BOI Company (Business visa)
Unlike regular Thai companies, where foreign ownership is restricted to 49%, a company approved by Thailand's BOI, may have 100% foreign ownership and operate physically on Thai soil. In addition to this, a BOI company may be eligible for a 0% corporate tax rate for up to the first 8 years of operation (depending on location and category) and exemption from V.A.T. for importing machinery.
BOI companies are not restricted to the 4:1 ratio of Thai to foreign employees; the ratio may be negotiated based on the company's requirements. Your company may own land in Thailand, subject to certain conditions and under certain restrictions.
The company must have at least 3 promoters and a paid-in capital of THB1,000,000. There are sectors such as agriculture, mining, manufacturing or service and public utilities, which do not allow full foreign-ownership.
Once you have incorporated your BOI Company, you, as a company director or officer, may apply for a Non-Immigrant IB visa and after that a work permit, which will be valid for 1 year, renewable.
Your dependents may apply for a Non-Immigrant O Visa (short stay), which is valid for 3 months, extendable up to 1 year.
Once you hold 3 consecutive 1-year visa extensions, tied to the same work permit, you may apply for permanent residency. You must have a monthly income of at least THB80,000, earned in Thailand, (THB30,000 if married with a Thai Spouse for 5 years) or invest a minimum of THB 3-10,000,000 in Thailand, and attend an interview, where you must demonstrate knowledge of the Thai language.
The permanent residence permit will allow you to stay in Thailand indefinitely without needing a visa. However, a re-entry permit must be applied to leave Thailand, otherwise your PR may be cancelled.
With the permanent residence permit, you will still need a work permit to work in Thailand.
After holding a PR status in Thailand for 10 consecutive years, you may be eligible for citizenship.
For a BOI company:
- Business plan, with basic information, financial projections, and estimated number of employees that you’ll hire among other information.
- At least 3 promoters (individuals aged 20 or older)
- Must be registered and available to sign documents during the registration process for a private limited company – and 12 promoters for a public limited company.
- Each of the promoters must be initial shareholders immediately after the company's registration, and hold a minimum of one share. They are generally free to transfer those shares to existing shareholders or third parties thereafter.
For a Business visa:
- Business registration and business license.
- List of shareholders.
- Company profile.
- Details of business operation.
- List of foreign workers stating names, nationalities and positions.
- Map indicating the location of the company.
- Balance sheet, statement of Income Tax and Business Tax (Por Ngor Dor 50 and Por Ngor Dor 30 of the latest year)
- Value-added tax registration
- Evidence of adequate finance (THB20,000 per person and THB40,000 per family) for the duration of stay in Thailand.
No nationality is officially restricted
Dual citizenship is not recognized in Thailand. To become a citizen of Thailand, you must renounce your previous nationality.
- Original and photocopy of passport
- Employment contract (if applicable)
- Employment letter
- Professional and academic certificates (if applicable)
- Curriculum Vitae
- Business Plan
- Original Professional Reference Letter (Not older than 6 month)
- Certified copy of Business License or Incorporation documents
- Bank Statement
- One passport-size photo
- dual citizenship No
- Family members included No
- land ownership No
- Physical residence required No
- Personal visit required Yes
- Language skills required No
- Interview required Yes
- Investment Single $30,000
- Investment Family 4 $30,000
- Minimum annual income -
- Time to citizenship 156
- Time to permanent residency 36
- Visa-free countries 71
- Financing available No
permanent residency benefits
temporary residency benefits
Thailand is inhabited by 68 million people, of which more than a half live in rural areas. Its capital and most populated city is Bangkok (also known as Krung Thep Mahanakon), with over 8 million inhabitants, and 14.5 million including the whole metropolitan area. Its official language is Thai, although there are several regional languages and dialects. Its official currency is the Thai Baht (THB).
Visa Free Travel
To be a tax-resident in Thailand you must spend at least 180 days in a calendar year in the country.
Tax residents are subject to personal income tax on their income derived from Thailand and their foreign-source income remitted to Thailand in the year in which it is accrued. Income earned outside Thailand remitted after 1 year is tax-exempt.
Non-residents are subject to income tax on their Thai-source income.
Personal income tax is progressive at rates up to 35% for annual income exceeding THB5,000,000. Expatriates working on companies under certain tax incentive regimes (Regional Operating Headquarters (ROH), International Headquarters (IHQ), and International Trade Centers, ITC) may be entitled to be taxed at a 15% flat rate.
Dividends and interest are subject to a final withholding tax of 10% and 15%, respectively.
Capital gains are treated as ordinary income. However, those obtained from the sale of securities listed on the Stock Exchange of Thailand or any other ASEAN stock exchange are tax exempt, though certain exceptions may apply.
Thailand does not have controlled foreign companies (CFC) regulations, so profits retained in foreign entities owned by tax-residents may not be attributable.
A 12.5% real property tax is levied annually on the rental value of the property. Inheritances over THB100,000,000 are taxed at a 10% rate, though reductions may apply under certain circumstances. A gift tax applies on donations of assets exceeding THB20,000,000 (10 million in the case that recipient is not a descendant, ascendant or spouse).
There are no taxes on net wealth in Thailand.
The V.A.T. standard rate is 10%, reduced to 7% until 30 September 2019).
Regarding corporate taxation, resident entities are taxed on their worldwide income at a 20% rate. SMEs may be subject to lower progressive rates, provided that paid-in capital and net taxable profits do not exceed certain amounts.
Entities approved by the Board of Investment may have tax holidays up to 8 years. Companies under The International Headquarters (IHQ) and International Trade Center (ITC) regimes may be exempted from CIT for up to 15 years, among other tax incentives.
To learn more about Thai corporate taxation, legal framework and tax treaties, check out incorporations.io/thailand.
This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property tax Yes
- Transfer tax Yes
- Inheritance tax No
- Net worth tax No
- CFC law No
- Tax residency days 180
- Personal income tax rate 35%
- Capital Gains tax rate 35%
- Investment income tax rate 15%
- Territorial taxation Yes
ProceduresPlease sign in to view
Flag Theory | Passports.IO and our partners in Thailand, will guide you through each step of the process to ensure that it is as fast, efficient, pain free as possible.
First, you will need to get your business project approved by the Board of Investment (BOI). You will need to submit a business plan and attend to an interview. We will provide assistance on how to approach your business plan and prepare the interview to ensure that your application will be approved.
Once your Business project is approved by the BOI we will handle all paperwork involving your company incorporation and bank account opening.
After that, we will assist you to prepare all paperwork necessary to get your Non-Immigrant Business visa and work permit.
You will need to submit the visa application to a Thai embassy or consulate. After the application approval, you will be issued a Non-Immigrant IB Visa.
Once in Thailand we will submit the corresponding documents to the Board of Investment, in order to secure your work permit.
Once approved by the BOI, you will get your work permit, that can be renewed annually. The whole process may take about 3-6 months.
For further information on how to incorporate a BOI Company and get a business visa, contact us for a free private consultation.