Prime Minister Paetongtarn Shinawatra has assured residents of Bangkok that fears of flooding are unfounded, emphasising that current rainwater levels are significantly lower compared to the devastating 2011 floods. On Wednesday, Ms. Paetongtarn reviewed the water situation at the Royal Irrigation Department in Nonthaburi.
In 2011, Thailand faced the fury of five storms and saw a rainfall increase of over 25% beyond the average. In contrast, this year's figures show only a 2% rise above usual rainfall levels, and just one storm has struck. Major reservoirs still have room to retain water, unlike in 2011 when they reached capacity, forcing massive water releases.
"For those concerned about potential flooding in Bangkok, there is no need to worry. Bangkok will not be flooded," assured Ms. Paetongtarn.
Currently, rainfall in northern areas is contributing to water flow from the Ping, Wang, Yom, and Nan rivers into the Chao Phraya River. The Chao Phraya Dam in Chai Nat is releasing water at 1,899 cubic metres per second, a rate comfortably managed by current infrastructure.
The Water Resources Department is closely monitoring at the Bang Sai station to ensure flow rates remain under 3,000 cubic metres per second in Ayutthaya.
Local authorities are prepared, deploying drainage and pumping efforts to direct water efficiently to the Gulf of Thailand, managing a daily capacity of about 164 million cubic metres, reported Bangkok Post.
Looking ahead, the Meteorological Department forecasts mixed weather, with possible storms and rainfall due to a cold front from China, affecting Bangkok, among other regions.
Meanwhile, Jirayu Houngsub, a disaster relief spokesman, warned of potential overflow along Chiang Rai's Kok River due to expected heavy rains, potentially impacting 147 square kilometres across six districts.
The popular DTV has now aroused the interest of visa and travel companies who see an opening.
Visa agencies in tourist-orientated cities throughout Thailand are offering to help Destination Thailand Visa hopefuls cut the pain out of the bureaucracy when dealing with overseas embassies. DTV cannot be granted to foreigners present in Thailand but must leave the country to lodge an application.
Since the introduction of DTV last July, some foreigners have demonstrated on social media that Thai diplomatic posts do not have uniform documentary requirements. Some aspirants say they have been refused, others delayed or told to resubmit. The areas of ambiguity include what exactly counts as a cash bond, the precise evidence for a digital nomad working for overseas clients and the detailed proof about being a soft-power applicant.
What the Thai visa agencies, widely advertised on Facebook in particular, are offering is a visa run to a neighboring country and assistance in preparing the specific documentation tailored to that Thai embassy. Other services cover air or road transport to the destination, hotel accommodation (usually on a bed and breakfast only basis) and a pickup facility at the Thai diplomatic post.
The inclusive costs vary company-by-company but are generally in the 75,000 baht to 150,000 baht range (from US$ 2,400), dependent on the level of assistance given. Most agencies require applicants to fill in a pre- application form to check DTV eligibility which isn't usually a problem as the soft power categories are non-specific on detail. Applicants who have trouble proving the cash or income bond requirement may be offered a third-party guarantee by the host company.
When DTV was first announced in July, there was the expectation that the visa could be granted only in the country of nationality or of employment. This appears to have been softened, consciously or otherwise, so that applicants (whether on their own or with an agency) can request DTV in a country where are visiting briefly. This softening has enabled entrepreneurs to step into the breach, howbeit for a minority of applicants.
Embassies vary a great deal in their visa-under-consideration timescale. The informal Thai consulate in Taipei (officially the Thailand Trade and Economic Office) has a walk-in facility in the morning with the visa issued the same day. Some embassies, for example in the EU and in parts of America, are apparently taking weeks. The average seems to be about one week, though some tour companies claim three days and nights. As ever, you get what you pay for.
Thai private agencies have long experience in offering visa runs, where visits to embassies are required, and border hops where they are not. It was always inevitable that a company-assisted DTV would be attractive to those applicants who are confused, unprepared or happy to pay extra. To judge from the positive reaction in the social and mainstream media, DTV is proving overall to be spectacularly successful. For as long as the rules and regulations remain unchanged, that trend will continue.
FILE photo courtesy: National News Bureau of Thailand
The Bank of Thailand has confirmed its active intervention to manage the value of the baht against the US dollar, aiming to ensure the currency's fluctuations are in sync with regional currencies.
On Monday, Chayawadee Chai-anant, the central bank's assistant governor for corporate relations, announced that the bank has recently taken measures to regulate the baht's exchange rate. "Our intervention intends to align with regional currency movements, ensuring stability," she stated.
The central bank's international reserves have benefitted from both these interventions and the depreciation of the dollar. Gross international reserves climbed to $235.6 billion in August, up from $230.6 billion in July and $224 billion in June. Similarly, net international reserves rose to $262 billion in August, compared to $258 billion in July and $252.6 billion in June.
Ms. Chayawadee pointed out that while the baht's appreciation against the dollar positions it as one of the leading regional currencies, it remains behind the Malaysian ringgit. She acknowledged the rapid strengthening of the baht and assured that the central bank is closely monitoring its movements to mitigate any negative impact on the economy.
The adjustment in the baht's value has mixed implications for local businesses. A stronger baht could reduce export revenues due to foreign exchange conversions, particularly for those lacking effective hedging strategies.
However, Ms. Chayawadee emphasized that the stronger baht is unlikely to impact the tourism sector adversely in the final quarter of this year. "International tourists generally welcome a firmer baht against the dollar, which helps them better manage their spending in Thailand," she said. Key visitor markets, including China, Malaysia, and Japan, have also seen their currencies appreciate relative to the dollar, supporting this optimistic outlook.
The central bank reported that foreign tourist numbers in August reached 3 million, after seasonal adjustments, marking a slight decline of 0.1% from the previous month. Despite this, tourist spending has remained steady. The bank anticipates an improvement in foreign traveler numbers in September compared to August, reported Bangkok Post.
Economic data shows a mixed picture: while visitors from China and Malaysia decreased in August, there was an uptick in tourists from countries like Japan and India. As per the central bank, tourism revenue remained stable, primarily due to higher spending per trip.
Adding to this, the Kasikorn Research Center noted that the baht strengthened to 32.17 baht per dollar during Monday's trading, hitting its highest level in 31 months. The central bank continues to monitor these trends closely to maintain economic stability.
A 3-meter-long python caused a commotion at a shopping mall in central Pattaya after slithering under a car in the parking lot. Officials successfully captured the snake after a two-hour rescue operation.
PATTAYA, Thailand – A 3-meter-long python caused quite a commotion at a shopping mall in central Pattaya on September 29, slithering under a car in the parking lot, prompting a two-hour search and capture operation.
The snake was initially coiled near the rear tires of a white Nissan sedan. However, as officials from Pattaya's Disaster Prevention and Mitigation Department attempted to capture the python, it became startled and escaped, hiding under a nearby green Toyota BB.
Mongkhon, a 63-year-old taxi driver who witnessed the incident, shared details leading up to the chaos. He explained that a taxi, likely from a ride-sharing service, had just dropped off a customer at the mall. As the car departed, the python fell from the undercarriage and made its way to the white Nissan sedan, sparking the ensuing commotion.
Snake catchers quickly arrived on the scene. After a challenging effort, the team successfully captured the python and will release it back into its natural habitat. Authorities urge residents to remain vigilant and report any wildlife sightings in urban areas to ensure the safety of both people and animals.
A proposal to allow foreigners to lease land in Thailand for up to 99 years may require significant legal amendments, according to Finance Permanent Secretary Lavaron Sangsnit. This proposal involves transferring privately-owned land to state property managed by the Treasury Department.
Mr Lavaron highlighted the necessity of a comprehensive study, potentially leading to the amendment of related laws. Under the constitution, public consultations would also be required for any new legislation.
The concept, initially proposed by former premier Thaksin Shinawatra, suggests that Thai landowners could lease their land to foreigners for up to 99 years by first transferring the title deed to the Treasury Department. During the lease period, the Thai landowner would receive full payment but relinquish ownership, with the land becoming state property.
Foreign lessees would gain the right to lease land for a maximum of 99 years, after which the property would revert to state ownership. To address specific concerns, conditions would prohibit foreigners from leasing land for agricultural use or developing low-cost housing for low-income individuals without requiring a down payment.
However, no official policy level action has been undertaken on this proposal. Implementing such a scheme would require revising multiple laws, including Treasury Department regulations that currently cap leases at 30 years.
"Extending the lease to 99 years would require legal amendments," said Mr Lavaron. "Additionally, laws concerning the transfer of state property would need to be reviewed to determine whether land can be transferred from private ownership, with specific leasing conditions for foreigners. Amendments to the Civil and Commercial Code would also be necessary, along with defining types of land use restrictions."
According to the 2021 ministerial regulation under the State Property Act of 2019, leasing state property is generally limited to 30 years, unless for commercial or industrial purposes approved by the finance minister. For utilisation of state property involving more than 500 million baht from private entities, rental rates must match or exceed rates approved by the State Property Committee, reported Bangkok Post.
A Finance Ministry source, who wished to remain anonymous, noted that similar proposals had faced opposition in the past, with critics arguing it could lead to effectively "selling the country" to foreigners. However, allowing long-term leases while maintaining Thai ownership might address these concerns.
In this week's legal corner, sponsored by our friends at Anglo Siam Legal in Pattaya, we look into a recent hot topic in the national Thai news…dog attacks.
In the past week alone there have been two cases of a person being attacked and killed by a dog, or dogs, in Thailand. We reported on these incidents here.
Lets take a look at the laws in Thailand on this subject:
In Thailand, if a person's dog bites or harms another person, the owner, if they exist, is generally held liable for the damages caused. Here are some key points:
1. Civil Liability: According to Section 433 of the Thai Civil and Commercial Code, the owner of an animal is responsible for compensating the injured party for any damages caused by the animal. This includes medical expenses and any other costs directly related to the injury.
2. Criminal Liability: If the owner is found to be negligent, they could face criminal charges under Section 300 of the Penal Code. This could happen if it is proven that the owner knew the dog was agitated and failed to restrain it, leading to grievous bodily harm. The penalties can include imprisonment for up to three years and a fine of up to 6,000 baht.
3. Local Regulations: In Bangkok, for example, there are additional regulations that require dog owners to control their pets to avoid causing annoyance or harm to others. This includes keeping fierce breeds on leads and muzzled when in public². Fines for non-compliance can go up to 5,000 baht.
If a stray dog bites or harms someone in Thailand, the situation can be a bit more complex:
1. No Direct Owner: Since stray dogs don't have a specific owner, there's no individual to hold directly liable for the damages. This means the injured person may not be able to claim compensation in the same way they would if a pet dog caused the injury.
2. Local Authorities: In some cases, local authorities might be responsible for managing stray animals. If the authorities have been negligent in controlling stray dog populations or ensuring public safety, there might be grounds for a claim against them. However, this can be difficult to prove and may require legal assistance.
3. Public Health Measures: Local governments often have measures in place to control stray dog populations, such as vaccination and sterilization programs. If a stray dog bite occurs, it's important to report it to local health authorities to ensure proper medical treatment and to help prevent future incidents.
4. Community Responsibility: In some communities, there are efforts to care for and manage stray dogs collectively. This can include feeding, vaccinating, and even adopting stray dogs. While this doesn't directly address liability, it can help reduce the risk of incidents.
In reality, private financial settlements are often made between parties while avoiding legal action over a dog attack in Thailand, at least if the dog has an identified owner. If the dog is a stray, however, it is often difficult if not impossible to reach any sort of compensation.
It's also important to note that if the victim of an attack was trespassing on private property, either knowingly or not, laws could significantly differ and the owner may not be liable in Thailand.
Consider reaching out to Anglo Siam Legal for assistance with any problems you may have had or questions regarding legal matters, including legal issues around conflicts over a dog attack.
Thailand - Prachai Leophairat, CEO of TPI Polene Public Company Limited, expressed concern over the rising value of the Thai baht and its potential economic impact, drawing parallels to the 1997 "Tom Yam Kung" crisis.
Prachai outlined 11 key risks associated with the strong baht. He emphasized that if the U.S. dollar's interest rate falls while Thailand's baht interest rate rises, the baht will appreciate.
A 10% increase in the baht's exchange rate combined with a 10% decrease in the dollar will raise production costs by 20%. This cost hike would make Thai products 20% more expensive than competitors, leading to a decline in primary goods and forcing secondary and tertiary industries to halt production.
The potential consequences include:
Factory closures
Rising unemployment
Reduced consumer spending
Halted industrial investments
Increased household and business debt
Higher bank loan costs due to rising bad debt reserves
Banks limiting loans to struggling businesses
Reduced government tax revenues and budget cuts
Lower government spending
A shrinking GDP
Declining foreign currency reserves
Prachai warned that if exports don't increase and factories continue to close, Thailand might face a shortage of foreign currency reserves. This could lead to a repeat of the 1997 crisis, leaving the country vulnerable to foreign exploitation of its assets, reported Naew Na.
The latest visa is off to a good start, but there are issues down the line.
DTV has got off to a splendid start according to the Thai foreign minister Maris Sangiampongsa. Whilst there are no official statistics, social media bloggers suggest that between 1,500 and 2,500 have been issued in the 10 weeks since the launching. The question on the horizon is what happens to DTV holders when their initial six months are exhausted, that is assuming they want to stay in Thailand.
Tod Daniels, top contributor to the popular Facebook group destinationthailandvisa, sums up the problem. "How about we wait until December or January when the first people who got a DTV start reporting on how it will actually work and what is required?" he wrote. There will be, of course, two choices: to quit the country and return or to seek an extension at local immigration, both offering a further 180 days.
Either route has issues. As Integrity Legal's popular videos on YouTube often remind us, DTV is not actually a guaranteed entry five-year visa. The validity of the visa – when you can use it – is five years and it's true the visa is marked "multiple". Last July, the Tourist Authority of Thailand's (TAT) spokesman at the launch said that subsequent entries and extensions would not require more documentation as far as TAT was concerned, but it was open to immigration officers to request more paperwork at local offices (for extensions) or at airports and border posts (for subsequent entries to Thailand).
The silence of the immigration bureau, which controls entries and extensions, has been truly deafening during the DTV post-launch period. There is little doubt that there is the potential for abuse in DTV applications. Some digital nomads, technically working for an overseas company, are believed to have Thai customers contrary to work permit legislation. Soft power has been stretched very far, as instanced by the fact that attending pop concerts or having a dental appointment could qualify for long visa status. In theory anyway.
Dozens of Thai embassies worldwide are currently issuing DTVs, but the paper requirements vary. Some but not all require a bank account of at least three months standing. Others require the naming of a Thai guarantor and the evidence of the applicant's work-related activity in the past. Some embassies require the cookery classes to last up to six months, others three, whilst the documents needed for the registration of the Thai boxing academy are far from uniform. There are lots of embassy-related discrepancies detailed by members of the Facebook group.
Yet the likelihood is that nothing much of significance will happen soon. The prospect of DTV holders at immigration offices, airports and border posts being quizzed by officers about fresh paperwork is a recipe for daily, chaotic delays for the queuing public. Meanwhile, the government says it is working to combine different immigration data bases which will likely take most of next year to finalize. There is also an ongoing inter-departmental working party on reducing the number of non-immigrant visas which could impact DTV. There is no doubt DTV will be reformed, and likely restricted, in the light of experience. But perhaps not in 2025.
Victor Wong clarifies new revenue department rulings on overseas income concerns for expats.
Many expatriates residing in Thailand have raised concerns about Section 41 of the Thai Revenue Code, particularly when it comes to income earned overseas and held in foreign bank accounts. The core worry revolves around whether this foreign income, even if not brought into Thailand, would still be subject to Thai taxation. In response, the Revenue Department has issued new rulings, 161/2566 and 162/2566, which provide clarity on how these incomes will be treated from January 1, 2024, onward. Here's what expats need to know.
What Does Section 41 Say?
Section 41 mandates that individuals who reside in Thailand must report and pay taxes on any income earned abroad, provided the income is brought into the country within the same tax year. However, with the new rulings, the interpretation of this section has been updated to account for a more comprehensive set of factors related to overseas income.
Key Points in the New Revenue Rulings (161/2566 and 162/2566)
1. Residency Requirement. If an individual spends more than 180 days in Thailand in any given tax year, they are considered a tax resident and must report their global income. However, if they spend less than 180 days, any income earned overseas will not fall under Thai tax obligations. 2. The correct interpretation of the new rulings, based on Revenue Department orders 161/2566 and 162/2566, specifically states that:
Income Earned After January 1, 2024: Income earned overseas after this date, once brought into Thailand, must be declared and taxed regardless of the year in which it is transferred. This applies even if the income is brought into Thailand in a future tax year. Essentially, if the income is generated after January 1, 2024, it will be taxable once it is transferred to Thailand, regardless of when the transfer takes place.
Income Earned Before January 1, 2024: For income earned before this date, even if it is brought later into Thailand, it will not be subject to these new rules. This provides a clear distinction between how pre-2024 and post-2024 income is treated under the updated tax regulations.
This distinction is important for expatriates or anyone with overseas income, as it clarifies that the tax obligations on income earned before January 1, 2024, are different from those earned after that date, even if the income is transferred later.
3. Types of Affected Income: The rulings apply to various types of income, including salaries, profits from the sale of foreign assets, royalties, and dividends. Any such income brought into Thailand after January 1, 2024, will be subject to Thai tax laws.
Anyway, for those from countries that have signed Double Taxation Agreements (DTAs) with Thailand, these agreements provide substantial relief by preventing the taxing of income twice. Here's how expats can benefit from these agreements:
1. Prevention of Double Taxation: If taxes have already been paid on foreign income in the country where it was earned, DTAs ensure that this income will not be taxed again in Thailand. This is particularly beneficial for expatriates who split their time and income between two countries.
2. Reduced Tax Rates: For certain types of income, such as interest, dividends, or royalties, DTAs may offer reduced tax rates. This allows those from signatory countries to benefit from more favorable tax treatment compared to non-DTA countries.
3. Tax Credits: In cases where taxes are paid abroad, DTAs often provide tax credits. These credits can be applied to offset tax liabilities in Thailand, minimizing the risk of double taxation and ensuring fair tax treatment for expatriates.
The new revenue rulings, combined with the benefits of Double Taxation Agreements, provide clearer guidance for expatriates who have income streams both in Thailand and abroad. Those who spend more than 180 days in the Kingdom, and who have foreign income, should be particularly aware of the new requirements that came into effect on January 1, 2024. As always, consulting with a tax professional is recommended to ensure full compliance with Thai tax laws.
In the next issue I will talk about using foreign cash cards in Thailand.
On September 25th, 2024, Mr. Prasert Taedullayasatit, the chief executive of a property business, urged the Bank of Thailand (BoT) to implement measures to prevent the baht appreciation from negatively impacting key sectors such as exports, tourism, and real estate.
Prasert highlighted that over 86 billion baht worth of condominiums are awaiting ownership transfers in Q4 2024, with around 20-30% of these properties being purchased by international buyers. The strong baht is making Thailand's property market less attractive to foreign investors, as they now require more capital to complete transactions.
Mr. Khajornsit Singsaensern, the President of Siamese Asset PCL, echoed these concerns, stating that the current exchange rate, which has dropped below 33 baht per US dollar, has weakened foreign demand, particularly in the condominium market.
Khajornsit urged the BoT to consider lowering interest rates to weaken the baht, which would not only benefit the real estate sector but also revitalize other areas like exports and tourism. Additionally, he noted that lower interest rates would ease the financial burden on businesses and reduce loan repayment costs for citizens.
Mr. Vichai Viratkapan, the Acting Director of the Real Estate Information Center (REIC), added that while the real estate sector is seeing support from government measures, it needs additional stimuli, such as lower interest rates and relaxed loan-to-value (LTV) regulations.
These actions would help boost the market, especially during the crucial final quarter of the year. He emphasized the importance of foreign buyers, who account for 25% (approximately 100 billion baht) of the total condominium market, valued at over 400 billion baht.
Despite some slowdown in Q2 due to financial transfer issues faced by buyers from Myanmar, China, and Russia, Vichai believes the situation will improve. He is optimistic that international transfers for 2024 will reach levels similar to 2023, which saw 73 billion baht in foreign condo transfers.
As of the first half of 2024, foreign transfers have totaled 32.9 billion baht, with Chinese buyers remaining the dominant group, remarked Vichai.
