Key Takeaways
- Trade fairs: A draft Royal Decree would allow a double deduction for space rental or service fees paid to take part in fairs and exhibitions in Thailand, where the event begins and the fee is paid between 6 October 2026 and 31 December 2027. It is approved in principle only, and the start date depends on the final text.
- EEC zones: The Cabinet acknowledged eight new special economic promotion zones in the Eastern Economic Corridor. They await an announcement in the Royal Gazette.
- Rail: A draft ministerial regulation would set the criteria and procedure for licensing train drivers and train controllers, with licences valid for up to five years. No commencement date is stated in the Cabinet summary.
- UN sanctions: The Cabinet approved Thailand's implementation of the Security Council's renewal of the sanctions on Al-Shabaab, currently renewed to 30 November 2026, and approved in advance the implementation of future resolutions that do not change the measures in substance.
- Criminal fines: A draft Act would give fined persons a statutory right to apply to pay by instalments and would make detention in lieu of a fine a last resort. It remains subject to parliamentary passage.
1. Double Deduction Proposed for Trade Fair Participation Fees
Relevant to: companies and juristic partnerships subject to Thai corporate income tax that pay to exhibit at fairs, exhibitions or trade shows held in Thailand.
Status: approved in principle; the Royal Decree remains to be finalised, issued and published in the Royal Gazette; not yet in force.
Under the draft proposed by the Ministry of Finance, a company or juristic partnership would be exempt from corporate income tax on an amount equal to 100% of the space rental or service fees it pays to take part in fairs, exhibitions or trade shows held in Thailand. In practice, the fee would be deducted twice: a THB 100,000 booth fee would reduce taxable profit by THB 200,000. The event would have to begin, and the fee would have to be paid, between 6 October 2026, the date of the Cabinet's approval, and 31 December 2027. Any amount paid before 6 October, including a deposit for a later fair, would fall outside the window, as would a fee for a fair that began before that date.
The company would need a certificate from the organiser confirming its actual participation and would have to meet any conditions prescribed by the Director-General of the Revenue Department. The Ministry of Finance expects about 3,800 companies to use the new measure. Equivalent relief applied from 15 July to 31 December 2022 under Royal Decree No. 758 B.E. 2565 (2022). Relief from 6 October 2026 depends on the final decree retaining that start date. Until the decree is published, the additional deduction should not be claimed.
Recommended action: retain the invoice, request a participation certificate from the organiser at the event, and do not claim the additional deduction until the decree is published.
2. Eight New Special Economic Promotion Zones in the Eastern Economic Corridor
Relevant to: investors and developers considering sites in Chonburi, Rayong or Chachoengsao.
Status: acknowledged by the Cabinet; establishment announcement pending publication in the Royal Gazette.
The Cabinet acknowledged decisions already taken by the Eastern Special Development Zone Policy Committee (the EEC Policy Committee) under the Eastern Special Development Zone Act B.E. 2561 (2018) (the EEC Act). The eight zones are Amata City Chonburi 2 Industrial Estate, 304 Industrial Park 2, a food processing zone for a sustainable Thai coffee cluster in Bang Pakong, Map Ta Phut Industrial Estate, Lakchai Muang Yang Industrial Estate, the LifeSphere specialist medical and health centre in Pattaya, Map Ta Phut LNG Terminal 2, and a smart logistics zone in Chachoengsao. Estimated investment totals approximately THB 267 billion, being our sum of the eight estimates in the Cabinet summary. According to the EEC Policy Committee, once the zones are established, businesses in them would be able to apply for investment privileges, facilitation, approvals and permits under the EEC Act.
For three zones, the Cabinet summary records conditions to be written into the zone certificate: the Bang Pakong coffee and food processing zone, LifeSphere and the smart logistics zone. The first two would be limited to their specified target industries, and the EEC Policy Committee has stated that it will not consider adding others. The smart logistics zone would be limited to the target industries and related businesses presented to the Committee, and would otherwise be subject to the same conditions as the Bang Pakong zone. The developer would have to begin development within one year of receiving the zone certificate from the Office of the Eastern Special Development Zone Policy Committee (the EEC Office). If it did not, the EEC Office would refer the matter to the EEC Policy Committee, which may suspend or cancel the zone's benefits or dissolve the zone. The summary records no such conditions for the other five zones, but it does not say they are free of them, so investors in any zone should obtain the certificate conditions from the developer.
Recommended action (before any land or lease commitment): obtain the zone's approved target-industry list and certificate conditions from the developer or the EEC Office.
3. Licensing Criteria Proposed for Train Drivers and Train Controllers
Relevant to: rail operators, rail operation contractors and rail training institutes.
Status: approved in principle; referred to the Office of the Council of State, the Government's legal drafting body, for review; no commencement date or transitional period stated.
At present, the oversight of train drivers and train controllers relies mainly on each rail operator's own standards. The draft ministerial regulation, proposed by the Ministry of Transport under the law on rail transport, would introduce a national licensing standard administered by the Department of Rail Transport. There would be three named licence types, namely intercity, urban and high-speed, together with any further types prescribed by the Department's Director-General, each valid for up to five years. "Urban" covers services in Bangkok and the six adjoining provinces, including services that run within any one of those provinces.
Applications would be filed in person, by registered mail or electronically, with a medical certificate, a psychological test certificate and a training certificate from an institute accredited by the Department. A licence would be issued within 30 days of a complete application. Renewal would be sought within 90 days before expiry; a late renewal would be possible, but the new term would run from the date of renewal, and the summary does not address work during the gap.
Recommended action: identify the drivers and controllers who would need licences, and ask training providers how they intend to obtain the Department's accreditation.
4. Implementation of Renewed UN Sanctions on Al-Shabaab Approved
Relevant to: banks, payment service providers, and companies with counterparties in Somalia.
Status: approved by the Cabinet; implemented through the competent government agencies.
The Cabinet approved Thailand's implementation of United Nations Security Council Resolution 2806 (2025), which maintains the sanctions on Al-Shabaab, including travel bans, asset freezes and an arms embargo, and renews them until 30 November 2026. That date marks the end of the current renewal, not a compliance deadline. A further renewal that does not change the measures in substance would fall within the Cabinet's advance approval (see below). Twelve agencies, among them the Ministry of Commerce, the Anti-Money Laundering Office and the Bank of Thailand, are to apply the measures and update their sanctions databases.
The Cabinet also approved in advance the implementation of future resolutions on Al-Shabaab, until the Security Council adopts one that substantively changes or lifts the measures, at which point the matter returns to the Cabinet. The Cabinet's decision is directed at government agencies, and the Office of the Council of State noted that implementation must follow Thai domestic law.
Recommended action: financial institutions should confirm that their screening lists reflect the current designations; other businesses with Somali counterparties should check with their bank.
5. Draft Act Would Make Detention in Lieu of a Fine a Measure of Last Resort
Relevant to: company directors and other individuals who may face criminal fines, and companies seeking time to pay.
Status: draft Act approved by the Cabinet; remains subject to parliamentary passage and royal assent; not law.
The Cabinet approved a draft Act amending the Criminal Code, proposed by the Office of the Council of State. The existing rule that a fine is to be paid within 30 days of judgment is retained. The changes are that a fined person could apply to the court to pay by instalments, which today rests only on non-binding guidance from the President of the Supreme Court, and that the court could require security where there are reasonable grounds to believe, rather than merely to suspect, that the person will evade payment.
Where a fine remains unpaid, the court would first order seizure of assets, attachment of claims, or community service, and would be required to ask the person whether he or she wishes to perform community service. Detention would follow only where the person disregards the court's order or deliberately refuses to pay despite having the means to do so. For a company, the change most likely to matter is the instalment route.
Recommended action: we will report when the Act is passed and when it is published in the Royal Gazette.
Other Matters
Foreign-owned businesses may wish to note that the Cabinet acknowledged an order assigning Deputy Prime Minister Supajee Suthumpun to the committee on foreign goods and foreign businesses that violate the law. The Cabinet summary does not state her role and records no new powers or rules; we will report if any follow. Separately, the budget calendar for fiscal year 2028 was approved, with government budget requests due on 12 February 2027, and the Cabinet approved ratification of the ASEAN Framework Agreement on Petroleum Security.
How Dej-Udom & Associates Can Assist
- Taxation: preparing to claim the trade fair deduction once the decree is published.
- Corporate & Commercial: EEC zone selection, land and lease terms, rail regulatory licensing, sanctions compliance policies, and compliance reviews for foreign-owned businesses.
- Litigation & Dispute Resolution: criminal fines and their enforcement.
For further information, please contact us at +66 (0)2 233 0055 or [email protected].
Source: Cabinet Secretariat summary of the meeting of 6 October 2026, as republished by the National Innovation Agency. The summary is provisional, and the formal Cabinet resolution should be confirmed before any reliance is placed on it.
Disclaimer: This publication is intended for general informational purposes only and does not constitute legal advice. The information contained herein should not be relied upon as a substitute for specific legal counsel. For advice tailored to your circumstances, please contact Dej-Udom & Associates directly.