Emerging Markets Rates and Currencies Handbook

name, loan amount can be verified such as credit advice Swift MT103. Remittance of dividend, the following evidence must be required: • Board of meeting or Dividend declaration. • List of shareholders. Additional Comments Effective in May 2022, The Bank of Thailand (BOT) announced further relaxation of FX regulation as part of the comprehensive FX Ecosystem Development Plan to support capital movement and flexibility in conducting cross-border transactions, enhanced risk management, and cost reduction for the private sector. Resident Customers of commercial banks who have undergone the banks’ Know-Your-Business (KYB) process will not be required to submit underlying documents when undertaking regular foreign exchange transactions (previously supporting documents were to be submitted for each transaction worth USD200,000 or more). This would help reduce the cost and burden in preparing documents and facilitate foreign exchange activities conducted through online channel. Examples of transactions that no longer required supporting documents if KYB is in place include Goods and Services payments, Foreign Currency Borrowing/Lending and repatriation. For customers that have not undergone KYB, supporting documents will still be required for a transaction worth USD 200,000 or more. Effective in January 2021, the BOT has relaxed Rules and Practices under Measures to Prevent Baht Speculation, in the form of pilot project, to allow each type of financial institutions to enter into Baht-related transactions with NRs that are juristic persons and meet the qualifications as specified by the BOT (Non-resident qualified companies: NRQCs) in a more flexible manner. This aims that NRs that have trade and investment in Thailand can more flexibly engage in transactions in the domestic markets. To request for the “qualified companies: QCs” status approval, NRs must: 1) Be a juristic person as specified in Rules and Practices under Measures to Prevent Baht Speculation. 2) Not operate business relating to financial transactions except treasury center business abroad and not operate gold-related business. 3) Have an obligation to make a payment or receive to/from residents, or be responsible for managing foreign exchange risk relating to Baht of other NRs having obligation to make/receive a payment to/from residents (not including portfolio investment). NRQCs can enjoy the following benefits: • Eligible underlying is extended to include the projection of Baht revenue/expense or financial statements (balance sheet hedging) due to trade, in addition to actual service or investment activities of NRQCs in Thailand. • Underlying documents are not required to be submitted to FIs for checking. • NRs will no longer be subject to a day-end outstanding limit for NRBA. Citibank, N.A. Bangkok Branch 399 Interchange 21 Building Sukhumvit Road, Klongtoey Nua Wattana Bangkok 10110, Thailand FX Sales Contact: +66 2079 2222 Tax Summary – Thailand Thailand W/H Tax • 15% WHT • - Under certain tax treaties typically 15%, with further reduction possible on • 15% WHT • - Under certain tax treaties typically 10% rate applies to interest paid to a recipient that • No WHT • -1% WHT on interest paid to all resident corporations other than banks or finance • N/A • Dividend: • - Resident corporation: 10% WHT (0% if recipient listed locally) • - Non treaty: 10% Country Deductibility and Considerations Inter-Co Debt Bank Loans Offshore Local Borrowing Derivatives Equities Offshore