businesses and raising concerns about state surveillance and censorship. Enforcement and implementation remain uncertain, particularly given widespread VPN usage and lack of clarity around license procedures for digital and gambling platforms. [Tilleke & Gibbins]

Vietnam has introduced two key regulatory changes in early August 2025 affecting consular processes and customs tax administration.

First, Decree 196/2025/ND-CP, in effect from August 3, revises Vietnam’s rules on consular certification and legalization. It exempts several types of documents from consular legalization requirements. These include documents covered by treaties or reciprocity agreements, documents exchanged directly between competent Vietnamese and foreign authorities, documents exempt under domestic law, and foreign documents whose authenticity can be independently verified by Vietnamese authorities.

Second, Circular 51/2025/TT-BTC, effective from August 7, introduces procedures for online payment of customs duties. Importers, exporters, and operators of transit and cross-border transport vehicles can now pay taxes electronically via Vietnam’s Customs Electronic Payment Portal or through banks and payment service providers, regardless of whether they have formal coordination agreements with customs. [Viet Nam Law Magazine]

Vietnam has enacted two major regulatory reforms—Decree 167/2025/ND-CP and Decree 182/2025/ND-CP—designed to simplify customs procedures, reduce compliance burdens, and enhance the country’s appeal to high-tech foreign direct investment (FDI). Both decrees follow the National Assembly’s adoption of Law No. 90/2025/QH15, which amended the Customs Law and the Law on Export and Import Duties. The reforms became effective on July 1 and August 15, 2025, respectively.

Decree 167 revises customs rules with particular focus on the on-the-spot (OTS) export-import model, a structure that allows goods to be delivered and received entirely within Vietnam under the direction of a foreign buyer. Notably, foreign traders with a commercial presence in Vietnam—such as branches or subsidiaries—are now permitted to engage in OTS transactions. The decree also allows customs clearance to be completed either before or after delivery, offering greater operational flexibility. However, transactions with export-processing enterprises (EPEs) remain excluded from the OTS model.

Decree 167 further introduces updated criteria for Authorized Economic Operator (AEO) status, a designation that allows for expedited customs procedures. While companies are typically required to show two years of clean compliance history and meet import-export turnover thresholds, early-stage firms in high-tech, semiconductor, digital, or R&D sectors are now exempt from those requirements, allowing them earlier access to AEO benefits.

In parallel, Decree 182 expands import duty exemptions for a broad set of goods used in science and technology investment projects. Full exemptions now apply to (1) inputs for R&D or production by certified high-tech and science-technology enterprises, (2) components not domestically produced, (3) equipment used in scientific research, and (4) goods for building fixed assets in innovation-driven projects. After a five-year exemption period, unused exempt goods must be declared and taxed in accordance with applicable regulations.

The reform package also strengthens customs oversight. OTS deliveries now require prior notification to customs, remain under supervision until clearance, and may be audited at the trader’s premises. Additional anti-smuggling tools, including surveillance and intelligence gathering, have been authorized. Meanwhile, shipments via post or express courier must pass through designated inspection hubs.

Together, these changes represent a shift toward compliance-based facilitation: companies demonstrating regulatory alignment—especially in high-tech sectors—receive procedural and fiscal incentives, while risk-based inspections and post-clearance audits are expanded. For firms seeking to benefit, full documentation, including certification from the Ministry of Science and Technology, will be essential. [Viet Nam Law Magazine] [Vietnam Briefing]