The changes to be expected in Thai immigration during 2025 - Pattaya Mail

The changes to be expected in Thai immigration during 2025

Pattaya MailJanuary 3, 2025

The world of Thai visas and immigration is forever on the move.

Entry Travel Authorization (ETA)

This will apply to the tourists from 93 countries currently taking advantage of the visa exempt, no-charge category: 60 days on entry plus, if needed, a further 30 days extension at local immigration for a fee of 1,900 baht (US$55). Currently, the only registration procedure is the post-arrival form TM30 submitted to local immigration by the hotel, condo owner, house master or tourist in person. Enforcement of TM 30 is selective and is a paper-driven bureaucracy.

The new ETA will require a pre-flight or pre-entry submission by e-portal, but the Thai Cabinet has yet to endorse fully the details. If the Cambodian equivalent is any clue, these tourists will need to upload the ID page of their passport and provide details of the proposed Thai address, proof of entry and exit tickets and a phone number. A key advantage of the new system, according to the Ministry of Foreign Affairs, will be possible use of electronic gates at Thai airports by using the ETA's QR code thus bypassing an immigration counter. ETA is free but requires a new submission on every entry. The latest starting date for most tourists is June 2025, but that is still provisional.



Tourist fee of 300 baht 

In spite of many announcements, the fee for stepping onto Thai soil (Kha Yeap Pan Din) has not yet been introduced. The 300 baht (US$8) fee would pay for limited insurance for short-stay tourists – mostly compensation for death or serious injury – and provide funds for improving tourist sites, e.g. installing or upgrading toilets. Some versions of the proposal reduce the fee to 150 baht if entering by land or sea, but a common charge is thought more likely. The delay in implementation is the difficulty of collecting the fee and deciding who is or is not a "tourist". The most likely outcome later this year will be a pre-entry electronic payment linked to Krungthai Bank. Another possibility is linking payment to the "free" ETA. Critics say the whole fee exercise isn't worth the effort and will lead to unnecessary confusion.

Destination Thailand Visa (DTV) 

This five-year validity "Activity" visa was the brainchild of the Ministry of Foreign Affairs, inaugurated in July 2024. More than 70,000 have been issued in many dozens of Thai embassies abroad. The ambiguity arises because the actual admission of visitors, together with extensions, is the responsibility of the immigration bureau which is part of the Ministry of the Interior which has never uttered a single word about DTV. Immigration officers individually have the right to challenge or refuse entry or extension irrespective of the visa category. The prime minister Paetongtarn Shinawatra is known to be a firm supporter of DTV. Any significant changes to DTV policy is most unlikely to affect existing visa holders. The rest is guesswork at present. There will be feedback from late January onwards as early-bird DTV holders request extensions at local immigration.

Annually renewable retirement and marriage 

The "O" non-immigrant retirement visa and annual extension of stay is by far the most popular long-stay permit for those over 50 years. A former top police general Surachate "Big Joke" Hakparn promised to reform the process by ending the scam practice of applicants using third party funds to maintain a bank account minimum, but nothing has been heard of late. Nor has there been any rumored change in the situation whereby the retiree OA visa (awarded at embassies abroad) requires ongoing medical insurance, whereas the O version (awarded at immigration offices in Thailand) does not.

The "O" non-immigrant marriage visa for a longstay foreigner with a Thai spouse is used mainly by married men under 50. This is likely because the retirement alternative is available from that age and has a less onerous application and extension bureaucracy. An early change may be the admission of same sex marriages, available from late January 2025, into the visa system. However, the government has said that while the marriage ceremony becomes a legal entity very soon, there may be a delay before the regulations covering adoption, pensions and hospital care in terminal cases come into play.

Elite and Long Term Residence 

Elite or Privilege visa lasts from 5-20 years with limitless multiple entries, if needed, and has perks such as fast-track immigration and discounts on shopping, sports and hotels. It has had a checkered history and has been threatened with closure on a couple of occasions. Until the end of 2024, the initial checking fee of 50,000 baht (US$1,500) had been temporarily cancelled. A new five year Bronze Elite visa is available until June 2025 at a knock-down cost of 650,000 baht (US$20,000). The majority of new subscribers to Elite are Chinese citizens according to the Ministry of Tourism and, with a grand total of over 40,000 customers, the future in 2025 looks safe enough.

LTR is a ten year multiple entry which has several application routes including wealthy retirees (minimum annual income US$80,000) and business people and executives. The visa is sponsored by the Board of Investment. One of the attractions of LTV is apparent exemption from income tax due on overseas transfers of cash to Thailand. People in business can receive tax incentives whilst freedom from regular address reporting to immigration is a perk. No statistics have been issued as regards LTR applications, but an early report stated that the majority of successful applications were from the retirement category.



Tax identification number (TIN)

There has been ongoing speculation in social media that, starting in 2025, renewal of longterm visas will require holders to show that they have a TIN issued by the Thai Revenue Department. This is a very unlikely scenario. Many "tax resident" foreigners in Thailand for six months or more in a calendar year have no requirement to obtain a tax number based on remittances from overseas. They include foreigners who did not transfer any overseas cash in the calendar year 2024, or those who are (or will be) transferring savings in foreign bank accounts held there before on December 31 2023. Many Elite holders live in Thailand for far less than 180 days in a year but enjoy the travel flexibility given by the visa. For these and many other reasons, Thai immigration cannot equate visa eligibility with tax status. Nor will officers want to get involved.

Bank of Thailand Boosts Mobile Security with New Transfer Limits. In a strategic move to bolster the security of mobile banking, the Bank of Thailand (BoT) is putting mechanisms in place to protect vulnerable users such as teenagers and the elderly. The plan introduces a daily transfer cap of 50,000 baht for these groups, aiming to shield them from fraud and financial abuse. ASEAN NOW

File photo courtesy: Bangkokbiz News

 

In a strategic move to bolster the security of mobile banking, the Bank of Thailand (BoT) is putting mechanisms in place to protect vulnerable users such as teenagers and the elderly. The plan introduces a daily transfer cap of 50,000 baht for these groups, aiming to shield them from fraud and financial abuse.

 

Feedback from the public has already been gathered by the BoT as it gears up to amend regulations surrounding financial service security. The focus is on curbing the risks associated with mobile banking apps, which have become increasingly popular yet fraught with security concerns.

 

Prime groups affected by these changes include the elderly and individuals under the age of 15. Considered more susceptible to scams, these users often fall prey to fraudsters who dupe them into sending large sums of money. By instituting a daily transfer limit, the BoT is taking proactive steps to safeguard their financial wellbeing.

 

Beyond limiting transfers for certain users, banks will also be required to enhance their mobile app security protocols. Transactions over 50,000 baht per instance, or exceeding 200,000 baht daily, must incorporate advanced measures like facial recognition and biometric verification to thwart identity theft and unauthorized access.

Moreover, the BoT stipulates that mobile banking providers implement robust security technology to defend against malware and hacking - including ensuring apps do not function on jailbroken devices or those employing outdated operating systems.

 

The announcement of these stringent measures is expected this month. The BoT aims for all non-bank service providers under its oversight to adhere to equivalent security standards by early next year.

 

A step further in regulatory efforts, there's an ongoing discussion regarding the liability of financial institutions in cases of fraudulent transfers. Drawing inspiration from Singapore's Cyber Security Agency, the BoT is considering frameworks that would define institutional responsibility and liability sharing between banks and regulatory bodies in the event of fraudulent activity.

 

The amended regulations will also impose stricter penalties on entities peddling customer data—a significant loophole currently exploited by scammers.

 

In a recent incident, BoT spokesperson Chayawadee Chaianan highlighted a complaint in Udon Thani, where an auditing firm claimed a loss of 2 million baht via mobile banking.

 

The BoT has since instructed the banks involved to meticulously probe the matter, underscoring the urgent need for vigilance on account activity, particularly for business clients.

 

By reforming digital transaction protocols, the BoT is not only fortifying the financial landscape against fraud but also reinforcing trust in Thailand's digital banking future, reported Bangkok Post.

 

-- 2025-01-01

Bangkok Post - Tax reform in the limelight. However, Thailand cannot adopt a Scandinavian-style welfare state because of insufficient government revenue.

Tax reform in the limelight

Mr Pichai noted that since the government is seeking to bolster revenue to pay for rising expenses, raising value added tax would be appropriate. 

In 2025, a key government policy to monitor is tax reform initiatives recently floated by Finance Minister Pichai Chunhavajira.

Mr Pichai said Thailand should follow the example of many countries that have reformed their tax systems by reducing personal and corporate income taxes while increasing consumption taxes, such as value-added tax (VAT).

The Fiscal Policy Office (FPO) has promoted tax reforms for more than a decade, but has not achieved much because of what are described as political challenges.

Following the pandemic in 2020-21 and the global economic slowdown, the government's public debt level surged compared with the pre-Covid period.

In September 2019, the government's public debt totalled 41.1% of GDP. This figure rose during the pandemic, prompting the government to raise the public debt ceiling from a maximum of 60% to 70%.

As of October 2024, public debt tallied 64%, causing fiscal pressure and reducing fiscal space, according to the FPO.

Government revenue has not increased significantly relative to GDP. Over the past decade, state revenue as a percentage of GDP was the highest in 2016, at 16.4%.

Following the pandemic and its impact on the global economy, government revenue as a percentage of GDP in 2022 was at its lowest point in 10 years, at 14.6%.

In fiscal 2023, the figure increased slightly to 14.9%.

Moreover, revenue from categories that are difficult for the government to cut, such as civil servant salaries, civil servant benefits, public welfare and contributions to various funds that mandate government contributions, such as Social Security and the Government Pension Fund, as well as expenditures for principal and interest payments on government debt, have increased.

In fiscal 2023, these expenditures accounted for 67.2% of the government's total expenditure budget, up from 65.8% in fiscal 2022.

The FPO considers tax system reforms, based on the approach proposed by the Finance Minister, to be essential.

Studies conducted in Organisation for Economic Co-operation and Development countries found having high personal income tax and corporate income tax rates can lead people to feel discouraged from working.

In other words, once they reach a certain income level, they may decide to quit their jobs and instead rely on government welfare, a phenomenon particularly noticeable in Scandinavian countries.

However, Thailand cannot adopt a Scandinavian-style welfare state because of insufficient government revenue.

The approach should be to encourage people to work and earn income, with a reduced personal income tax rate to motivate people to work more, according to authorities.

As the government seeks to bolster revenue to pay for rising expenses, raising the VAT would be appropriate, said Mr Pichai.

Increasing VAT by 1% is expected to generate around 70-80 billion baht in state revenue. Although many essential goods for people's livelihoods are exempt from VAT, a VAT hike is expected to affect low-income groups and vulnerable segments in society.

Therefore, any VAT increase should be accompanied by measures to assist these groups in order to offset the impact, said the minister.

Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, previously suggested that if VAT is hiked, the additional revenue should be used to care for the country's steadily growing ageing population.

Thailand became a "complete aged society" in 2024, with individuals aged 60 and older accounting for 20% of the total population.

He said the idea of increasing VAT should be considered by the government as one option to support the elderly population.