Thailand

Standards

National standards organizations

Integration in the international standards network

Thailand Industrial Standard Institute (TIST) manages and controls the technical norms as well as the programme of national certification in Thailand. It issues the right to use the TIST symbol on National products. In order to obtain further information, you can contact TIST.

Classification of standards

Online consultation of standards

Certification organizations

Legal framework

Independence of justice

When under civilian rule, judiciary is generally regarded as independent though it is subject to corruption and heavy backlog of cases.

Equal treatment of nationals and foreigners

Foreign nationals can normally expect impartial trial from the country’s judicial system.

The language of justice

Thai is the judicial language used in Thailand, though English is widely used.

Having recourse to an interpreter

It is possible to have access to a transleter.

Sources of the law and legal similarities

Thailand is a constitutional monarchy based on parliamentary democracy. Thailand (official name: Kingdom of Thailand) has a history of being governed, off and on, by military; the most recent being the army coup of September 2006. Thus an environment of political instability prevails in the country.
The King is the chief of the state. The monarch is hereditary. King has little direct power but commands enormous popular respect and moral authority which he has used on occasion to resolve political crises that have threatened national stability. Following national elections for the lower house of the parliament, the leader of the party that can organize a majority coalition is appointed as Prime Minister by the King for a four-year term. Prime Minister is the head of the government and holds all the executive powers including implementation of the law in the country and running the day-to-day affairs. The cabinet is appointed by the King on recommendation of the Prime Minister.
The legislature in Thailand is bicameral. The parliament called National Assembly consists of: Senate (the upper house) having 200 seats with its members elected by popular vote to serve six-year terms and the House of Representatives (the lower house) having 500 seats with its members elected by popular vote to serve four-year terms. The executive branch of government is directly or indirectly dependent on the support of the parliament, often expressed through a vote of confidence. Government cannot veto the acts passed by the parliament.
When not under military rule, the people of Thailand enjoy considerable political rights. The coup of September 2006 has taken place after 15 years of civilian and democratically-elected governments.
When under civilian rule, judiciary is generally regarded as independent though it is subject to corruption and heavy backlog of cases. The main source of law in the country is the new constitution of October 1997. The legal system is based on civil law system. Thailand has not accepted compulsory ICJ jurisdiction. Thai is the judicial language used in Thailand, though English is widely used. When under civilian rule, Thailand is largely ruled by law. Foreign nationals can normally expect impartial trial from the country’s judicial system. Official corruption is widespread in the country. It is also alleged that the nexus between politics and big business is strong and growing.

Consulting national laws online

Intellectual Property

National organizations

Thailand is part of the Convention leading to the establishment of the World of Intellectual Property Organisation (OMPI/WIPO) but it is not signatory of the Paris Convention for the Protection of Industrial Property nor any other international convention. However, the country has passed a huge number of bilateral agreements on the protection of industrial property.
In order to be protected in Thailand, patents must be registered in the country itself: the Patent Act no. 2 of 1992 protects letters patents over a period of 20 years and industrial design patents over a period of 10 years. Trademarks are protected by the Trademark Act of 1991. Protection can be renewed for additional 10 years. The institution responsible for the registration and protection of industrial property is the Trade Department in the Ministry of Commerce.

Tax rates

Accounting rules

Tax year

The fiscal year begins on January 1st and ends on December 31st of the same year.

Accounting regulation bodies

Accounting reports

The period of an accounting year is 12 months.
Each entry can be registered in a foreign language.
The code allows to use various depreciation rates according to the nature and to the assets classification.
On the other hand, depreciation rate used in the various accounting books, must be used in the tax return of the income tax.
The pension funds taxes are not deductible, unless they are redistributed to the employees or approved by the managing department.
The dividends of actions are taxable as common dividends and can be declared only if there is a real increase of the capital.

Publication

Each company has to produce a balance sheet and a profit and loss account for each accounting year.

Professional accountancy bodies

Certification and auditing

The external control of accounts must be given to a body of auditors chosen by the company and by the commercial department of the ministry of Treasury.

Accounting news

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