Types of Business Organizations
1) Partnerships (Ordinary Partnership and Limited Partnership)
2) Limited Companies (Private Limited Company and Public Limited Company)
3) Other forms of Corporate Presence
- Branch of Foreign Companies: need to apply for foreign business license and allow to operate only for activity that have been grant approval.
- Representative Offices of Foreign Companies: Nil of corporate income tax but permit to operate only some kind of activities.
- International Business Centre (IBC): A company incorporated under the laws of Thailand for the purpose of providing administrative services, technical services, supporting services, or financial management services to its associated enterprises, or conducting international trade. IBC shall receive the following incentives:
- Exemption from import duty on machine that used for R&D and training activities
- Reduction of Corporate Income Tax rate for 15 accounting period from 20% to be 8%, 5% and 3% of net profits base on the level of annual expense in Thailand (THB 60 million, THB 300 million and THB 600 million respectively).
- Exemption of Specific Business Tax from income received from financial management activities from its subsidiaries in Thailand and offshore.
- Reduction of personal income tax rate from progressive rate (0%-35%) to be flat rate at 15% for expatriate employees.
- Exemption of withholding tax on dividend and interest payments made by IBC to its foreign shareholders and/or lenders.