A Representative Office in Thailand is still recognized as a corporate entity of a foreign firm. However, what makes it unique is the limitation of its activities in the Kingdom. Conditions are in place for the said office’s functions in the country and if these conditions are breached, tax which are otherwise non-applicable to a representative office will be imposed.
As what have stated earlier, the scope of functions of a representative office in Thailand is limited to non-income generating activities such as:
The Thai government will deem the representative office as doing business in Thailand if the said office functions outside of those stated above. Additionally, if income is established for doing those activities, the representative office will be taxed accordingly.
Furthermore, it may be found that the representative office has violated the conditions set in establishing a representative office (for doing income-generating activities and the like) and it may lead to the cancellation of the license.
Siam Legal is a full service law firm based in Bangkok but has a number of branches strategically located all over Thailand. It provides in depth service tailor-fit for its clients, both local and foreign companies.
It is a wise decision for companies and individuals, who are looking forward to establish representative offices in Thailand, to seek the expertise of Siam Legal with regards to everything about the subject.
They should remember that it is highly essential for them to fully understand the scope of functions of a representative office in Thailand and Siam Legal is among the best in providing representative office-establishment related activities.