Thailand: Tax, legal requirements | KPMG | GLOBAL

Thailand: Tax, legal requirements for representative offices of foreign companies

Thailand: Tax, legal requirements

A foreign company’s representative office in Thailand is no longer required to obtain a foreign business license from the Department of Business Development. However, the representative office is still subject to other Thai legal and tax compliance rules—including a requirement to file the required tax returns in Thailand.

1000

Related content

Among the permitted activities of a representative office of a foreign company are the following:

  • Sourcing the purchase of goods or services in Thailand for the head office or affiliated companies
  • Checking and controlling the quality and quantity of goods purchased or manufactured in Thailand for the head office or affiliated companies
  • Providing advice on various aspects concerning goods of the head office or affiliated companies that are sold to distributors or consumers (e.g., providing knowledge and explanation on qualification, usage method, and/or problem solving on the goods)
  • Propagating information concerning new goods or services of the head office or affiliated companies
  • Reporting movement of business in Thailand to the head office or affiliated companies

A representative office must have a minimum capital of Baht 2 million even though the foreign business license is not required. 

KPMG observation

For Thai tax purpose, each activity of a representative office must be considered and reviewed for a determination as to whether the activities could give rise to any Thai tax implications for the foreign head office and/or any other companies related to the activities of the representative office.

 

Read a September 2017 report prepared by the KPMG member firm in Thailand

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit