The Thai government aims to establish a financial hub to position Thailand as a global financial center. This initiative will attract international financial businesses and offer various benefits, such as improved infrastructure, skilled personnel, and enhanced competitiveness.
Thailand’s Financial Hub aims to attract Thai-registered entities and foreign branches across eight sectors: commercial banking, payment services, securities, futures trading, digital assets, insurance, reinsurance brokerage, and other finance-related businesses designated by authorities. The initiative seeks to encourage investment in Thailand’s financial sector.
Services can only be provided to non-resident individuals. However, services may be provided to residents in the following cases:
1. reinsurance can be arranged with Thai insurance companies to transfer the risk;
2. in the capital markets, services can be provided in cooperation with Thai operators (co-services) to assist clients in investing abroad;
3. interbank transactions can be conducted with Thai financial institutions to manage risks;
4. for payment services, systems can relate to service providers under Thai regulations; and
5. for foreign exchange transactions, the operator must be a non-resident engaged in financial business and must comply with foreign exchange control laws and measures to prevent speculation on the baht.
Businesses shall operate in designated zones, hire a required proportion of Thai employees, and serve only non-residents. Incentives include tax benefits, foreign business law exemptions, and property ownership rights.
The proposed law establishes a One Stop Authority (OSA) Commission with the authority to issue and revoke licenses, as well as granting tax and non-tax incentives to businesses investing in Thailand’s financial hub.
Thailand’s Financial Hub Law Moves to Cabinet for Approval_Bangkok Global Law