Property market in Thailand is booming. One of the most famed destinations in South-East Asia, Thailand is a highly sophisticated tourist spot with a universal appeal. For many reasons, investing in Thai property market is regarded as beneficial. Many foreigners, inspired by the serenity and beauty of such Thai destinations as Koh Samui and Pattaya, have chosen Thailand as their destination to spend retirement life.

Even retirement visas are available for foreigners of more than 50 years of age. Thailand also boasts of well-maintained infrastructure, apart from superb schools and state of the art medical centers. Its growth is further enhanced by the completion of the Suvarnabhumi-Bangkok International Airport (SBIA.) Apart from these, the country is one of the cheapest destinations to fly. All these make Thailand a great place to live in.

When comes to property market, Thailand has a number of properties, ranging from very cheap to very expensive, based on the nature of the location. No matter it is commercial property, industrial property, or residential property, the country has excellent options. Commercial property in Thailand includes executive home office coupled with reception and waiting rooms, cubicles, and board rooms; office spaces with huge reception areas; and shophouses, which are ideal for retail, spa, and beauty salon establishments.

Likewise, excellent property is available in the beach areas of Central Thailand, Eastern Thailand, and Western Thailand for conducting such businesses as small bar, restaurants, and resorts. In the case of residential property, choices are truly endless. Few among the residential property choices are apartments, serviced apartments, houses, townhouses, villas, condominiums, and flats.

Fully furnished condominium units, Mediterranean style villas, and apartments are among the most favored residential choices among expatriates seeking luxury and excellent facilities. Townhouses, mostly located on the outskirts of the city, are a great choice for people looking for inexpensive options. Likewise, serviced apartments are preferred by business travelers, and are regarded as an excellent alternative over high-end hotels and resorts.

In order to cater to the varying needs of both local and foreign investors, a myriad of real estate firms and property agents are in Thailand to help find a property that goes according to the requirements and budget of investors. A good number of international property consultant firms also operate here in order to assist investors in facilitating effective as well as successful investment in international properties.

No matter you are looking for a property for investment in Thailand or property located in some other countries, an international property consultant firm can guide as well as assist as per your specific needs. Usually, these types of firms undertake a range of services in connection with real estate, such as, property search, research and consultancy, providing services with regard to sales as well as leasing, residential project marketing, overseas marketing, market positioning advice, valuation and advisory, lease management, property management, and after sales services covering leasing services and rental remittances.

One of the prime benefits of leaning on the services of international property agents is that they can easily find you your dream property and that too in your desired location. A specialty of international property firms is that they usually consist of a network of offices and partners in several countries. This in turn enables firms to make you well-informed regarding the property market not only in Thailand but also in other countries. They can also provide you with valuable advice, economic information, and market analysis reports, all of which help you to take effective investment decisions.

In addition, in most cases, these types of consultants boast of more than 500 property professionals, who can provide comprehensive services in all arenas of property consultancy. Other benefits of these firms are extensive research, professional services, excellent market knowledge, and global reach.

Reporting requirements and accounting policies are decided by the Civil and Commercial Code, the Revenue Code and the Accounts Act. The accounting standards in Thailand are issued by the Institute of Certified Accountants and Auditors of Thailand.

These standards have usually been manufactured from International Accounting Standards (IAS), or from generally recognized accounting standards (GAAP) prevalent in the United States.

There are mainly two taxes that have a direct impact on businesses functioning in Thailand. They are the Corporate Income Tax and Value Added Tax.

All business firms operating there must possess a taxpayer identification card inside sixty days after establishment. The corporate income tax rate is calculated as 30% of net profit. Corporate taxes are payable semi-annually. Financial statements must be created by a company auditor annually.

The Revenue Department insists that accounts must be in the Thai language. The books must be placed at the business centre for ten years. Corporate Income Tax (CIT) is a direct tax imposed on a juristic company or alliance which is functioning under Thai or foreign law and performs business in Thailand or makes certain types of income from Thailand.

The usage “juristic company or alliance” implies a limited company, a limited alliance or a registered ordinary alliance operating under Thai or foreign law as well as an association and an institution involved in business which brings revenue. The usage also covers any joint venture and any trading or profit-seeking activity performed by a foreign government or its agency or by any other juristic body listed under a foreign law.

Value Added Tax was established in 1992. The VAT is imposed to each stage of the production process, and is payable at a monthly basis. The VAT is levied at a rate of 10%. Exports, domestic transportation and some other sales are freed from VAT. Any person or entity who supplies goods on a continuous basis or delivers services in Thailand and has an annual income in excess of 1.2 million Baht has to pay VAT in Thailand.

Service is regarded to be provided in Thailand if the service is carried out in Thailand no matter where it is made use of or if it is carried out somewhere else and made use of in Thailand.

Some other taxes also need to be considered. It includes the Specific Business Tax, the Remittance Tax, and the Personal Income Tax. Specific Business Tax (SBT) is another type of indirect tax launched in 1992 to substitute Business Tax. Certain businesses will come under Specific Business Tax in place of VAT.

Businesses that come under SBT comprise of Banking, Financial and similar business, life insurance, pawn brokerage, real estate and any other business acknowledged by the Royal Decree i.e. business involves in repurchasing agreement (REPO) and factoring.

While the Remittance Tax has an impact on branch offices, the Withholding Tax, the Personal Income Tax, is calculated at 30-37% for income crossing the mark of $40,000, and the petroleum, stamp duty on some transactions, excise taxes on numerous goods such as liquor and tobacco, and property taxes.

When you consider the Taxation in Thailand the impact of Double Taxation Treaty must have to be mentioned. The U.S. and Thailand agreed on a tax treaty in the year 1996. The treaty will exempt double taxation, allowing U.S. investors to have a credit against their U.S. tax obligations for taxes spend in Thailand, as well as other benefits. The treaty will come into effect in 1998.