If you are a foreigner who has been approved a foreign business license or foreign business certificate according to Thailand Foreign Business Act B.E. 2542, you need to pay attention to the following issues which are your duties/responsibilities:

1. Foreign Business License / Certificate

1.1 The license / certificate must be on display at the place of business operation.

1.2 If the license / certificate is damaged or lost, an application for a replacement must be filed with the Registrar within 15 days.

2. Conditions accompanying the approval of foreign business operation

2.1 The total loan utilized in the permitted business operation must not exceed seven times of the total amount imported for use in the permitted business.

2.2 At least one of the persons responsible for the business operation in Thailand must have a residence in the Kingdom of Thailand.

3. Bringing the minimum capital into Thailand to start the business operation

3.1 Time frame: The licensee who is a natural person or a juristic person who is not registered in Thailand must bring in the minimum capital from the day he has been approved or starts the business operation within the following time frame:

(1) If the approval to operate the business is for less than 3 years, the minimum capital must all be brought into Thailand within 6 months.

(2) If the approval to operate the business is for 3 years or more, the minimum capital must be brought into Thailand as follows:

– Within the first 3 months, at least 25% of the minimum capital

– Within the first year, a total of 50% of the minimum capital

– In the 2^nd and 3^rd year, at least 25% of the minimum capital within each year

100% of the minimum capital must be brought in within the three-year period.

The minimum capital must be converted into Thai Baht using the exchange rate on the date it is brought into Thailand.

Note that the above time frame does not apply to a Treaty of Amity company.

3.2 The evidence showing the amount of minimum capital brought into Thailand must be presented within 15 days from the date of transfer.

4. Changes in the registered information

4.1 If the company discontinues its operation, it must inform the Registrar within 15 days.

4.2 If the company moves its address or place of operation, it must inform the Registrar within 15 days.

4.3 It is advised that the company inform the Registrar in case it changes the person responsible for its operation in Thailand.

4.4 It is advised that the company inform the Registrar in case it changes its name.

4.5 It is advised that the company inform the Registrar in case it has a branch office.

5. Compliance when the competent officials send letters to ask questions or summon documents or evidence

The licensee has the duty to report the result of business operation and report the result of the technological transfer when the competent officials send letters to question or summon documents or evidence necessary for audit .

6. Preparing of accounts and filing of financial statements

Juristic persons set up under the laws of foreign countries have to file their audited financial statements within 5 months from the accounting year-end. Thai companies have to file them within 1 month from the date they were approved by the general shareholders’ meeting.

Penalties

1. Failure to comply with 1, 4.1, 4.2 and 5 may result in a fine of not more than Baht 5,000 (Sections 39 and 40)
2. Failure to comply with 3 may result in a fine of Baht 100,000 to Baht 1,000,000 and Baht 10,000 to Baht 50,000 daily until compliance (Section 38)
3. Failure to comply with 6 may result in a fine of not more than Baht 50,000
4. The foreigner who has been punished according to the Foreign Business Law will lack the qualification per section 16, which may result in the revocation of the license / certificate.

Contact MSNA for any questions about foreign business law in Thailand.

Tourism business in Thailand is a kind of industry that provides or gives services in return for remuneration in connection with tourism activities within and outside the Kingdom as follows:

– Tour business

– Tourist hotels business

– Business relating to restaurants, service places and resorts for tourists

– Business relating to the sale of souvenirs or other goods for tourists

– Business related to sports for tourists

– Exhibitions, shows, trade fairs, promotional advertisement or any other activities with the aim of encouraging and promoting tourism.

In doing tourism business in Thailand, one needs to comply with the rules and procedures as prescribed by Tourism and Tourist Guide Business Act B.E. 2551 (2008).

Once your company registered as a tourism business with the Department of Business Development of the Ministry of Commerce, you have to apply for tourism business license with the registrar at Bureau of Tourist Business and Guide Registration of the Department of Tourism. It is advisable to set up a juristic entity as a limited company because of its limited liabilities and professional acts. However, in order to qualify as a tourism licensee, a limited company must meet the following conditions:

1. Being a limited company registered under Thai laws having objective of running tourism-related business and the office shall be located in Thailand
2. At least 51% of its registered capital shall be held by one or more natural persons of Thai nationality.
3. Majority of its directors shall be natural persons of Thai nationality.
4. The authorized director(s) must be at least 20 years old on the application date, Thai nationality and has domicile or residence in the Kingdom of Thailand.

The registrar will notify you in writing within 30 days as from the date of receiving your application and documents. Such notification shall specify the amount of tourism business fee and bond to be provided.

After your application form and necessary documents have been approved, you are required to provide one or more of such bond as cash, bank guarantee, Thai government bond or State enterprise bond which both principal and interest guaranteed by the Thai government to the registrar as security deposit in an amount as stated below:

Tourism business license: Specific area THB 10,000

Tourism business license: Domestic THB 50,000

Tourism business license: Inbound THB 100,000

Tourism business license: Outbound THB 200,000

The rate of fee for each tourism business license is THB 3,000. The registrar will issue you the tourism business license within 7 days as from the date of receiving such fee and bond. Please note that the tourism business fee may be determined at different rates in accordance with the category or nature of the tourism business entrepreneur.

The tourism business license will be invalid when the tourism business entrepreneur dies or the business ceases to be a juristic person. A desire to end the tourist business is subject to an order to revoke the tourism license.

Interested in doing tourism business in Thailand, contact MSNA for company registration and further information.

Some companies that receive Thailand BOI promotion get only non-tax incentives. The following are non-tax incentives given by the BOI (Board of Investment):

1. Under Section 25, BOI promoted companies can bring in foreign technicians or experts, spouse and person under the guardianship of such foreign technicians or experts, into Thailand. The number of foreign technicians or experts and the period to work and stay in Thailand will be fixed as the BOI Committee deems appropriate.
2. Under Section 27, BOI promoted companies are permitted to own land according to the criteria approved by the BOI Committee.
3. Under Section 37, BOI promoted companies are allowed to transfer money to overseas in foreign currency.

For more information on BOI in Thailand, contact MSNA.

Question:

Is there any tax involve when a foreign company overseas got paid by a Thai-based company?

Answer:

Yes. A foreign company that does not carry on business in Thailand but received income from Thailand will be subject to withholding tax on certain categories of income derived from Thailand. The withholding tax rates may be further reduced or exempted depending on types of income under the provision of Double Taxation Treaty.

Contact MSNA for your accounting and tax questions.

As a way to move Thailand forward, the Thai Government is focusing on four major areas in provincial development which will be adjusted to be in line with the “Country Strategy”. At the same time, all provinces have been urged to be prepared for the arrival of ASEAN Community in 2015.

The four areas in provincial development seek to: (1) generate income on a sustainable basis, (2) promote inclusive growth in order to reduce poverty and close income gaps, (3) accommodate community growth that is friendly to the environment, (4) prepare infrastructure for Government’s mega-projects on transport and water management.

On the other hand, the Thai Government is also developing road and railway networks linking with neighboring countries. This was initiated in a joint meeting between provincial governors and Thai ambassadors and consuls-general to ASEAN countries. Various border checkpoints will be upgraded and Thailand and its neighbors need to manage goods production for mutual benefit.

In this regard, the Government urged provincial governors to explain to local residents about both advantages and disadvantages of free trade arrangements. Each province must also work out its provincial strategies to manufacture products in response to the demands of neighboring countries. Moreover, provincial governors must help create better understanding about neighboring countries, as Thailand moves toward the ASEAN Community.

Contact MSNA for your questions about doing business in Thailand.

As stated, foreigners seeking to engage in List 3 activities as per Thailand Foreign Business Law are required to apply for and obtain a Foreign Business License prior to commencing operations.

The Foreign Business Act sets forth the process by which the Foreign Business Committee (“Committee”) reviews the application. It states that the Committee is required to rule on the application within 60 days of submission. However, the application process in general has 2 district steps as follows:

(1) The process by which the presiding official at the Ministry of Commerce (MOC) accepts the application for review by the Committee

An application for a Foreign Business License is submitted to the MOC together with all required documents and information. The presiding MOC official, who is in charged with accepting the application will normally not do so until he is satisfied that all documents are in order. The official will perform the preliminary inspection upon presentation but usually he will require the person submitting the application to leave it for later inspection. The time frame for the official’s review of the application is not specified by statute.

In order to avoid these delays, make sure that the person designated to submit the application is familiar with the intended operations of the company to respond on the spot to the official’s questions regarding the application. In the case that the official requests additional documents and/or information, make sure the designated person supplies those documents in a timely fashion.

(2) The Committee’s actual review of the application.

Once the official accepts the application and issues a receipt, the sixty-day consideration period begins. The factors considered by the Committee when reviewing applications are:

– The advantages and disadvantages to the nation’s safety and security

– Public order, good morals, art, culture and traditions of the country

– Technology transfer and research and development

– Economic and social development

– Natural resources, conservation, energy and environment, consumer protection, size of the enterprises, employment

Technology transfer and research and development (R&D) are probably the most important. In 2004, the Ministry issued a document advising foreign investors on how they should describe technology transfer in the license application. Technology here is not just limited to R&D and use of sophisticated equipment, but also specifically includes “administration, management and marketing”. In addition, any planned programs the company has with Thai universities are taken under consideration by the committee.

In the event that the Foreign Business License application is rejected, the law requires that the MOC inform the applicant within 15 days of the decision. The notification of rejection must be in writing and expressly state the reasons why the application was rejected.

If the application is rejected, the applicant has the right to appeal the decision. The appeal must be submitted within 30 days of the date on which the applicant received the rejection notice. The Minister of Commerce is required to rule on the appeal within 30 days of receipt. The decision of the Minister shall be final.

Interested foreigners, who wish to operate a foreign business in Thailand, contact MSNA for further assistance in application for a Foreign Business License.

The Thai Revenue Department has created the strategy of tax collection to handle a new challenge in order to enhance efficiency of tax administration.

The Thai Revenue Department has adopted a risk management principle, known as Compliance Risk Management or CRM, as a tool in the management of tax collection. The principle of CRM is to assess and classify taxpayers according to their credibility. If the taxpayers are classified in the “high-risk” group, tools will focus on law enforcement such as penalties and tax audits. And if the taxpayers are classified in “low-risk” group, the Revenue Department will focus on providing these taxpayers with services such as counseling and facilitating.

From this kind of management, both taxpayers and the Revenue Department are likely to benefit. As a result, this measure will reduce costs involved in tax collection and bring out good attitudes throughout all parties concerned. In fact, Revenue Departments in many countries have already adopted and implemented the CRM’s principles and they were satisfied with an increase of tax collected.

Implementation of the new strategy to enhance efficiency of tax administration is yet to be announced by the Thai Revenue Department. Contact MSNA for your Thai accounting and tax questions.

In the event that an insured person became unemployed, he/she will be entitled to the unemployment benefits under the following circumstances:

– For unemployment resulted from termination of employment or laid-off, the insured person will receive 50% of wages for not more than 180 days within 1 year calculated on the basis of maximum contributions of Baht 15,000.

– For unemployment resulted from voluntary resignation, the insured person will receive 30% of wages up to 90 days within 1 year calculated on the basis of maximum amount of contributions but not more than Baht 15,000. If in the duration of 1 year there was more than 1 application for the unemployment benefits, the counting of the unemployment benefit receiving period in total shall not exceed 180 days; hence, the compensation benefit for loss of income shall be paid on monthly installment basis by crediting to the Bank Account as notified by the Insured.

Know more about Thailand Social Security and its benefits. Contact MSNA for consultation and for submission of your social security fund contribution.

If you are a foreigner who wants to get residency in Thailand, you may be eligible to apply for a residence permit with the Immigration Bureau provided that you have the following qualifications:

1. You must hold a passport that bears a Non-Immigrant Visa and has been permitted to stay in Thailand with one-year visa extensions for the total of at least 3 consecutive years up to the application submission date.
2. If you are at least 14 years old up to the application submission date, you are subject to criminal records check.
3. You must reveal your information on income, assets, knowledge, vocational ability and family status in terms of connection with Thai national conditions on national security or others as deem appropriate for the consideration.
4. You must be able to understand and speak Thai language.

Application for a residence permit is divided into five categories:

1. For investment
2. For employment
3. For humanitarian reasons – in this category, you must have relationship with a Thai citizen or a foreigner who already was granted with a residence permit as follows:

3.1 a legal husband or wife

3.2 a legal father or mother

3.3 a child who is under 20 years of age up to the application submission date and must be single

4. For expert
5. For extra circumstances on a case by case basis

The Ministry of Interior will announce the annual quota of foreigners to be granted with residence permit (by yearly quota per nationality) and such announcement will be published in the Government Gazette. You can then submit all documents required for each category, together with your passport until the last working day of the year at Chaengwattana Immigration Division or provincial Immigration offices. All documents must be submitted in person.

Once the application have been accepted, the Immigration officer will grant you a 180-day extension of stay on the date of application submission first and the next extension will be granted for 180 days until the results of the applications come out.

The Immigration officer may require a visit to your home and have a short interview with you together with those who are involved in the application. Within 120 days later, you will get an appointment card to come for a final interview with the Immigration officers. You will have to take the test for speaking, listening for understanding of the Thai language. Most questions are about your family, career, living, donation and your intention to apply for a residence permit.

Your application is also considered based on your income, assets, knowledge, vocational ability and family status in case of relationship with Thai nationals, conditions on national security or others as deemed appropriate for current economic and social condition in order to make certain that such consideration was made thoughtfully, transparently and fairly.

Please note that timeline for the consideration process varies each year, depending on the policy of the Immigration Commission and the Ministry of Interior.

Applicable fees:

1. A non-refundable fee for each application is Baht 7,600 (whether permission is granted or not)
2. If the application is approved, the fee for the residence permit is Baht 191,400. However, the residence permit fee for spouses and children (under 20 years of age) of the foreigners who already have a residence permit or Thai citizenship is Baht 95,700.

Obtaining a residence permit in Thailand is much easier if you have an English speaking partner to guide you in the process and prepare the application requirements. Contact MSNA for further assistance in obtaining a residence permit in Thailand.

To avoid double taxation, Thailand has concluded tax treaty agreements with certain countries. As of March 2021, the countries which currently have tax treaties with the Kingdom are as follows:

1. Armenia
2. Australia
3. Austria
4. Bahrain
5. Bangladesh
6. Belarus
7. Belgium
8. Bulgaria
9. Canada
10. Cambodia
11. Chile
12. China P.R.
13. Cyprus
14. Czech Republic
15. Denmark
16. Estonia
17. Finland
18. France
19. Germany
20. Great Britain and Northern Ireland
21. Hong Kong
22. Hungary
23. India
24. Indonesia
25. Ireland
26. Israel
27. Italy
28. Japan
29. Korea
30. Kuwait
31. Laos
32. Luxembourg
33. Malaysia
34. Mauritius
35. Myanmar
36. Nepal
37. The Netherlands
38. New Zealand
39. Norway
40. Oman
41. Pakistan
42. Philippines
43. Poland
44. Romania
45. Russia
46. Seychelles
47. Singapore
48. Slovenia
49. South Africa
50. Spain
51. Sri Lanka
52. Sweden
53. Switzerland
54. Chinese Taipei
55. Tajikistan
56. Turkey
57. Ukraine
58. United Arab Emirates
59. United States of America
60. Uzbekistan
61. Vietnam

Contact MSNA for your accounting, tax and other business needs.