FAQs and Guides

FAQs and Guides

Benefits of Free Economic Zones 

 

  1. Exemption of import duty on goods brought into the Kingdom for use in commercial industries within Free Zones
  2. Exemption of import duty on transferred goods between Free Zones
  3. Exemption of export duty on goods from Free Zones exported outside the Kingdom
  4. Exemption of VAT for imported goods brought into Free Zones
  5. Exemption of excise tax for import and production of goods manufactured in Free Zones
  6. Exemption from laws related to standard control for the importation of goods into the Kingdom or the transfer of raw materials into Free Zones for manufacturing, mixing, assembling, or packaging for export purposes

 

The transfer of goods from Free Zones for consumption or for other functions other than establishing Free Zones shall be considered as a mere removal for the purpose of distribution within the Kingdom—except for the elimination of waste materials

Opportunities in Tak Province’s Special Economic Zone

 

  1. Mae Sot’s border post is a permanent crossing point that connects with Myawaddy, Myanmar, and has the highest trade value between Thailand and Myanmar
  2. It is located on the East-West Economic Corridor
  3. With the trade value on the borders of Thailand and Myanmar especially high, the West can act as a gateway to Yangon, which is the heart of Mynmar’s economy
  4. Can bridge to India and South of China
  5. Permitted employment of low-skilled migrant workers in the case of daily cross-bordering as well as a sufficient supply of workers in Myanmar
A Free Zone or Free Trade Zone or Free Economic Zone, is a designated geographical area where certain taxes or restrictions on business, employment or trade do not apply in the same manner that they apply to the country in which the zone is located in order to encourage economic activity. An area in which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of customs authorities.
In summary, Free Zone companies enjoy 0% corporate, personal tax and does not required license certificate.
There is no corporate/income tax on individuals or companies operating in the Free Zone.
In MSTFZ, you can choose over 600 business activities ranging across 20 sectors that include Energy, Commodities, mineral and ores, gold and gems, Technology, Construction, FMCG, Healthcare, Shipping, Education and Media, as well as services such as Professional, Financial, retail outlet and Community. For further question, please contact us.  
Yes, manufacturing and light industries are allowed in the MSTFZ Free Zone.
No, you cannot transfer a company or license from any Free Zone to another; you will need to set up as a new company. Please contact our team to discuss further.
Free Zone companies may import goods that are consistent with their commercial license. The main exception is when a company wishes to import goods for their own use such as furniture, and equipment for their office operations can be allowed. However, it is important for the companies to keep good records of all items that have been brought into the Free Zone for company use, as customs will need to see that those items have not been, later, transferred to the mainland without payment of customs duties.
Yes, Free Zone companies can import goods as per the general guidelines:  Only Free Zone licensed companies holding trading licenses are allowed to import goods. Goods must be in conformity with the activity of the licensed company. The importer must obtain a valid importer code from Thai Customs. Thai Customs issue your Import/Export Codes, which is ‘F Code’. The Free Zone code allows only the import and re-exports to other countries and hence goods are not allowed to enter the mainland unless they are cleared through a limited liability trading company or a logistics provider.
Free Zone licenses can import goods or equipment into the Free Zone from a foreign country without payment of customs duties. Customs duty is only paid when goods are moved out of the Free Zone; and imported into the Thailand. Numerous warehousing facilities are available in the Free Zone for companies that wish to store and re-export their goods. For further information, please visit http://en.customs.go.th and go to the Free Zone section under Declaration and Clearance.
VAT stands for Value Added Tax, it is an indirect tax applicable to taxable goods and services in Thailand.
The standard rate of Value Added Tax ('VAT') in Thailand; the current rates are 7% and 0% with some exemptions from VAT. Value Added Tax ('VAT') is a tax on the sale of goods or the provision of services.
The VAT law has made provision for special treatment for what it calls are ‘Designated Zones’. However, the Executive Regulations appear to make it clear that a designated zone will need to meet a series of criteria amongst which are: - The Designated Zone is a specific fenced geographic area and has security measures and Customs control in place to restrict entry and exit of individuals and movement of goods to and from the area. - The Designated Zone has internal procedures with respect to the method of keeping, storing and processing of goods. - The operator of Designated Zone to comply with such procedures set by the authority.