Thailand is a Southeast Asian hub for manufacturing and services. The standard corporate tax rate is 20% (net profit). Employer social insurance contribution is 5% (capped at THB 750/month on maximum salary of THB 15,000). Statutory annual leave minimum is 6 days/year. Foreign employees require Non-B business visa and separate work permits. Key risk: The Foreign Business Act restricts foreign equity (services typically require 51%+ Thai ownership). Unregistered BOI enterprises cannot hold 100% foreign equity. BOI-certified enterprises enjoy corporate tax exemptions up to 8 years.
| Metric | Details |
|---|---|
| Corporate Tax Rate | Standard 20% (net profit); foreign company branches same rate |
| Social Insurance | Employer contribution 5% (monthly salary capped THB 15,000, max THB 750/month) |
| Annual Leave | Minimum 6 days/year (statutory minimum) |
| Foreign Visa | Non-B business visa + work permit (Work Permit), must apply separately |
| Foreign Business Law | Foreign Business Act restricts foreign equity (services typically require Thai ownership 51%+) |
| BOI Incentives | BOI-certified enterprises enjoy corporate tax exemption up to 8 years, can hold 100% foreign equity |
| BOI Application Timeline | 6-12 months |
| Work Permit | Must apply separately from Non-B visa, timeline 2-4 weeks |
Thailand has one of the most complex foreign investment restrictions in Asia-Pacific. Service sector foreign enterprises without BOI certification must comply with the Foreign Business Act (51%+ Thai equity). Plan BOI certification early (6-12 month timeline), or consider EOR to bypass equity restrictions. BOI benefits include tax exemptions up to 8 years.
💡 Professional Tip: Galaxy APAC team understands Thailand's complex foreign investment framework. We can assess BOI eligibility, optimize equity structures, or recommend EOR approach.
These mistakes can force equity restructuring, employee work permit revocation, or operational delays. Galaxy APAC helps you avoid these pitfalls from the start.
A: The Foreign Business Act restricts foreign equity in 13 restricted industries. The most common restriction is service sector requiring 51%+ Thai ownership. Manufacturing and export trading are typically unrestricted. BOI certification exempts this restriction.
A: Non-B is a Thailand visa proving the foreigner comes to conduct business. Work permit is issued by the Department of Labor authorizing work in Thailand. Both require separate applications, each taking 2-4 weeks.
A: BOI enterprises enjoy corporate income tax exemption up to 8 years from the year of first profit. Import duties and machinery taxes can also be exempted. However, BOI application takes 6-12 months, plan ahead.
A: Three options: (1) Apply for BOI certification (subject to eligibility); (2) Use EOR model (local EOR company handles employment); (3) Adjust equity to Thai 51%+ but retain operational control.
A: Thailand base wages similar to Malaysia, but legal complexity is higher. Malaysia has more straightforward compliance; Vietnam has lower costs but higher hidden expenses. Thailand excels in manufacturing infrastructure and political stability.
A: EOR suits: FBA-restricted activities, rapid entry, <50 employees. Self-owned suits: BOI-eligible, long-term expansion, full operational control needed. EOR avoids complex equity issues but costs 2-4% of monthly salary long-term.
Galaxy APAC's professional team is ready to provide customized EOR and Payroll Outsourcing solutions