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Costs of Doing Business in Thailand 2008

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Costs of Doing Business in Thailand 2008 Thailand Board of Investment COSTS OF DOING BUSINESS IN THAILAND 2008 CONTENTS Page Typical Costs of Starting and Operating a Business 4 Selected Costs of Living in Bangkok 6 Tax Rates and Double Taxation Agreements 12 Labor Costs 16 Transportation Costs, Including Fuel and Freight Rates 20 Utility Costs 23 Communication Costs 26 Industrial Estates and Facilities 30 Misc. Information Vehicle Sales 50 Engineering, Skilled Labor, and other related occupations in Thailand 50 Driving Distance Chart 51 List Of International School 52 Universities Offering International Programs 59 Chambers Of Commerce 61 List of Low Cost Airlines in Thailand 63 List of Hospitals 64 Hotels 66 Equipments 73 Sea Ports in Thailand 86 Airports in Thailand 88 Contact Us 90 TYPICAL COSTS OF STARTING AND OPERATING A BUSINESS 1. Visas (Government fee) (1) Baht US$ Work permit (process time 1-10 days) 3 months 750 23.01 6 months 1,500 46.01 1 year 3,000 92.02 One-year visa, 1-30 days 1,900 58.28 Re-entry visa (process time 2 days) Single entry 1,000 30.67 Multiple entry 3,800 116.56 1a. Visas (Typical fee charged by a law firm to process) (1) Work permit (new), 1-14 days 38,000 1,165.64 Visa extension, 1-30 days 28,000 858.90 Re-entry visa, 2 days 2,200 67.48 2. Registration (Government fee) (1) Company registration, 21 days 5,500 per 1 million 168.71 per 30,674.85 (275,000 maximum) (8,435.58) List 2) Alien business license, 60 days 40,000-500,000 1,226.99-15,337.42 List 3) Alien business license, 60 days 20,000-250,000 613.50-7,668.71 Factory license, 30-45 days 500-60,000 15.34-1,840.49 3. Accounting (1) Tax returns and VAT 20,000 yearly 613.50 yearly Legal translation, per page 1,400 42.94 Review/ draft contracts, agreements 40,000 up 1,226.99 up 4. Office achieved rents (2) (Baht/ sq. m/ mth) CBD Non-CBD Baht US$ Baht US$ Grade A 739 22.67 590 18.10 Grade B 563 17.27 438 13.44 CBD = Central Business District 4 COSTS OF DOING BUSINESS IN THAILAND 2008 All US$ conversion are calculated at US$ 1 = 32.6 baht rarte as of February 2008 Baht US$ 5. Construction Cost (3) (Baht/ sq. m) (US$/ sq. m) Industrial Building Factory construction* 12,000 368.10 Electrical fit-up** 4,200 128.83 Air-conditioning*** 3,100 95.09 Office Building General office construction**** 27,300 837.42 Note: -These rents are inclusive of management fees and air-conditioning -The rent-free period ranges between one to two months -Grade A indicates superior premises, Grade B somewhat less so. * 4,000 m2 as example, with 200 m2 office space, Western sanitary ware/ fit-ups, excludes cost of land, electric fit-up and air- conditioners. ** Includes cost of 1,000 kVA power transformer, Main and Sub Distribution panels, general lighting, wiring and receptacles. *** Includes office and rest rooms, and utility areas, however, assumes 5 meters minimum high factory/ production area. **** Grade B cement contruction, 5 floors, 500 m2 per floor (2,500 m2 total) aluminum framed windows/ doors. T Bar dropped ceiling for recessed lighting, including cost for air conditioning and electrical sanitary fit-ups. Western amenities, excludes land cost. Wide modern stairwells, no lifts Source: (1) Tilleke & Gibbins International Limited (September 2007) Website: www.tillekeandgibbins.com (2) CB Richard Ellis, Q3, 2007 Website: www.cbre.co.th (3) Source Thai Co., Ltd. as of December 2007 Translation Costs Baht US$ An A4 page of technical text typewritten in Times New Roman size 12 or Cordia New size 14 as applicable English-Thai 1,500 46.01 Thai-English 1,500 46.01 Other foreign languages-Thai 1,500 46.01 Thai-Other foreign languages 1,500 46.01 English-Other foreign languages 2,000 61.35 Other foreign languages-English 2,000 61.35 Note: 1. Professional translation services are provided from and into Thai, English, Mandarin, Japanese, Korean, Arabic, Khmer, Laotian, French, German, Spanish, Italian, Portuguese, and Latin. 2. The amount indicates a maximum quote in Thai Baht. Source: Chalermprakiet Translation and Interpretation Center, Chulalongkorn University, December 2007 5 COSTS OF DOING BUSINESS IN THAILAND 2008 SELECTED COSTS OF LIVING IN BANGKOK Apartment Rentals (Baht/sq. m/ mth) Silom/Sathorn Central Lumpini Sukhumvit Baht US$ Baht US$ Baht US$ Grade A 389 11.93 364 11.17 378 11.60 Grade B 331 10.15 306 9.39 325 9.97 Average size of units is as follows: Studio-1 bedroom 85 sq. m 2 bedrooms 157 sq. m 3 bedrooms 245 sq. m 4 bedrooms 395 sq. m Note: Grade A indicates superior premises, Grade B somewhat less so. Source: CB Richard Ellis, Q3, 2007 Website: www.cbre.co.th Serviced Apartments in Bangkok* Location Size Baht/sq.m./month US$ Silom/Sathorn Studio 1,379 42.30 1 bedroom 1,100 33.74 2 bedrooms 948 29.08 Central Lumpini Studio 1,442 44.23 1 bedroom 1,372 42.09 2 bedrooms 1,163 35.67 Sukhumvit Rd. Studio 1,320 40.49 1 bedroom 1,082 33.19 2 bedrooms 924 28.34 * Most serviced apartments provide daily maid services, room service, laundry, health and fitness centers, swimming pool etc. Source: CB Richard Ellis, Q3, 2007. Website: www.cbre.co.th Rental Factory Industry Total no. of rental factories: 504 Occupancy 86% Cost: 5.3-6.2 US$/sq. m. Source: CB Richard Ellis, Q3, 2007. Website: www.cbre.co.th Office Occupancy Costs in Asia Pacific Country Total Occupation Cost US$/Annum * Current / sq. m. Adelaide, Australia 246 Auckland, New Zealand 331 6 COSTS OF DOING BUSINESS IN THAILAND 2008 Country Total Occupation Cost US$/Annum * Current / sq. m. Bangalore, India 500 Bangkok, Thailand 259 Beijing, China 473 Brisbane, Australia 569 Canberra, Australia 328 Christchurch, New Zealand 189 Guangzhou, China 291 Ho Chi Minh City, Vietnam 528 Hong Kong 1,144 Jakarta, Indonesia 172 Manila, Philippines 379 Melbourne, Australia 356 Mumbai (Bombay), India 2,040 New Delhi, India 1,364 Perth, Australia 542 Seoul, South Korea 835 Shanghai (Pudong), China 630 Shanghai (Puxi), China 563 Singapore, Singapore 1,102 Sydney (Core), Australia 563 Taipei, Taiwan 446 Tokyo (Inner Central), Japan 1,922 Tokyo (Outer Central), Japan 1,663 Wellington, New Zealand 322 * All Asian markets are reported on a net floor basis, including all occupation expenses. The measurement unit in South Korea was changed from pyung to square meters in the second quarter of 2007. CBRE Research Hong Kong conducted a review on the gradation of office building and revised the office property basket in the first quarter of 2007 accordingly. The reported rental figure refers to average Grade A rent in Hong Kong covering all prime office districts, which replace the previously quoted core Central rents. Source: CB Richard Ellis, as of November 2007. Website: www.cbre.co.th Car Rental* Baht/Day US$ Economy car (Honda Jazz) 1,407 43.16 Compact car (Honda Civic 1.7 Exi) 1,623 49.79 Intermediate car (Honda CR-V) 2,381 73.04 Premium car (Toyota Camry) 2,705 82.98 7 COSTS OF DOING BUSINESS IN THAILAND 2008 Car Lease 12-23 month contract (per month) Baht US$ Toyota Corolla Altis G Sedan 1.6 Auto ABS A/B 24,000 763.20 Toyota Corolla Altis E Sedan 1.8 Auto ABS A/B 27,000 828.22 Honda New Civic S Sedan 1.8 Auto ABS A/B 26,000 797.55 * Insurance is required at 200 baht per day. Note: Prices do not include VAT. Source: Budget Car Rental Website: www.budget.co.th, as of November 2007 Miscellaneous New automobile Baht US$ Ford Ranger Double Cab 4WD 3.0 XLT 847,000 25,981.60 Toyota Camry 1,600,000 49,079.75 Honda Accord 1,600,000 49,079.75 Citroen C5 New 2,594,000 79,570.55 BMW 325i 3,300,000 101,226.99 BMW 730 Li 6,700,000 230,061.34 Source: Internet survey, as of November 2007 International School Fees (Academic Year 2007-2008) Baht US$ Bangkok Patana School (www.patana.ac.th) Entrance fee 200,000 6,134.97 Capital assessment certificate (refundable) 400,000 12,269.94 Tuition Year 3-6 419,490 12,867.79 Transportation fee 56,000 1,717.79 Harrow International School (www.harrowschool.ac.th) Entrance fee 150,000 4,601.23 Refundable deposit 75,000 2,300.61 Tuition Year 3-6 508,520 15,598.77 Transportation fee 84,600 2,595.09 International School Bangkok (www.isb.ac.th) Annual fee 20,000 613.50 Registration (non-refundable) 220,000 6,748.47 Tuition Year 6-8 624,000 19,141.10 Transportation fee 57,000-91,300 1,748.47-2,800.61 8 COSTS OF DOING BUSINESS IN THAILAND 2008 The New International School of Thailand (NIST) Baht US$ (www.nist.ac.th) Registration fee 260,000 7,975.46 Deposit for campus development (refundable) 320,000 9,815.95 Tuition Year 2-6 536,000 16,441.72 Transportation fee 51,000-63,000 1,564.42-1,932.52 Club Memberships (November 2007) Baht US$ British Club (www.britishclubbangkok.org) Family life membership 66,000 2,024.54 Monthly 1,980 60.74 Single life membership 52,000 1,595.09 Monthly 1,610 49.39 Pacific City Club (www.pacificcityclub.com) Startup (couple) 180,000 5,521.47 Monthly 2,500 76.69 (by invitation only) Royal Bangkok Sports Club (www.rbsc.org) Yearly (Expatriate) 133,750 4,102.76 Siam Society (www.siam-society.org) Life membership 50,000 1,533.74 Yearly 3,500 107.36 Health Clubs (November 2007) Baht US$ Four Seasons Hotel Entry 30,000 920.25 Yearly (not incl.
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