Thailand
Financing a Business in Thailand
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Financing A Business
Government Incentives
The Thai government offers financial incentives in the form of tax breaks and tariff reliefs for UK businesses looking to expand and invest in the Thai economy.
The tax incentives are inclusive of most industry sectors but usually only apply to businesses looking to invest outside Bangkok in specific development zones. These include:
- No corporate income tax for up to 8 years
- Import duty reductions or exemptions on machinery and raw materials
- 50% reductions of corporate income tax for 5 years
- No public utility costs.
- Deductions for infrastructure construction or the installation of infrastructure.
- No restrictions on foreign currency remittances
Further information can be obtained at www.boi.go.th
Private Finance
Banking in Thailand is made almost exclusively of large national banks. Since the Asian economic crisis in 1997 the sector has improved its regulation. As with all commercial loans, a strong business plan and an understanding of the local business conventions and etiquette are important if pursuing this form of finance. It is also recommend that you seek the advice of an account and an agent with a strong knowledge of the local finance environment.
The British Chamber of Commerce Thailand and The British Embassy in Bangkok are currently working together on a program to assist UK businesses expanding to Thailand, helping them to successfully gain entry to the marketplace through contacts and advice and would also be a good starting point.
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