# Conversion and Transfer Policies

- Link: https://www.thailand-business-news.com/investment-climate-in-thailand/conversion-and-transfer-policies
- Published: 2011-01-18T15:21:12+07:00
- Author: Boris Sullivan

Exchange controls are governed by the Exchange Control Act of 1942, amended in 1984,
and Ministerial Regulation Number 13 of 154, and are administered by the Bank of
Thailand. Inward remittances are free of controls. However, the Ministry of Finance
issued a Ministerial Regulation, effective from October 28, 2007, to require any
person who brings foreign currencies in or out of Thailand exceeding US$20,000 or
the equivalent must declare the amount at a Customs check point.

Foreigners staying in Thailand for less than three months, foreign embassies, and
international organizations are exempt from this requirement.

In July 2007, the Ministry of Finance and the Bank of Thailand agreed to relax regulations
on capital flows to balance capital movements and to increase flexibility for Thai
businesses in managing their foreign currency holdings. The changes included abolishing
the surrender requirement for all foreign currency receipts from abroad to be sold
or deposited within 15 days; doubling the amount of foreign currency deposited with
financial institutions in the country from US$0.5 million to US$1 million for individuals
and from US$50 million to US$100 million for juristic persons with future foreign
exchange obligations within the following 12 months, and increasing to US$0.1 million
for individuals and to US$0.3 million for juristic persons without obligation. The
deposit ceiling applies only to foreign currencies that are borrowed from financial
institutions, but if foreign currencies are earned (not borrowed), the deposit ceiling
restriction is not applied.

Thai nationals are subject to quantitative limits on the amount of foreign currency
that can be remitted abroad without specific permission of the Bank of Thailand.
The limits vary depending upon the purpose of the transaction, and range from US
$100 million per annum for business investment or loans to subsidiaries, to US$1
million per annum for remittances to family members. The Bank of Thailand must approve
the purchase of immovable assets or securities abroad. The new regulation, however,
also increases the limit of overseas fund remittances in foreign currencies up to
US$1 million by Thai individual. In addition, the authorities also relaxed the repatriation
requirement for exporters with foreign currency receipts by extending the period
in which such receipts must be brought into the country from within 120 days, to
within 360 days and requiring that the foreign currencies be deposited or sold with
financial institutions within another 360 days.

Commercial banks are authorized to undertake most routine foreign remittance transactions
without prior approval of the Bank of Thailand. Nonresidents can open and maintain
foreign currency accounts without deposit and withdrawal ceilings with authorized
banks in Thailand. Such accounts must use funds that originate abroad. If nonresidents
have underlying liabilities or transactions in Thailand, they can open and maintain
Thai baht accounts under Nonresident Baht Accounts (NRBA) with authorized banks 
in the country; however, the combined outstanding of all NRBAs for each nonresident
at the end of the day cannot exceed 300 million Baht (approximately US$9 million).
Since February 2008, the Bank of Thailand has segregated the NRBA into two types:
Nonresident Baht Account for Securities (NRBS) for investment in securities and 
other financial instruments, and Nonresident Baht Account (NRBA) for general purposes.
Funds under the two types of NRBA could not be transferred to each other. The cap
on NRBAs was introduced in October 2003 with the goal of limiting speculation on
the Thai baht. All remittances exceeding US$10,000 for any purpose other than export
must be reported to the Bank of Thailand.

Investment Climate Statements provide a thorough description of the overseas environments
in which U.S. investors must operate. The statements cover general characteristics,
such as openness to foreign investment and treatment of foreign investors, as well
as details about procedures for licensing and similar administrative matters. The
statements are updated each year as Chapter 7 in the Country Commercial Guides, 
a series to be found by country at the U.S. Department of Commerce’s website: http://
www.export.gov/.