Thai-Italian Chamber of Commerce: promoting business and trade between Italy and Thailand

Contractualistics
agency, representation, distribution, license, transfer of technology.

Corporate legislation
Representative office: a foreign entity can establish a representative office in Thailand which is not subject to tax withdrawal. The representative office has the function to carry out research, marketing and promotional activities, etc. The capital must be about 70,000 euro. The office can operate 5 years, prior to renewal.

Branch: a company registered in foreign country is able to operate the branch of head office in country of origin. Each activity carried out by the head office in Thailand is subject to taxation, like the income produced by the branch. The branch must have the minimum capital of 70,000 euro which must be brought in the country. It can operate for the period of 5 years prior to renewal.

Joint venture: it can be described in accordance with the general criteria; a group of natural or legal persons who reunite in order to develop a communal activity. In Thailand, it is not recognized yet as the legal entity from the Civil and Commercial Code. However, it is subject to the corporation tax, in accordance with the Fiscal Code.

Law of the foreign investment
for commercial tertiary and operations in Thailand, a local partner (legal or natural person) who holds the majority of shares of investment is required. It is possible that the local partner holds the corporate control for productive plants but not re-enter in the sectors reserved to Thai people. In any case, the Thai partner does not need to be thoroughly involved in the activity management. The forms of possible investment are: single ownership, capital company (limited-liability company or limited company), joint venture, branch or representative office (the latter under revision). If a partnership or joint-stock company transfers the profit coming from a branch established in Thailand or from economic activities exercised in Thailand to overseas, the company is subject to the tax 10% of the remittance, besides the income tax of juristic person.

Licenses and Intellectual Property
The “Trade Mark Act” disciplines the matter regarding the registration and type of protection of trade mark, service brand, patent and collective trade mark, and protect the owners of trade mark by penalizing those who break the law on the rights of Intellectual Property.
The discipline related to the licenses, models of utilities and designs is contained in “Patent Act” of 1979, amended from “Patent Act” (no.2) of 1992 and “Patent Act” (no.3) of 1999 respectively. The title of licenses, one model of utility or one design has the exclusively right to use, authorize, construct, distribute and import products and patented processes in Thailand. The “Copyright Act” brought Thailand to the international standard required from the TRIPS agreement.

Tax System
Personal income taxes: the shares of the income tax vary from 5% on the first 1.607 Euro to 37% beyond the 83,333 Euro of annual income.

Corporate income taxes: taxation system on world-wide base. The share of tax is 30%.

The companies: whose plans of investment have been approved from Board of Investment, benefit the exemption from the corporate income tax for 3 years (if located in zone 1), 5 years (if located in zone 2), and 8 years (if located in zone 3). The system is being completely reviewed and will be modified with the greater consideration the validity of the plan that localization. The commercial transactions are burdened from VAT (Value Added Tax) whose share was being reduced in March 1999 from 10% to 7% in order to stimulate the inner demand.

Banking system
It is articulated in 13 national commercial banks, 13 Thai branches of foreign banks and 42 representative offices of foreign banks beyond to various state bank institute, specialized in long term financings.

The beginning of the year 2004, IFCT was founded with other 3 bank institutes; DBS Bank of Singapore, DBS Thai Danu Bank and Thai Military Bank. After the unity of 4 bank institutes, consequently, it was the birth of the biggest fifth banking group in Thailand, with one equal market share to 11%.

The other public bank institutes for long term financing are: the bank of agricolture and Agricoltural Cooperatives which provides easy-terms financingfor agriculturists for buying agricultural machinery, fertilizers, chemical products; the Government Housing Bank which grants financial support for house purchase; the Export and Import Bank finances the commercial activities with foreign country; the Small Industries Finance Corporation supply financial support to companies with the registered capital inferior to than 261,900 Euro and it has obtained in August 1999 the government funds for a recapitalization; the Government Saving Bank manages the deposits of small savers; the SME development Bank provides financial support to small-medium business enterprise.

Creditor Rates
Thai Banks 0.5 – 1.25% (deposit account), 1.25 – 1.5% (fixed account) Foreign Bank 0.00 – 1.25% (deposit account), 0.25 – 1.5% (fixed account).

Studies of pre-feasibilities, feasibilities and technical attendance D.M. 136/00

Foreign Investments Law 100/90
Credits to the legislative exportation decree Law 227/77
Commercial penetration Law 394/81
International Competitive Law 304/90
Services technique-business scouting
Insurance of the political risks SIMEST-MIGA Agreement

The boom of the foreign investment in Thailand has determined the birth of Industrial denominated Area IEs (Industrial Estates); these areas generally include industrial zone (GIZ) and export-processing zone (EPZ). The enterprises dislocated in the EPZ can benefit the tax exemptions granted from the B.O.I and vary in relation with geographical area in which the investment is effected. For this propose Thailand was divided into 3 zone; zone 1 (Bangkok, Nakhon Pathom, Nonthaburi, Patumthani, Samutsakhon and Samutprakarn) is possible to obtain tax exemption of modest entity, meanwhile zone 2 (Rayong, Phuket, Samutsongkhram, Ratchaburi, Kanchanaburi, Suphanburi, Angthong, Ayuttaya, Saraburi, Nakhon Nayok, Chachoengsao, Chonburi) and zone 3 (includes every provinces to minor industrial development especially North, South and East of the country) is granted the greater facilitates.

Agreement on double imposition
For the effect of Italian - Thai agreement about dividends, royalties and interests corresponded to the residents in Italy, one apply the tax deduction of 10%, 15% (5% concerned about features of literary, artistic and scientific works copyrights) and 10% respectively. On February 1983, Italy-Thailand signed bilateral agreement about the technique and economical co-operation.

Labor Organization: the first labor associations were founded in 1975, after the approval of “Labor Relations Act”. However the recent Labor Relations Act of 1991 has newly posted the 2 fundamental limited rights of workers: prohibition to the counterfeit and prohibition to the public employees to be associated in labor organization. The law is now on the revision phrase.

Tension	Price per unit Peak hours (9-22 Monday-Friday)	Price per unit Full hours (22-9 Monday-Friday) (0-24 weekend and festival)	Price/month
Tension superior to 69 kV	0.0523	0.0235	4.5661
Tension 22-23 kV	0.0539	0.0238	4.5661
Tension inferior to 22 kV	0.0569	0.0245	4.5661