Doing Business in Thailand

Is there any limitation as to the amount of foreign currency you may bring in?

You may transfer foreign currency into Thailand or bring it in cash without any limit.

However if you bring into Thailand in cash an aggregate amount of foreign currency exceeding USD 20,000 or its equivalent you must declare it to a customs officer and it you transfer foreign currency exceeding USD 20,000 or its equivalent you will need to file a Foreign Exchange Transaction Form (“FETF”).

Note: if the cash you are bringing into Thailand is to purchase a condominium do not forget to declare it with the custom officer even if the amount is below USD 20,000. Indeed at the time when you transfer the condominium you will have to justify that you have paid the total amount of the condominium you are purchasing in foreign currency. Therefore you will need the receipt from the custom officer.

May you maintain a foreign currency account?

Yes you can but please note that pursuant to Bank of Thailand regulation:

any person in Thailand (foreign or Thai) receiving foreign currencies from abroad is required to sell such foreign currencies to an authorized financial institution or to deposit them in a foreign currency account with an authorized financial institution within 360 days of receipt.

The only exceptions to the rule above are:

(i)                  foreigners temporarily staying in Thailand for not more than three months, or

(ii)                foreign embassies, and/or

(iii)               International organizations including their staff with diplomatic privileges and immunities.

May you legally purchase foreign currency with Thai banks?

Yes you may but the limitation is that the purchase of foreign currency is generally allowed in relation to an underlying international trade and investment. In other words you may only purchase foreign currency in relation to a specific need.

For example: sending money abroad to pay an invoice.

Documents requirements will depend of the specific of the transaction, therefore please check with your bank what documents you will need prior to the transaction.

What is the Foreign Exchange Transaction Form?

This is a document that you will be required to sign whenever you execute a transaction that is valued at USD 20,000 or more.

Note: that I have seen bank requesting the form to be executed for transaction of less than 20,000 USD

Note: be aware that when transferring foreign currency into your Thai Bank account you will be requested to execute the Foreign Exchange Transaction Form before the money to be credited on your account. Note that the FETF to be remitted to the bank must be an original (bank generally do not accept faxed form). So organize transfers in such a way that you are in Thailand at the time when the funds are transferred.

Note: When negotiating the exchange rate, never accept the first rate the bank officer will offer to  you. Always ask for a better rate because you will generally get it.

Note: for transaction below 20,000 USD and even if you are not requested to execute a FETF always ask the bank to issue you a credit advice form because you will need these documents if you whishes one day to repatriate your capital overseas.

What information do you have to give when filling a Foreign Exchange Transaction Form?

The information you may have to give is as follows:

WARNING: like always in Thailand read the fine print. Never sign a document with a incorrect content because it is the surest way to get yourself into a lot of trouble. The fine prints on the FETF are as follows:

Any person who contravenes or fails to comply with the Ministerial Regulations, Notifications, or Directions issued under the Exchange Control Act B.E. 2485 shall be liable to a fine at maximum of twenty thousand Baht or to imprisonment at maximum of three years or both.

Local Currency Restriction

There is no restriction on the amount of Thai Baht that may be brought into the country.

A person travelling to Thailand’s bordering countries including Vietnam is allowed to take out Thai Baht up to 500,000 Baht and to other countries up to 50,000 Baht respectively without authorization.

Foreigners may not have more than 300,000,000 THB in aggregate in all their bank accounts in Thailand.

Note: This last regulation is one of the few that don’t really bother me (unfortunately)

Note: This post is an excerpt of Rene Philippe Dubout next book: “How to Invest Safely Into Thailand” to be published in January 2010

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

© Copyrights 2009 – Rene Philippe Dubout – This article may be reprinted if information about the author, the websites, and the URLs remain intact

Originally posted 2009-08-02 06:44:07.

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2. Thailand Bank: Borrowing Thai Baht from a Thai Bank
3. Buying Property: The foreign exchange risk factor
4. Buying a Condominium: Foreign Freehold Ownership
5. World Bank:Thailand ranks 12th/183 for ease of doing business
6. Buying a Condominium: The 49% foreign ownership quota issue
7. Buying Property: Comparing Foreign Land Ownership in Asia
8. Doing Business in Thailand: Understanding Thai Administration