Category: Litigation

Withholding Tax for Sale of Property with Co-Owners

According to Thai Revenue Department regulations1, when immovable property, such as land, with co-owners is sold, then payment of withholding tax when the transaction is registered at the Land Office shall apply as if the co-owners are engaged in an ordinary partnership according to Section 1012 of the Civil and Commercial Code2; in other words, […]

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Operating as a Foreign Business in Thailand: Pros and Cons

When doing business in Thailand, one has the option of operating in a joint-venture with majority Thai ownership or as majority or solely foreign-owned firm. Although Thai law is restrictive of how foreigners are able to operate business, it nevertheless does allow majority foreign ownership of business and foreign entrepreneurs to engage in business in […]

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Drafting an Employment Contract in Thailand

When drafting an employment contract, it is imperative to retain the services of a trained legal professional, rather than resorting to a template, such as one found online. An important consideration is that employment contracts are ultimately abstract legal rules and the application of those rules in real-life situations may lead to certain results that […]

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Thai Family Law: How to Parent with Child Custody

After a divorce in Thailand where there is mutual consent, the terms of divorce may be attached to the divorce certificate and has legal force according to Sections 1566(4) and 1520 paragraph 1 of the Civil and Commercial Code. If the couple have children, then the most important term that is agreed to by the […]

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Thai Criminal Procedure: Hearsay

As is the case in the criminal procedure laws of other jurisdictions, Thailand prohibits the use of hearsay evidence in criminal trials (Section 226/3 of the Criminal Procedure Code). Hearsay is generally defined as testimonial evidence of a statement not made before the Court which is meant to prove the assertion made in the statement […]

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Thai Labor Law: Legality of Non-Competition Contracts

A common feature in employment contracts, typically those of top-level executives, is the non-competition agreement. Such agreement normally requires that should the employment contract terminate, the employee is prohibited from engaging in a competing business for a fixed period of time. Specifically, a typical clause will define a certain period of time following the termination […]

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Withdrawal of Shareholder Meeting Resolutions

A basis for withdrawing a resolution passed by a shareholder meeting of a Thai limited company is that the resolution was passed through bad-faith. Section 5 of the Civil and Commercial Code provides that “Every person must, in the exercise of his rights and in the performance of his obligations, act in good faith.” Furthermore, […]

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Company Registration: Shareholder Meetings

Shareholder meetings form an important element of Thai company law, as Section 1144 of the Civil and Commercial Code states that “Every limited company shall be managed by a director or directors under the control of the general meeting of shareholders and according to the regulations of the company.” Therefore, shareholders play an important, albeit […]

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Acquiring Land with a Foreign Spouse

The primary concern behind Thai government regulations related to the acquisition of land by a Thai national married to a foreign spouse is the issue of nominee landownership. Under the Land Code of Thailand, the act of a Thai national owning land as an agent of a foreigner, which is to say, for the benefit […]

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Acquiring Land in Thailand with a Foreign Spouse

At this time, Thailand does not prohibit its citizens who are married to (or cohabiting with) foreign spouses from acquiring land. Nevertheless, the acquisition of land by Thai nationals who are married to foreign spouses is extensively covered by government regulation and it is conditioned on the legal principle that any land owned by the […]

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