Thailand

Investing in Thailand: Tax and Non-Tax Incentives

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By Dezan Shira & Associates
Editor: Vasundhara Rastogi

ASEAN Briefing-Thailands Investment Outlook for 2018 (002)

Thailand’s Board of Investment (BOI) offers a range of tax and non-tax incentives to foreign companies making investments that are deemed highly beneficial to the Thai economy.

In 2015, the BOI announced a new seven-year investment promotion strategy (2015-2021) that offers special privileges to foreign investors. Under the strategy, tax-based incentives are granted according to the group classification (A or B) for the activities and the merit of the project (if any), whereas non-tax benefits are available to all projects regardless of the type of activity or conditions.

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Corporate Establishment in Thailand: What You Need to Know

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By Dezan Shira & Associates
Editor: Vasundhara Rastogi

ASEAN Briefing-Corporate Establishment in Thailand What You Need to Know (002)

Foreign investors contemplating new business undertakings in Thailand should carefully consider the Thai Foreign Business Act B.E. 2542 (FBA) before setting up operations in the country. The FBA is the main law that governs the extent of foreign participation in business activities in Thailand; it limits the rights of foreigners to engage in certain businesses, commercial, and industrial activities in the country.

Under the FBA, a business entity is deemed ‘foreign’ if:

  • It is registered under the law of another country – including all branches, representative offices and regional offices of overseas companies operating in Thailand; or
  • It is registered under Thai law
    • with 50 percent or more of its capital shares held by non-Thais (individuals or business entities);
    • with 50 percent of its capital invested by non-Thais; or
    • has foreign individuals as its managing partner or manager.

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Thailand’s Automotive Industry: Opportunities and Incentives

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By: Vasundhara Rastogi

ASEAN Briefing-Thailands Automotive Industry Emerging Trends

Thailand offers great investment potential as a leading automotive production base in the Association of Southeast Asian Nations (ASEAN) – a fast developing region for automotive manufacturing.  Over a period of 50 years, the country has developed from an assembler of auto components into a top automotive manufacturing and export hub.

With shipments bound for more than 100 countries, Thailand is the 13th largest automotive parts exporter and the sixth largest commercial vehicle manufacturer in the world, and the largest in ASEAN. By 2020, Thailand aims to manufacture over 3500000 units of vehicles to become one of the top performers in the global automotive market.

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Thailand’s Special Economic Zones – Opportunities for Investment

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By: Vasundhara Rastogi

ASEAN Briefing-Thailands Special Economic Zones Opportunities for Investment (003)

In 2017, the value of Thailand’s border trade with Cambodia, Laos, Myanmar, and Malaysia, combined with goods re-exported to Vietnam, totaled 1.3 trillion Baht. This year, the Ministry of Commerce expects the number to grow further by 10 to 14 percent. Likely to benefit further in the light of these strong trends are businesses that choose to locate in the 10 Special Economic Zones (SEZs) in the border provinces of Thailand. The development of the SEZs is divided into two phases, with the first phase covering the provinces of Tak, Sa Kaeo, Trat, Mukdahan, and Songkhla. Other provinces include Chiang Rai, Nong Khai, Nakhon Phanom, Kanchanaburi, and Narathiwat.

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Managing Trade Secrets in Thailand

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By: South-East Asia IPR SME Helpdesk

ASEAN Briefing-Managing Trade Secrets in Thailand (003)

Trade secrets are a highly valuable form of intellectual property that nearly all businesses in all industries and sectors possess. However, they are frequently overlooked by businesses, partly because there is confusion about what actually constitutes a trade secret. So what is a trade secret?

According to the World Intellectual Property Organization (WIPO), any confidential business information that is of considerable commercial value to businesses and that provides an enterprise with a competitive edge may be considered a trade secret. In practice, this could be:

  • sales methods
  • distribution methods
  • consumer profiles
  • advertising plans
  • pricing strategies
  • lists of suppliers and clients
  • manufacturing processes

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Thailand’s Eastern Economic Corridor – Opportunities for Investment

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By Vasundhara Rastogi

ASEAN Briefing-Thailands Eastern Economic Corridor (EEC)

Last month, Thailand approved the much-awaited law for the development of its US$45 billion Eastern Economic Corridor (EEC) – rolling out a series of measures to spur foreign investments in the Thai economy.

The new law provides for over a hundred regulations – amended or suspended – to sweeten business incentives and revoke legal restrictions on foreign investments in the country. It offers tax breaks for investors in the EEC project, and encourages them to rent land for up to 99 years.

In addition, the Thai government has introduced relaxed visa measures for foreign professionals and also invoked executive powers to help speed investment approval.

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Thailand’s Investment Outlook for 2018

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By: Vasundhara Rastogi

ASEAN Briefing-Thailands Investment Outlook for 2018 (002)

Thailand is a fairly developed economy with an upper-middle-income status. Situated in the heart of Southeast Asia, the country serves as a gateway to one of the world’s most dynamic markets. Despite a decade of political instability and economic shocks, the economy grew at a rate of 3.7 percent in 2017 and is expected to touch 4 percent in 2018, led by strong exports and a vibrant domestic consumer market. However, in comparison to some of its neighbors, the country’s growth rate is among the lowest in Southeast Asia.

Investment climate

Though a moderately-growing economy, Thailand offers abundant resources and a skilled and cost-effective workforce for foreign investors. Thailand has a well-defined investment policy framework that encourages liberalization and promotes free trade. The government, through its several agencies such as the Board of Investment (BOI) and the Industrial Estate Authority of Thailand (IEAT) and its many bilateral agreements, offers numerous tax and non-tax incentives to support investors. Investors can significantly gain from agreements such as the ASEAN Comprehensive Investment Agreement (ACIA), the ASEAN Framework Agreement on Services (AFAS), and the Treaty of Amity and Economic Relations between Thailand and the US (Treaty of Amity).

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French FDI in ASEAN Part II: Thailand, Philippines and Indonesia

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By: Linh Tran Huy

Editor: Thibaut Minot

_French-FDI-in-ASEAN (002) Resized

In the first part of this two-part article, we discussed France’s investments in Singapore, Malaysia and Vietnam. Reiterating the continued importance of the Association of Southeast Asian Nations (ASEAN) as a FDI destination for European investors, we look at French FDI in Thailand, Philippines and Indonesia in this concluding part.

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Cambodia’s DTAs with Singapore and Thailand Come into Effect

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By Dezan Shira & Associates
Editor: Vasundhara Rastogi

On January 1, 2018, Cambodia’s two Double Tax Agreements (DTAs) – with Singapore and Thailand – came into effect. The DTA with Singapore – Cambodia’s first income tax treaty – was signed on March 20, 2017, whereas the DTA with Thailand was signed on September 7, 2017.  The two DTAs aim to clarify taxation rights on all forms of income arising from cross-border economic activities between the signatory jurisdictions in respect of tax on profit, including withholding tax, additional profit tax on dividend distribution and capital gains tax; and tax on salary while minimizing double taxation. The agreements also provide for reduction or exemption of tax on certain types of income, lowering barriers to cross-border investment and encouraging bilateral trade.  

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Thailand Introduces New Four-Year Smart Visas for Investors

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By Dezan Shira & Associates
Editor: Vasundhara Rastogi

Foreign entrepreneurs investing in new businesses, and highly skilled professionals or executives can now apply for a new 4-year ‘Smart Visa’ to live and work in Thailand. The application for the smart visa will begin from February 1, 2018. However, individuals interested in applying must note that the visa application is only open to foreigners working or investing in the ten S-curve targeted industries. These industries include next-generation automotive, smart electronics, medical and wellness tourism, ‘food for the future’, agriculture and biotechnology, automation and robotics, aviation and logistics, biochemicals and eco-friendly petrochemicals, digital businesses, and medical hubs.

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