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1. Investment in Thailand
Q.
If foreigners want to invest in Thailand, are there any
promotions for them?
A. Yes.
Promotions are offered through responsible government
agencies to attract foreign investment. For example, the
Board of Investment was founded in order to attract
foreign investment.
Q. What advantages are granted to foreign investors?
A. Various - a
wide range of advantages, which the government grants to
qualified foreigners, both of fiscal and non-fiscal
incentives.
Q.
Are foreigners allowed to have majority shareholding or
100 percent ownership of a company?
A. Yes, if the
business of the company is not reserved for Thai
nationals. Anyway, if a company's business is regulated
under the Alien Business Act 1999, the company must
obtain an Alien Operation License from the Ministry of
Commerce of Thailand.
Q.
Are foreigners allowed to set up a branch office in
Thailand?
A. Yes - in
case the company's business regulated is under the Alien
Business Act 1999, the company must obtain an Alien
Operation License from the Ministry of Commerce of
Thailand.
Q. Are there any restrictions on foreigners doing
business in Thailand?
A. Yes. The
Alien Business Act 1999 restricts foreigners from having
majority ownership of companies engaged in the businesses
listed therein.
2. Corporate & Commercial
Q. How to register a company in Thailand?
A. There are
many forms of business organisations provided for under
Thai Law. They include sole proprietorships,
partnerships, branch offices, limited companies and
public companies. The registration processes are similar
- they depend on what type of business the investor wants
to do.
Q.
How long does it take to set up a limited company?
A. Usually
about 1 - 2 weeks.
Q.
How long should it take to convene a shareholders'
meeting from the date of sending the meeting date notice
to all shareholders?
A. At least
7 days from the date of sending the notice.
Q.
How many shareholders are required under Thai Law?
A. A limited
company must have at least 7 shareholders at all times
and a public company must have at least 15 shareholders
at all times.
Q.
How many directors are required under Thai Law?
A. No minimum
requirement.
Q.
How often must a company hold shareholders' meetings?
A. At least
once a year.
Q.
How to do if shareholders cannot attend meetings?
A. Shareholders
can appoint proxies to attend meetings in their stead,
unless otherwise prohibited by the Articles of
Association (By-laws).
Q.
What is the minimum percentage shares need to be paid-up?
A. The minimum
requirement is 25 percent of the par value.
Q.
Can shares be paid in kind?
A. Yes.
Q.
What is the minimum par value required?
A. 5 Baht per
share.
Q.
When is super majority vote required?
A. Super
majority vote is required by Thai Law for certain matters
as well as for other matters stipulated in the Articles
of Association (By-laws).
Q.
How can the shares of a company be transferred?
A. They can be
freely transferred, unless stipulated otherwise by the
Articles of Association (By-laws).
Q.
When joint venture agreements or shareholders agreements
are formed, do they need to be registered with any
government registrar?
A. No. The
agreements are regarded as private agreements enforceable
between/among the parties.
Q.
Do joint venture agreements or shareholders' agreements
need to be in writing?
A. No. However,
it is recommended.
Q.
Can foreigners and Thai partners make joint venture
agreements in Thailand?
A. Yes, as long
as the provisions are not prohibited by law, are
impossible or are contrary to public order or good
morals.
3. Taxation
Q:
What is the income tax rate in Thailand?
A: Peronal
income tax is imposed at a progressive rate ranging from
5 percent to 37 percent. Corporate income tax is imposed
at a rate of 30 percent of net profits.
Q: When is the due date to file tax returns of an
individual?
A: An
individual must file annual income tax returns not later
than the end of March of the following year. Half-year
income tax returns are required for individuals who earn
certain types of income such as rent, professional fees,
income from construction, income from sales of goods,
etc. The half-year income tax returns must be filed not
later than the end of September of the respective tax
year.
Q:
When is the due date to file tax returns of a juristic
person?
A: A juristic
person must file half-year tax returns not later than 2
months after the first 6 months of an accounting period
and annual tax returns not later than 150 days after the
end of the accounting period.
Q:
Is there any consolidation treatment whereby companies
within a group may be treated as one tax entity?
A: There is no
consolidation treatment under Thai tax laws. Each
corporation is taxed as a separate legal entity.
Q:
Are payments by a Thai juristic person to a foreign
juristic person subject to any Thai income tax?
A: Yes.
Payments of certain types of income, usually in the form
of service fees, royalties, interest, dividends, rent or
professional fees from or in Thailand to a foreign
juristic person not carrying on business in Thailand are
subject to income tax in the form of a withholding tax at
a rate of 15 percent, except for dividends, for which the
rate applied is 10 percent.
Q:
What is the Thai income tax imposed on a foreign juristic
person carrying on business
in Thailand?
A: For a
foreign juristic person carrying on business in Thailand,
the income tax imposed is 30 percent corporate income tax
on net profits and 10 percent profit remittance tax on
profits remitted or deemed remitted abroad.
Q:
Is there a specific capital gains tax in Thailand?
A: There is no
specific capital gains tax in Thailand. Capital gains are
subject to tax in the same manner as any other forms of
income.
Q:
Is there a sales tax in Thailand?
A: There is a
value added tax ("VAT") instead of a sales tax.
The VAT is imposed on sales of goods, provision of
services and import of goods into Thailand.
Q:
What is the VAT rate?
A: The VAT is
currently imposed at a rate of 7 percent, which has been
reduced from the normal rate of 10 percent on April 1,
1999. From April 1, 2001 onward, the VAT rate will be
raised back to 10 percent. For exports of goods, the VAT
rate applied is 0 percent.
Q:
When are VAT returns filed?
A: The VAT
registrant must file VAT returns and pay tax (if any) to
the local district office monthly, within 15 days from
the end of the month which the VAT is to be accounted
for.
Q:
Does Thailand impose taxes on stock options granted by an
employer to employees?
A: An employee
who received stock options is subject to individual
income tax at the time they are exercised. The taxable
income derived from receiving stock options is based on
the difference between the exercise price and the market
price of the shares on the date of receiving ownership in
such shares.
4. Work Permit
Q.
Are foreigners allowed to work in Thailand?
A. Yes. However
a foreigner must obtain a work permit prior to commencing
work in Thailand, unless exempted.
Q.
In case a foreigner works in Thailand but his salary is
paid by the parent company outside Thailand, is he still
required to have a work permit?
A. Yes. A work
permit is required regardless of where the salary is
paid.
Q.
Is a foreigner allowed to work right after he has filed a
work permit application?
A. No, only
when the work permit has been granted.
Q.
How long does it take to get a work permit?
A. Usually
2 - 3 weeks.
Q.
What type of visa is required, if a foreigner wishes to
work in Thailand?
A. A
Non-Immigrant "B" (Business) Visa.
Q.
How long is a foreigner allowed to live and work
continuously in Thailand?
A. A foreigner
can live and work continuously as long as applicable
permits are renewed.
Q.
What is the required minimum ratio of local employees to
foreigners in a company that applies for a work permit in
Thailand for its foreign employees?
A. There shall
be a minimum of 4 local (Thai) employees per 1 foreigner.
Q.
In case a Thai company wishes to have a foreign
technician to install machinery and to teach their Thai
staff for 1 - 2 weeks how to operate the machinery, would
this foreigner be required to apply for a work permit?
A. In case of
necessary and urgent work to be carried out over a period
of not more than 15 days, a work permit is not required.
However, a notification needs to be filed with the
respective authorities.
Q.
How can a foreign company apply for work permits for its
employees?
A. It cannot be
done. Only a legal entity registered in Thailand is
eligible to apply for work permits.
5. Immigration
Q. How to do when someone's passport is lost or stolen?
A. A
foreigner, whose passport was either lost or stolen after
entering the Kingdom, has to do the following:
-
A
report must be filed at the local police station
in the area where the passport was lost or
stolen.
-
The
police report has to be brought to the respective
passport holder's consulate and he has to apply
for a new passport or substitute document. If
there is no embassy or consulate in Thailand, he
has tocontact the Passport Division of the
Ministry of Foreign Affairs.
-
The
new passport or substitute document has to be
brought to the Immigration Bureau, to have the
visa re-stamped, along with the following
documents:
- The report from the police station
- A document from the embassy or the consulate
certifying the new passport (if any)
Q. What is the fine for overstaying
visas?
A. According to Section 81 of the Immigration Act 1979,
aliens, who overstay their visas and voluntarily report
this to the Immigration Bureau, will be fined 200 Baht
for each day the visa is overstayed, but not more than a
total of 20,000 Baht.
Q.
Where to pay fines?
A. In the
Central/Bangkok Area: At the Investigation Unit of the
Immigration Bureau or at the Bangkok International
Airport/Departure Section, upon the alien’s
departure from the Kingdom.
For provincial areas: At any Immigration checkpoint at
the alien’s departure from the Kingdom.
Q.
How to apply for a Non-Immigrant Visa?
A. Usully,
a non-immigrant visa can be obtained from the Thai
Embassy or Consulate in your country. The visa will be
valid for 90 days. If you wish to stay for one year,
there are two ways, how that can be done:
-
An
alien submits an application for a Non-Immigrant
Visa at a Thai Embassy or Consulate, which will
be sent to the Immigration Bureau in Thailand.
-
A
company in Thailand, who wishes to employ an
alien, submits an application to the Immigration
Bureau.
Q. Where to apply the Non-Immgrant Visa?
A. An
alien, who is interested in acquiring such a visa, must
apply for Non-Immigrant Visa at a Thai Embassy or
Consulate abroad before he enters the Kingdom.
Q.
How to apply for a re-entry permit?
A. In the
case where an alien who holds any kind of visas for stay
in the Kingdom wishes to travel abroad before his/her
visa expires, the alien must apply for a re-entry permit.
A re-entry permit allows the alien to re-enter the
Kingdom and use the time remaining on his/her visa. If a
re-entry permit is not applied for, the visa will
automatically be cancelled at departure, although it may
not have expired yet.
Q.
How to do if passengers did not receive an entry-stamp?
A. An alien
who enters the Kingdom at recognized check-points but who
did not receive a visa stamp, can apply for a visa as
follows:
-
In
case the alien entered country at the Bangkok
International Airport or at a provincial
immigration check-point, he has to contact at the
officer on duty at the Immigration Bureau, Soi
Suan Plu, Sathorn Road, Bangkok. The officer on
duty will make the necessary entries/corrections
in the alien's passport.
Q. How long is the alien allowed to stay
in Thailand with a Non-Immigrant Visa?
As warranted by
such a visa, an alien will be allowed to stay in the
country for 90 days.
Q.
How long is the alien allowed to stay in Thailand with a
Non-Immigrant Visa type B-A?
A. If the
visa is approved by the Immigration Bureau, the applicant
will be entitled to stay in the Kingdom for a period of 1
year from the day of entry.
Q.
Can an alien extend the duration of stay?
A. The
Immigration Office will grant an extension for an alien
to stay according to the recommendations of the
Investment Support Committee or the Industrial of
Thailand Committee or the types of visas regulated under
the Immigration Law as follows:
-
Investment
or business visa, not more than 90 days.
-
Investment
or business visa, more than 90 days.
Q. Where to apply for an extension of
stay?
A. Applications
for extension periods of::
-
Not
more than 90 days: The alien must apply
for a non-immigrant visa “code B” at a
Thai Embassy or Consulate abroad before he enters
the country.
-
More
than 90 days: The alien must apply for a
non-immigrant visa “code B-A”. The
alien may submit an application by himself visa
at the Thai Embassy or Consulate abroad, who will
pass this on via the Foreign Ministry to the
Immigration Bureau in Thailand.
Q. How to apply for an extension for
aliens who support or are being supported by parents with
Thai nationality or have residence in Thailand?
A. The
alien must apply for a Non-Immigrant Visa “code
O” at a Thai Embassy or Consulate abroad, before he
enters the Kingdom. As warranted by this visa, the
applicant will receive permission to stay for 90 days.
The Immigration Office will grant the applicant an
maximum extension of 1 year at a time.
Q.
How to apply for an extension for aliens who support or
are being supported by a spouse with Thai nationality or
who have residence in Thailand?
A. The
alien must apply for a Non-Immigrant Visa “code
O” at a Thai Embassy or Consulate abroad before
entering the Kingdom. As warranted by this visa,
permission to stay in Thailand is given for a period of
90 days. The Immigration Office will grant the applicant
an maximum extension of 1 year at a time.
Q. How to apply for an extension for aliens who are
senior citizens and wish to retire in Thailand?
A. The
alien must apply for a Non-Immigrant Visa at a Thai
Embassy or Consulate abroad before entering the Kingdom.
As warranted by this visa, permission will be given for a
period of 90 days. The Immigration Office will grant the
applicant an maximum extension of 1 year at a time.
Q. What is the minimum age for a foreigner applying for a
Retirement Visa?
A. Over 50 years of age.
Q.
Can a foreigner apply for a Residence Permit?
A. Yes, if
he/she has been living in Thailand on a 1-year visa for
at least 3 consecutive years.
Q.
How to apply for permanent residence?
A. Periodically, the Immigration Bureau receives
applications for permanent residence. Public
announcements will be made at such times. Foreigners with
Non-Immigrant Visas who have resided in Thailand
continuously for 3 years (on 1-year visa extensions), may
apply for permanent residency.
Q.
Can foreigners appoint a representative to process their
paperwork at the Immigration Bureau?
A. Yes,
foreigners who work for the government, at embassies or
for a private enterprise, may appoint a representative to
process their paperwork for them.
Q.
What do aliens require for the validation of trips
abroad?
A. Kinds
of validations:
-
Validations
of trips abroad and countries visited to be used
as official reference.
-
Validation
of trips abroad of children who were born abroad
and want to be registered in Thailand. (Upon
official request).
-
Validation
needed for revoking a bank guarantee.
-
General
validation of trips abroad.
The
requirements:
-
A
letter of request stating the information needed.
-
In
the case of a guarantor for an alien who has
deposited money in the bank and the alien has
already left the country, in order to withdraw
the deposited amount, he would need confirmation
from the Bureau that the alien has left.
Q. Does a foreigner need to report
his/her residence?
A. Yes. A
foreigner must inform to the Immigration Bureau whom he
resides with or where he rents the property of a Thai
citizen.
Reporting Procedures:
-
Authorities
must be informed within 24 hours of the
alien’s occupancy.This can be done by mail.
-
After
90 days in the country, the alien must report
his/her address to the Immigration Bureau.
Reporting must be done every 90 days thereafter.
Q. What are the required documents for
verification of nationality?
A. Basic
documents required:
-
Passport
or a substitute document.
-
Certificate
of Birth.
-
A
copy of parents' Marriage Certificate.
-
Evidence
of citizen registration such as the house
registration, proof of moving abroad (if any).
-
Military
certificate (if any).
-
Copy
of educational certificate, i.e. diploma or
student registration.
-
Evidence
of parents' nationalities:
- copies of their identification cards or alien
identification documents or current passports
and, in the case of a Thai father, a copy of his
military certificate.
- a copy of their house registration.
-
Five
1.5 inch-sized photos (showing the document
holder without a hat)
Q. What are the required documents for
assistance in apprehending criminal suspects?
A. Documents
Required:
-
A
copy of the police arrest warrant.
-
A
picture of the person wanted for arrest (if any).
-
The
Identification Card of the person making the
request and application for request of
cooperation.
Q. How to report on aliens who break the
law?
If you suspect a
foreigner to be a danger to Thailand, please report
directly to the Investigation Unit of the Immigration
Bureau or tothe nearest police station.
Q.
What are the punishments for assisting aliens entering of
staying illegally?
A. Aiding
or abetting the illegal entry of aliens into the Kingdom
is an offense according to the Immigration Act 1979,
punishable by not more than 10 years imprisonment and a
fine not exceeding 100,000 Baht.
Giving residence, hiding or helping an alien to stay in
country illegally or to escape arrest in any way is
punishable by not more than 5 years imprisonment and a
fine not exceeding 50,000 Baht, according to the
Immigration Act 1979.
Q.
How to apply for an extension of a Tourist Visa?
A. An alien
must apply for a Tourist Visa at a Thai Embassy or
Consulate abroad prior to entering the Kingdom. Upon
entering the country, as warranted by a tourist visa,
permission will be granted for a stay of 60 days.
Usually, if the alien wants to continue touring the
country, an extension may be granted for not more than 30
days, unless there are exonerating circumstances, which
would entitle the alien to a 1-year extension.
Q.
How to apply for an extension for aliens who received a
visa upon arrival while in transit, including those who
are exceptions to normal visa procedures, i.e. airline
personnel?
A. The
above-mentioned aliens do not normally receive visa
extensions, except in special cases such as illness which
prevents them from travelling, etc.
Q.
How to apply for an extension after having officially
given up Thai nationality?
A. An
alien, who was originally a Thai national and wishes to
reside in the Kingdom in order to visit relatives or to
return to his/her original home, may apply for extension
of stay in the Kingdom for the above reason, whether
he/she has a visa or has been granted exemption from a
visa. The Immigration Bureau will permit aliens, who were
originally Thai nationals, to remain in the Kingdom for
not more than 1 year at a time.
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