Starting a Business in Thailand @ Asia Business Set Up

BUY OUR ASIA BUSINESS BOOK

Download Healy Consultants' Asia Business Set Up book (in PDF format) for US$1000, or contact us for further details.

Starting a Business in Thailand

Thailand is not a tax-efficient jurisdiction and as such starting a business in Thailand for international trading purposes is not popular among foreign entrepreneurs. That said, in a bid to stimulate investment in small and medium-sized enterprises the Thai government offers tax breaks, especially if the company is involved in an activity being encouraged by the government. When starting a business in Thailand, investors should consider the following tax-related issues:

Examples of tax incentives offered by the Thai Board of Investment (BoI) include 100% tax exemption from import duties on machinery and raw materials of between three and eight years for companies promoted under the Investment Promotion Act. Under the Investment Promotion Act, consideration for tax breaks is given to companies with the following considerations:

i) the existing number of producers and production capacity in Thailand and the size of production capacity to be created compared with demand estimates;

ii) the extent to which the company’s activity will expand the market for the products or commodities produced or assembled in Thailand and will encourage the production or assembly in Thailand;

iii) the quantity and proportion of the resources available in Thailand including the capital, and raw or essential materials and labour or other services utilised;

iv) the amount of foreign currency which may be saved or earned for Thailand;

v) the suitability of the production or assembly processes;

If tax holidays are not available, a Thai limited liability company (LLC) suffers a corporation tax of 30% on all income. When starting a business in Thailand, an LLC is required to obtain a taxpayer identification card from the Revenue Department. Dividends received by a Thai LLC are taxable as ordinary income.

After starting a business in Thailand, an LLC is required to register for value added tax (VAT) if its gross sales volume exceeds 1.8 million baht (US$59,500) per year. VAT is levied at 7% on goods and services.

Thailand has signed double taxation treaties with almost 50 countries around the world, including Australia, Canada, China, France, Germany, India, Italy, Japan, New Zealand, Singapore, South Africa, Switzerland, the UAE, the UK and the US.

In accordance with the Thai Revenue Code and Thai Accounts Act, a Thai LLC is required to file an annual income tax return, accompanied by audited financial statements, and must be submitted to the Revenue Department and the Department of Business Development.

Contact Us

For more information on starting a business in Thailand, purchase our Asia Business Setup book. Alternatively, contact email@healyconsultants.com or call us in Singapore (+65) 6735 0120.

Back to the Thailand Company Formation page.