The Trade Competition Commission of Thailand's notification on commercial credit terms was published in the Royal Gazette on 2 October and takes effect on 2 November: payment terms for agricultural products and primary processed agricultural products may not exceed 30 days, those for general trade, production and services may not exceed 45 days, and changes to credit terms require at least 60 days' notice.
The New Rules: 30, 45 and 60 Days
On 23 October, Thailand's Ministry of Commerce issued a press release on the Trade Competition Commission's (TCCT) rules on commercial credit terms. The notification was published in the Royal Gazette on 2 October 2026 and takes effect on 2 November 2026. The main points are:
For transactions involving agricultural products and primary processed agricultural products with uncomplicated production processes, payment terms may not exceed 30 days;
For general trade, production and services within the scope of the notification, payment terms may not exceed 45 days;
Payment may not be delayed without justifiable reason;
Changes to credit terms or contract conditions require at least 60 days' notice as prescribed;
Where information held by the large buyer itself is involved, the large buyer must provide facts and evidence to the TCCT, easing the burden of proof on SMEs.
Why the Rules Were Introduced: SMEs Weighed Down by Long Credit Terms
The Ministry of Commerce said the rules target the problem of SMEs facing late payment by large counterparties and tight working capital. The chairman of Thailand's SME Promotion Board estimated that shortening credit terms from 60 days to 45 days would return about THB 250 billion (approx. RMB 55 billion) in working capital to SMEs, and shortening them from 90 days to 45 days about THB 750 billion (approx. RMB 165 billion). The rules aim to help more than 3 million SMEs.
The chairman of the TCCT said shorter payment terms help establish uniform business standards and reduce the use of trading conditions that put small businesses at a disadvantage.
Two Roles for Chinese-Invested Businesses in Thailand
Chinese-invested businesses in Thailand may be in two positions under these rules. First, as suppliers to large customers, they can rely on the new rules to require payment on time. Second, as larger buyers purchasing from local SME suppliers, they need to check whether payment terms in existing contracts exceed the caps and whether changes to credit terms are notified in advance as required. According to Thai media reports, the notification applies to transactions between large business operators or large wholesale and retail operators and SMEs. Which businesses and transactions fall within the scope is subject to the original text of the TCCT notification and must be assessed case by case.
Key Points
The commercial credit term rules were published in the Royal Gazette on 2 October 2026 and take effect on 2 November.
Payment terms may not exceed 30 days for agricultural products and primary processed agricultural products, and 45 days for general trade, production and services.
Changes to credit terms or contract conditions require at least 60 days' notice, and payment may not be delayed without justifiable reason.
The specific scope of application is subject to the original text of the TCCT notification.
Z&X Insight
Businesses should review their contracts with Thai suppliers and customers for payment terms before 2 November, flag any terms exceeding 30 or 45 days, and adjust their purchase payment approval process and cash flow plans accordingly. Z&X Financial Systems and Governance advisory works in an advisory capacity to help build accounting, internal control and reporting systems and streamline business and accounting processes, and can help businesses build the new payment terms into their policies and processes.
Sources
All provisions are subject to the original text of the TCCT notification published in the Royal Gazette.
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