The Exchange Control Act, B.E. 2485 (A.D. 1942), as amended, governs all matters involving foreign exchange. As a general rule, all matters involving foreign currency are regulated by, and require the permission of, the Bank of Thailand. Since May 22, 1990, however, foreign exchange control has been considerably relaxed by the Bank of Thailand. At present, certain transactions in Thai Baht or foreign currency can be performed virtually without restriction, and only a few require approval from the Bank of Thailand.
A. Importation of Funds
B. Repatriation of Funds
Repatriation of investment funds, dividends and profits as well as loan repayments and interest payments thereon, after settlements of all applicable taxes, may be made freely Similarly, promissory notes and bills of exchange may be sent abroad without restriction.
C. Foreign Exchange in Business Transactions
Foreign Currency Accounts of Thai Residents
Thai individuals and juristic persons in Thailand are allowed to maintain foreign foreign currency accounts under the following conditions:
Foreign Currency Accounts for Non-Thai Residents
Non-residents can open and maintain foreign currency accounts with authorized banks in Thailand. The deposits must come from funds originating abroad. Balances on such accounts may be transferred without restriction.
Non-Resident Bank Account
Non-residents may open an account with any authorized bank in Thailand. They may freely credit the account with:
Importers may freely purchase or draw foreign exchange from their own foreign currency accounts for import payments. Importers need not seek approval from the Bank of Thailand, but must submit form F.T. 2 to customs, together with the Bill of Lading when importing goods valued at more than 500,000 Baht or its equivalent per transaction.
Exports are free from any foreign exchange restrictions. However, proceeds of exports valued at more than 500,000 Baht or its equivalent per transaction must be received within 120 days from the date of export and must be surrendered to an authorized bank or deposited in a foreign currency account with an authorized local bank within seven days from the date of receipt.
Transactions of Invisibles
The remittance of amounts properly due to non-residents is permitted for items of a non-capital nature, such as service fees, interest, dividends, profits and royalties, provided supporting documents are presented to an authorized bank. Travelling expenses or educational expenses of residents are also freely permitted upon submission of supporting evidence. Proceeds from invisibles must be surrendered to an authorized bank or deposited in a foreign currency account with an authorized bank in Thailand within seven days of receipt.
Residents may hold and trade domestically in gold jewelry, gold coins and gold bullion. The import and export of gold other than jewelry was in August 1999 freed from licensing controls previously imposed by the Ministry of Finance.
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