CHAPTER
18
EXCHANGE
CONTROLS
The basis for currency exchange
restrictions in Thailand is to be found in the Exchange Control Act (1942).
Under this Act, Thailand regulates the manner in which money is brought into,
taken out, or in certain cases, held in the country.
Historically, the Bank of Thailand
has been in charge of enforcing exchange control requirements. However, it has
been policy for a long time for exchange controls to be gradually eased, with
the responsibility for enforcement being transferred to commercial banks,
rather than the Bank of Thailand itself.
Authority delegated to commercial
banks While the Bank of Thailand
administers the exchange control program, in many cases it delegates power to
commercial banks or other institutions.
Foreign currency A person who is living in Thailand is permitted to use foreign exchange
that originates from abroad to service his external obligations. Normally, and
unless a special exception exists, any persons receiving foreign currency are
required to sell or deposit their foreign currency with an authorized agent,
within seven days from the date of receipt.
Local currency There is no restriction on the amount of Thai currency that may be
brought into the country. A person travelling to Thailand’s bordering countries
may take out local currency up to Baht 500,000 and to other countries may take
out up to Baht 50,000 without authorization.
Foreign currency accounts Companies and individuals resident in Thailand may open foreign
currency accounts in Thailand provided that:
2. The depositor must submit the
documents that show obligations to pay in foreign currency to persons in
foreign countries or authorized banks or the Export - Import Bank within 3
months of the date of the deposit.
3. Withdrawals may be made either for
payments of normal business transactions to persons outside the country upon
submission of supporting evidence, or for conversion into Baht at authorized
banks.
4. The total amount of daily
outstanding balance in all accounts must not exceed US$5 million for a juristic
person and US$ 500,000 for an individual.
5. Non-residents may freely open and
maintain foreign currency accounts with authorized banks in Thailand. No
restrictions are placed on the opening of the accounts as long as the funds
originate from overseas. Balances on such accounts may be transferred without
formality.
Non-resident Baht accounts Non-residents may open such accounts with any authorized banks in
Thailand. They may be freely credited with proceeds from sale of foreign
currencies originating from abroad, with amounts transferred from other
non-resident bank accounts, with import payments and with authorized payments
that may be approved by authorized banks. No restrictions are imposed on
drawing funds from the accounts including conversion into foreign currencies
for remittance abroad.
Exports There are no exchange controls relating to exports, but proceeds of exports
must be brought into the country immediately after payment is received and
within 120 days from the date of the export.
Imports Importers may freely purchase or draw foreign exchange from their own
foreign currency accounts for import payments. Letters of Credit may be opened
without authorization.
Transactions on invisibles All receipts from invisibles must be surrendered to an authorized bank
or deposited in a foreign currency account with an authorized bank within 15
days of the date of receipt. Payments for invisibles such as services related
to foreign trade, educational purposes or family allowances abroad can be made
freely. For travelling expenses abroad, a resident can take out foreign
currency without limit.
Foreign investments Prior approval is required in many cases in order to invest or lend
abroad but prior approval is not required in order to invest money in Thailand.
Foreign investments in Thailand that receive promotional privileges from the
Board of Investment are accorded various incentives and special benefits.
Repatriation of investment funds, dividends and profits as well as loan
repayments and interest payments thereon, may be made freely after settlement
of all applicable taxes in Thailand.
Information reports and bank records Each receipt or payment in foreign currency in an amount of over
US$5,000 must be reported to the Bank of Thailand for record purposes. Banks
must keep records of documents supporting remittances. In some cases, it is
necessary to show reports of inward remittance of funds to support certain
privileges such as: the purchase by a foreigner of a condominium, the
application of a foreigner for a residence permit or for obtaining Board of
Investment privileges.
Revised 1 December 2006