We are pleased to announce that FRANK Legal & Tax will be attending the upcoming seminar organized by FIABCI-Thai, a chapter of the International Real Estate Federation based in Paris, France. In collaboration with the Agency for Real Estate Affairs, Thailand’s largest real estate information and valuation center, this event promises to be an insightful gathering for real estate professionals.
Scheduled to take place on 26 April 2024 at Queen Sirikit National Convention Centre, the seminar will feature a program designed to provide valuable insights into Thailand’s property market. The agenda includes a report on Thailand’s property investments, covering updates on the real estate market, land price changes, special economic strongholds, costs of construction, property price trends, and more. Attendees will also have the chance to see a panel discussion and participate in interactive sessions, offering a platform to analyze the latest trends and challenges in the real estate sector.
Fabian Doppler, Managing Partner, and Pichaon Phuekkoet, Associate, will attend this event. They look forward to seeing you at the seminar in discussions and networking opportunities. The seminar will be an opportunity to gain knowledge and insights into Thailand’s dynamic real estate market.
For any assistance required or to schedule a meeting, we kindly invite you to contact us here or at [email protected].
We are happy to assist you in preparing your tax return and achieving the best possible tax result for you. And that’s not all: We advise you throughout the year on all income tax matters, submit all applications for tax reductions on your behalf, and check your tax assessment. We also handle all communication with the tax office for you so you can focus on more important things.
We have a comprehensive guide for you below:
Tax Filing Season in Thailand
Every year, between January 1st and April 8th, taxpayers in Thailand face personal income tax filing season. This is especially important if you earned income in Thailand during the previous year (2023 in this case).
Who is a Thai Tax Resident?
Understanding your residency status is crucial. Thai tax law defines a resident as someone who stays in Thailand for 180 days or more in a calendar year. Even the day you arrive or depart counts as one full day. Keep copies of your passport for verification. As a resident, a full tax year applies to you.
Filing Your Return
There are two options for filing:
Tax Rates
Residents and non-residents share the same tax bracket, ranging from 0% to 35%. However, there are key differences in how income is taxed.
Foreign Income for Residents
If you’re a resident bringing foreign income into Thailand in the same year it’s earned, it will be taxed in Thailand. This includes income from previous jobs abroad or foreign sources like capital gains, rental income, and interest.
Foreign Income for Non-Residents
Non-residents can bring in foreign income without triggering Thai taxes.
Deductions for Dependents
Residents can claim deductions for a dependent spouse and up to three dependent children (who don’t earn income in the tax year). Even spouses and children living abroad can qualify. Required documents include copies of passports (including blank pages), marriage certificates, and children’s birth certificates. For children aged 20-25, student status proof (like tuition receipts) is required. Non-residents can claim these deductions if their dependents are Thai residents (with similar document requirements).
Tax Savings Strategies
Expat employees have options to reduce their tax burden through various deductions:
Tax Refunds
The size of your refund depends on your tax bracket. Higher brackets (35%) can see significant savings, especially with LTF purchases.
Additional Tips
Feel free to contact us with any questions about establishing a business at [email protected] or +66 2 026 3284.
To strengthen Thailand’s tourism sector, the Thailand Board of Investment (BOI) has announced new incentives aimed at attracting large-scale international events to the country. The board has greenlit measures to lure high-profile concerts, sporting events, and festivals, aligning with the government’s vision to position Thailand as a premier tourism destination and revive the sectors post-Covid-19 crisis.
The incentives, approved during a recent meeting, include import duty exemptions on equipment for organizers of major events requiring investments or expenses exceeding 100 million baht (approximately USD 2.8 million). Additionally, the BOI will facilitate the temporary entry of foreign staff essential for event organization. However, it’s noteworthy that these measures do not extend to conferences and trade shows.
By reducing costs, lead times, and logistical hurdles, the BOI aims to support the resurgence of Thailand’s tourism sector, a vital contributor to the country’s economy, constituting approximately 20% of GDP.
On a similar note, the BOI has also extended incentives to cover the entire supply chain of Printed Circuit Board (PCB) manufacturing. In 2023, the BOI approved investment promotion benefits for 40 PCB projects, attracting investments totaling USD 2.66 billion (around 96 billion baht). These projects, spearheaded by companies from China, Taiwan, Japan, and Thailand, signaled a significant shift of PCB production hubs to Thailand.
To further enhance foreign investment in PCB manufacturing and foster a comprehensive ecosystem, the BOI has broadened the definition of eligible businesses to include manufacturers of PCB parts and providers of related services. This encompasses various aspects such as lamination, drilling, plating, routing, electrical testing, and the production of essential materials like copper clad laminate (CCL), flexible copper clad laminate (FCCL), and PREPREG.
With these initiatives, the Thailand BOI continues its mission to promote economic growth, attract foreign investment, and enhance the country’s competitiveness on the global stage.
If you would like to know how your business can get access to the various incentives of the BOI in Thailand, please contact us at [email protected].
Andreas Seela
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Andreas, Associate at FRANK Legal & Tax, is a licensed German lawyer with expertise in corporate/commercial, real estate, and tax law, and has been living and working in Thailand since 2023.
Please see the detailed information in our PDF file below:
If you have any questions regarding the retirement visa, please do not hesitate to contact us at [email protected]
Fabian Doppler
Connect with me on LinkedIn
Fabian, a founding partner of FRANK Legal & Tax, is a German-trained lawyer with expertise in corporate/commercial and real estate law, and litigation, and has been living and working in Thailand since 2005.
This article will take you a deep dive into the general overview of domain registration in Thailand. It is not a substitute for legal advice, and the specific requirements may change. We recommend consulting with a Thai legal professional for the latest information.
In Thailand, domain registrations are handled by thnic.co.th. There are two main domain levels to consider:
Eligibility for domain registration depends on the chosen level:
The required documents vary depending on your eligibility and chosen domain level. Here’s a general breakdown:
Second-Level Domain:
Third-Level Domain:
The Ministry of Finance will lead the efforts to enact laws and establish operational guidelines to implement these measures, which include:
Feel free to contact us if you have questions about domain registration in Thailand at [email protected]
Fabian Doppler Connect with me on LinkedIn
Fabian, a founding partner of FRANK Legal & Tax, is a German-trained lawyer with expertise in corporate/commercial and real estate law, and litigation, and has been living and working in Thailand since 2005.
In the context of international tax reform, Thailand has aligned itself with over 140 economic zones by becoming a member of the International Cooperation Framework on Base Erosion and Profit Shifting (OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting). This framework, commonly referred to as the Inclusive Framework on BEPS, has recently endorsed a comprehensive two-pillar solution aimed at addressing tax challenges stemming from the digital economy.
The Revenue Department has now unveiled the guiding principles of this solution, marking a big step in Thailand’s commitment to global tax cooperation. However, it’s important to note that the draft is currently undergoing review, and stakeholders are encouraged to voice their concerns or provide input until mid-March 2024.
The key components can be broken into two pillars:
Pillar 1: Profit Allocation and Tax Collection Rights
Multinational enterprises (MNEs) will be mandated to allocate profits and tax collection rights in a manner that accurately reflects the value generated in each jurisdiction. This initiative aims to ensure a more equitable distribution of tax revenues, particularly in the rapidly evolving digital sector.
Pillar 2: Minimum Corporate Income Tax
Introduces the concept of a global minimum corporate income tax rate, designed to deter profit shifting and tax avoidance strategies employed by multinational groups. Under this proposal, MNEs with revenues exceeding EUR 750 million will be required to pay income tax at an effective rate of no less than 15 percent. The legislation is slated to come into effect in 2025. Notably, Thailand plans to allocate a significant portion, ranging from 50 to 70 percent, of the additional tax collected to its National Competitiveness Enhancement Fund for Target Industries.
The Ministry of Finance will lead the efforts to enact laws and establish operational guidelines to implement these measures, which include:
In light of these developments, the Revenue Department has issued a call to action for stakeholders to contribute their feedback and suggestions on the principles of the draft law. Interested parties are encouraged to submit their comments via the comment form available on the central legal system website or the Revenue Department’s website between March 1, 2024, and March 15, 2024.
Thailands commitment to implementing the OECD/G20 two-pillar solution underscores its approach to international tax cooperation and aligns with global efforts to ensure a fair and sustainable tax system in the digital age.
If you have any questions about a Taxation in Thailand, please contact us at [email protected].
Andreas Seela
Connect with me on LinkedIn
Andreas, Associate at FRANK Legal & Tax, is a licensed German lawyer with expertise in corporate/commercial, real estate, and tax law, and has been living and working in Thailand since 2023.
Make a strategic move for your business with FRANK Legal & Tax to unlock the many opportunities that BOI Thailand presents.
We have experience in guiding companies through the complexities of the Board of Investment (BOI) services, ensuring you leverage its benefits to the fullest.
What is the BOI Thailand?
The BOI in Thailand, operating under the Ministry of Industry, is a great opportunity for investors worldwide. It actively promotes Thailand as a prime investment destination in Asia, offering an enticing package of tax and non-tax incentives.
Navigating the BOI Process
Progressing with a business venture, be it a startup, expansion, or relocation, requires meticulous planning. Our BOI services extend beyond mere application submissions.
We delve deep into practical considerations, offering a comprehensive suite of services:
BOI Thailand: Initial Considerations
BOI Thailand: Longer-Term Considerations
BOI Thailand Incentives
Unlock BOI benefits such as:
Explore the latest Thailand BOI benefits
Check the list of eligible business activities
FRANK Legal & Tax: Your BOI Thailand Partner
Engage with FRANK Legal & Tax as your legal counsel to take full advantage of the BOI privileges with precision and expertise. Whether your objective is securing full ownership or optimizing tax exemptions, our seasoned legal professionals are committed to serving as your strategic partners.
Feel free to contact us with any questions about establishing a business at [email protected] or +66 2 026 3284.
The Eastern Economic Corridor (EEC) Policy Committee in Thailand has greenlit an ambitious 5-year development plan for 2023-2027, aiming to accelerate growth, attract substantial investments, and position the region as a hub for high-tech industries. The EEC envisions a surge in investment over the next half-decade, with a target of 500 billion baht. The plan also aims to boost the gross provincial product of EEC provinces by 6.3%. The EEC, which covers three provinces east of the capital, Bangkok, is a centerpiece of government efforts to boost growth and encourage investment, particularly in high-tech industries.
The comprehensive development plan is multifaceted, concentrating on promoting targeted industries, enhancing infrastructure, nurturing a skilled workforce, developing modern urban centers, and ensuring sustainable community growth.
New Visa Scheme for Foreign Investors
To attract foreign investments, a new visa scheme is set to be launched in 2024. Investors in the EEC will be eligible for 10-year visas, coupled with multiple benefits to facilitate their engagement in the region.
Visa holders will enjoy expedited work permit processing, a flat 17% personal income tax rate, a 10-year-long visa duration, streamlined online reporting, and access to fast-track channels at international airports. This Visa scheme will include categories for specialists, executives, professionals as well as spouses and dependents.
Economic Strategy
The EEC’s development plan aligns with Thailand’s broader economic strategy, aiming to revitalize growth and attract investments, particularly in high-tech sectors. This initiative is strategically crucial amidst an economic slowdown.
Key Industries and Incentives
Target industries in the EEC include next-generation automotive, smart electronics, biotechnology, robotics, aviation, and digital technology. Further benefits for business operators focus on five key principles: innovation in public service delivery, consideration of benefits to be received, assessment of granting benefits, collaboration between agencies, and monitoring and evaluation.
The EEC’s 5-year development plan, coupled with the innovative visa scheme, not only enriches economic growth but also positions Thailand as a prime destination for foreign investments. This strategic initiative is poised to create a thriving ecosystem for innovation, job creation, and sustainable development in the region.
If you have any questions, please feel free to contact us at [email protected] or via +66 02 026 3284.
Andreas Seela
Andreas, Associate at FRANK Legal & Tax, is a licensed German lawyer with expertise in corporate/commercial, real estate, and tax law, and has been living and working in Thailand since 2023.
A family office is a private wealth management firm that provides comprehensive financial services to a wealthy family or a single high-net-worth individual. These services typically include investment management, estate planning, tax optimization, philanthropic advising, and more. Family offices are tailored to the specific needs and goals of the family or individual, offering personalized financial solutions to help preserve and grow their wealth across generations. They can be single-family offices, serving one wealthy family exclusively, or multi-family offices, serving multiple families with similar financial needs.
A family office typically employs staff to manage various aspects of the family’s financial affairs and personal matters. The size and composition of the staff can vary widely depending on the complexity of the family’s financial situation and their specific needs. Some common positions within a family office may include investment professionals, accountants and tax specialists, estate and wealth planners, and personal assistants. The roles and staff composition can vary significantly based on the family’s priorities and resources.
A family office typically holds and manages assets for the wealthy family or individual it serves. These assets can include various investments and holdings, such as financial investments, real estate, and business interests.
Thailand has specific restrictions on foreigners operating family offices in the country, most notably under the Foreign Business Act, B.E. 2542. For this reason, Thailand is usually not considered one of the favored locations for family offices in the international context.
However, family offices are certainly common in Thailand for wealthy Thai families and families with multiple nationalities among the family members.
Feel free to contact us if you have questions about establishing a family office in Thailand at [email protected]
Fabian Doppler Connect with me on LinkedIn
Fabian, a founding partner of FRANK Legal & Tax, is a German-trained lawyer with expertise in corporate/commercial and real estate law, and litigation, and has been living and working in Thailand since 2005.
Properties in Thailand do not serve only as investment assets but also as residences and business premises, attracting both locals and foreigners.
While Thai law still restricts foreigners from owning certain estates in Thailand, ownership is not the sole means of leveraging property in Thailand. Thai legal framework offers various alternatives for individuals, including foreigners, to exploit the property’s potential regardless of the ownership. This flexibility allows foreigners to derive significant benefits from properties, with a prime example being land, which they are prohibited from owning but can lease.
Leasehold
The Thai Civil and Commercial Code governs property leasing in Sections 537 to 571. Leasehold is one of the prominent methods to acquire property in Thailand as a foreigner.
A leasehold is recognized for its characteristics as a long-term legal structure. Section 540 of the Thai Civil and Commercial Code states that the long-term time frame would run up to a maximum of thirty years and may be renewed for another thirty years. Nonetheless, if such land is used for commercial purposes, it may be leased for up to fifty years and renewed for another fifty years.
There are a few steps that the lessee needs to comply with in order to successfully register the lease and get the most advantage of the leasehold. Section 538 of the Thai Civil and Commercial Code has set forth the key requirements: it must be made in writing and registered with the competent official at the land office; otherwise, it will only be enforceable for three years. Apart from the benefit of long-term use, there are other significant characteristics the lessee would acquire.
After the lease is registered, the lessee would have full rights over such property; however, the lessee is only allowed to use such property for the purpose that is agreed in the contract. Any other use, such as subletting, would require the lessor’s consent. Therefore, an action excluded from either party’s scope would be considered a breach of contract. Despite the leasehold rights over such property, the lessee must be aware that the lessor still holds the right to put such property for sale or into mortgage; if this were the case, the lessee’s rights would not be affected and would remain the same.
Moreover, the lessor and the lessee may agree that the right to lease shall be inheritable. The Thai Supreme Court Judgement no.11058/2559 has affirmed and ruled regarding the inheritance of the right to lease.
Due to the low legal threshold, leasehold became a commonly used method among individuals, particularly foreigners, who want to fully enjoy the property apart from having ownership.
Usufruct
On the other hand, Thai law provides an alternative choice from a lease with slightly different characteristics. It is known as usufruct and is set forth under Section 1417 of the Thai Civil and Commercial Code. Usufruct has become one of the main alternatives to leasehold for individuals who want to benefit from a property other than having ownership. This means the beneficiary, recognized as the usufructuary, will only have the right to possess the property. Similarly to leasehold, the period when the usufructuary can benefit from the property can be agreed upon between the parties; however, the main difference is that the usufructuary does not have a maximum usage period. It can be arranged to lead up to the lifetime of the usufructuary without a need for renewal, which makes it less complicated than a leasehold.
Even though usufruct enables the usufructuary to benefit from such property for a lifetime period, still, the usufructuary may only benefit from the existing property that is registered for usufruct while rights to alter, demolish, or change any substance of the property are prohibited unless it has been consented by the owner. A primary example would be where the usufructuary can lease out the property without seeking prior consent from the owner.
Although the property owner would have more privilege than the usufructuary, Thai law has implemented a regulation to prevent any default regarding the prevailing ownership. It is provided that any transaction that would create encumbrance due to usufruct would require the consent of all the parties. For example, if the property owner wishes to sell such property, the approval of the usufructuary would also count as a requirement of such a sale. This would also give the usufructuary the right to prevent the property owner from selling or mortgaging such property.
Even though the usufruct can be agreed upon for a lifetime, such a right is deemed a personal right that is not inheritable. It must terminate with the death of the usufructuary or when it reaches the expiration term as agreed upon by both parties.
The chart below provides an overview of the above-mentioned two legal structures:
Conclusion
Due to the numerous advantages, leasehold, and usufruct stand out as favored approaches that allow foreigners to unlock the potential use of property in Thailand. These benefits make them valuable tools for individuals seeking to benefit from the property for an extended period despite not having ownership.
Nevertheless, it is still critical to consider that each method has limitations, and it may not serve the needs in every case. It is crucial to carefully assess the most suitable option to ensure the desired utilization of the property.
Please do not hesitate to contact us if you have any questions regarding leasehold or usufruct at [email protected]
Fabian Doppler Connect with me on LinkedIn
Fabian, a founding partner of FRANK Legal & Tax, is a German-trained lawyer with expertise in corporate/commercial and real estate law, and litigation, and has been living and working in Thailand since 2005.