The Thai Arbitration Institute (TAI) — currently under the auspices of the Thai government’s judiciary — is the most commonly chosen institutional arbitration service provider by commercial parties to administer their contractual dispute arbitrations seated in Thailand. Unless the parties agree to deviate from the TAI Rules — and somewhat controversially — “with the consent of the Director of the Alternative Dispute Resolution Office,” the TAI Rules will apply to any arbitration proceeding under its administration. Part 2 of this article covers the Costs of the arbitration and the arbitrator’s Fee — and who pays them — in a TAI arbitration.
Costs
A. Services provided by TAI
| Item | Rate (Thai Baht) |
|---|---|
| Refreshment and snacks | 100/meal |
| Transcription of testimony (in Thai) | 600/hour |
| Transcription of testimony (in English) | 2,000/hour |
| Over-time remuneration for officials (business day after 16.30 hrs, or holiday with 7+ hours of work, excl. 1-hour break) | 210/hour/person, not exceeding 1,250/person |
| Remuneration for officials working out-of-office during office hours | 300/day/person |
| Arbitrator’s meal | Actual cost |
| Transportation/remuneration for summoned or expert witnesses | As set by the arbitral tribunal |
B. Other equipment used in the arbitral proceedings
| Item | Rate (Thai Baht) |
|---|---|
| Folder | 200/folder |
| Index | 50/set |
| Box file | 100/box file |
| Sound recording onto CD or DVD | 50/CD or DVD |
| Video recording onto DVD | 200/DVD |
| Delivery of documents (each party responsible for its own) | Actual cost |
| Other expenses (e.g. transportation, accommodation) | As set by the arbitral tribunal |
| Certified copy of award/rectifications (excl. photocopy fee) | 100/copy |
| Certified copy of other case-related documents | 50/copy |
| Photocopy | 2/page |
| Other office supplies (if any) | Actual cost |
The parties must each pay an advance for costs and expenses to the TAI, normally within 30 days of payment notification, with a usual minimum of Thai Baht 15,000 each.
The Claimant pays the first installment of its share upon filing the statement of claim, varying by language and residency, for example:
- Thai Baht 5,000 — proceedings in Thai, both parties reside in Thailand
- Thai Baht 10,000 — proceedings in Thai, one or both parties outside Thailand
- Thai Baht 10,000 — proceedings not in Thai, both parties in Thailand
- Thai Baht 20,000 — proceedings not in Thai, one or both parties outside Thailand
When proceedings end, the TAI summarizes costs and notifies the tribunal for inclusion in the award. Any balance is returned; shortfalls must be covered by the parties.
Fee
Sole arbitrator
| Disputed Amount (Thai Baht) | Fee |
|---|---|
| No disputed amount | 4,000/session |
| Not exceeding 2,000,000 | 30,000 |
| 2,000,001 – 5,000,000 | 30,000 + 0.5% of amount exceeding 2 million |
| 5,000,001 – 10,000,000 | 45,000 + 0.4% of amount exceeding 5 million |
| 10,000,001 – 20,000,000 | 65,000 + 0.3% of amount exceeding 10 million |
| 20,000,001 – 50,000,000 | 95,000 + 0.2% of amount exceeding 20 million |
| 50,000,001 – 100,000,000 | 155,000 + 0.1% of amount exceeding 50 million |
| 100,000,001 – 200,000,000 | 205,000 + 0.05% of amount exceeding 100 million |
| 200,000,001 – 500,000,000 | 255,000 + 0.04% of amount exceeding 200 million |
| 500,000,001 – 1,000,000,000 | 375,000 + 0.03% of amount exceeding 500 million |
| 1,000,000,001 – 2,000,000,000 | 525,000 + 0.02% of amount exceeding 1,000 million |
| Exceeding 2,000,000,000 | 725,000 + 0.01% of amount exceeding 2,000 million |
More than one arbitrator
| Disputed Amount (Thai Baht) | Fee |
|---|---|
| No disputed amount | 20,000/session |
| Not exceeding 2,000,000 | 60,000 |
| 2,000,001 – 5,000,000 | 60,000 + 1% of amount exceeding 2 million |
| 5,000,001 – 10,000,000 | 90,000 + 0.8% of amount exceeding 5 million |
| 10,000,001 – 20,000,000 | 130,000 + 0.6% of amount exceeding 10 million |
| 20,000,001 – 50,000,000 | 190,000 + 0.4% of amount exceeding 20 million |
| 50,000,001 – 100,000,000 | 310,000 + 0.2% of amount exceeding 50 million |
| 100,000,001 – 200,000,000 | 410,000 + 0.1% of amount exceeding 100 million |
| 200,000,001 – 500,000,000 | 510,000 + 0.08% of amount exceeding 200 million |
| 500,000,001 – 1,000,000,000 | 750,000 + 0.06% of amount exceeding 500 million |
| 1,000,000,001 – 2,000,000,000 | 1,050,000 + 0.04% of amount exceeding 1,000 million |
| Exceeding 2,000,000,000 | 1,450,000 + 0.02% of amount exceeding 2,000 million |
The TAI may adjust the arbitrator’s fee at its discretion — e.g. where the disputed amount differs considerably between claim and counterclaim, or where proceedings prove more complex or time-consuming than expected.
Who Pays the Costs and Fee
Both the Arbitration Act of Thailand and the TAI Rules leave it to the arbitrator to determine what part of the Costs and Fee the parties must pay. It remains unclear whether expenses not billed by the TAI are included among the Costs, and both the Act and the TAI Rules explicitly exclude attorney’s fees. Parties wishing to have such fees awarded should explicitly agree to this before arbitration begins, and seek the arbitrator’s express recognition of that agreement once proceedings start.