Question:

We would like to operate a factory in the industrial estate. How do you usually process the application for a factory license, say in Chonburi area? How long will it take to complete the application?

Answer:

As our company policy, we will require the first payment of our fees then, we will send to you the list of preliminary documents that we need in order to prepare the application.

It should take us 3-5 business days to finish the application after getting all information and documents from your side.

After submitting the application to the Industrial Estate Authority of Thailand (IEAT), the official will contact you to have a meeting to visit the factory site within 1-2 weeks if all documents are complete, which we will work with you for the most convenient time for the appointment of the meeting and the visit by the official. We will also consult with you and provide all support on the phone. If necessary, we will send our team to Chonburi to liaise with the IEAT officials.

It may take the IEAT official up to a few weeks (in most cases, shorter than that) for finish the evaluation of the project. Then the IEAT will notify us of its approval and we will request for the fees to pay to the IEAT before the licenses are issued.

Once we obtain the license, we will need 2 business days to translate it for you.

Contact MSNA for company registration, BOI promotion application and factory license application in Thailand.

Is there such thing as house tax in Thailand? If so, what is the tax rate? How about the land where the house is situated?

Answer:

In Thailand, the rate of tax is 12.5% of the actual or imputed annual rental value of the property of owners of land or house and buildings, used for any purpose, with the exception of owner-occupied residences.

If houses or buildings on the land are owned by a person other than the owner of the land, the owner of the buildings is liable for the tax.

Damaged buildings are subject to a reduced valuation in proportion to the extent of the damage. Reductions also made pro rata where buildings have become unoccupied during the year.

Exceptions to the house and land tax are as follows:

(a) Royal palaces owned by the Crown

(b) Buildings owned by the government and which are utilized for public purposes

(c) Public hospitals and educational institutions not operated for profit

(d) Religious buildings

(e) Buildings unoccupied for a period of 12 months or more

(f) Buildings used as the personal residence of the owner

The taxpayer is required to file a tax return within February of each year at the municipal or district office where the land and buildings are located. Tax must be paid within 30 days after notification of the tax assessment.

In case of failure to file a tax return, there will be a penalty of Baht 200.

Furthermore, a penalty of 2.5% of the tax liability will be imposed if the tax is paid during the first month following the due date for payment, rising to 5% for the second month, 7.5% for the third month and 10% for the fourth month. After the fourth month, the authorities have the right to seize and sell the property in order to collect the arrears.

Contact MSNA for your Thai accounting and tax questions.

We want to setup a Thai company and engage in hotel business. Can we be eligible for BOI promotion? What are the benefits if we got promoted?

Answer:

Yes, you can be eligible for BOI promotion provided that you meet the criteria and conditions set by the Board of Investment. For each hotel that you will build, there must have at least 100 rooms in it. Also, the minimum investment, not including cost of land and working capital, should not be less than Baht 500 million.

Once you got promoted, you can receive BOI privileges depending on your hotel location:

1. If it is located in Zone 1, Zone 2, Hat Yai district of Songkhla or Muang district of Chiang Mai, you will be granted only non-tax incentives.
2. If it is located in Zone 3, you will receive only an exemption of import duty on machinery and other non-tax privileges.
3. If it is located in the provinces of Kalasin, Nakhon Phanom, Narathiwat, Nan, Buri Ram, Pattani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakon Nakhon, Satun, Surin, Nongbualamphu, Chaiyaphum, Nongkhai, Ubon Ratchatani, Udon Thani and Amnat Charoen, you will receive the rights and benefits according to the BOI Announcement No. 1/2543 dated August 1, 2000.

Interested in getting BOI promotion for your company in Thailand, contact ThaiLawyers for more information.