thailand

1. ● Economic Structure
Thailand's economy is a blend of a strong agricultural sector with a developed
manufacturing sector and a stable service sector
The economy of Thailand is dependent on exports, which accounted in 2019 for about
sixty percent of the country's gross domestic product (GDP)
Thailand’s economic structure relies mainly on services and manufacturing. The
services sector accounts for around 45% of total GDP. The most important
contributors are tourism, retail sales, transportation, as well as banking, and finance.
Tourism is one of the biggest contributors to the sector, while its share alone in total
GDP is around 10%. Industry accounts for 42% of Thailand’s total production and its
main component are manufacturing. The country’s top manufacturing products include
automobiles, hard disk drives, natural and synthetic rubber, textiles, etc. A significant
share of these products is exported. Agriculture contributes the remaining share of
total GDP.
● Political Environment
Thailand’s political system is a constitutional monarchy. King Maha Vajiralongkorn,
son of King Bhumibol Adulyadej was coronated in May 2019. The king has direct
powers under the constitution and yields significant political influence and, in some
cases, absolute power.
The National Assembly is bicameral, consisting of the House of Representatives (the
lower house) and the Senate (the upper house). Major political parties are the Phalang
Pracharat Party (PPRP), the Puea Thai Party, the Democrat Party, Thai Raksa
Chart, Bhumjathai Party, Chartthaipattana, and Chart Pattana parties.
● Entrepreneurial practices
In 2020, there were approximately 3.13 million SMEs in Thailand, which constituted
99.6% of all enterprises.
U.S. News & World Report named Thailand number one on its rankings for 2020
Best Countries to Start a Business, based on a survey of over 6,000 global business
decision-makers, validating the government's efforts to increase ease of doing business.

2. ● Procedures for developing accounting standards
General Process of Issuance of Thai Accounting Standards
1. Standards are drafted by the Accounting Standard Setting Committee in the sub-
committee.
2. Standards are presented to the Accounting Standard Setting Committee for
comments and approved for public hearing.
3. Standards are posted and presented for public hearings.
4. Standards are discussed and approved in the Accounting Standard Setting
Committee for issuance to the Screening Committee.
5. After reviewing comments from the Screening Committee, the standards are sent
to the Federation of Accounting Professions (FAP) to pass to the Board of
Supervision.
6. After the final approval from the Board of Supervision, the standards are
announced in the Royal Gazette and become TAS with the noted effective date.
● Accounting measurements and disclosures
Thailand has adopted all effective IFRS Standards (including all IFRS Standards, IAS,
IFRIC, and SIC Interpretations), known as Thai Financial Reporting Standards (TFRS)
translated from the IFRS Standards normally with a one-year delay in effective date
from that of the IFRS Standards with early adoption permitted.
TFRSs are required for Publicly Accountable Entities (PAEs), including listed
companies.
● Tax structures
Thailand has not been deemed a tax-free country but it does have a unique tax
structure. It’s like a mix between a non-domicile tax country and a territorial tax
country.
o Non-domicile, or non-dom, is a British tax status that has been available
since the French revolution – yes, that long. It allows a person who was
born in another country, or if their parent is from another country, to pay
tax in the UK only on their UK income
o Under a territorial tax system, multinational businesses primarily pay
taxes to the countries in which they are physically located and earn their
income. This means that territorial tax regimes do not generally tax the
income companies earn in foreign countries
Companies incorporated in Thailand are taxed on worldwide income. A company
incorporated abroad is taxed on its profits arising from or in consequence of the business
carried on in Thailand.

3. The corporate income tax (CIT) rate is 20%.
A foreign company not carrying on business in Thailand is subject to a final withholding
tax (WHT) on certain types of assessable income (e.g. interest, dividends, royalties,
rentals, and service fees) paid from or in Thailand. The rate of tax is generally 15%,
except for dividends, which is 10%, while other rates may apply under the provisions
of a double tax treaty (DTT).
There are no local government taxes on income in Thailand.