Thailand Regulatory and Business Update: Key Developments Businesses Should Watch in 2026

Since January 2026, the Social Security Fund (SSF) salary ceiling has increased to THB 17,500, resulting in a maximum monthly contribution of THB 875 from both employers and employees.

While the increase is relatively modest, it represents a permanent rise in employment costs and should be factored into workforce planning and budgeting exercises.

Businesses with large employee populations may experience a more noticeable cumulative impact over time.

Thailand has fully removed the de minimis exemption, meaning VAT and applicable import duties now apply from the first baht of import value. 

The change is intended to create a more level playing field for local producers and retailers. However, it has immediate implications for importers, distributors and e-commerce businesses that rely on low-value shipments.

Businesses should review pricing strategies, supply chain arrangements and import cost assumptions to understand the impact on margins and customer pricing.

From April 2026, companies operating under Board of Investment (BOI) promotion schemes are required to submit project reports on a quarterly basis instead of every six months.

Reports must be filed within 60 days after the end of each quarter.

While the reporting obligations themselves have not materially changed, the shortened reporting cycle significantly increases compliance risk. A single missed filing may result in suspension of BOI incentives, while two consecutive missed reports may lead to revocation of promotion status.

Businesses benefiting from BOI incentives should review internal compliance calendars, reporting responsibilities and governance processes to ensure deadlines are not missed.

Thailand's Employee Welfare Fund is expected to become operational in October 2026.

The scheme introduces an additional contribution requirement alongside existing employment-related arrangements. Although the contribution rate is relatively low at 0.5%, businesses will need to incorporate the new requirements into payroll processes and employee benefit administration.

Some organisations have already begun reviewing provident fund (PVF) arrangements and eligibility policies to streamline administration and minimise duplicate reporting requirements.

Companies should assess the potential impact on payroll operations and employee benefits management ahead of implementation.

Thailand is progressing with the implementation of the OECD Pillar Two framework and has introduced a 15% global minimum tax for multinational groups with annual revenues exceeding EUR 750 million.

Although the rules technically apply from 2025, 2026 marks the beginning of practical compliance and reporting requirements.

For affected multinational groups, the implications extend beyond tax reporting. Existing tax incentives, including BOI benefits, may no longer reduce the group's overall effective tax rate, increasing exposure to the Domestic Minimum Top-up Tax (DMTT).

Businesses should assess the interaction between existing incentive structures and Pillar Two requirements and evaluate whether current tax planning assumptions remain valid.

While there have been relatively few new laws introduced this quarter, the overall regulatory trend is towards stricter enforcement and more active monitoring of compliance obligations.

Businesses should consider:

• Reviewing payroll budgets to account for higher employment-related costs.
• Assessing the impact of increased import duties and VAT on pricing and supply chains.
• Strengthening BOI compliance monitoring and reporting processes.
• Preparing payroll and HR systems for the introduction of the Employee Welfare Fund.
• Evaluating Pillar Two readiness and potential exposure to DMTT obligations.

Taking a proactive approach now can help organisations avoid compliance issues and manage costs more effectively as Thailand's regulatory environment continues to evolve.

Navigating regulatory change requires coordination across payroll, tax, corporate governance and compliance functions.

Vistra's specialists in Thailand support businesses with:

• Corporate secretarial and governance compliance
• BOI reporting and ongoing compliance obligations
• Payroll administration and statutory contributions
• Tax compliance and advisory services
• International expansion and market entry support

By combining local expertise with regional capabilities, we help businesses operate confidently and remain compliant in an increasingly regulated environment.