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Cost of Doing Business in Thailand 2020 ]

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Cost of Doing Business in Thailand 2020 ] Thailand Board of Investment www.boi.go.th C O S T OF DOING BUSINE DOING OF T S S IN THAILAND 2020 THAILAND IN Oce of The Board of Investment 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok, Thailand 10900 Tel: +66 (0) 2553 8111 Fax: +66 (0) 2553 8315 Website: www.boi.go.th Email: [email protected] EN Jan 2020 T his complim entary book is n ot for sale. For inquiry, please contact Thailand Board of Investment. EN Jan 2020 C OST OF DOING BUSINES IN THAILAND 2020 S [ COST OF DOING BUSINESS IN THAILAND 2020 OF DOING BUSINESS COST ] CONTENTS ] COST OF DOING BUSINESS IN THAILAND 2020 OF DOING BUSINESS COST [ TYPICAL COSTS OF STARTING AND OPERATING A BUSINESS 4 COMMUNICATION COSTS 31 International Telephone Rates 31 Fixed Line Service 37 TAX RATES AND DOUBLE TAXATION AGREEMENTS 6 Y-Tel 1234 Rates 38 Tax Rates 6 International Telephone Rates (ISD 007 / 008) 38 Excise Tax 7 International Private Leased Circuit (Half Circuit) 44 TOT Satellite Package 44 Monthly Internet Rates 45 LABOR COST 11 Internet - IPstar 46 Office Position 11 Data Center Rental Cost 47 Engineering & Technical Positions 13 IT Positions 13 Industrial Positions 15 INDUSTRIAL ESTATES AND FACILITIES 48 Translation Cost 16 Overtime Regulations 16 Severance Payment Entitlements 17 MISC. COSTS AND INFORMATION 88 Minimum Wage 17 Grade-A Serviced Apartment in Downtown Area, Q1 2019 88 Apartment Achieved Rents by Area and Grade, Q1 2019 88 International School Fee Structures 88 OFFICE OCCUPANCY COSTS IN ASIA PACIFIC 18 Thai Graduates by Major 93 Foreign Students in Thai Higher Education Institutions 93 Vehicles: Domestic Sales 93 RENTAL FACTORY INDUSTRY 19 Sea Ports in Thailand 94 International Airports in Thailand 98 UTILITY COSTS 19 Water Rates for Regional Area 19 Electricity Tariffs 19 CONTACT US 100 Regional Offices 100 Overseas Offices 101 TRANSPORTATION COSTS INCLUDING FUEL COSTS AND FREIGHT RATES 26 Retail Oil Prices 26 Retail LPG Prices 27 Shipping Cargo Rates from Bangkok 27 Cost of Express Postal Service from Bangkok 28 Air Cargo Rates from Bangkok 29 Rail Transportation Costs 30 2 3 [ COST OF DOING BUSINESS IN THAILAND 2020 OF DOING BUSINESS COST ] TYPICAL COSTS OF STARTING AND OPERATING A BUSINESS Note: All US$ conversions are calculated at an exchange rate of US$1 = 30.65 Baht Baht US$ Baht US$ 1. Visas (government fee) (5) 5. Construction Cost (9) (1) (2) Per square meter Work permit (process time 1-10 days) Industrial Building – Expired within 3 months 750 24.47 Standard low-rise factory 15,000 - 19,000 456.96 - 578.82 – Expired between 3 to 6 months 1,500 48.94 Electrical power systems (3) 5,670 172.73 – Expired between 6 to 12 months 3,000 97.88 Office (construction) (4) – Expired more than 1 year Increase at the rate as Increase at the rate as High quality 30,000 - 35,000 913.93 - 1,066.25 it is stated above it is stated above Medium quality 25,000 - 30,000 761.61 - 913.93 Three-month Visa (single entries) 2,000 65.25 Office Fit Out (offices or factory office) One-year Visa (multiple entries) 5,000 163.13 Air conditioning 4,567 139.13 Re-entry permit (process time 1 day) (external to communal system) – Single entry 1,000 32.63 Electrical fit out (workstations) 1,940 59.10 – Multiple entry 3,800 123.98 ] COST OF DOING BUSINESS IN THAILAND 2020 OF DOING BUSINESS COST Furniture fit out (medium quality) 3,517 107.14 [ 1. a. Visas (typical fee charged by a law firm to process) (6) Other fit out cost 682 20.78 (flooring cover, curtains, etc.) Work permit (process time 1-10 days) 30,000 - 35,000 1,305.06 - 1,794.45 Glass partition wall (individual offices) 5,775 175.93 Visa extension (process time 1-30 days) 35,000 - 45,000 1,141.92 - 1,468.19 Car Park Re-entry permit (process time 1 day) 8,000 261.01 Multi-storey 12,000 - 15,000 365.57 - 456.96 2. Registration (government fee) (7) Basement 16,000 - 20,000 487.43 - 609.29 Company registration 5,000 - 250,000 163.13 - 8,156.61 Note: List 2 Alien business license 40,000 - 500,000 1,305.06 - 16,313.21 (1) The costs are average square metre costs only and not based on any specific drawings/designs. The costs are List 3 Alien business license 20,000 - 250,000 652.53 - 8,156.61 to be used as a rough guide to the probable cost of a building. Budget costs outside the above may be encountered when searching other avenues. Factory license 100,000 3,262.64 (2) The costs exclude site clearing, formation and external works, financial and legal expenses, consultants’ fees (6) and land costs. 3. Accounting (3) The cost Includes Transformer, Main DB and Sub DB for general factory & office electrics only, but excludes Tax returns and VAT 40,000 yearly 1,305.06 production equipment/machinery power. (4) The cost includes communial air conditioning, general electrics, and sanitary. Review/draft contracts, agreements 50,000 minimum 1,631.32 4. Office Achieved Rents (per month) (8) Sources: (5) Ministry of Labour, as of September 2019: www.mol.go.th Office Rent Immigration Bureau, as of September 2019: www.immigration.go.th Regular office in Bangkok area (CBD) 700 per square meter 22.84 per square meter (6) Tilleke & Gibbins International Ltd., as of September 2019: www.tillekeandgibbins.com (7) Department of Business Development, as of September 2019: www.dbd.go.th Office Grade A in Bangkok area (CBD) 980 per square meter 31.97 per square meter (8) CBRE (Thailand) Co., Ltd, as of September 2019: www.cbre.com Other Expenses (9) Tractus Asia Ltd, updated as of September 2019: www.tractus-asia.com Electrical 5 - 6 0.15 - 0.18 per kilowatt per hour per kilowatt per hour Air conditioning (water cooled package unit) 40 - 50 1.22 - 1.52 per square meter per square meter per month per month Air conditioning (central chiller system) No expense No expense Air conditioning (after hour) 2 - 3 0.06 - 0.09 per square meter per square meter per hour per hour Decorating 15,000 - 20,000 456.96 - 609.29 per square meter per square meter 4 5 [ COST OF DOING BUSINESS IN THAILAND 2020 OF DOING BUSINESS COST ] TAX RATES AND DOUBLE TAXATION AGREEMENTS TAX RATES Rate Rate Corporate Income Tax Withholding Tax from Bank Deposits A. Tax on Net Corporate Profits – A. For individuals 15% 1. Ordinary company – B. For companies 1% – For the accounting period starting on or after the 1st January 2015 20% – C. For foundations 10% 2. Small company (paid up capital not exceeding 5 million Baht and Value Added Tax revenue not exceeding 30 million Baht) Level of taxable income (Baht) – Net profit not exceeding 300,000 Baht Exempted – No more than 1,800,000 Exempted – Net profit over 300,000 Baht but not exceeding 3 million Baht 15% – Over 1,800,000 7% – Net profit exceeding 3 million Baht 20% Note: For the accounting periods starting on or after the 1st January 2015 Double Taxation Agreements Exist with the Following Countries 3. Regional Operating Headquarters (ROH) 10% Armenia, Australia, Austria, Bahrain, Bangladesh, Belarus, Belgium, Bulgaria, Cambodia, Canada, 4. Bank deriving profits from Bangkok International Banking Facilities 10% Chile, China, Chinese Taipei, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, ] COST OF DOING BUSINESS IN THAILAND 2020 OF DOING BUSINESS COST Great Britain and Northern Ireland, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, [ (BIBF) Japan, Kuwait, Laos, Luxembourg, Malaysia, Mauritius, Myanmar, Nepal, The Netherlands, B. Tax on Gross Receipts New Zealand, Norway, Oman, Pakistan, The Philippines, Poland, Romania, Russia, Seychelles, 1. Association and foundation Singapore, Slovenia, South Africa, South Korea, Spain, Silence, Sweden, Switzerland, Tajikistan, Turkey, Ukraine, United Arab Emirates, United States of America, Uzbekistan and Vietnam – For income under Section 40 (8) 2% – Otherwise 10% Source: Revenue Department, as of September 2019: www.rd.go.th 2. Foreign company engaging in international transportation (Section 67) 3% C. Remittance Tax EXCISE TAX – Foreign company disposing profits out of Thailand 10% Note: These are only examples, for the full list please visit www.excise.go.th D. Foreign Company Not Conducting Business in Thailand but Receiving Product Tax Rate Income from Thailand Petroleum and Petroleum Products 1. Dividends 10% Gasoline and Similar Products 2. Interests 15% – Unleaded gasoline 6.500 Baht per liter 3. Professional fees 15% – Gasoline other than unleaded gasoline 6.500 Baht per liter 4. Rents from hiring property 15% – Gasohol E10 5.850 Baht per liter 5. Royalties from goodwill, copyright and other rights 15% – Gasohol E20 5.200 Baht per liter 6. Service fees 15% – Gasohol E85 0.975 Baht per liter Personal Income Tax Kerosene and Similar Lighting Oil Level of taxable income (Baht) Marginal Tax Rate – Kerosene and similar lighting oil Fuel oil for a jet airplane that 4.726 Baht per liter – 1 - 150,000 Exempted is not aircraft – 150,001 - 300,000 5% Fuel Oil for Jet Plane – 300,001 - 500,000 10% – Fuel oil for a jet airplane that is not aircraft 4.726 Baht per liter – 500,001 - 750,000 15% – Fuel oil for jet airplanes for domestic aircraft per regulations, 4.726 Baht per liter – 750,001 - 1,000,000 20% procedures, and conditions as specified by the Director General – 1,000,001 - 2,000,000 25% – Fuel oil for jet airplanes for international aircraft per Exempted – 2,000,001 - 5,000,000 30% regulations, procedures, and conditions as specified by the – More than 5,000,001 35% Director General 6 7 [ COST OF DOING BUSINESS IN THAILAND 2020 OF DOING BUSINESS COST ] Product Tax Rate Product Tax Rate Diesel and Other Similar Types Of Oil Passenger Car or Public Transport
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