Comments Off on Bank of Thailand relaxes rules on Foreign Exchange Transactions
As the Thai Baht is under pressure due to imbalanced capital flows, thus unusually strong in comparison to foreign currencies, the Ministry of Finance (MOF) and the Bank of Thailand (BOT) decided to loosen rules to facilitate capital outflows. MOF and BOT expect these measures will lessen pressure on the Thai Baht. These regulations are effective since November 8th, 2019 and include facilitations on:
Repatriation of export proceeds;
Investment in foreign securities;
Outward transfers, and
Settlement of gold trading in foreign currency.
From a practical perspective it is particularly interesting that the threshold, based on which additional verification and documentation need to be provided to commercial banks when outward transfers are conducted, has been increased. This threshold was increased from 50.000 USD to now 200.000 USD. This relaxation of the regulation is aiming to facilitate foreign exchange transactions by reducing the burden of providing documentation. As a consequence, outward transfers – especially for companies and businessmen – will now be swifter and easier to handle.
If you have any questions regarding this topic, feel free to ask at [email protected].
Comments Off on Exemptions from the Foreign Business Act
With the ministerial regulation by the Ministry of Commerce of June 25th, 2019, the following services provided by foreign-owned companies, to affiliated companies, are excluded from the obligation to obtain a Foreign Business License according to Schedule Three (21) of the Foreign Business Act.
Lending money to affiliated companies in Thailand;
Renting out office space
Providing consultation and recommendations in the following sectors:
Management;
Marketing;
Human resources;
Information technology.
It needs to be mentioned that it is possible to provide consultation and recommendations to affiliated companies that are located outside of Thailand.
Before the new regulation came into effect, foreign companies providing these services had to obtain a Foreign Business License to act in accordance with the law. This required them to fulfill additional conditions which were hard to meet for small companies or Start-Ups. This new regulation is a further step, that is underlining Thailand’s effort to open its market for foreign business carefully.
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Comments Off on Work Permit Extension under the Emergency Decree on Foreign Employment Management B.E. 2560
On the 10th of May 2018, the Department of Employment (DoE) has published a letter to address the scope of the Work Permit under the Emergency Decree on Foreign Employee Management B.E. 2561 (the “Decree 2018”). It especially elucidated the question of whether a foreigner who has been granted a Work Permit once is able to work in another type of work, for another employer, at another workplace or work condition in Thailand.
Section 70 of the Emergency Decree on Foreign Employee Management B.E. 2560 (the “Decree 2017) has been repealed through the Decree 2018 and, therefore, the application form TM.6 has been revoked, neither the employer nor the employee has to register any changes related to the type of work, the employer, workplace or work condition any longer.
Section 70 of the Decree 2017 had stipulated the interdiction to employ a foreigner who had registered a different type of work, a different employer, workplace or work condition in the Work Permit; the application form TM.6 had been used to amend the Work Permit if changes occurred.
As a result, a foreign employee can work continually in a different type of work, at a different workplace or under different work conditions. However, this only applies as long as the employment is under the same employer as recorded in the existing Work Permit.
This means a foreign employee is allowed to work anywhere and is not obliged to submit an application for changing or adding the workplace in the Work Permit as long as the employee works for the same employer.
A foreigner is not allowed to employ himself and thereby apply for the Work Permit. However, a foreigner may be employed by a registered company in which he himself has director authority.
It is notable that the DoE has issued a new form of Work Permit book which does not include the section “condition”. This seems to enable the foreigner to work under flexible conditions. A foreigner who holds an old version of the Work Permit is not obligated to notify the DoE from now on regarding the.
A foreigner who wishes to change or add a type of work is not prohibited from doing so, as long as that work is not excluded by the Official List. The employee can start with a new or additional type of work immediately without notifying the DoE. Employer and Employee must notify the DoE only if the employee has a new or additional employer according to Section 13 of the Decree 2018.
In summary, if the employee wishes to change or add the type of work, workplace or work condition then the employee is free to do so without notifying the DoE. The employee is allowed to work with the existing Work Permit without amendments.
Once the employee wants to change the employer or add an employer, both the employee and employer, have to proceed the registration at the DoE. Both have to submit an employment form to the officials within 15 days from the date of commencement, according to Section 64/2 and 13 of the Decree 2018. Otherwise, the employer and employee are liable for a fine of THB 20,000.
Comments Off on Different Approaches to Land Ownership by Foreign Companies
This article looks at the possibilities of land ownership by foreign companies in different countries in South East Asia. (more…)
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