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Thailand

Thailand

Capital City
Bangkok

Official Language (s)
Thai

Language required for filings
Thai

Currency
Baht

Population
67,091,120 (2014)

GDP
US$1.0550 trillion

Corporate tax rate
30% on net profit but temporary reduced to 20% for accounting periods which begin between 1 January 2013 and 31 December 2014

One of the largest countries in ASEAN, Thailand emerging economy and is considered a newly industrialised country only second to Indonesia in terms of the size of its economy. Best known as a manufacturing hub for vehicles, heavy on export, it’s tourism industry is also world renowned which attracts not only toursists from the region but all around the world. It’s uniqe culture, and traditions is definitely one of its strongest assets.


Business in Thailand

Business in Singapore
The agency in charge of incorporating companies and business registration is Department of Business Development and the enforcement of all related legislation under the Ministry of Commerce Thailand.
1.0 Types of Business

There are several types of businesses in Thailand.

  • Sole Proprietership
  • Partnership
  • Private Limited (Pte Ltd)
  • Public Limited
  • Branch
  • Representative Office

For more info visit :http://www.dbd.go.th

1.0 Employment


The relationship between employers and employees in Thailand is regulated by The Ministry of Labour.
1.1 Types of Employment

There are several types of employment that is recognized :

  • Full-Time
  • Part-Time
  • Fixed Term/Contract
  • Apprenticeships & Trainees
  • Piecework and Commission only payment

*Under Thai Law, foreigners are prohibited in engaging in manual work.

1.2 Mininum Wage

Ranges from 300 Thai bhat per day and up, depending on the cost of living in various provinces

Note that wages below SGD 2,000 hours of work & overtime are regulated under the Singapore Employment Act. For employees earning above SGD 2,000/month, the above conditions of the Employment Act do no apply and it is free to be determined by agreement between the employee and the employer.

1.3 Annual Leave

The minimum number of annual leaves for employees in Thailand is 6 days.

1.4 Social Security

Collection of contributions paid by employers, employees, and the government for use in providing protection and welfare in respect of non-work related injury or sickness or invalidity or death, or maternity or child allowance or old-age, or unemployment to employees who are insured persons. The consolidated rates of contributions from 3 parties are not to exceed the following limits: 4.5% of wage for injury, sickness, invalidity, death, and maternity benefits; 9% of wage for child welfare and old-age benefits; 15% of wage for unemployment benefits.

1.5 Workmen’s Compensation

This Act requires employers to pay annual contributions at the rates of 0.2-1% of wage depending on risk levels of any given business. This contribution is to be used for paying workmen’s compensation in respect of work-related injury, or sickness, or loss of organs, or invalidity, or death, or lost to employees who are insured persons.

For more info visit :http://www.mol.go.th/

2.0 Taxation

The Revenue Department is the main agency that enforces taxation for the government.

2.1 Corporate Tax

A Thai company generally pays tax at 20% (until 2015) of net profit.

A foreign company carrying on business in Thailand, whether it has a branch, an office, an employee or an agent in Thailand shall pay 30% tax (reduced to 20% until 2015) only on profit deriving from business in Thailand. However, international transportation company shall pay tax at the rate of 3% on gross receipts.

Goods & Services Tax

VAT is an indirect tax imposed on the value added of each stage of production and distribution. Any person or entity who regularly supplies goods or provides services in Thailand and has an annual turnover exceeding 1.8 million baht is subject to VAT in Thailand.

For more info visit :http://www.rd.go.rh