Several banks in Thailand have recently updated their policies when opening business bank accounts. Below is a summary of the current requirements by banks in Bangkok:

1. Bangkok Bank
   Majority foreign-owned companies must be registered for more than one year before they can be eligible to apply for a business bank account. The branch where the account will be opened must still submit the application to the head office for final approval.
2. Kasikorn Bank (Kbank)
   Although foreign-owned companies can open a business bank account right after company registration, some branches require the authorized company director to hold a non-B visa and a work permit, particularly for nationals of Myanmar, Russia, Belarus, Iran and North Korea.
3. Krungsri Bank
   The authorized company director is required to have a non-B visa and a work permit before he/she can open a business bank account.
4. Siam Commercial Bank (SCB)
   The company must be registered for at least one month before opening an account
5. TTB (TMBThanachart Bank)
   Some branches may require the authorized company director to have a non-B visa and work permit before he/she can open a business bank account.

Please note that the authorized company director must be at least 20 years of age. The director may be either a Thai national or a foreigner and must be physically present when opening a business bank account. However, if the director is a foreigner, most banks – as mentioned above – will typically require that they hold a non-B visa and work permit in order to open a business bank account.

MSNA have been assisting clients with business bank account set up. We can help prepare the requirements and facilitate the process. Contact us today for further information.

By virtue of Section 5, Section 6 and Section 7 of the Revenue Code on Tax Exemption (No. 795) B.E. 2568, the Revenue Department has recently announced the criteria and conditions for exemptions from income tax, Value Added Tax, Specific Business Tax and stamp duty.

These exemptions apply to donations made to the Thai Red Cross Society or approved medical and public health foundations through the electronic donation system effective from 1 January 2025. The initiative is part of an effort to encourage charitable contributions via secure and transparent digital platforms.

Donations may be made in the form of cash, assets, or goods. In the case of donating assets or goods, the following criteria and conditions must be met:

1. Assets Purchased for Donation – if a company or juristic partnership purchases assets specially for donation, there must be supporting evidence of the acquisition of assets indicating the amount and value of such assets. The value indicated in such evidence shall be regarded as the value of the donation expenses.
2. Assets from Asset Register – if a company or juristic partnership donates assets recorded in its assets register, the net book value (i.e. the cost after deducting accumulated depreciation or wear and tear) shall be used as the value of the donation.
3. Donated Goods – if a company or juristic partnership donates goods, whether the goods were manufactured in-house or purchased for resale, the proven cost value of those goods shall be considered the value of the donation. However, such value must not exceed the remaining goods brought forward, in accordance with Section 65 bis (6) of the Revenue Code.
4. Fair Market Value Requirement – the value of assets or goods purchased for donation must not exceed the normal market price, in accordance with Section 65 ter (15) of the Revenue Code.

Furthermore, in accordance with Section 4 of Royal Decree No. 795, the donors who contribute to the Thai Red Cross Society or approved foundations via the electronic donation system may use the system-generated donation records as valid evidence for claiming exemptions from income tax, VAT, Specific Business Tax and stamp duty under Section 4 and 7 of the decree. And those exercising the tax exemption are not required to submit any additional donation documents or evidence to the tax assessment officer.

Donors are advised to contact the Revenue Department for full details regarding eligibility and compliance requirements or consult with Thai tax experts for assistance in filing Thai taxes.

In Thailand, there are some entities that are exempted from corporate income tax while there are legal entities that are liable to pay corporate income tax on net income:

1. A company or juristic partnership established under Thai law:

• Limited Company
• Public Limited Company
• Limited Partnership
• Registered General Partnership

In the case where a juristic partnership established under Thai law has branches, whether it is in or outside Thailand, the net profit of the branch must be included with the net profit of the head office in order to pay corporate income tax in Thailand.

2. A company or juristic partnership established under foreign laws.

Companies or juristic partnerships established under foreign laws and liable to pay corporate income tax in Thailand include:
a) A company or juristic partnership established under the laws of a foreign country and carrying on business in other places and in Thailand, including companies or juristic partnerships established under the laws of such foreign countries are required to pay corporate income tax only on net profits derived from business operations in Thailand.
b) A company or juristic partnership established under foreign law has employees or representatives or contacts in carrying out business in Thailand, which results in income or profits being received in Thailand. Such person, whether a natural person or a juristic person, who hires such employees, representative or contacts, shall be deemed to be a representative of the company or juristic partnership established under foreign law and such person shall have the duty and responsibility to file a return and pay income tax only in relation to such income or profits.

3. Businesses which are carried out for trade or profit by a foreign government, a foreign government organization or other juristic person established under the laws of a foreign country.
4. Joint ventures

If you want to know more details about Thai taxation and accounting, contact MSNA to set up a consultation.

Normally, the entities that are only established under Thai law such as ministries, government departments, organizations or cooperatives are not required to pay corporate income tax.

However, there are also some types of juristic persons that are subject to corporate income tax under the Revenue Code but are exempted to pay tax under the provisions of various laws as below:

1. A company or juristic partnership under obligations under an economic or technical cooperation agreement between the Thai government and a foreign government.
2. A limited company that is exempted from corporate income tax under the Investment Promotion Act. This includes a company that has obtained the BOI promotion and has been granted with tax incentives.
3. Limited companies or juristic persons having the same status as limited companies established under Thai law or foreign law are exempted from corporate income tax under the Petroleum Income Tax Act.
4. A company or juristic partnership located in a country that has a double taxation agreement with Thailand, under the conditions specified in the DTA.

Thai taxation has a unique structure therefore; it is highly recommended to consult with the Thai tax experts like us. Contact MSNA for the best Thai tax advice.