This becomes clear if you pay attention to the punishments imposed by the law; they concern Thai employers, not the alien workers, alone.
[1]: http://www.thailandlawonline.com/translations/foreign-employ...
Doing work for any employer in Thailand, paid or unpaid is illegal on a tourist visa.
Lets quote the act you link to:
"To be able to legally work in Thailand the foreigner must have a valid non-immigrant visa and a work permit issued in his name allowing him to perform a specific job at a specific location for a specific company in Thailand."
Now a naive look at this paragraph might leave you with the impression you can be self employed or work for a foreign company.
The fact is that it's impossible to work for a foreign company in Thailand. They need to open local offices and incorporate here. It's also impossible to become self employed without opening a Thai company if you are a foreigner.
So the leading paragraph is correct. You need a work permit to work for a Thai company because all work must be conducted through a Thai company.
1. http://www.travellikeabosspodcast.com/episodes--show-notes/e...
As with all things in Thailand, what is ok today could be prohibited tomorrow.
Eg. you can check your email and do a bit of work to keep things going at home, it's not legal, but it is understood to happen and you'll be fine.
Full time work however is NOT allowed without a working permit.
Your link at [1] even confirms that at pretty much the first line. There is no specific exclusion for "remote work".
If you're being paid through an account back home and are working in a villa you've rented, it would be very hard for them to prove you're actually there working full time, would it not?
You really would not want to end up in a debate with Thai immigration on this topic either, no matter if they have proof or not.
Outdated legislation which is no longer enforced is common everywhere. For example Alabama has a homophobic law which says this must be included in every sex education program:
"homosexuality is not a lifestyle acceptable to the general public and that homosexual conduct is a criminal offense under the laws of the state."
http://codes.lp.findlaw.com/alcode/16/40A/16-40A-2
Illegal != Enforceable
REAL tourists have a HUGE effect on the economy.
REAL businesses that make the effort to operate legally, employ local staff, pay taxes, etc, have an effect on the economy.
Just kidding. And I agree with you.
http://asiancorrespondent.com/125980/thai-immigration-offici...
Keeping your head down in SEA is really good advice.
Assuming Thailand will crack down on those temporary remote workers, they will just go some other place.
EDIT: fixed typo.
They are rightly wary of western power being exerted now through corporations rather than through a military, because that's how things work these days, so they limit the ability for western companies to make inroads here. (For example the local Shell, Esso, etc. are all technically wholly owned by Thais.)
Obviously this concern doesn't apply for freelancers and small businesses whose clients are in the US, but those folks aren't numerous enough to affect immigration policy.
Limitations such as max 95% foreign ownership (Indo) end up with local lawyers or accountants owning 5% of the companies that are set up and are figureheads there to fulfill government requirements. Or in Thailand where many industries are only open to Thai nationals, which means the only way foreigners may access those industries is through marriage, though when those marriages dissolve so to does the foreign claim on business assets.
I don't blame them for making it difficult for foreign investment dollars to pour in and displace domestic ownership, or for not embracing western capitalism as fast and as hard as they can.
49% foreign ownership max, unless you are American.