Start a Business in Thailand — ASEAN's Automotive Powerhouse & BOI Tax Holiday Hub

20% standard rate. SMEs with paid-up capital up to THB 5 million and annual revenue up to THB 30 million pay 0% on the first THB 300,000 of net profit, 15% from THB 300,001 to 3 million, and 20% above. BOI-promoted projects can get CIT exemption of 3 to 13 years depending on activity group, merits and location. Dividends paid to a non-resident company carry 10% withholding tax, and the India-Thailand DTAA caps dividends, interest and royalties at 10%. VAT is 7%. Source: Revenue Department, BOI.

Not by default. Under the Foreign Business Act B.E. 2542 (1999), a company more than 49% foreign-owned counts as a foreign company and cannot run restricted activities without permission; most services fall under List 3. The routes to 100% are BOI promotion (available for List 2 and List 3 activities, never List 1), a Foreign Business Licence, or a treaty certificate such as the US-Thailand Treaty of Amity, which Indian investors cannot use. A foreign company needs THB 2 million paid-up capital, or the higher of THB 3 million and 25% of three years' estimated expenses for licensed activities. Using Thai nominees to hold the 51% is an offence under the Act. Source: DBD, BOI.

A Thai company files a half-year CIT return (PND 51) within two months after the first six months of its accounting year, and the annual CIT return (PND 50) within 150 days of year-end. Its financial statements must be audited, approved at an annual general meeting held within four months of year-end, and filed with the DBD through e-filing within one month of that meeting. The shareholder list goes to the DBD within 14 days of the meeting. Once taxable revenue passes THB 1.8 million a year, VAT registration is compulsory and VAT returns (PP 30) are filed monthly. Late DBD filings carry fines for the company and its directors, so build these dates into your calendar from the first year. Source: Revenue Department, DBD.

For most foreign-owned manufacturing, R&D, digital and other targeted activities, yes. The Board of Investment grants CIT exemption of up to 8 years for most activity groups and 10 to 13 years for A1+ activities, and import duty exemption on machinery and on raw materials used for export production. The non-tax rights matter as much: 100% foreign ownership (except List 1 activities of the Foreign Business Act), permission to own land for the project, and permission to bring in foreign experts and skilled workers. Benefits apply only to the promoted activity, not the whole company, and come with conditions set in the promotion certificate. Projects in the Eastern Economic Corridor can stack extra years on top. Comply Globally checks BOI eligibility before you incorporate. Source: BOI.

Under RBI's Master Direction on ODI, file Form ODI with your AD bank. Automatic route within 400% of net worth. Annual: APR by 31 December, FLA to RBI by 15 July. The India-Thailand DTAA caps dividend, interest and royalty withholding at 10%, and the Thai tax withheld on dividends is creditable in India under Section 90. If the Thai company holds a BOI tax holiday, little Thai CIT is paid, so most of the tax on repatriated profit falls in India; plan the structure with both sides in view. Indian investors cannot use the US Treaty of Amity, so 100% ownership means BOI promotion or a Foreign Business Licence. Thailand is in RCEP but not CPTPP. Source: RBI, CBDT.