What are the most significant cases and transactions you have recently been involved in?  

The most significant transaction for 2023 was an $8m deal involving one of the largest hotels on Samui Island, Suratthani Province. I represented the buyer in this deal, the seller’s side consisted of three companies – the owner of the land, with the other two owning the building. The deal was quite challenging because the ultimate beneficiaries are a group of Israelis with various demands, requiring extensive coordination. 

How do you see the general counsel role evolving in Thailand over the next five-ten years?   

Over the next five to ten years, I believe the role of general counsel in Thailand will remain crucial for companies, even amidst the growing influence of AI on various services. Legal opinion and compliance are inherently complex and nuanced fields, often requiring multiple approaches to address the same legal issue. This necessitates systematic and sophisticated thinking, combined with the ability to respond swiftly and astutely. 

While AI may streamline certain legal processes and administrative tasks, the expertise, judgment, and strategic insight provided by general counsel will continue to be indispensable. AI can assist in areas such as legal research, document review, and contract management, thus allowing general counsels to focus on more strategic and complex tasks that require human judgment and creativity. For instance, navigating regulatory changes, handling sensitive negotiations, and providing tailored legal advice are areas where the human touch remains essential. 

As companies increasingly operate in a globalized environment, general counsels will also play a critical role in managing cross-border legal issues and fostering ethical corporate practices. Therefore, while AI will augment the capabilities of legal departments, the role of general counsel will evolve to become even more integral to corporate success in Thailand, ensuring that businesses navigate the complexities of the legal landscape effectively.  

Which recent political, economic or regulatory changes have impacted your work the most in recent years? 

In 2023, the revenue department introduced regulation Paw 161/2566, which significantly alters the long-standing interpretation of how foreign-sourced income is taxed for personal income tax purposes. Previously, Thai residents could remit offshore income earned in the previous year to Thailand in the following year without it being subject to personal income tax. This favorable interpretation attracted many foreigners to live and work in Thailand, creating a vibrant expatriate community and boosting local employment opportunities. Foreign professionals and retirees alike found Thailand an attractive destination, not only for its cultural and natural beauty but also for its advantageous tax policies. 

However, the introduction of Paw 161/2566 changes the landscape significantly. Under the new regulation, all offshore income remitted to Thailand is now subject to personal income tax, regardless of when it was earned. This shift represents a substantial departure from the previous policy, impacting the financial planning and tax strategies of many foreigners residing in Thailand. Expatriates, including those in our company, now face increased tax liabilities on their global income, which could influence their decision to stay in Thailand or relocate to more tax-friendly jurisdictions. 

The new regulation has broader implications for Thailand’s economy and its attractiveness as a destination for foreign talent and investment. By increasing the tax burden on foreign-sourced income, the policy may discourage potential expatriates from moving to Thailand, potentially reducing the inflow of skilled professionals and investors who contribute to the country’s economic growth. 

Despite the challenges posed by Paw 161/2566, there remains a potential safeguard for foreigners through the Long-Term Resident (LTR) visa offered by the Board of Investment (BOI). The LTR visa provides various benefits, including the possibility to enjoy the previous tax interpretation based on Royal Decree 743. This means that LTR visa holders may still be able to remit their offshore income to Thailand without facing the new tax implications. As such, the LTR visa could serve as a crucial tool for expatriates looking to mitigate the impact of the new regulation while continuing to live and work in Thailand. The government’s approach to balancing regulatory changes with incentives like the LTR visa will be critical in maintaining Thailand’s appeal as a hub for international professionals and retirees.