:: Legal Issues for Foreign Investors : 4. International Banking Facilities
A. Bangkok International Banking Facility
On September 16, 1992 the Ministry of Finance and the Bank of Thailand established rules and conditions for commercial banks to establish international banking facilities in Thailand. The annual fee for participants is 500,000 baht.
A commercial bank that receives a license will be able to undertake international banking facilities (IBF) business for:
Other Related Business
Cross-currency transactions with overseas customers, other IBF businesses, the Bank of Thailand, the Ministry of Finance, the Foreign Equalisation Funds, banks licensed under the foreign exchange control laws, or local customers to whom such IBF businesses have lent foreign currencies
- Giving acceptance or guarantee against any debts in foreign currencies when either:
- The bank is licensed under the foreign exchange control laws; or
- The parties involved reside outside of Thailand.
However, these activities must be separated from the accounts of the IBF business - as if the commercial bank were a separate juristic person.
B. Conditions for Participating in BIBF
The Bank of Thailand stipulates that the IBF must be separate from other banking business - as if it were a separate juristic person. In addition, the IBF business in offshore lending must be separate from the IBF business in local lending, and the IBF business in local lending cannot transfer or raise funds to the IBF for offshore accounts.
Customers of IBF are required to provide their actual names, addresses, and information for correspondence, and the names on the accounts must be the actual names of customers.
(% of net income)
(% of revenue)
Profit Remittance Tax
3.3% or 10% VAT
10% or 15%
* Withholding tax paid on interest for O-I lent to State Enterprises is exempted
** Tax on fee of O-O loan syndication exempted if:
General Information, Taxation in Thailand part 1
Taxation in Thailand part 2
Tax annual personal permit, Other Taxes
Tax Courts & Customs Duties
Frees trade zones, warehouses and its Qualifications
Benefits: Importation, Goods exempt from duty payment
Import and Export Regulations, Procedures for establishing a company
Types of Business Organisations,
Regional Offices and description
Foreign Business Act list 1-2
Foreign Business Act list 3
Miscellaneous Issues, Licenses
Work Permits, Special Cases, Procedures
Required Documentation, Permitted Activities, Restricted Occupations
Visas and Immigration Law, Non-Immigrant Visa
International Banking Facilities, Conditions for Participating in BIBF
Stock Exchange, Guidelines for Equity Holding in Financial Institutions