Weekly Column

Sunbelt Asia Weekly Column 16 November 2018

Sunbelt Asia Weekly Column

16 November 2018

The Cabinet approved revisions in the new Smart Visa allowing for three new professions to work, invest, or open business in 10 targeted industries; alternative dispute resolution management, human resources development in science and technology and environment and alternative energy management. A fast track lane will be opened at all international airports in Thailand for Smart Visa holders, and the income requirement has been decreased; the minimum monthly income for general experts has been set to 100,000 baht and 50,000 baht for experts in local startups, while the monthly income from high professionals and executives remains at a minimum of 200,000 baht but can also include bonuses. The timeline has also been changed from one year for the initial followed by 2 year period renewals to six months, one year, and two years. The BoI is allowing startups to receive local venture capital and revising startups’ minimum investment from 20 million baht per individual investor to co-investment for multiple investors, new startups have a minimum investment of 5 million baht. The BoI hasnt seen a large influx of applicants for the new Smart Visa and is encouraging qualified personnel to apply.

A new land and building tax bill was passed last Friday and covers agricultural, residential, commercial and undeveloped property. Agricultural land will be taxed on a graduated scale based on value; property worth up to 50 million baht will be taxed annually at 0.02 percent of the land’s estimated value while farmland valued at 75 million to 100 million baht will pay 0.03 percent, and land worth 100 million to 500 million baht will be taxed at 0.05 percent. Owners of undeveloped tracts of land will be hit hard with a new tax of 0.3 percent of the value per year and that rate will rise an additional 0.3 percent every three years the land remains unused to a maximum of 3 percent. Residential land and houses worth up to 50 million baht will pay a 0.02 percent annual tax on the property’s value, while homes and land worth 50 million to 75 million baht will be taxed 0.03 percent. If the residential property is worth 75 to 100 million baht, the annual rate will be 0.05 percent and more than 100 million baht, the annual tax rate increases to 0.1 percent. However, primary residences worth no more than 50 million baht will be exempt from tax, if owners own only a building then it will be exempt from tax if the value is not over 10 million baht.

The new tax rate for owners of commercial property valued under 50 million baht will be 0.3 percent, between 50 million to 200 million baht, 0.4 percent tax, and 0.5 percent if valued between between 200 million and 1 billion baht. Property valued between 1 billion to 5 billion baht will be taxed at 0.6 percent, and over 5 billion will see a 0.7 percent tax. Owners of agricultural land, ordinary land, and building owners will be exempt from tax for the first three years after the law comes into effect.

Michelin released its second edition for Thailand last week and for the first time covers eateries outside of Bangkok. The new guide includes restaurants in Phuket and Phangnga, with one restaurant in Phuket being awarded a Michelin star. The new guide also covers Nonthaburi, Pathum Thani, Nakhon Pathom, Samut Sakhon and Samut Prakan. All of the restaurants with two stars last year retained their ratings while one restaurant, Suhring, gained a second star. PRU in Phuket, Ruean Panya in Samut Sakhon and Suan Thip in Nonthaburi are the first one-star restaurants outside of Bangkok.

Thai Immigration has begun taking applications for Permanent Residency – applications will be accepted until December 28, 2018. Applications are limited to 100 people per nationality, those countries with several states, such as the United Kingdom, are considered as one country. Sunbelt Asia legal advisors can assist you in collecting all required documents showing your contribution to society, ensure all your Thai-language company documents are correct and complete and handle translation of documents. The process is rather complex so if you are interested in obtaining Permanent Residency contact us now to get the process started;

Special offer on serviced officesWe are offering two types of serviced offices available at a special promotional deal
Office with space for two staff at 9,500 baht a month

Office with space for three staff at 11,000 baht a month

Happy anniversary from all of us at Sunbelt Asia!!
A “Thank you” gift for our clients new and old!
Sunbelt Asia has been offering our excellent service to our clients for 15 years! As our 15th anniversary gift we would like to offer our professional services on retirement and marriage visa extensions at the very special reduced rate of 7,500 baht as a thank you to our clients new and old for their support over the years.

Sunbelt Asia Legal Advisors can handle all your legal and business needs; from visas to work permits, prenuptial agreements to divorces, condo purchases and wills.

Be sure and contact our English speaking
legal advisors
for all your legal needs

We at Sunbelt Asia see many of our clients regularly ask us legal questions regarding living and running a business in Thailand. To help out we have set up a FREE Expert Answers for Your Questions in Thailand Facebook page;
Sunbelt Asia Facebook Expert Advice Page

Please feel free to contact us if you are in Thailand on (+66) 02-662-7004 to discuss any of these listings.

Well reviewed chic French restaurant in Sathorn

Located in the business district of Sathorn, this chic French restaurant offers locally sourced food presented in new and interesting style. The restaurant has earned excellent reviews on Trip Advisor and on foodie websites and blogs.

This bistro style restaurant has 300 sqm of indoor space with an incredible rent of only 15,000 baht a month with one year lease, there is a charming al fresco dining area and a car park nearby. There are 5 full time employees and one part-time with a total monthly payroll of 80,000 baht. The business has been growing since its opening with annual sales reaching 4.5 million baht. Although it is now at the break-even stage a dedicated owner with time to manage and market this restaurant could easily see that grow. Fixtures, fitting and equipment valued at 2 million baht is included in the sale.

This is a great opportunity to walk into a turn-key business and make it grow.

The owner is looking at two sale options: 4.7 million baht for 100 percent of the business, or 2.4 million baht for 61 percent of the shares (transfer of shares from 3 Thai nationals, with this option the buyer can increase the paid up capital to get more shares by dilution.

ASKING PRICE: 4.7 million baht for 100 % of the business

2.4 million baht for 61 % of the shares

Snack food import & distribution business

Take advantage of the growing food industry in Thailand with this snack import, export and distribution business. The company is located near Bangkok in Samut Prakan and has distribution agreements with all the major supermarkets in Thailand including Tops and Villa, as well as regional supermarkets such as Rimping in Chiang Mai.

The business is fully licensed and has 7 full time employees with a total monthly payroll of 100,000 baht a month. The rent on the company’s 300sqm premises is 30,000 baht a month and the company has seen break-even sales of 7.5 million baht annually.

The asking price includes a deposit of 3.25 million baht and stock valued at 2 million baht.

ASKING PRICE: 6.5 million baht

Sukhumvit guesthouse near BTS

This guesthouse is in a great Sukhumvit location, just 10 minutes walk from the BTS station with 19 rooms, some en suite, others shared bathrooms. Although it opened 13 rooms in the shophouse style building in July 2018, the business has already seen steady income and a small profit in the first two months. With new rooms just opened, incomes should increase, however, the owner has no time to manage the business. A dedicated owner with time to market and manage the business should see this guesthouse do very well.

There are 21 total rooms, including the staff room and store room, and the 3 year lease and plus 3 years option has a monthly rental of 70,000 baht. The rooms are basic but with everything new, the place has already garnered good reviews. There are two staff with a monthly salary of 24,000 baht. All fixtures, fittings, and equipment are included in the sale. The lease deposit of 420,000 baht is not included in the sale.

ASKING PRICE: 799,000 baht

Home decor factory in Bangkok

This long running home décor business has been manufacturing lamps since 2004 and has built up a good reputation for design and quality. The unique and beautiful designs are used in lighting and other fixtures as well as home décor and the company has become known as a leading designer of natural lamps and light designs.

The factory is 7,000 sqm and has a renewable three year lease with a monthly rent of 176,000 baht. The security deposit is not included in the sale. There are around 65 employees with a total monthly payroll of 1.1 million baht

The Thai Limited company is included in the sale but inventory is excluded. Fixed assets including equipment, computers, tools, company truck and leasehold improvements are included in the sale. Also included are the product designs, and showroom with samples. Remaining inventory can be purchased at cost. Sales have reached 70 million baht with a total profit around 20 million baht. The owners are moving back to their home country and so which to sell the business.

ASKING PRICE: 33 million baht

Well-known franchise in busy western suburban Bangkok mall

Located in a busy mall in a popular Western suburb of Bangkok this American franchise is well-known but the owner is forced to sell as he has no time to manage and grow the business. A new owner could easily grow sales and profits with this popular franchise.

The 18 sqm restaurant is set in the food court of a busy mall and has a rent of 17 percent of gross profit. The business sold over 4.1 million baht in its first year and could easily grow with a dedicated owner/manager.

There are three full time employees with a monthly payroll of 29,300 baht. The business has made a profit of around 20,000 baht a month.

The franchise fee and deposit with the suppliers is not included in the sale price.

ASKING PRICE; 2.5 million baht

Popular restaurant on Soi Buakhao restaurant in Pattaya

This popular restaurant is in a top Soi Buakhao location in Pattaya and has recently expanded to double the floor space. The restaurant has been in business for over 4 years and in the past 12 months has seen gross sales reach 4.4 million baht with a net income of 770,000 baht.

All furniture, fittings, fixtures, equipment, supplies, and current inventory are valued at 370,000 baht and are included in the sale.

The recent expansion, which cost 300,000 baht, means the restaurant now seats 34 indoors and 12 outside. The building is set over 91.5 sqm and rent is a reasonable 22,500 baht.

The lease is on a year by year renewal basis. There are six full time employees with a total monthly payroll of 45,000 baht.

ASKING PRICE: 3.9 million baht

Well-known bar & grill in top Chaweng location on Samui

The owners of this popular bar and grill in the heart of Chaweng Beach have lowered the price as they are expanding outside businesses and need to sell quickly. Located in the heart of Chaweng Beach on the popular tourist island of Koh Samui, this bar and grill has been in business for ten years and is open 7 days a week. The new owner will need to change the name as the current owner is keeping the franchise name but all equipment, fixtures and fittings will remain. Only the accounting staff computers and personal items would be removed.

There are two lease contracts (and two landlords) for the premises with monthly rent currently set for the next 12 years.

The owners are selling as they are focusing on their franchise business and need to reduce their operations on Samui. The new owner would walk into a turn-key ready business in one of the best locations on the island.

NEW ASKING PRICE: 12 Million Baht

Hotel near busy Soi Green Mango in Chaweng on Samui

The owners of this hotel near Soi Green Mango in Chaweng Beach on Koh Samui have lowered the price as they are keen to sell quickly. This hotel has 28 rooms with four different room types all fitted out with TVs. Catering to all kinds of travelers, the hotel also has 8 hostel rooms with bunk beds and 1 dorm room. Fully fitted out with an elevator, generator, water tanks, storerooms, emergency stair exit, and reception the hotel does have a hotel license. Fully renovated in 2017 the sale includes all equipment, fixtures, and fittings as well as the Thai company and the hotel license. This allows the new owner to walk in, take over the premises with a new name and run it right from the get go.

The owners are selling as they are focusing on their franchise business and are looking to reduce operations on Samui.

The hotel has a lease contract through 2031 with the annual rental set for each period, the rent is paid in advance upon signing the contract and due in advance of each period.

The rent is 2.4 million baht a year until 2019, then from 2019-2022 is 2,568,000 per year, 2022-2025 – 2,747,760 per year, 2025-2028 – 2,940,103, and 2028-2031 – 3,145,910 per year.

NEW ASKING PRICE: 18 Million Thai Baht

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