Under the new proposal, properties would be taxed 0.1 percent (residential), 0.05 percent (agricultural), 0.2 percent (commercial), and 0.5 percent (vacant).

The Thailand real estate lawyers at Chaninat and Leeds have specialized in assisting Thai and international clients with real estate sales and purchases since 1997.  

In addition, the ceiling tax waiver was increased to homes appraised up to a value of 1.5 million baht, up from the previously proposed 1 million baht.

According to Thai PBS, the proposed exemption will also take into account properties owned by temples, foundations, the Royal Household and private properties that have been utilized for public use.

The government could collect up to 200 billion baht under the new tax rates, if passed, compared to the 25 billion currently collected.

If the Cabinet approves the bill, it will reportedly take at least 1 – 2 years to bring the taxes into effect, until the Treasury Department completes appraisals of 30 million land plots.

Read the full story here and here.

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Risks of Buying a Condo in Thailand

In practice, private sales in Thailand generally divide the amount of taxes and fees involved with the transfer of ownership as follows:

• Transfer fees – 2 % of the value of the registered property, normally paid by the buyer.
• Stamp Duty – 0.5% of the registered value. Payable if exempted from business tax, normally paid by the seller.
• Withholding Tax- 1% of the property’s appraised value, normally paid by the seller.
• Specific Business Tax(SBT) – 3.3 of the property’s appraised value being sold within 5 years, normally paid by the seller.

Thailand law does not use the term “Non-Government Organization” or “NGO”.  Normally, foreign organizations register as either a Foreign Private Organizations or as a locally registered Foundation.

A Foundation is a legal entity registered with the Thai Ministry of Interior for public benefit purposes such as charity, religion, arts, science, literature and education and other activities that may serve the public’s interest.

Read More: Thailand NGO

Additional requirements to obtain a Thailand work permit include:

• The business or the job offer  must not be restricted to Thai nationals
• The job involves work for which Thai nationals are otherwise qualified.
• The business or hiring company must meet capital and employee size requirements.
• Non-Thai nationals or foreign workers must possess the correct category of a valid visa or residence permit.
• Salary offered by hiring companies to foreign workers must meet the minimum salary requirements of the Thai Ministry of Labor.
• The foreigner must be qualified for the work.

A work permit allows non-Thai nationals to lawfully work in Thailand. Working without a work permit in Thailand is illegal and is punishable by imprisonment and monetary fines. The punishment imposed varies based on the category of work that the person engaged in Thailand.

Read More: Thailand Work Permit

Thailand BOI Incentives

The Thailand BOI incentives are classified into the following types:

• Tax Incentives

 A BOI promoted company in Thailand may be eligible to receive an exemption or reduction of import taxes duties and may also be eligible to be exempted from a juristic person’s tax and dividends, as well as double deductions from the cost of transportation, electricity, water and project’s infrastructure installation.

• Non-Tax Incentives

Local and foreign businesses certified by the Thai BOI are eligible to hire foreign skilled workers and experts. Further, the BOI provides for express non-immigrant visa and work permit processing through “One-stop Visa”. Non-tax incentives may also permit foreign freehold landownership to businesses involved in industrial related projects.

Setting up a Thai BOI Promoted Company

Investors seeking to do businesses in Thailand may apply for a Thai BOI promotion. The BOI categorizes industries according to types and provides application forms specific to each industry.  Generally, companies that are given priority for Thai BOI licensing are those involved in technology and innovation, manufacturing and export and other investments showing potential business growth.   Non-industrial businesses such as nursing homes for the aged and movie productions are also promoted by the Thai BOI with investment incentives.

• Sale
• Hire of property
• Hire-purchase
• Hire of work
• Carriage
• Loan
• Deposits
• Suretyship
• Mortgage
• Pledge
• Warehousing
• Agency
• Brokerage
• Compromise
• Gambling and betting
• Current account
• Insurance
• Bills
• Partnerships and companies
• Associations

Thailand Practice

In normal business law practice in Thailand, contracts require 2 competent witnesses. For acceptance by Thai court,Thailand contracts must either be originally drafted in Thai language or must be translated in Thai language.

In cases where contract disputes arise, contracting parties may resolve it through the court system or alternate dispute resolution such as arbitration. A court complaint is usually preceded by a demand letter or “notice”. Many contracts specify mediation or arbitration prior to or in lieu of filing a case with a Thai court.Thailand has a special court of International Trade and Intellectual Property. Generally, contract disputes in Thailand are in either the international court or provincial court or in arbitration sessions.

Read more on Thailand contracts.

Thailand Drug Registration

The Thai FDA requires importers and manufacturers in Thailand to obtain FDA approval prior to importing or manufacturing. The FDA categorizes drugs into modern, general medicines, traditional medicines and veterinary medicines, each having a separate registration requirements.  General medicines are grouped into separate categories of generic medicines, new medicines and new generics.  Each category of medicines has a distinct set of requirements.   The Thai FDA issues drug licenses for indefinite periods of time.

Thailand Medical Devices Registration

Medical devices in Thailand are regulated by a specialized division in the Thai FDA. Medical devices will require either licensing or registration. The Thai FDA groups medical devices into 3 classes’ sub-categories as follows:

Class 1 medical device: condoms, surgical gloves, syringes and diagnostic test kits.

Class 2 medical devices: rehabilitation devices, blood alcohol level measuring kits, silicone implants, and test kits other that for diagnostic purposes. Class 2 requires a USFDA certificate.

Class 3 medical devices:  Lowest-risk devices category.

Thailand Cosmetics Registration

The Thai FDA classifies cosmetics into the following two categories according to the ingredients content of cosmetics:

1. Controlled Cosmetics: controlled ingredients content of a cosmetic product will require product notification to FDA before it is allowed to be out in the market. Notification process is normally completed in 1 day.
2. Specially Controlled Cosmetics: specially controlled ingredients content of a cosmetic product will require registration. Registration process generally takes 30 working days.

Cosmetics containing no controlled or specially controlled ingredients are currently classified as general cosmetics…read complete summary on Thailand FDA Registration  

A Thailand law firm specializing in Thailand company registration that also provides accounting and regulatory services is appropriate to provide centralized corporate secretarial services:

Thailand Company Operation Start-up

• Registration
• Licenses, Accreditations  and Permits
• Immigration
• Contracts
• Regulatory affairs
• Advising on The Companies Act (current and proposed)

Annual Compliance

• Maintaining company records
• Updating and maintaining statutory registers, i.e. of members, of directors, and registered charges
• Preparing and filling reports with local registry
• Liquidation of companies
• Tax and Accounting