Thai Representative Office

Thai Representative Office

The Thai representative office can have 100% foreign ownership and is not taxed with corporate taxes in Thailand. However, it cannot provide commercial services nor derive any income. A Representative Office is characterized by the following features:

  • It does not receive any revenue from providing services
  • It cannot receive purchase orders or make sales or negotiate business with third-parties
  • Its expenses are paid entirely by the head office
  • It is not subject to any corporate income tax, except for interest on funds deposited in its bank account

A Representative Office is defined as the office that a foreign company sets up in Thailand in order to engage in the following international trading activities:

  • Reporting on business movement in Thailand
  • Providing advice related to products that are being sold to distributors or customers
  • Sourcing goods and services in Thailand
  • Inspecting and controlling the quality and quantity of goods purchased or ordered to be manufactured in Thailand
  • Introducing information regarding new products or services

The Representative Office is strictly limited to the above five activities and may engage in any or all of them. However, if the Representative Office were to offer some service outside of this defined scope, then the Revenue Department would be empowered to subject the Representative Office to the regular Thai corporate income tax on all of the income it has received; this includes all of the support income that the Representative Office receives from its head office.

The following business activities are outside the scope of activities of a Representative Office:

  • Making any purchases or payments or any related business transactions on behalf of the head office or affiliated companies
  • Making exports of any products ordered by the head office or affiliated companies
  • Performing quantity and quality control for unaffiliated companies
  • Performing after-sale services such as installation or maintenance
  • Providing advice regarding products that are produced by unaffiliated companies
  • Accepting purchase orders on behalf of the head office or affiliated companies
  • Coordinating the sales of products on behalf of the head office or affiliated companies
  • Publicizing products or service which are already available in Thailand
  • Acting as an agent or distributor between the head office or affiliated companies
  • Performing any planning or coordination with other entities on behalf of the head office or affiliated companies
  • Acting as the agent of the head office or affiliated companies in any contracts or any business transactions
  • Making business reports to unaffiliated companies

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