Amity Treaty?

[migrant]

I couldn't find any info to see if the Dec 5 expiration date was final, or if renewed. Does anyone know??

[Sunbelt Asia]

I couldn't find any info to see if the Dec 5 expiration date was final, or if renewed. Does anyone know??

Reported it before in several posts. Happy to post it again...

Extended indefinitely. The new government likes it so no more 90 day cycles. Please be aware this being Thailand, that laws can change. If you are thinking of doing Amity, then do it sooner than later.

www.sunbeltasiagroup.com

[migrant]

I couldn't find any info to see if the Dec 5 expiration date was final, or if renewed. Does anyone know??

Reported it before in several posts. Happy to post it again...

Extended indefinitely. The new government likes it so no more 90 day cycles. Please be aware this being Thailand, that laws can change. If you are thinking of doing Amity, then do it sooner than later.

www.sunbeltasiagroup.com

Thanks, as always Sunbelt! Thought I always check new posts, but must have missed it.

[Sunbelt Asia]

Thanks, as always Sunbelt! Thought I always check new posts, but must have missed it.

You are welcome. It is indeed good news.

This is a excerpt from an article I wrote for the latest issue of The American Chamber of Commerce in Thailand magazine.

LEGALLY, HOW CAN YOU OWN A BUSINESS IN THAILAND?

If you are a U.S. Citizen, you often own up to 100% of a business in Thailand under the “national treatment” provisions of the 1966 Treaty of Amity and Economic Relations (“Treaty”) between the U.S. and Thailand.

WHAT IS THE TREATY AND WHOM DOES IT BENEFIT?

The Treaty allows U.S citizens and American majority owned and managed business. That is, Americans may generally engage in business in Thailand on the same basis as Thais, and are exempted from most of the restrictions on foreign investment imposed by the Foreign Business Act of 1999. In return, Thais are extended the right to invest in the U.S. and Thai businesspersons and their families are eligible to receive visas to live and work in the U.S. as “treaty traders” and “treaty investors”.

Under the Treaty, there are six broad exceptions. If a U.S. investor is to engage in any of the following activities, the “national treatment” principle does not apply, and the investment is subject to the rules stated in the Foreign Business Act: engaging in domestic trade in indigenous agricultural products, and exploiting land or other natural resources (includes owning land, unless specifically allowed by Thai law, such as by Board of Investment promoted businesses).

On August 20,2009 all U.S.-owned companies operating in Thailand under the Treaty are required to comply with the same minimum registered capital rules as other half or more foreign-owned companies, which generally means a minimum capital of Baht three million.

U.S./Thailand Amity Treaty Awareness:

• Because of Thailand’s obligations to the World Trade Organization, the Treaty’s “national treatment” benefit may be stopped by the Thai government. The benefit is currently being reviewed by Thailand every 90 days and the next date review date is December 5, 2006. ( This has now been made extended indefinitely)

• Some feel Thailand’s ending of the “national treatment” benefit, when and if it occurs, may even apply to U.S. majority owned business previously registered under the Treaty. However, since over U.S.$20 billion is invested in Thailand under the Treaty, this option may not be chosen and so Treaty registered American business could then be grandfathered.

• When an American investor gets Thai government “national treatment” entitlement recognition under the Treaty it receives a Business Certificate confirming the right to conduct business. This Certificate is much easier to obtain than a Foreign Business License.

www.sunbeltasiagroup.com

[The Skipper]

How difficult is it for an Ammity Co holder, to get a work permit?

[Sunbelt Asia]

How difficult is it for an Ammity Co holder, to get a work permit?

The same as if it was a non-Amity Co. For our firm at least, getting a work permit has never been difficult.

www.sunbeltasiagroup.com

How Thailand can change. Two months ago, this was the case. Now and this may change in the next week, it is difficult to get a work permit for an Amity Company, if you do not have three million Baht.

www.sunbeltasiagroup.com

.

[Dr. Burrito]

I've heard there is a higher capitalization standard for a Treaty of Amity company than for others. Is that correct?

Thanks,

Dr. B

[Sunbelt Asia]

I've heard there is a higher capitalization standard for a Treaty of Amity company than for others. Is that correct?

Thanks,

Dr. B

It will be three million Baht on August 30th 2009. As of now, it can be any capitalization.

If you need a work permit, as of NOW, it needs to be two million Baht registered capital but the Labor Dept needs to see three million Baht that came from overseas. These funds can be used as operating capital.

For a sole proprietorship, you do not need the three million Baht sent from overseas. You will need to have

1. Payment of 50,000 Baht tax last year

2. Employ 4 Thais

If you are married to a Thai, it can be 2 Thai employees or you paid 25,000 Baht in taxes last year.

www.sunbeltasiagroup.com

[stoneman]

It is my understanding that because Thailand has signed the WTO and are bound by those rules, the Amity Treaty is in direct violation of those rules. The American Embassy and the Thai Commerce Dept are both aware of this, but continue to approve Amity companies for US citizens. But if a strong protest would be lodged, they might be stopped...SunBelt can you comment on this...