THAILAND Law and Practice Contributed by: John Frangos, Nuanchun Somboonvinij, Santhapat Periera and Niti Muangkote, Tilleke & Gibbins
lessee (who must be a Thai national), as the opera - tor, must generally register the aircraft in line with the Air Navigation Act BE 2497 (1954) and obtain a registration certificate (Sections 30 and 31 of the Air Navigation Act). The registration certificate is not a document of title in respect of the aircraft. If an aircraft owner is not the operator of the aircraft, the names and addresses of both the aircraft owner and aircraft operator may then practically be stated in the registra - tion certificate. The operator’s rights in respect of the aircraft and the possession and use thereof (eg, as lessee in line with a lease agreement) might also be indicated in the registration certificate. If a foreign aircraft registered with a state party to the Convention on International Civil Aviation is used by a Thai air operator for its operation under a lease agree - ment and Thailand has an agreement with the registry in that state to transfer the responsibility of the registry in that state to Thailand in line with the Convention on International Civil Aviation, the foreign aircraft is con - sidered a registered aircraft under Thai law. Accord - ingly, specific licences or operations (eg, airworthiness certificate, personnel licence, air navigation of aircraft of the air operator, etc) will be subject to Thai law. 2.3.2 Registration If the Owner Is Different From the Operator See 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register . 2.3.3 Aircraft/Engine-Specific Registers See 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register . Under Thai law, there is no specific register for leases concerning aircraft or engines. 2.3.4 Registration of Leases With the Domestic Aircraft Registry See 2.3.1 Notation of Owner’s/Lessor’s Interests on Aircraft Register . Leases are not subject to consent from any govern - ment entity under Thai law. Aircraft or engine leases do not have to be registered or filed with any govern - ment entity to become effective.
There is no prerequisite under Thai law for the execu - tion and delivery of an aircraft or engine lease in rela - tion to an aircraft in Thailand. 2.3.5 Requirements for a Lease to Be Valid and Registrable There is no specific requirement under Thai law that an aircraft or engine lease be in a specific form, trans - lated, certified, notarised or legalised to be valid and enforceable against a domestic party. However, in the event of enforcement, certified Thai translations of the whole or any material part of the aircraft or engine lease and any relevant agreements/documents may have to be submitted and attached to the originals when they are submitted as evidence to a Thai court. 2.3.6 Taxes/Duties Payable for Registering a Lease There is no registration of an aircraft or engine lease under Thai law. There are therefore no taxes/duties payable. 2.3.7 Registration of Aircraft in Alternative Countries There are no common alternative countries to register Thailand-based aircraft in. Thailand-based aircraft are registered in Thailand. 2.3.8 Requirements for Documents Concerning Registration All documents required and submitted to the officials should normally be certified as true copies of the original documents by the authorised director(s) or representative(s) of the company, with the company’s seal affixed, or as stipulated in the company’s affida - vit, if the registrant is a juristic person, unless specified otherwise by the officials. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor A foreign lessor could be subject to the following tax - es upon leasing an aircraft or engine to a domestic or Thai lessee. • Income tax: rental income paid from Thailand to a foreign company not carrying on business in Thai - land is subject to income tax and the Thai taxpayer has to withhold the income tax at the rate of 15%, unless the exemption or a lower rate of withholding
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