Thailand: Tax, legal requirements | KPMG Global
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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.


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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

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