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Establishment restrictions

THAILAND

Since 1979
Since 1999

Chapter Intellectual Property Rights  |  Sub-chapter Patents
Patent Act

Ministerial Regulation No.21 (B.E. 2542)
When a foreigner files a patent application in Thailand, the individual has to prove that his/her country allows reciprocity, enabling Thai citizens the equal right for patent appications.This requirement seems to apply to all foreign nationals, including foreigners who have their domicile in Thailand and foreign companies that are established in the country.

Moreover, the foreign applicant must have an agent which has a contact address in Thailand. An agent must be a Patent Agent which is registered with the Thai Patent Office.
Coverage Horizontal
Establishment restrictions

THAILAND

Since 2001

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Section 7, Chapter 1 of the Thai Telecommunications Business Act B.E. 2544
Notification procedures apply to all telecommunication services to a different extent. Type 1 telecommunication services require a notification to the regulator, while type 2 and 3 (fixed and mobile services) require a license.

Thailand has no specific licence requirements or regulations for online content providers. They may, however, be subject to registration requirements under specific laws, depending on the type of content provided.
Coverage Telecommunication sector, online broadcasting and advertisement
Source
  • Baker and McKenzie, Guide to Media and Content Regulation in Asia Pacifc, 2012, p. 96: http://www.commsalliance.com.au/__data/assets/pdf_file/0016/42136/Guide-to-Media-and-Content-Regulation-in-Asia-Pacific.pdf
Establishment restrictions

THAILAND

Since November 1999

Chapter Investment  |  Sub-chapter Screening of investment and acquisitions
Section 5 of the Thai Foreign Business Act of 1999
There are no reports on investments in the telecommunication or ICT sector having been blocked on national interest grounds. Nevertheless, in granting permission to foreigners for the operation of businesses under the Foreign Business Act, regard shall be given to advantageous and disadvantageous effects on national safety and security, economic and social development of the country, public order or good morals, national values in arts, culture, traditions and customs, natural resources conservation, energy, environmental preservation, consumer protection, sizes of undertakings, employment, technology transfer and research and development.
Coverage Horizontal
Establishment restrictions

THAILAND

Since November 1999

Chapter Investment  |  Sub-chapter Restrictions on board of directors and managers
Thai Foreign Business Act of 1999
There are no nationality or residency requirements for managers. However, according to the Foreign Business Act, a company is deemed "foreign" if the manager is a foreigner.
Coverage Foreign businesses
Establishment restrictions

THAILAND


Chapter Investment  |  Sub-chapter Restrictions on board of directors and managers
Residency requirement
The board of directors must have at least five members and more than half of the directors residing in Thailand.
Coverage Public limited companies
Establishment restrictions

THAILAND

Since August 2011

Chapter Investment  |  Sub-chapter Restrictions on ownership
Foreign Dominance Regulation BE 2555
The Foreign Dominance Regulation BE 2555 introduces foreign dominance criteria in the telecom sector by taking into account elements such as shareholding, management control and supply relationship.

Telecommunication licence holders with or without networks providing services for one or various segments of the public and operators that provide services to the general public are restricted from performing any actions which are deemed as “foreigner dominance” which include:
- holding voting shares in a company equal to one-half or more of all voting rights;
- having controlling power over the majority vote of a company shareholders’ meeting; or
- having power to appoint or remove one-half or more of all of a company’s directors, among others.
Coverage Telecommunication sector
Establishment restrictions

THAILAND

Since 2005
Amended in 2006

Chapter Investment  |  Sub-chapter Restrictions on ownership
Section 7 of the Thai Telecommunications Business Act
Foreign investment equity share is capped at 49% in telecom operators with or without networks providing services for one or various segments of the public and operators providing services to the general public. There is no maximum foreign equity ownership for operators that do not own a telecommunication network, including for resale of public switched telecommunication services, international calling cards, mobile virtual network operators (MVNOs), store-and-retrieve value added services, etc.

Prior to 2006, foreign companies could provide telecommunication services by entering into joint ventures with Thai companies with a limitation on foreign shareholding of 25%. Following 2006, the limitation on foreign shareholding was amended according to the law governing alien business operations (i.e. not exceeding 49%).
Coverage Telecommunication sector
Sources
Fiscal Restrictions

THAILAND

Reported in August 2011

Chapter Public Procurement  |  Sub-chapter Technology mandate
Creative Economy Policy
Thailand's Creative Economy Policy is promoting the “open source” software model over the “commercial source” model as a means to curb piracy.
Coverage Software
Source
  • This was reported as a concern by Microsoft to the US Government.

    http://techrights.org/2011/08/27/state-controlled-by-companies/
Fiscal Restrictions

THAILAND

Since 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
WTO Government Procurement Agreement (GPA)
Thailand is currently only an observer to the WTO Agreement on Government Procurement.
Coverage Horizontal
Fiscal Restrictions

THAILAND

Reported in 2015

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Revenue sharing tax
In Thailand, mobile operators are subject to a 30% “revenue sharing tax” on gross revenues.
Coverage Telecommunication sector
Fiscal Restrictions

THAILAND

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
3.73%
Weighted average MFN rate
2.25%
Maximum tariff rate
30.00%
Coverage rate of zero-tariffs
59.20%

Coverage: Digital goods

Trading restrictions

TAIWAN

Since 2014

Chapter Online sales and transactions  |  Sub-chapter Online sales
Restriction to online sale
Taiwan prohibits online trade of liquors.
Coverage E-retail
Trading restrictions

TAIWAN

Since January 2018

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
De minimis rule
According to Chinese Taipei de minimis rule, goods with a value of up to 47 SDR / 2000 TWD / 68 USD are exempted from taxes and duties collected by customs.
Coverage Horizontal
Trading restrictions

TAIWAN

Reported in 2018

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
UNCITRAL Law
Chinese Taipei has not adopted the UNCITRAL e-commerce model law or the e-signature model law.
Coverage Horizontal
Trading restrictions

TAIWAN

Since 2014

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
License and capital requirements
Since September 2014, Taiwan allows non-banking companies to handle online transactions. This has allowed third-party online payment systems such as PayPal and TaoBao to offer their services. However, foreign companies need to get an approved license and e-commerce companies need a minimum paid-in capital of NT$300 million (USD10 million) to get approval to offer payment services.
Coverage Third party money transfering systems