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Typical costs of Starting a Business 
Source: Board of Investment, Thailand
Secretary General of Thailand Board of Investment
Read our Exclusive Interview with Secretary General of Thailand Board of Investment, Mr. Sompong Wanapha


1. Visa: Work permit (new), One year visa, Re-entry visa

2. Registration: Company registration, Branch office, Alien business license, Factory license

3. Accounting: Tax returns and VAT, Translation, Review/draft contracts, agreements 

4. Office achieved rents

5. Selected Salaries - Position Monthly costs

6. Labor Costs   Entry-level salaries,  Minimum daily wage, Overtime regulations, Severance payment entitlements

7. Tax Rates: Corporate income tax, Personal income tax, Tax on income from bank deposits, Value added tax, Excise tax rates, Structure of import tariffs

9. Fuel Costs and Air, Sea, Rail and Road Freight Costs

10. Air Fares

11. Utility Costs: Water rates , Electricity rates

12. Communication Costs: Telephone facilities, Cellular mobile phone system, International voice leased circuit, Facsimile machines, Telex facilities, International and domestic, telephone rates, Internet rates

13. Costs of Living in Bangkok:  Apartment rentals, Health insurance,  Miscellaneous


  Cost
Baht US $
1. Visas(1)
Work permit (new) 
20 days		 35,000 787
One year visa 
30 days		 25,000 562
Re-entry visa 1 day 2,200 49
2. Registration(1)
Company registration 
15 days		 35,000 787
Branch office 
15 days		 50,000 1,124
Alien business licnese
1,200,000
2,698
Factory license 30 days 85,000 1,911
3. Accounting(1)
Tax returns and VAT 18,000 yearly 405
Translation, per page 800 18
Review/draft contracts and agreements 22,000 up  495
4. Office achieved rents(2)
(As of 2Q 2000) (Baht/sq.m/mth)
  CBD(3) Non-CBD
Grade A 408 (US$9.17) 330 (US$7.42)
Grade B 242 (US$5.44) 216 (US$4.86)
Notes:
1) These rents are inclusive of management fees and air-conditioning.
2) The rent-free period ranges between three to six months.
3) Grade A indicates superior premises, Grade B somewhat less so. 
Key:
 1 Tilleke & Gibbins (September 2000)  
2 CB Richard Ellis (Thailand) Co., Ltd. (September 2000)  
3 Central Business District
Some of the costs cited above include a service fee and do mont reflect the actual cost of a fee or license itself


Selected Salaries

Position Monthly
Baht US $
Executive Secretary  29,038 653
Researcher (Thai) 30,646 689
Personnel/HRD director
 56,163
 1,263
Office manager
 44,286
 996
Plant manager
 61,537
 1,384
IT Manager
 52,418
 1,179
Office staff
 14,435
 325
Administrative staff
 14,944
 336
Sales/marketing staff
 20,910
 470
Public relations staff
 16,913
 380
Technical staff
 16,959
 381
Engineering
 25,662
 577
Driver
 10,973
 247
Housekeeper
 6,717
 151
Messager
 6,986
 157
  • Notes: All US$ conversions are calculated at a rate of US$1 = 44.48 baht (Average for 2001). 
  • Source: Bank of Thailand. 


 

Labor Costs 

Source: Ministry of Labor
Entry Level Salaries for Select Jobs
  per month
Position baht US$
Manufacturing Sector
  Engineer 16,307 417
  Technician
10,379
 265
  Designer
10,000
 256
  Electrical engineer 20,000 512
  Industrial engineer 17,000 435
  Junior secretary 10,487 268
Private Sector
  Computer staff 11,116 284
  Economist
40,000
 1,023
  Accountant 10,500 269
  Systems analyst 21,500 550
  Auditor 8,000 205
Service Sector
  Junior secretary 7,000 179
  Translator 15,600 399
  Receptionist 5,217 133
  Sales clerk 7,172 183
  Salesman 8,988 229
  Retail manager 18,800 481
 
 Minimum Daily Wage Rates  Baht US$
Phuket
 168
 3.78
Bangkok, Samut Prakan, Nonthaburi, Pathum Thani, Nakon Pathom, and Samut Sakhon 165 3.71
Chonburi
 146
 3.28
Chiangmai, Nakhon Ratchasima, Phangnga, Ranong, Saraburi
 143
 3.22
 Angthonh 138 3.10
Chachoengsao
 137
 3.08
Narathivas and Singburi
 135
 3.04
 Other Provinces 133 2.99
 Overtime Regulations 
   Overtime performed on regular working days - time and a half
   Regular work on public holidays - double time
   Overtime performed on public holidays - triple time
   Daily workers working more than 8 hours
 - time and a half
 
Severance Payment Entitlements
Workers employed for:
    more than 120 days but less than one year - 30 days severance pay
    more than one year but less than three years - 90 days severance pay
    more than three years but less than six years - 180 days severance pay
    more than six years but less than 10 years - 240 days severance pay
    ten years and up - 300 days severance pay
Source: Labor Department
 
Bank Holidays for  2001
January 1,
   New Year's Day.
January 2,
   New Year's Day.
February 8,
   Makha Bucha Day.
April 6,
   Chakri Day.
April 13,
   Songkran Day.
April 16,
   Songkran Day.
May 1,
   National Labor Day.
May 7,
   Visaka Bucha Day.		 May 8,
   Cornation Day.
July 6,
   Buddhist Lent.
August 13,
   HM the Queen's Birthday.
October 23,
   Chulalongkorn Day.
December 5,
   HM the King's Birthday.
December 10,
   Constitution Day.
December 31,
   New Year's Eve.

Tax Rates 

Corporate Income Tax

    Rate
A. Tax on net corporate profits 30%
B. Tax on gross income of foundations and associations (2% for income under section 40(8) 10%
Notes: Tax on small and medium-sized enterprises in now 20% from 30% for the first 1 million baht in profits.  In addition, corporate tax for newly-listed companies on the Stock Exchange of Thailand(SET) and the Market for Alternative Investment is now 25% and 20% respectively

Personal Income Tax
Level of taxable income
(baht)
 Marginal Tax 
Rate
0 - 50,000
 0%
50,001 - 100,000
 5%
100,001 - 500,000 10%
500,001 - 1,000,000
 20%
1,000,001 - 4,000,000 30%
over 4,000,000
 37%

Tax on Income from Bank Deposits
  Rate 
A. For individuals   15%
B. For companies   1% 
C. For foundations   2%

Value Added Tax
Level of taxable income
(baht)
Rate
0 - 1,200,000
 This level has been repealed from the VAT system
over 1,200,000 0% or 7% (effective April 1, 1999 to Sept. 30, 2002)
0% to 10% (effective October 1, 2002)

BIBF
  Rate 
Corporate Income Tax  
Withholding tax on remittance of interest  
  out-out exempt
  out-in 10%
Withholding tox on remittance of profits exempt 10%
Personal Income Tax  
Withholding tax on remittance of interest  
  out-out exempt
  out-in 10%

Withholding Tax
A foreign company or registered partnership not coarrying out business in Thailand receiving the following incom from or in Thailand: Rate
A. Remitttnace of profits 10%
B. Remitttnace of dividends 10%
C. Remitttnace of interest 15%
D. Royalties from goodwill, copyright and other rights 15%
E. Rentals from hiring property 15%

Excise Tax Rates
Products Tax Rates
  Unleaded benzene  Bt 3.585/liter 
  Diesel - more than 0.25% sulfur content Bt 2.315/liter 
  Diesel - less than 0.25% sulfur content  Bt 2.215/liter 
  LPG  Bt 2.17/kg 
  NGL  Bt 3.15/liter 
  Perfume  15% 
  Crystal glasses   15% 
  Air-conditioner (<72,000 BTU)  15% 
  Ceiling, light, chandeliers  15% 
  Whiskey  35% (or Bt 150/liter) 
  Brandy 25% (or Bt 150/liter) 
  Other refined liquors   35% (or Bt 150/liter) 
  Beer  53% (or Bt 100/liter) 
  Other fermented liquor  25% (or Bt 100/liter) 
  Soda water   25% 
  Cigarettes and tobacco  70% 
  Playing cards Bt30 per 100 cards 
  Horse racing   20% 
  Automobiles
> 2,400 c.c.
< 2,400 c.c. 
Off Road
Pick Up
43% 
37.50% 
32% 
5%

 Structure of Import Tariffs 

  Tax Rates
Basic raw materials, necessary raw materials, 
and materials subjected to special treatment 		  0-1% 
Primary goods and machinery  5% 
Intermediate goods  10% 
Final goods   20% 
Commodities requiring specially high protection
>30%

Transportation Costs, Including Fuel Costs and Freight Rates 

Fuel Cost

 Unit Price*
Unit Baht US$
Benzine Octane 95 Liter 26.29
 0.59
Benzine Octane 91 Liter 15.29
 0.34
High speed diesel  Liter  14.24 0.32
Low speed diesel  Liter  14.10 0.32
Kerosene  Liter  16.06 0.36
Furnace oil type 1 (600) Liter  9.96
 0.22
Furnace oil type 2 (1,500) Liter
9.53

 0.21
Cooking gas Liter  11.75
 4.26

Road Transportation Cost from Bangkok
 
Rental Cost per Truck
(10-12 tons, or 15 cubic meters) 
Baht
 US$
Chiang Mai 
7,930
 178
Nakhon Ratchasima 
3,970
 89
Khon Kaen
5,650
 127
Hat Yai (near Songkhla)
10,310
 231
Eastern Seaboard 
(Map Ta Phut)
3,620
 81

 
Source : Thai Airways International

Air Cargo Rates From Bangkok to Selected Destinations
  General Rate
Bulk Rate
Minimum Charge (per kg.)  (more than 45 kg.)
Baht US$ Baht US$ Baht US$
London 1,400 31.00 276 6.18
 207 4.64
Amsterdam 1,400 31.00 253 5.67
 190 4.26
New York  1,600 36.00 227 5.09 170 3.81
San Francisco 1,600 36.00 212 4.75
 159 3.56
Tokyo 800 18.00 123 2.76
 92 2.06
Singapore 700 16.00 40 0.90
 30 0.67
Hong Kong 700 16.00 53 1.19 40 0.90

 

Shipping Cargo Rates from Bangkok to Selected Destinations
Destination 20 feet 40 feet Transit  Remarks
Baht US$ Baht US$ in days
Europe main ports* 51,325 1,153 93,723 2,107 25-30 Incl. L/C & BAF
New York 140,361 3,155
 186,107
 4,185
 30 Incl. L/C & BAF
Los Angles 126,303
 2,839
 170,487
 3,832
 20
 Incl. L/C & BAF
Japan (Osaka)  23,208
 521
 37,936
 852
 9-11
 Incl BAF & B/L
Singapore 16,513
 371
 29,010
 652
 3
 Inc. FAF & L/C
Hong Kong  14,683
 330
 25,988
 584
 4-5
 Incl. L/C & BAF
Durban
 64,714
 1,454
 123,625
 2,779
 18
 Incl. L/C & BAF
Sydney
 30,348
 682
 61,589
 1,384
 19-23
 -
* Europe main ports: Antwerp, Bremerhaven
Hamburg, felixstowe, Le Havre
- Prices do not include customs duties, taxes, dues or deposits
- the above rates do not include 7% VAT
- The rates are port to port and do not include customs clearance for exports,a nd shipping line charges.  
Source: Santa Fe (Thailand) Co., Ltd. October 2001






Rail Transportation Costs

From Bangkok to Selected Provinces (per ton) 
  Class 3 Class 4
Baht US$ Baht US$
Chiang Mai (744 kms) 450.8 10.13
 393.6 8.82
Nakhon Ratchasima (257 kms)  176.3 3.96
 153.4 3.44
Khon Kaen (443 kms)  286.5 6.43
 249.5 5.59
Hat Yai* (near Songkhla) (938 kms) 402 12.25
 402 10.69
Eastern Seaboard (Map Ta Phut)(202 kms) 146.4 3.29
 127.4 2.85
Specimen product lists: Class 3: Electrical appliances, automobiles, tin, logs, timber, and tiles. Class 4: Fresh fish, rice, maize, rubber, jute, kenaf, cement, lignite,fluorspar, manganese, gypsum,  fertilizer, fresh fruits,paddy, bran, marl,sand, gravel, vegetables, coconuts, steel. *Note: Special rate effective Nov. 1, 1999. Source: State Railway of Thailand

By Distance (per ton) 
  Class Class 4
Kilometers Baht US$ Baht US$
50 35.1 0.79
 30.6 0.69
100 70.2 1.57
 61.1 1.37
150 105.3 2.36
 91.7 2.18
200 140.4 3.15
 122.2 2.75
300 200.2 4.50
 174.4 3.91
500 313.0 7.03
 272.2 6.13
700 419.0 9.41
 365.2 8.22
1,000 578.0 12.99
 505.2 11.35

 

Air Travel Costs

Travel from Bangkok International Airport: Return Fare
   Economy Class Business Class
Baht US $ Baht US $
Paris
 55,810
 1,254
 112,955
 2,539
Beijing 23,085
 519
 39,550
 880
Frankfurt 55,810
 1,254
 112,955
 2,539
Hanoi 14,355
 323
 16,515
 371
Hong Kong 13,390
 301
 22,820
 513
Johannesburg 29,800
 670
 133,230
 2,995
Kuala Lumpur
 14,565
 327
 16,750
 376
London 36,265
 815
 119,865
 2,694
Los Angeles 35,200
 791
 97,140
 2,183
Manila 21,645
 486
 31,635
 712
New York 43,580
 979
 107,370
 2,413
San Francisco
 35,200
 791
 97.400
 2,187
Singapore 8,800
 198
 20,710
 465
Sydney 20,350
 457
 87,210
 1,961
Taipei 24,710
 555
 35,510
 798
Tokyo 19,800
 445
 44,000
 989

Domestic Air Fares (one way)2
   Economy Class Business Class
Baht US $ Baht US $
Phuket 2,270  51
 3,070 69
Kho Samui  3,180  71
 n/a  -
Chaing Mai 1,870  42
 2,670  50
Chaing Rai  2,200 49
 3,000  67
Hat Yai  2,585 58
 3,385 76
Korat 630  14
 1,430  32
Surat Thani  2,025  45
 2,825 63
Trang  2,275  51
 3,075 69
Phitsanuolk  1,080 24
 1,880 42
Udon Thani  1,485  33
 2,285 51
Ubon Ratchathani  1,595  36
 2,395 54
Notes: 1International fares are a selection of fares quoted by Thai Airways International, Singapore Airlines, Qantas and United Airlines
2 For domestic flights, return fare is double the single price. Source: Thai Airways International, Bangkok Airways. 
3The airport departure tax for deomestic flights is 200 baht and International flights is 500 baht. 

Original URL: http://www.boi.go.th/english/business/costs.html

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