Laws and Regulations Introduction

Thailand's government holds a very liberal attitude towards international business and trade, with the recent economic downturn further opening the county's regulations. The model for economic growth currently being pursued by Thailand's government is particularly advantageous to the country's exporters and to foreign investors.

The framework for Thailand's trade practices is formed by its membership in the World Trade Organization (WTO) and the Association of Southeast Asian Nations (ASEAN). Membership in both of these organizations commits Thailand to the reduction and eventual removal of tariffs, duties, and non-tariff barriers to trade in an agreed upon timeframe. Other trade agreements that Thailand has signed deal with the movement of specific goods like garments and textiles, or the movement of goods between specific countries.

Thailand's government focuses on the promotion of exports by supporting selected industries through various promotions, incentives and programs to improve their competitiveness in the foreign market. The Board of Investment (BOI) has been active in promoting Thailand as a base for foreign investment and has been successful in attracting many large multinationals to move their regional operations and manufacturing facilities to the kingdom. The Department of Export Promotion (DEP) is active in showcasing Thai products and exporters to the world, helping them to develop overseas markets and improve the quality of their products and marketing efforts. The Export-Import Bank of Thailand is active in assisting exporters by providing them with financing options and the liquidity needed to expand and develop their markets.

Thailand's laws regarding the establishment and operation of businesses by foreigners are also quite liberal. The laws regulate company establishment in Thailand, taxation of the company and its employees, corporate and individual taxation, foreign exchange issues, work permits and other labor considerations. The government grants certain privileges to foreign and domestic companies operating and exporting from its designated industrial zones, which range from reductions in taxation, lowered import duties to exemption from certain labor laws.

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