Foreigner’s Right to Value of Land in Thailand

| December 2, 2016 | Land, Property

An important principle of Thai law regarding foreign investment in land is that where the foreigner has purchased land, but is not able to legally register ownership of the land, he or she is entitled to the monetary value of the land. This principle is demonstrated in the following Land Department Advisory Opinion: During litigation […]

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Disposal of Land Owned by a Foreigner

| November 25, 2016 | Land, Property

According to the Land Code of Thailand, it is unlawful for a Thai national to own land as the agent of a foreigner. The act of doing so entails criminal penalties for both the Thai national and the foreigner involved. Furthermore, one consequence of “nominee landownership” as it is called, is that the land that […]

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Acquiring Land with a Foreign Spouse

The primary concern behind Thai government regulations related to the acquisition of land by a Thai national married to a foreign spouse is the issue of nominee landownership. Under the Land Code of Thailand, the act of a Thai national owning land as an agent of a foreigner, which is to say, for the benefit […]

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Acquiring Land in Thailand with a Foreign Spouse

At this time, Thailand does not prohibit its citizens who are married to (or cohabiting with) foreign spouses from acquiring land. Nevertheless, the acquisition of land by Thai nationals who are married to foreign spouses is extensively covered by government regulation and it is conditioned on the legal principle that any land owned by the […]

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Liability of Limited Partner in Thailand

A defining characteristic of the Limited Partnership under the Civil and Commercial Code of Thailand is that it distinguishes between limited partners and managing partners. This is a different situation than with an ordinary partnership where all the partners have joint and unlimited liability. In a limited partnership, the managing partner or partners assume joint […]

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Setting Up Company Partnerships under Thai Law

The Civil and Commercial Code of Thailand provides for the formation of partnerships as is found in the laws of other countries. However, partnerships are normally not formed by foreign investors due to particular difficulties that arise due to the Foreign Business Act of 1999. Generally speaking, the formation of a limited company is more […]

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Income Tax Implications for Loans Between Private Companies

A Revenue Department Advisory Opinion issued on January 21, 2015 provided guidance regarding income tax implications for loans issued between private companies. The facts were that Company A was registered as a limited company, with an unspecified amount of registered capital, and with no branch offices. The accounting period of the company was April 1 […]

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Thailand: Guidance Regarding Zero Percent Value Added Tax

In principle, the Thai value-added tax (VAT) system should only apply to the sale of goods and services that occur within Thailand. However, going strictly according to legal principles, the Thai Revenue Code applies VAT to sale of goods and services outside of Thailand, but applies a tax rate of zero percent, rather than exempting […]

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Limiting the Authority of a Company Director

When foreign investors do business in Thailand, it is often more expedient to hire a Thai person to serve on the board of directors along with the foreign directors. Generally, Thai law does not require a limited company to have a Thai national to serve on the board of directors. Furthermore, maintaining control of the […]

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Requirements for the Application of Foreign NGOs in Thailand

In the previous articles, we went into some detail regarding the operation of foreign NGOs in Thailand, including a list of information that a foreign NGO must submit to the Committee if it wishes to establish an office in Thailand or to send any of its official to work here. However, we also discussed that […]

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