EXCHANGE CONTROL REGULATIONS IN THAILAND
A Guide for the General Public
I. EXCHANGE CONTROL REGULATIONS
1.1 Rules and Regulations
The legal basis for foreign exchange regulations in Thailand is derived from the Exchange Control Act (B.E. 2485) and Ministerial Regulation No. 13 (B.E. 2497) issued under the Exchange Control Act. These laws set out the principles of controls under which Notifications of the Ministry of Finance and Notices of the Competent Officer are issued.
1.2 Administration
The Bank of Thailand has been entrusted by the Ministry of Finance with the responsibility of administering foreign exchange.
The governor of the Bank of Thailand appoints the officials of the Bank of Thailand as the Competent Officers under the Exchange Control Act (B.E. 2485).
All foreign exchange transactions are to be conducted through authorized banks and non-banks, such as authorized money changers and authorized money transfer agents, that are granted foreign exchange licenses by the Minister of Finance. Any transactions not generally allowed under the foreign exchange regulations need prior approval from the Bank of Thailand on a case-by-case basis.
II. REGULATIONS ON CROSS BORDER TRANSFER
2.1 Inflow
Foreign currencies or baht can be transferred or brought into Thailand without limit.
Any person receiving foreign currencies from abroad in an amount equivalent to USD 1 million or above is required to repatriate
such funds immediately within 360 days from the export date or the transaction date, and sell to an authorized bank or deposit them
in a foreign currency account with an authorized bank within 360 days of receipt.
Foreign currencies received from abroad can be transferred for payments of permitted obligations1 to non-residents or netted with such obligations without being repatriated.
2.2 Outflow
2.2.1 Payments for goods and services such as service fees, interest, dividends, profits, or royalties, or
payments related to education, are allowed up to the amount of the obligations.
2.2.1 Direct Investment and Lending Abroad
(1) A Thai company is allowed to invest in an overseas business entity whose shares are held by the Thai company by not less than 10%, invest in an overseas affiliated business entity or lend to an overseas business entity without limit.
(2) A Thai individual is allowed to invest in an overseas business entity whose shares are held by that person by not less than 10%,
or invest in or lend to its overseas affiliated business entities without limit.
Fund transfers for such investment or lending must be in foreign currencies, except for the case of investment or lending to a business entity in countries bordering Thailand or Vietnam for the purposes of trade or investment in Thailand or those countries which can be in baht.
2.2.3 Portfolio Investment Abroad
(1) Institutional investors, namely the Government Pension Fund, the Social Security Fund, provident funds, mutual funds (excluding private funds), securities companies, insurance companies, specialized financial institutions, Thai companies with assets of at least
THB 5 billion, companies listed in the Stock Exchange of Thailand and brokers in Thailand Futures Exchange (TFEX) are allowed to invest in securities abroad or securities denominated in foreign currencies issued or distributed in Thailand without limit.
(2) Retail investors (i.e. Thai individuals or other juristic entities who are not institutional investors), are allowed to invest in foreign securities abroad or securities denominated in foreign currencies issued or distributed in Thailand. Transfers to non-residents for purpose of portfolio investment are allowed up to USD 5 million per person per calendar year, where the investment is not made through onshore investment agents2.
Investment by institutional and retail investors can be undertaken through onshore investment agents, such as securities companies, authorized banks, private funds and derivatives brokerages, without limit. Such investment must also be in line with the guidelines set by the Securities and Exchange Commission.
2.2.4 Transfers for Other Purposes
Transfers of gifts or grants to any person abroad is allowed up to USD 50,000 per person per calendar year; however, transfers of funds belonging to Thai emigrants, transfers to one's family members or relatives who are permanent residents abroad or donations for public benefits are allowed without limit.
Transfers for payment of other obligations to non-residents are generally allowed, except for certain purposes which require prior approval from the Bank of Thailand such as payments related to purchase or sale of foreign currencies against baht, or payments related to derivatives linked to exchange rates involving baht, or payments associated with digital assets.
1Permitted obligations do not include portfolio investment abroad or purposes which require prior approval from the Bank of Thailand, such as payments related to purchase and sale of foreign currencies against baht, or payments related to derivatives linked to exchange rates involving baht, or payments associated with digital assets.
2 Registration on the Bank of Thailand’s website is
required and report on portfolio outstanding is to be submitted as specified by
the Bank of Thailand.
III. FOREIGN INVESTMENTS
Non-residents can freely transfer funds for both direct and portfolio investments in Thailand.
Repatriation of such investment by non-residents or repayment loans obtained from abroad by residents are also freely allowed.
In case of loans from abroad that have not been transferred into Thailand, such loans must be used for payment of permitted obligations abroad which are not those requiring prior approval from the Bank of Thailand.
IV. PAYMENTS IN FOREIGN CURRENCIES AMONG RESIDENTS
Residents are allowed to make payments to other residents in foreign currencies only where the payments are in line with their normal course of business or necessary to be conducted in foreign currencies and have linkages to transactions abroad, such as payments
of goods in a supply chain where the finished products will be exported.
Payments in foreign currencies among residents are not allowed for certain purposes requiring prior approval from the Bank of Thailand which are payments related to purchase, sale, exchange, or lending of foreign currencies, and payment associated with
digital assets. In addition, payment in foreign currencies among residents in the form of cash is not allowed.
V. BANK DEPOSITS
5.1 Foreign Currency Accounts of Residents
Residents are allowed to maintain foreign currency deposit accounts (FCD) with authorized banks in Thailand. Deposit and withdrawal of funds from such accounts are allowed under the following conditions:
5.1.1 Deposit
Residents are allowed to deposit foreign currencies as follows without limit.
1) Foreign currencies received from abroad such as revenues, service fees, foreign investment;
2) Foreign currencies purchased, exchanged, or borrowed from authorized banks;
3) Foreign currencies received from other residents;
Deposit of foreign currency notes and coins is allowed 1) up to the amounts brought into Thailand or obtained from authorized banks
or non-bank FX licensees or 2) up to USD 15,000 per day per person.
5.1.2 Withdrawal
1) For payments of obligations to persons abroad or to other residents in cases as described in section IV. PAYMENTS IN FOREIGN CURRENCIES AMONG RESIDENTS
2) For payments of obligations to authorized banks or non-bank FX licensees.
3) For deposit into other FCDs of the same account holder or other residents.
4) For conversion into baht.
5.2 Foreign Currency Accounts of Nonresidents
Non-residents may maintain foreign currency accounts with authorized banks in Thailand without limit. The accounts can be freely deposited or withdrawn. However, the deposit of foreign currency notes and coins is subject to the same regulation as mentioned
in 5.1.1.
5.3 Non-resident Baht Accounts
Non-residents may open Thai Baht accounts with authorized banks in Thailand as follows:
5.3.1 Non-resident Baht Accounts for Securities (NRBS): The account may be
deposited or withdrawn for the purpose of investment in securities and other
financial instruments in Thailand such as equity instruments, debt instruments,
unit trusts,
derivatives transactions traded on the Thailand Futures Exchange.
5.3.2 Non-resident Baht Accounts (NRBA): The account may be deposited or withdrawn for general purposes
(i.e. other
than investment in securities) such as trade, services, foreign direct investment,
investment in immovable assets, and loans.
VI. FOREIGN EXCHANGE HEDGING
Residents are allowed to undertake hedging transactions with authorized banks to hedge foreign exchange risk arising from future revenues or expenses, investment abroad or financial statements. FX hedging transactions based on forecasts of revenues or expenses, or those conducted on behalf of affiliated business entities in Thailand are also allowed. Rolling-over or unwinding of
such transactions is freely allowed3.
3 FX hedging based on forecasts or on behalf of affiliated business entities abroad as well as those that can be unwound or rolled over without restriction does not include hedging relating to payment for gold which require prior approval from the Bank of Thailand.
VII. PRACTICES ON DOCUMENTS AND REPORTS
Any person purchasing, selling, depositing, or withdrawing foreign currencies with an authorized bank are required to notify details
of foreign exchange transactions to authorized banks.
For transactions in an amount equivalent to USD 200,000 or above, the authorized banks need to request the customers to submit supporting documents except for the case where the authorized banks have performed the Know Your Business (KYB) process on
the customers. After conducting the transactions, authorized banks will issue evidences of such transactions to the customers.
VIII. PRACTICES ON DOCUMENTS AND REPORTS
8.1 Foreign currency bank notes and Thai baht bank notes may be brought into Thailand without amount limit.
8.2 Foreign currency bank notes and Thai baht bank notes may be taken out of Thailand as follow:
1) Foreign currency bank notes may be taken out of Thailand up to the amount purchased from authorized banks or money changers.
2) Thai baht bank notes may be taken out to countries bordering Thailand, Vietnam and China (only Yunnan province) up to
THB 2 million, and to other countries up to THB 50,000.
Bringing into or taking out of Thailand baht bank notes in an amount exceeding THB 450,000 or foreign currency bank notes in an amount exceeding USD 15,000 or its equivalent requires Customs declaration when entering or leaving the country.
Foreign Exchange Administration and Policy Department
Bank of Thailand
June 2022