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Doing Business in Thailand Doing Business in Thailand 2015 Doing Business in Thailand 2015 Baker & McKenzie Ltd. 25th Floor, Abdulrahim Place 990 Rama IV Road, Silom, Bangrak Bangkok, Thailand 10500 Tel: +66 (0) 2636-2000 Fax: +66 (0) 2636-1111 Email: [email protected] www.bakermckenzie.com ©2015 Baker & McKenzie Ltd. 2015 Doing Business in Thailand Table of Contents Introduction ......................................................................................... 1 1. Thailand: An Overview ................................................................. 3 1.1 Geography and Climate ................................................... 3 1.2 Population and Language ................................................. 3 1.3 Religion ............................................................................ 4 1.4 The Political System ........................................................ 4 1.5 Currency ........................................................................... 5 2. The Legal System ......................................................................... 6 2.1 The Law ........................................................................... 6 2.2 The Courts ........................................................................ 6 2.3 Arbitration ........................................................................ 7 3. Foreign Investment ....................................................................... 7 3.1 The Foreign Business Act ................................................ 7 3.2 Restrictions on Foreign Participation in Specific Sectors ............................................................................ 13 4. Investment Incentives ................................................................. 15 4.1 The Investment Promotion Act and the BOI ................. 15 4.2 BOI Incentives ............................................................... 16 4.3 Investment Incentives .................................................... 17 4.4 BOI Promotion Eligibility Criteria ................................ 19 4.5 Foreign Shareholding in BOI-promoted Projects .......... 21 4.6 The BOI Promotion Application Process....................... 21 4.7 The BOI One Start One Stop Investment Center ........... 22 4.8 Investment Incentives under Other Acts ........................ 22 4.9 Other Investment Incentives .......................................... 23 5. Forms of Business Organization ................................................. 24 5.1 Limited Liability Companies ......................................... 24 5.2 Partnerships .................................................................... 25 Baker & McKenzie i 5.3 Branch Offices ............................................................... 27 5.4 Representative Offices ................................................... 27 5.5 Regional Offices ............................................................ 28 5.6 Joint Ventures ................................................................ 29 5.7 Distributorships .............................................................. 30 5.8 Licensees ........................................................................ 31 5.9 Agencies ......................................................................... 32 6. Taxation ...................................................................................... 32 6.1 General ........................................................................... 32 6.2 Corporate Income Tax Categories ................................. 34 6.3 Corporate Income Tax ................................................... 34 6.4 Personal Income Tax...................................................... 39 6.5 Withholding of Income Tax at Source ........................... 44 6.6 Treaties for the Avoidance of Double Taxation ............. 45 6.7 Value Added Tax ........................................................... 47 6.8 Specific Business Tax .................................................... 49 6.9 Municipal Tax ................................................................ 49 6.10 Stamp Duty .................................................................... 49 6.11 Appeal Procedures under the Revenue Code ................. 50 6.12 Petroleum Income Tax ................................................... 50 6.13 Signboard Tax ................................................................ 50 6.14 Excise Tax ...................................................................... 51 6.15 Property and Land Taxes ............................................... 51 7. Securities Law and Regulations .................................................. 52 7.1 Latest Amendment to the Securities and Exchange Act .................................................................................. 52 7.2 Regulatory Bodies .......................................................... 52 7.3 Securities Offerings ....................................................... 54 7.4 Takeover Regulations .................................................... 56 7.5 The Stock Exchange of Thailand ................................... 60 7.6 Non-Voting Depository Receipts (NVDRs) .................. 61 7.7 Thailand Futures Exchange ............................................ 62 7.8 Investing in the Stock Exchange of Thailand ................ 62 8. Intellectual Property .................................................................... 64 ii Baker & McKenzie 2015 Doing Business in Thailand 8.1 Trademarks .................................................................... 64 8.2 Patents ............................................................................ 66 8.3 Copyrights ...................................................................... 67 8.4 Plant Varieties ................................................................ 71 8.5 Layout Designs of Integrated Circuits ........................... 72 8.6 Trade Secrets .................................................................. 73 8.7 The Intellectual Property and International Trade Court .............................................................................. 74 9. Trade Competition Law .............................................................. 75 9.1 The Trade Competition Act ........................................... 75 9.2 Restrictive Trade Practices Jointly Undertaken by Two or More Business Operators .................................. 77 9.3 Restrictive Trade Practices Jointly Undertaken with Overseas Business Operators ......................................... 77 9.4 Anti-competitive Mergers and Acquisitions .................. 77 9.5 Other Acts that Restrict Competition ............................. 78 9.6 Permissible Restrictive Trade Practices ......................... 78 9.7 Trade Competition Commission .................................... 78 9.8 Exemptions from the Trade Competition Act ................ 80 9.9 The Prices of Goods and Services Act ........................... 80 10. Product Liability ......................................................................... 82 10.1 Product Liability ............................................................ 82 10.2 Consumer Protection ...................................................... 85 11. Labour Laws ............................................................................... 93 11.1 General ........................................................................... 93 11.2 Leave and Holidays........................................................ 94 11.3 Severance Pay ................................................................ 94 11.4 Other Regulations .......................................................... 95 12. Immigration and Work Permit .................................................... 96 12.1 Introduction .................................................................... 96 12.2 Entry Regulations .......................................................... 97 12.3 Immigration Compliances .............................................. 98 Baker & McKenzie iii 12.4 Work Permits Restriction ............................................... 99 13. Importing, Exporting, and Trade Remedies .............................. 101 13.1 Import Controls ............................................................ 101 13.2 Export Controls ............................................................ 102 13.3 Prohibited Products ...................................................... 103 13.4 Exchange Control......................................................... 103 13.5 Customs Duty .............................................................. 103 13.6 The Anti-dumping and Subsidies Act .......................... 105 13.7 The Safeguard Act ....................................................... 110 14. Exchange Control ...................................................................... 111 14.1 General ......................................................................... 111 14.2 Importing and Repatriating Personal Funds................. 111 14.3 Exchange Controls on Trading .................................... 112 14.4 Importing and Exporting Investment Funds ................ 115 14.5 Exchange Control and Promoted Businesses ............... 116 15. Real Estate ................................................................................ 116 15.1 Land Development ....................................................... 116 15.2 Foreign Ownership of Land ......................................... 116 15.3 Foreign Ownership of Condominiums ........................
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