What can I do to make my business financially successful in Thailand?
There are numerous ways to succeed in business in Thailand, as the country is brimming with opportunities. However, it will be highly dependent on your industry, demand and supply, and a variety of other factors. Here are a few simple pointers to keep in mind.
First, it would help if you had a good strategic plan for the long-term such as the structure, target group, potential improvement, emergency circumstances, etc. Furthermore, setting the goal in each period is also important. Second, it’s essential to have support from experts that will help you in many situations and avoid mistakes.
- Have a good strategic plan.
- Continue to record the account.
- Get advice from the experts.
How can foreigner hold the majority share of a company in Thailand?
There 3 ways for foreigners to own the majority share in Thailand.
First, they can register for a Foreign Business License. Second, with a BOI promotion, you will be eligible for promotion under the Board of Investment for their business activities. The third option is only available to American investors. They can present their business through the Amity Treaty between the United States and Thailand.
What is the most popular company for foreigners in Thailand?
First is a Thai Limited company. The establishment with a Thai majority own is the most favourable choice. It’s for establishing a new corporation in Thailand since it is structured to safeguard investment. Also, it supports work permits for international employees.
A BOI promotion for companies is Thailand’s second most popular option for foreign investors. The Thai administration promotes it actively. As it offers various privileges, such as tax reductions, land ownership, 100% foreign investment, and many more benefits.
Corporate income tax is imposed on net profits in accordance with international accounting standards and Thailand’s Revenue Code.
How does Corporate income tax work in Thailand?
Corporate income tax is imposed on net profits in compliance with internationally agreed accounting principles and Thailand’s Revenue Code criteria. The current tax rate is 20% of taxable income, but SMEs will take advantage of progressive rates of up to 20% as it’s used to focus extra attention on the most important rules and regulations.
As a result, any returns must be accompanied by an audited financial statement and filed within 150 days of the end of the accounting period. Furthermore, by the end of the eighth month, 50% of the estimated annual income tax record must be collected. A fine of 20% of the deficit will be imposed if the anticipated tax is not collected.
Corporate services will support your business to operate smoothly and minimize the amount mistakes.
What types of companies are subject to corporate income tax?
The income tax will be paid by companies and partnerships registered under Thai law for their income received both within and outside Thailand. Companies and associations that may pay income tax include:
– Small businesses with net profits of 300,000 but not exceeding 3 million baht must pay a 15% income tax.
– Medium to large size companies with net profits exceeding more then 3 million baht must pay a 20% income tax.
Are there any differences in BOI promotion benefits for Thai and foreign applicants?
BOI promotion would be beneficial to all parties. If they are promoted from the same operations within the same investment field, they will receive the same benefits. In any case, foreign applicants may face additional requirements in order to obtain a permit to own property or work in Thailand.