Foreign Business Act · BOI · US Treaty of Amity
Under the Foreign Business Act B.E. 2542 (1999) (FBA), a Thai-registered company in which foreigners hold at least half of the capital is itself treated as a foreigner. Activities in the Act’s annexed lists are restricted: some are closed to foreigners and others need permission before the business can start.
Foreign Business Licence (FBA)
For listed activities that foreigners may apply for. The application goes to the Department of Business Development, which reviews it against the Act’s conditions and the business case.
BOI promotion
A BOI-promoted activity that falls within the lists obtains a Foreign Business Certificate instead of a licence, alongside BOI’s tax and non-tax privileges and conditions.
BOI application service →US Treaty of Amity
The FBA lets businesses operated under a treaty Thailand is party to follow that treaty’s terms instead. A qualifying US-owned company may obtain a certificate instead of a licence, although some sectors remain excluded.
It depends on the activity, the shareholders’ nationality, the investment plan and the privileges you need. This page is a high-level overview only — not legal advice.
Minimum capital and work-permit basics
- The FBA sets the minimum capital a foreigner uses to start a business in Thailand at not less than THB 2 million.
- For listed activities that need permission, the minimum capital is not less than THB 3 million for each business.
- Ministerial regulations can set higher amounts for certain activities, and BOI-promoted projects follow the conditions of their promotion certificate.
- Foreign staff working in Thailand generally need a work permit (with some exceptions, e.g. Smart Visa holders). Conditions depend on the case — MMN can advise.
Work-permit and visa requirements are updated from time to time, so confirm the current conditions before planning expatriate hires.
What must be filed every month
| Return | What it covers | Due (paper filing) |
|---|---|---|
| PP.30 | VAT: output tax less input tax, for VAT-registered businesses | By the 15th of the following month |
| PND.3 / PND.53 | Withholding tax on payments to Thai individuals / Thai companies | By the 7th of the following month |
| PND.54 | Withholding tax on certain payments to foreign companies, including the parent | By the 7th of the following month |
| PND.1 | Withholding tax on employee salaries | By the 7th of the following month |
| Social security (SSO) | Employer and employee contributions | By the 15th of the following month |
Electronic filing and payment usually get extra days under announcements that are renewed from time to time. For annual items — PND.51, PND.50 and audited financial statements — see the tax calendar.
Withholding tax and double-tax agreements
When a Thai company pays service fees, royalties, interest or dividends to a parent that does not carry on business in Thailand, it must withhold tax under section 70 of the Revenue Code — generally 15%, and 10% on dividends. If the recipient’s country has a double-tax agreement with Thailand, the rate may be reduced or exempt, subject to conditions.
- Obtain and retain the recipient’s certificate of residence as treaty-residence evidence, and map each payment to the right treaty article.
- Management and service fees from the parent should be backed by a contract, evidence of the services and an explainable charging basis.
Related-party dealings must be at arm’s length
Dealings between the Thai company and its parent or affiliates — goods, services, royalties and loans — must follow the arm’s-length principle under section 71 bis of the Revenue Code.
- Disclosure Form: filed with the PND.50 by companies whose revenue exceeds THB 200 million for the accounting period.
- Local File: submitted when the Revenue Department issues a notice — within 180 days for the first notice; subsequent notices 60 days. The Director-General may extend, but the extended deadline may not exceed 120 days from receipt of the notice.
What Thai law requires vs what the group asks for
Keep two things apart: what Thai law requires, and the group-reporting practice that depends on HQ policy. Designing the chart of accounts and reconciliations well from the start lets both sides work from one set of numbers.
- Thai statutory requirement: annual financial statements under the applicable Thai Financial Reporting Standards (TFRS or TFRS for NPAEs) in Thai, audited by a Thai certified public accountant, and filed with the Department of Business Development; the PND.50 return is filed with the Revenue Department.
- Common group-reporting practice (depends on HQ policy): an IFRS reporting package and monthly English management accounts, with reconciliations of differences from TFRS.
- Intercompany balances agreed with affiliates every month
A fast, digital month-end close for foreign-owned companies
Using cloud accounting, MMN aims to close the books within a few working days after receiving complete documents, and can deliver English management accounts and HQ reporting packs. Our team works in Thai and English and can take care of the monthly tax and social-security filings.
- Company registration and accounting set-up from day one
- Monthly VAT, withholding-tax and social-security filings
- Planning payments to the parent and treaty relief
- Transfer-pricing documentation and Disclosure Form filing
- BOI applications and separated accounting
Plan your Thai operation with MMN
Tell us about your business and planned structure, and we will help you sequence what needs to be done.
Book a meetingThis page is general information for education only — not legal or tax advice for any specific case. Laws, rates and deadlines change. Please consult MMN before making decisions or acting.