On November 5, PayPal announced new requirements and changes in terms of customer agreements amid its relaunch in Thailand.
Any account opened before March 7, 2021, will not be able to receive payments or hold a balance after February, 2022.
According to its most recent statement, the same rules extend to all commercial accounts. Businesses that have not registered through the government’s “Know Your Business” (KYB) scheme and passed identity verification will not be able to receive money or hold balances.
Moreover, all registered business accounts must pay a value added tax (VAT) of 7% for each transaction.
The new rules also state that domestic transactions cannot be conducted in any currency other than Thai baht, and money transfers to US bank accounts have been blocked. But PayPal explained that registered business accounts can still make payments if linked to a Thai bank.
The move comes as Thailand revises its regulatory framework to accelerate its financial technology (fintech) industry while targeting a digital economy.
PayPal must adhere to the country’s tax and anti-money laundering laws, have an FX electronic money license and meet the necessary standards to be authorized to operate in the Kingdom.
In a Q&A section on its website, the financial services provider clarified that personal or commercial account’ holders could continue receiving payments if they are registered business in Thailand and submit some documents, including their 13-digit business registration number.
Other requirements include proof of business address (such as utility bill or tax document) and “identity information for the primary authorized user, each company shareholder with 25% or more ownership, and each additional executive or authorized user.”
