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Thailand – Moving towards a More Attractive Tax Regime

Thailand has seen an increasing interest in investment from China and Hong Kong. This is supported by the statistics on foreign direct investment in 2016 released by the Bank of Thailand. In 2016, China and Hong Kong were respectively the third and fourth largest foreign investors in Thailand. The combined foreign direct investment from China and Hong Kong was USD 2.13 billion in 2016 (1st Japan, and 2nd Singapore). While some of the investment from China is driven by China’s “One Belt, One Road” policy, there are other Chinese investors looking to invest in Thailand for other reasons (e.g. to avoid the anti-dumping rules in Europe and the US; as a gateway to the CLMV (Cambodia, Laos, Myanmar, Vietnam) countries thanks to Thailand’s strategic geographic location; and the booming real estate markets in Thailand).