Understanding TAI Arbitration Costs Before You File a Claim
TAI arbitration costs include the institute’s own service fees, an advance cost deposit, and the arbitrator’s fee — each calculated differently and worth budgeting for before proceedings begin.
The Thai Arbitration Institute (TAI) — currently under the auspices of the Thai government’s judiciary — is the most commonly chosen institutional arbitration service provider, operating under the Arbitration Act. 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, continuing from the procedure covered in Part 1.
Costs
The TAI’s current cost rates are as follows:
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 and remuneration for summoned witnesses 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 the 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 the payment notification. The amount varies at the TAI’s discretion, with a usual minimum of Thai Baht 15,000 each.
The Claimant must pay the first installment of its share of the advance costs upon filing the statement of claim. This first installment may vary, for example:
- Thai Baht 5,000 if proceedings are in Thai and both parties reside in Thailand
- Thai Baht 10,000 if proceedings are in Thai but one or both parties reside outside Thailand (may be higher depending on distance)
- Thai Baht 10,000 if proceedings are not in Thai but both parties reside in Thailand
- Thai Baht 20,000 if proceedings are not in Thai and one or both parties reside outside Thailand (may be higher depending on distance)
When proceedings end, the TAI summarizes costs and expenses and notifies the arbitral tribunal so they can be incorporated into the award. Any balance is returned to the parties; if the advance is insufficient, the parties must cover the shortfall.
Fee
The current fee for an arbitrator in a TAI arbitration is calculated as follows:
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 |
Although the arbitrator’s fee is set, the TAI may adjust the amount at its discretion — for example, if the disputed amount differs considerably between the statement of claim and the counterclaim, or if proceedings turn out to be more complicated or time-consuming than anticipated.
Who Pays the Costs and Fee
Both the Arbitration Act of Thailand (the “Act”) and the TAI Rules provide that the arbitrator determines what part of the Costs and Fee the parties must pay. However, it is not clear whether the Act or the TAI Rules include expenses not billed by the TAI among the Costs. Both the Arbitration Act of Thailand (the “Act”) and the TAI Rules provide that the arbitrator determines what part of the Costs and Fee the parties must pay.
Because TAI arbitration costs can vary significantly based on the disputed amount and number of arbitrators, parties should review the current fee schedule carefully when deciding between a sole arbitrator and a three-member tribunal, since this choice roughly doubles the arbitrator’s fee under TAI Rules.