On February 28, in order to help investors better understand the investment environment and compliance requirements in Thailand, the Longan Bay ASEAN Legal Research Center, in collaboration with Longan Guangzhou Law Firm, organized a “Thailand Investment and Compliance Guide” thematic salon event. Special guests included Lawyer Liu Ting, a senior compliance expert in Thailand, Lawyer He Xin, a senior partner at Huashang Law Firm, and Lawyer Jin Li, director of the Longan Bay ASEAN Legal Research Center and a partner at Longan Guangzhou. The event aimed to thoroughly discuss compliance risks, tax differences, and coping strategies for investment in Thailand, as well as the investment environment and land system for Thai foreign businesses, providing practical guidance and advice to investors. The event was conducted in a hybrid format of online live broadcast + offline salon, with Lawyer Wang Huixia, deputy director and secretary-general of the Longan Bay ASEAN Legal Research Center and a senior partner at Longan Guangzhou, serving as the host.
Lawyer Wang Huixia
Deputy Director and Secretary-General of the Longan Bay ASEAN Legal Research Center, Senior Partner at Longan Guangzhou
Lawyer Wang Huixia first extended a warm welcome to Lawyer Xue Jiabing, director of Longan Zhongshan Law Firm, who was present at the event, Lawyer He Xin, senior partner at Huashang Law Firm, as well as all lawyers and business guests who participated both online and offline. She briefly introduced the program for today’s event, hoping that all guests could gain a deeper understanding of compliance requirements, tax risks, and related policies related to investment in Thailand through this event. Finally, she wished the “Thailand Investment and Compliance Guide” thematic salon event a successful outcome.
Event Speech
Lawyer Jin Li
Director of the Longan Bay ASEAN Legal Research Center, Partner at Longan Guangzhou
Lawyer Jin Li mentioned that in recent years, Thailand has become a popular destination for foreign investment. In addition to economic factors, the differences in laws between Thailand and China are also important factors that investors must consider. Understanding local Thai laws can provide enterprises with a guarantee of compliance and help avoid legal risks in advance. On April 1, 2024, the Longan Bay ASEAN Legal Research Center was established under the leadership of Longan Guangzhou, with participation from Longan Shenzhen, Longan Hong Kong, Longan Foshan, and Longan Xiamen. Since the official establishment of Longan Zhongshan Law Firm at the end of 2024, it has also joined the Longan Bay ASEAN Legal Research Center. Currently, the center has gathered over thirty outstanding lawyers specializing in international affairs, aiming to create a platform for exchange and research on ASEAN legal practices among lawyers and between lawyers and enterprises, thereby helping Chinese enterprises better “go global”.
Conferral of Positions
Ceremony for New Members’ Conferral of Positions
Subsequently, under the host of Lawyer Wang Huixia, the Longan Bay ASEAN Legal Research Center held a simple but formal ceremony for the conferral of positions for new members. Lawyer Jin Li and Lawyer Wang Huixia respectively conferred positions on the senior researchers and researchers present. The center has brought in 13 outstanding new members, including senior researchers Wang Rui, Ye Peng, Zhang Jing, Huang Nachuan, Li Wenxiao, Xue Jiabing, and researchers Cai Jiaxin, Cai Mengfei, Li Qingfang, Luo Yunyu, Zhang Shiqi, Xiao Huyi, Yang Lun.
Thematic Presentation
Lawyer Liu Ting
Senior Compliance Expert in Thailand
During the thematic presentation session, Lawyer Liu Ting, a senior compliance expert in Thailand, gave an online presentation on “Compliance Risks in Southeast Asian Investment – Thailand”.
Starting from the key points in the three stages of planning, implementation, and operation of investment in Thailand, Lawyer Liu first shared common issues and solutions related to company registration in Thailand. She detailed the industries subject to restrictions under Thai foreign business laws, and the two paths for foreign investment in Thailand—FBL and BOI. She also used visual charts to illustrate the process of company registration in Thailand. Regarding BOI policies in Thailand, Lawyer Liu introduced the tax policies based on different levels in Thailand, the specific application process for BOI tax policies, and subsequent compliance risks. Then, Lawyer Liu shared common tax issues for Chinese enterprises in Thailand, and common legal issues related to labor in Thailand (for example, all foreign employees need to obtain a work permit before working in Thailand). She also shared in detail the risk management and local management & operation issues, as well as future challenges during the establishment and operation period of Chinese companies in Thailand, using specific cases. Lawyer Liu suggested that lawyers interested in investing in Thailand should adjust their mindset and prepare relevant knowledge in advance. In addition to professional legal services, they should also provide comprehensive services including investment and taxation.
Lawyer He Xin
Senior Partner at Huashang Law Firm
Lawyer He Xin focused on “Tax Differences between China and Thailand and Their Coping Strategies”. Starting from the differences between Thailand and China in direct taxes, indirect taxes, and other taxes, Lawyer He analyzed in detail the differences in corporate income tax, personal income tax, consumption tax, stamp duty, inheritance tax, and petroleum income tax between China and Thailand in terms of taxpayers, tax rates, tax scope, pre-tax deductions, tax amounts, and tax declarations. Then, Lawyer He shared the differences in tax supervision measures between Thailand and China, including differences in tax returns submitted between China and Thailand, Thailand’s tax assessment mechanism (for cases of non-declaration, false declaration, incomplete declaration, non-compliance with orders, and refusal to answer questions), and differences in administrative penalties and late fees between China and Thailand. Regarding the difficulties in international taxation between China and Thailand, Lawyer He focused on the policies of tax agreements between China and Thailand to eliminate double taxation. In addition, she briefly introduced international tax policies such as related-party transactions/anticipated pricing and weak capital management. Finally, Lawyer He reminded of potential tax risks in Thailand and pointed out that tax lawyers could better integrate legal and tax expertise, making their work more comprehensive and targeted, and helping Chinese enterprises better cope with a series of tax risks when investing in Thailand.
Lawyer Jin Li
Director of the Longan Bay ASEAN Legal Research Center, Partner at Longan Guangzhou
Lawyer Jin Li presented on the theme of “Introduction to the Investment Environment and Land System for Foreign Businesses in Thailand”. She first introduced the basic situation of foreign investment in Thailand in 2024, and discussed the identification of foreign investors, the list of industries for foreign investment (including prohibited industries, restricted industries, and relatively open industries), and the application and exemption conditions for foreign business licenses. Lawyer Jin reminded that Thai law does not recognize equity holding by third parties; foreign investment can ensure control through equity structure design and board arrangements. Regarding the land system in Thailand, Lawyer Jin detailed the five types of land property certificates in Thailand—land possession notice, occupation certificate, land use certificate, survey certificate, and deed. She also shared the prohibitions and exemption conditions for land ownership in Thailand. Lawyer Jin pointed out that foreigners can obtain land outright through joint ventures or by leasing it.
Interactive Discussion
During the interactive discussion session, Lawyer Jin Li, Lawyer He Xin, and Lawyer Wang Huixia had lively discussions with the guests present on issues such as the equity structure, risk prevention, and tax management of Chinese enterprises investing in Thailand. They also announced that the next special event of the Longan Bay ASEAN Legal Research Center will be held at Longan Zhongshan Branch. Stay tuned!
LONGAN
This “Thailand Investment and Compliance Guide” thematic salon event is one of the series of events organized by the Longan Bay ASEAN Legal Research Center. It aims to help investors better understand the investment environment and compliance requirements in Thailand to avoid overseas investment risks, and to strengthen the exchange and cooperation among foreign lawyers in Thai legal theory and practice. In the future, the Longan Bay ASEAN Legal Research Center will continue to deepen its research on the legal environments of ASEAN countries, strengthen exchanges on various thematic areas, and build a high-quality and high-level platform for exchange, cooperation, and resource integration. This will provide investors with more professional, efficient, comprehensive, and accurate legal support, helping Chinese enterprises better “go global” and contributing to the economic development and legal construction of Southeast Asia.