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Doing Business in Thailand Doing Business in Singapore Doing B

One of the largest nations in Southeast Asia, Thailand is part of the Indochinese Singapore is a city-state in southeast Asia, situated at the southern tip of Malaysia. Indonesia lies be
Peninsula, and lies between Myanmar, Laos, Vietnam, Cambodia, and Malaysia. Established in the 19th century as a trading post, Singapore is now the 36th-largest of thousands of
Although considered an emerging economy, Thailand is the second largest in Asia economy in the world, and was ranked 2nd in the World Bank’s Ease of Doing Sulawesi. Home
(behind Indonesia), with a GDP of around $670 billion. As a newly-industrialised Business Survey 2018. The city plays a major role in global commerce, acting as a population in the
country, Thailand is heavily export-focused: exported goods and services make up two- gateway to the wider APAC region and attracting significant amounts of foreign Indonesia’s econ
thirds of the country’s GDP, amount to $105 billion of revenue each year, and include investment. Singapore hosts over 7,000 international businesses, offering them a growth rate of 6%
electrical and computer components, cars and automotive parts, agricultural products, favourable bureaucratic environment and corporate tax rates capped at 17%. Major stimulating gove
and textiles. With the manufacturing, tourism and energy industries growing in industries in the city include financial services, manufacturing and a range of high natural resource
importance over the 20th century, Thailand’s economy is diversifying, and the country technology products. A parliamentary republic with a stable political and economic to the economy,
now boasts one of the lowest unemployment rates in Asia. Thailand is a member of system, Singapore holds a significant amount of regional influence: it is one of five products and pa
ASEAN, the UN, and the WTO, and was ranked 26th in the World Bank’s Ease of Doing founding members of ASEAN, a member of the East Asia Summit, and hosts the Asia- produced 1.18 m
Business Survey 2018. Pacific Economic Cooperation Secretariat. Indonesia is a fo
part of the G20,

Invest Why invest in Thailand? Why invest in Singapore? Why Invest

Thailand’s economy offer numerous reasons for investment. These include: Singapore's growing economy is fertile ground for business - and provides a range of
Financiers will fi
investment opportunities:
 Economic potential: In 2016, Thailand was ranked 14th on Deloitte’s Global
 Governm
Manufacturing Competitiveness Index, and 2nd on the World Bank’s survey of  International gateway: Singapore is an international trade hub and a gateway to
measures t
Emerging Economies in East Asia. From 2010 to 2016, Thailand experienced 21% the APAC region. Businesses in the city take advantage of strong communication
include stre
growth in foreign direct investment. and transport links (including air and sea), while benefiting from trade agreements
open the co
 Association of Southeast Asian Nations: Thailand is part of the ASEAN Economic with a number of neighbouring markets.
 Economic
Community (AEC), which gives its businesses access to markets across the
 Tax rate: The corporate tax rate in Singapore is capped at 17%, attracting a the early 20
region (around 616 million customers), and allows for the free flow of goods,
range of international corporate interests. Singapore also offers a range of tax 2013, Indo
labour and services between members. Thailand also has numerous FTAs with
advantages, including progressive personal income tax rates, no capital gains tax, Doing Busi
countries in every corner of the globe, including China, Japan, Canada, Australia
and no tax on foreign income for non-resident taxpayers.  Market P
and the EU.
people eac
 Regional connectivity: The quality of Thailand’s roads has been ranked 12th in  Economic strengths: Singapore is a highly developed economy and leads the
Indonesia’s
Asia by the World Economic Forum - this represents 465,000km of highway, world in a number of sectors. The major industries of Singapore include
huge demo
connecting every province in the country. Thailand’s businesses also benefit from manufacturing, oil refining and financial services, while a range of emergent
 Regional
4000 km of railway that connect the country internally, and to neighbouring sectors, such as integrated electronics, big data, and biomedical sciences, are
including C
markets. becoming prominent.
efficient tra
 Financial incentives: Thailand’s corporate tax rate is a competitive 30%. The Thai
 Regulation: Businesses in Singapore benefit from a robust and transparent offering exc
government also recently introduced Special Economic Zones with added financial
regulatory framework, with a range of checks and balances in place to ensure  Tax Incen
incentives for certain industries, such as a reduced corporate tax rate (or even tax
fairness and security for the organisations operating within the city. streamlined
 exemptions), rights to foreign labour, free import duties and low interest rates.  Skilled labour: Singapore’s high-profile status in APAC - and across the world - rate to 25%
 Workforce advantages: The workforce of Thailand is one of the most skilled and attracts some of the best talent to its professional roles. Businesses in the city are range of fin
cost-effective in the region. Highly literate and educated, Thai employees also able to recruit from a competitive pool of highly-skilled employees.
embody a friendly, flexible culture, and a desire to succeed.

Type of Foreign Direct Investment in Thailand Foreign Direct Investment in Singapore Foreign Dire
The Singapore Economic Development Board (EDB) attracts Investment Funds on a
company The Government of Thailand welcomes inward investment from foreign investors to Indonesia has b
large-scale, despite the city's relatively high-cost operating environment. Singapore’s
help develop the economy. Some incentives are available to encourage investors to continues to be
stable and corruption-free government, highly skilled workforce, and efficient
support emerging industries within Thailand. Coordinating Bo
infrastructure, has attracted investments from thousands of global businesses from
business and go
Registering a Company and Establishing an Entity in Thailand around the world.
investment throu
The company is required to have a legal entity established in order to process a payroll. Registering A Company and Establishing an Entity in Singapore President of the
The timescale for completion of this process is one - two months. Typically foreign A company is required to apply online for submission of Central Provident Fund unemployment.
investors will do business in the form of a limited company, branch or representative contribution details via CPF Auto-excel Plus (AX Plus) - using their representative’s
Every three yea
office. There are different regulations and different tax issues for each form. The most SingPass, and entity’s Unique Entity Number (UEN). The application will take
negative list) spe
common is the limited company. approximately 2-3 working days.
open subject to
Limited company Once the application is approved, the company will receive an Email and Welcome open to 100% fo
Letter containing the CPF Submission Number (CSN), Payment Advice (CPF91) and include defense
Formation of a limited company is regulated by the Civil and Commercial Code. There
an Application for Interbank GIRO form. The company is required to quote the CSN
must be at least three persons to form a company; they must subscribe their names to Sectors that are
when transacting with the CPF Board, e.g., paying CPF contributions or
a memorandum of association (MOA) and then register. Upon receiving the amount of maximum foreig
correspondence.
shares, the director must register the company within three months from the date of requirements, su
company’s meeting to establish the company. If more than 49% of the shares in the From Q3 2018, Singapore Corporate Access (CorpPass) will be required for all local
limited company are owned by non-Thai nationals then the company is subject to the
Registering
entities with a Unique Entity Number (UEN), and for foreign entities who wish to access
Indonesia
Foreign Business Act and the restrictions that it imposes. Government-to-Business (G2B) digital services in Singapore. Individuals and local
entities without a UEN will continue using their SingPass to transact with the Investment mus
Branch Office
Government. CorpPass is a one-stop authentication and authorisation service, for existing limited l
In Thai law the branch and its head office are a single legal entity. This means that the corporate users to transact with Government agencies online on behalf of their the negative list
head office is liable for lawsuits brought against its branch in Thailand. The head office organisations. For more information, visit https://www.corppass.gov.sg. association, whi
will be required to pay tax on transactions in Thailand, even when the Thai branch is not
involved. Business Banking in Singapore Foreign Investor
It is not mandatory to make payments to employees or the authorities from an in- Principle Approv
Representative Office country bank account in Singapore. working days aft

This form of company can only partake in limited business activities. This office is documentation,
Working Days and Working Hours in Singapore
forbidden from rendering services for anyone other than its head office. It can only longer than this.
It is not mandatory to make payments to employees or the authorities from an in-
receive funds from its head office. country bank account in Singapore. For certain lines
Treaty of Amity recommendation
before BKPM wi
 The Treaty of Amity is a treaty between the US and Thailand, which creates favourable, Once BKPM app
trade conditions. The treaty allows citizens of the US to establish a business in Thailand invest in a PMA
with majority ownership, this is usually prohibited under the Foreign Business Act – approximately 4
usually the majority owner must be Thai national(s). A company can register under the
You are required
Treaty of Amity if at least 51% of the company shares are owned by US citizens.
filings on behalf
Usually the directors of the company have to be US citizens. It should be noted that this
professional org
exception for US citizens does not extend to all types of business activity.
Business Ba
Business Banking in Thailand
It is not mandato
It is not mandatory to make payments to both employees and the authorities from an in-
country bank ac
country bank account. Working Days and Working Hours In Thailand The working days
is used to make
in Thailand are Monday to Friday. Generally the working hours for commercial offices
are from 0830 to 1730. Working Da
The working we
offices is usually
the year in case
anyone can wor

Basic facts Basic Facts about Thailand Basic Facts about Singapore Basic Facts
Singapore lies at the southern tip of continental Asia, and shares its northern border
General Information General Informa
with Malaysia. While Singapore is a city-state, its territory actually consists of 63
Thailand lies at the centre of Southeast Asia and is bordered by Myanmar to the The Republic of
islands, including Pulau Ujong, on which its main urban centre is located. Established
northwest, Laos and Cambodia to the east, and Malaysia to the south. Thailand and its countries. An isl
by the East India Company in 1819, Singapore has grown from a trading post to an
neighbours make up a large part of the Indochinese Peninsula, while its southern coast neighbours inclu
international business hub, home to thousands of organisations. Operating as a
looks out onto the Gulf of Thailand - which provided historic maritime trade access and Philippines to th
parliamentary republic, Singapore is a stable and transparent democracy with low
connections to the rest of the world. Formerly known as Siam, Thailand’s earliest been an importa
levels of corruption and a well-established judicial system. Highly urbanised, there are
civilisations date back to prehistory and show visible religious and cultural influences kingdoms flouris
few untouched natural environments in Singapore, while its climate is hot and humid
from across Asia. Once ruled by an imperial dynasty, Thailand is now a constitutional arrived in the lat
with tropical levels of rainfall.
monarchy with a parliamentary government and separate legislative branch. Thailand’s groups and soci
tropical climate and scenic beauty is known across the world, and attracts millions of General Information communities. Ly
tourists each year: a variety of regional environments include thick forests, mountainous Full Name: Republic of Singapore Population: 5.61 million (Department of Statistics hosts a wide ran
highlands and stretches of picturesque coastline - along with numerous island Singapore, as at June 2017) Official Languages: English, Mandarin, Malay, lush rainforests.
destinations. Temperatures and weather vary dramatically in Thailand - from hot, tourist Tamil Religions: Taoism, Buddhism, Islam, Christianity, Hinduism Monetary Unit: 1 over 2000 endem
friendly seasons, to warm, wet monsoons. Singapore dollar = 100 cents Main Exports: Computer equipment, machinery, rubber
Full Name: Repu
products, petroleum products Internet Domain: .sg International Dialing Code: +65
Full Name: Kingdom of Thailand Population: 68.1 million (UN, 2010) Capital: Population: 242.
 
Bangkok Primary Language: Thai Main Religion: Buddhism Monetary unit: 1 baht = 1 Capital: Jakarta
Hello Hello
santangs Main Exports: Rice, Seafood, Live animals, office equipment, rubber. GNI per Language: Indon
Good Morning Selamat Pagi
Capita: US $3,760 (World Bank, 2010) Internet Domain: .th International Dialing Code: Major religion: M
 +66 Good Evening Selamat Petang Monetary Unit: 1
  Do You Speak English? Adakah Anda Bertutur Dalam Bahasa Inggeris? Main Exports: o
Hello: สวัสดี / sà-wàt-dee Good Bye Selamat Tinggal GNP per Capita:
Good morning: ดีตอนเชา้ / sà-wàt-dee kráp (male), sà-wàt-dee kâ (female) Thank You Terima Kasih Internet Domain
Good evening: สวัสดี / sà-wàt-dee kráp (male), sà-wàt-dee kâ (female) See You Later Melihat Anda Kemudian International Dia
Do you speak English?: คุณพูดภาษาอังกฤษได ้ไหม / pôot ang-grìt dâai măi    
Good bye: ลาก่อน / sà-wàt-dee kráp (male), sà-wàt-dee kâ (female) Dates are usually written in the day, month and year sequence. For example: 1 July Hello Halo
Thank you: ขอขอบคุณคุณ / kòp kun mâak 2018 or 1/7/18. Good morning S
See you later: ไว ้พบกันใหม่ / láir-o jer gun ná Good evening Se
Numbers are written with a comma to denote thousands and a period to denote
  Do you speak En
fractions. For example: SGD$ 3,000.50 (three thousand Singapore Dollars and fifty
Dates are usually written in the day, month and year sequence. For example: 1st of July Good bye Selam
cents).
2018 or 1/7/18. Thank you Terim
See you later Sa
Numbers are written with a comma to denote thousands and a full stop to denote
fractions, for example, 2,000.50 BHT (2000 baht and 50 satang).

Income Tax Income Tax & Social Security In Income Tax & Social Security In Income
Social Thailand Singapore Indones
Security Tax year runs from 1 January to 31 December in Thailand. For corporations, the basis tax period is the preceding Financial Year. Therefore, The tax year run
assuming a company’s Financial Year ends on 31st March, the YA 2019 will be based
There are two mandatory statutory contributions in Thailand: Income Tax
on the accounts for Financial Year ending 31st March, 2018, while the YA 2018 will be
Social Security Fund (SSF) - Both the employee and employer have to contribute on a based on the accounts for the Financial Year ending on 31st March 2017. All individual tax
monthly basis. The contribution rate is usually 5% with basic salary capped at and obtain a Tax
For personal income taxes, companies are not required to withhold salary for any
THB15,000.00. With the minimum wage being increased recently, it has been decided
employee via monthly estimated payroll tax deduction. All employees must file an The employees
to extend the reduction in Social Security contribution rate. This is due for payment on
annual tax declaration, and pay their liability directly to Singapore’s Inland Revenue reporting their a
the 15th of the next month. For late payments a surcharge will be charged at 2% per
Department. and record their
month of the amount due.
Workmen Compensation (WCF) - Only the employer is required to contribute on an The return process requires employers to prepare Form IR8A (along with appendix 8A Taxation in Indo
annual basis. The contribution rate is based on the total annual salary paid to and appendix 8B) or Form IR8S (where applicable) for employees who are employed in taxpayers are in
employees. The contribution rate will depend on the type of company business. Singapore by the 1st of March.
 are domic
Businesses with more than 10 employees for an entire year (ending 31st December), or
Provident Fund/Welfare Fund- The payment for the provident fund must be submitted  stay in In
employers who have received the Notice to File Employment Income of Employees
three days after payday and may vary depending on PF trustee.
Electronically, must submit employee income information electronically by the 1st of  are prese
March following the assessment year. Even though there is no income tax withholding Indonesia.
Social Security In Thailand
at source, companies must withhold salary and seek tax clearance by filing Form IR21 Residency of a c
Monthly social security payments must be submitted by the 15th of the following month for at least 1 month for foreign employees - under the following circumstances: place of manage
and must be submitted to the Social Security Department (www.sso.go.th ). For
Indonesia impos
instance, contributions for October must be paid by November 15th, after which they  The employee ceases to work in Singapore; are summarized
will be charged an extra 2 percent of the overdue amount each month until the payment
 The employe is on overseas posting; Income Tax, wh
is made. The penalty for late Social Security payment is 2% on the due amount
calculated monthly.  The employee leaves Singapore for any period exceeding 3 months  Corporate
Companies may be liable for a fine up to S$1,000 if they fail to provide the 1 month
Reporting Tax In Thailand  Individua
notice with valid reason(s). An employee will be taxed on all incomes (base salary,
Monthly commission, bonus, etc.) earned in Singapore and subject to the deduction of tax  Withholdi
Employers are responsible for submitting Monthly Withholding Tax (WHT) on a reliefs. The personal income tax rate is progressive and the highest marginal tax rate is
 Withholdi
monthly basis. The deadline is by 7th (Manual Submission) or 15th ( for online 20%. All resident individual taxpayers will be given a Personal Income Tax Rebate on
Value Added Ta
submission) of the following month. The amount can be calculated using the tax table the tax payable for the Year of Assessment. While the amount of rebate granted may
criteria.
supplied by the government. change, the calculation depends on the age of the resident individual as of December
Tax returns are
31st. The individual tax rebate is subject to a cap imposed by the Inland Revenue
Provident Fund (monthly) a group of comp
Service.
The format of this is determined by the vendor available.
Social Security in Singapore
Yearly Indonesian tax r
The Central Provident Fund (CPF) is a compulsory savings plan for employees in
WHT (year-end) taxed on income
Singapore. It funds a range of social security schemes, including retirement, healthcare
under applicable
A ‘PDN1 K report’ must be completed at the end of every year. It must be submitted to and housing, and is maintained by the CPF Board. Statutory contributions in Singapore
Social Secu
the Revenue Department (www.rd.go.th ) Information required in each form varies are made to the CPF by the employer and the employee. Contributions go into three
Reporting T
however the employee name and salary is always required. Filing of all reports can be accounts:
done by any party but statutory forms need to be approved by the company’s Monthly
 Ordinary Account (OA): Covering housing, insurance, investment, education
authorized signatory. The following re
 Special Account (SA): Covering retirement products
 Social be
 Medisave Account (MA): Covering hospital expenses and other medical
 Social be
insurance
Employers shall
When an employee turns 55, a fourth Retirement Account (RA) is created for them,
to the social insu
designed to provide savings for retirement. CPF contributions must be paid by
prepare a month
Singapore Citizens and Singapore Permanent Residents who are working in the city
by the 5th of foll
under a Contract of Service - or who are employed in a permanent, part-time, or casual
basis. Contributions are not mandatory for those workers employed overseas. Quarterly/Yearly
 Report of
Employers should pay CPF contributions within 14 days of the end of the month. They
- (TT-11);
may access their accounts via an online CPF Singapore login portal - which offers
access a range of useful tools. The statutory contribution rates for a Singapore citizen  Informatio
and a 3rd year Singapore Permanent Resident (SPR) below the age of 50 and an Income-((T
income level of above S$1,500 (applicable to over 90% of employees) are 50% - a Employers shall
50/50 split between employer and employee. Authority on a q
submission date
Report.
 All reports and r
provider. It shou
payroll provider

Social Secu
The Indonesian
contribution to b
payments to the
new membershi
reports and paym
month-end ensu
employees. Pen
3.7% of basic sa
basic salary and

New and New Employees And New Starts In Thailand New Employees in Singapore New Emplo
New Starts (Singaporeans & permanent residents) do not need to be registered
Leaver It is required for all new starts to be registered with the following departments within Companies are
separately with the below authorities since their inclusion in the monthly CPF (Central
the first month of employment: process and with
Provident Fund) submission will suffice:
companies with
 Provident Fund registration is required with the appointed Provident Fund
 Inland Revenue Authority of Singapore it is recommend
vendor.
all their employe
 Singapore Workforce Development Agency
 SS registration required with the Social Security Fund.
Currently, the in
 Ministry of Manpower
 Revenue Department (It is not required if the new starter is citizen of Thailand. If registered with t
Employers of New Starts (foreigners) are required to apply for and obtain an
the new starter is an expat and never had TAXID then the company should apply taxes due.
employment pass/work permit before commencing employment. The application
TAXID for expat employee.)
process for working passes for foreign New Starters will take approximately 5 weeks in Many companie
the case of ‘hard copy’ applications, or 2 weeks to process online. Work visas for their behalf; how
Registration is usually submitted together with monthly PF and SS forms.
foreigners are granted by Singapore’s Ministry of Manpower - prior to commencement
Thus they must
of employment.
basis. Documen
To set up a new start the following information is required: For Singaporean and permanent residents:
 A Comple
 If the mode of submission is via hardcopy Payment Advice (Form CPF 91), then
 PF – New hire form containing all the personal & employment information
Form CPF 92 (New Employee Contribution Form) is required to be completed and  Photocop
 SS – Standardized termination form submitted together.
 Photocop
 If the mode of submission is via Online, Form CPF 92 is not required.
 Certificate
The Following Documents are also required when setting up a new start: Expat New Starts in Singapore are required to provide the
following documentation:  Photocop
 Passport
  Signed contract  Passport - to verify the Full Name, Nationality and Country of Origin;  Letter of A
handle the
 Work permit  Work Permit - to verify the Identity and to ensure that the Working Pass is valid
to work with the customer;  While the
 Working visa
and does n
Leavers In Thailand  For Singapore Permanent Resident – First Re-Entry Permit issued that indicate
Tax Office
the PR status date to determine the Year of Residency and CPF rates;
All leavers must notify the local authorities if they are leaving their job by completing the For New starts,
following:  Employment Contract - to verify the Base Wage and other information on imprisonment fo
Benefits-in-Kind that are relevant for year-end reporting. amount of tax du
 PF – Termination form containing all the personal & employment information
 Expatriate New Start employees must have a valid Working Pass before the Leavers in I
 SS – Standardized termination form
commencement of employment.
Employees who
The relationship between employer and employee in Singapore is regulated by contract
procedures - in a
- and subject to statutory requirements set out in both the Employment Act and
employees mus
common law. The contract should include details such as basic pay, work duties,
this notice perio
annual leave and termination clauses.
a number of stat
Leavers In Singapore Office.
Dismissal or Termination by Employer: If an employee is dismissed by their employer
on grounds of misconduct, salary must be paid on the last day of employment. If the
contract of service is terminated by an employer, salary must be paid on the last day of
employment or within 3 working days from the date of termination.

Termination by employee:
If an employee has resigned and served their notice period, salary must be paid on the
last day of employment. If an employee terminates their contract without notice, salary
payment must be paid within 7 working days of the last day of employment.

For Foreign Employee (i.e., on working passes):

A company is required to withhold all monies due to an employee and inform IRAS via
Form IR21 (Notification of a non-citizen employee’s cessation of employment or
departure from Singapore) at least 30 days before the date of cessation of employment.
The Form IR21 is required to facilitate tax clearance by IRAS before a foreign
employee leaves Singapore. Form IR21 is also applicable for a permanent resident
employee who intends to leave Singapore for more than three months or permanently
after cessation of employment.

For Singaporean and permanent resident:

Notifications are made to the CPF Board via CPF contributions indicating the date of
resignation.
Payroll Payroll in Thailand Payroll in Singapore Payroll in In
Payroll processing in Singapore involves specific rules and regulations - and should
Employers in Thailand have withholding obligations to their employees, and must make Employers in Ind
take the status of foreign workers into account.
income tax and social security contributions on their behalf: Payroll complian
must be withheld
 Income tax rates in Thailand range from 0% for the lowest-earning employees, to There are no monthly withholding obligations for employers in Singapore but
35% for those earning over 4,000,001 Baht. Tax must be reported to the Thailand contributions to social security schemes, including the CPF, the Skill Development Levy In detail, income
Revenue Department. and the Foreign Workers Levy, are required. Singapore has legislation which requires social security c
itemised payslips to be issued to all employees - it is legally acceptable to issue contributions fro
 Social security contributions for employer and employee amount to 5% of
payslips online. Payslips must include details of employment such as date of payment, required to regis
salaries - up to a maximum of 750 Baht per month.
basic salary amount, deductions made, and net monthly salary. Foreign companies
 The payroll repo
setting up in Singapore may choose to engage a global payroll provider to help them
Employees in Thailand must be issued with payslips for each pay period (payslips may kept for at least
navigate the city’s compliance regulations, and ensure that their employee populations
be issued online), and payroll records must be kept for at least 7 years. from an in-count
are paid accurately and efficiently.

Thai payroll may be handled in-house by a dedicated payroll officer or payroll team, or
outsourced to a third party to take advantage of regional expertise. It may be advisable
for foreign businesses setting up in Thailand to take advantage of global service
providers in order to acquire valuable compliance expertise - and ensure their
international employee populations are paid accurately and efficiently.