Weekly Column

Sunbelt Asia Weekly Column 21 September 2018

Sunbelt Asia Weekly Column

21 September 2018

Government urges exporters to take advantage of AFTA tax incentives

The Department of Foreign Trade is working to boost the number of Thai businesses taking advantage of tax incentives offered to exporters to ASEAN countries under the ASEAN Free Trade Agreement (AFTA). Currently only 63 percent take advantage of tax breaks, they are trying to boost that number to 70 percent or higher by encouraging exporters to ASEAN countries to obtain the Certificate of Origin Form D. The total value of Thai exports that have benefited from the AFTA tax incentive increased from US$19.46 billion (Bt634.1 billion) in 2015 to $23.8 billion (Bt775.5 billion) in 2017. However, the total value of exports that would have been eligible for the incentives was worth $37.76 billion (Bt1.23 trillion), which shows a large number of Thai exporters did not take advantage of the AFTA tax incentives.

Exports reached a record high of US$22.79 billion in August, growing 6.7 percent according to the Trade Policy and Strategy Office. Manufactured product exports grew 5.8 percent while agricultural exports grew 4.1 percent. Exports totaled US$ 169.03 billion in the first eight months, a 10 percent year on year growth while imports totaled US$23.38 billion in August and US$166.68 billion, showing a US$2.3 billion in trade surplus for the year.

KBank is the first Thai bank to partner with Visa to offer blockchain-based cross border business to business payments. Visa B2B is a new platform developed by Visa to offer secure processing of cross-border business to business payments between participating banks on behalf of their corporate clients. Although still in the pilot stages with several other global banks involved including Commerce Bank in the United States, Shinhan Bank in South Korea, Union Bank of Philippines, and United Overseas Bank in Singapore. The new platform will allow for the swift and easy transfer of high-value corporate payments across borders.

JD.com, a leading Chinese e-commerce site that has expanded into Thailand is looking for Thai products to sell on its online platform. The JDThai platform was launched in June and is expected to see continued growth as the site grew 5 times faster than predicted according to the parent company. JDThai is cooperating with Central Group in offering products online and plans on offering Thai goods on the Chinese site JD.com which has 300 million active customers via its e-commerce platform and 170,000 stores on its platform. The companys sales grew 30 percent last year, faster than US e-tailers.

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.

Hot bar & grill on Samui’s biggest nightlife street

Located on the hottest nightlife street in Samui on Chaweng Beach this bar and grill is fully equipped with a fully fitted out kitchen, full wine storage area, a ground floor bar and another bar on the third floor with a full DJ booth hanging off the wall with full sound and music equipment.
The fourth floor is currently a storage area but could easily be converted into a VIP lounge.

There are also offices and a store room as well as the IT center with all controls. The business is a well-known and popular bar and the sale includes the lease in an amazing location in the heart of Chaweng as well as the brand name and Thai company if the buyer requires purchasing a company. There is no debt on the company and it is only registered to this business.

All fixtures, fittings, and equipment is included in the sale including top quality stainless kitchen and equipment, all DJ equipment and lighting, and the huge wine cellar holding over 300 bottles of wine. The bar is a huge draw with the younger crowds, there is also a small room next to the ground floor bar which is part of the sale, this can be used as a store; previously the space was rented out for 20,000 baht a month.

ASKING PRICE: 1.2 million USD or 39 Million baht

Hotel in top Chaweng Beach location on Samui Island

Located in one of the top spots in Chaweng near Soi Green Mango on Koh Samui, 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 (rent paid in advance on signing contract and in yearly installments following)

2016-2019 – 2,400,000 per year

2019-2022 – 2,568,000 per year

2022-2025 – 2,747,760 per year

2025-2028 – 2,940,103 per year

2028-2031 – 3,145,910 per year

ASKING PRICE: 20 Million Baht / 645,000 USD

Renovated Pattaya hotel in price drop

This long-running hotel and restaurant was fully renovated just this year for a new, modern look.

Located on Pattaya 2nd road, the hotel now has a up to date, modern kitchen, bar, and restaurant with classic decor. There is an outdoor dining space as well and the entire restaurant seats 50 people.

The hotel has 14 rooms over 4 floors, in a three unit shophouse. Rent on this large space is only 100,000 baht per month. The hotel has income from a tour company of 15,000 baht a month, reducing the total overall rent to 85,000 baht a month.

The lease is set for 4 years plus 3. There are 6 staff with a total monthly payroll of 70,000 baht a month. Located right on the main road and with good lease terms, this is a deal.

The owner is moving to Bangkok and so must sell the business. The sale includes all new equipment and the fully renovated restaurant and bar as well as a Thai company with work permit.

UPDATED ASKING PRICE: 5 million baht

PhangNga resort complex with chanote title land

Located in the popular and growing tourist destination of Phang Nga on the Andaman Coast, this resort complex is set on 44 rai of land.

Only three rai have have seen development, making this a tremendous opportunity to grow this business on the remaining chanote title property.

Currently there are three buildings on the property but the opportunities for villas, hotels commercial offices or condominiums is available.

The business offers accommodation and a restaurant along with adventure activities, a popular tourist activity. Hosting events such as conventions and weddings has been a major source of income along with leisure tourists.

There are 40 full time and 10 part time employees with a monthly payroll of 500,000 baht. The property includes 44 rai of chanote land not far from the airport.

Annual sales have reached 20 million since its inception in 2015 and profit reached 3 million per year.

The owner wishes to retire and so is seeking to sell this development with great potential.

ASKING PRICE: 375 million baht

Large restaurant just off Asoke road in updated price

Just off Asoke Montri Road and near Terminal 21 and many office buildings and hotels, this restaurant is on the ground floor of a hotel and has a booming lunch trade and is very popular with the locals in the area as well as tourists.

The restaurant can seat 85 people comfortably and a classically decorated private ventilated cigar room or VIP room. There are 7 full time staff with excellent team work, and food and beverage contracts with the hotel in the same building or provide breakfast service and room service offering a guaranteed income every month.

There is a cool room which stores wine and beer kegs, new kitchen equipment including charcoal grill, wok stove, oven, deep fryers, cooker, refrigerators and freezers included in the sale price. Rent on the 280 sqm space runs 155,000 a month with no key money. The lease runs until 2022 with a fixed rate. All construction maintenance is supplied and paid for by the hotel above.
The website, email, Instagram, Facebook page (15k followers) are all included in the sale. Total income is around 400,000 – 500,000 baht a month but can go higher with an owner with more time to spare for the business. The owner doesn’t have time to manage the business and so is looking to sell the business.

UPDATED ASKING PRICE: 2.9 million baht

Thonglor low-rise serviced apartment building includes land

A rare find in the popular Thonglor neighborhood, this luxury low-rise executive apartment is located on 209 sq wah of prime land in a top location in this very desirable neighborhood.

With 12 units over 8 floors, this newly renovated building offers guests an amazing two units per floor. There are ten units of 220sqm and two units with 250sqm.

Each unit has recently been renovated to a high-quality standard, there is a roof-top play are for children, a swimming pool, fully fitted out fitness center, parking, a tuk-tuk service to the BTS, and full security including CCTV and fire safety systems.

This building has been popular with top level executives, embassy personnel and other discerning families. It is one of the few pet-friendly buildings in the area and with its recent top quality renovations is ready for tenants.

The sale includes the 8-story building and the 209 sq wah of land, a rare find in this extremely popular and trendy neighborhood.

ASKING PRICE: 250 million baht

Thai fusion restaurant in popular Sukhumvit community mall

This healthy Thai – Western fusion food restaurant offers delicious organic food in a popular Sukhumvit community mall.

The restaurant has earned good reviews on Trip Advisor for its healthy menus and a loyal repeat business.

With an industrial chic vibe it is in a popular community mall that hosts many weekend events and is a big draw. The rent on the 97 sqm space is 122,220 baht.

The business has 8 full-time employees with monthly wages of 140,000 baht. Sales have reached 7.2 million baht with a net profit of 700,000 baht.

The owner invested 4.5 million baht in fitting up the business but is moving to another province so has set a competitive price to sell it quickly.

ASKING PRICE: 3.9 million baht

BOI IT business seeks investors or full sale- status allows for 100% foreign ownership

The BOI promoted business allows for 100 percent foreign ownership and falls within the guidelines and goals of the government’s bid to progress the economy to higher tech. This business provides cloud services to companies in Thailand and currently has 3 active partnerships and active reseller agreements: Microsoft, Sophos and Acronis, offering managed cloud services and cloud powered IT solutions. The company offers 24/7 management of cloud services and offers services such as Windows and Linux Cloud servers, Cloud back up, website and app hosting and Microsoft Azure. As the company enjoys BOI incentives, profit and dividends are not taxed so it can be beneficial to a local investor to change to local ownership.

In Thailand the spending on public cloud services in 2017 was estimated at 7.73 billion baht according to global research firm IDC. Many companies are moving to the cloud and the Bank of Thailand recently announced that the financial sector can offer financial services on the cloud. Research firm IDC predicts a further growth of the Cloud Services market by 25% yearly on average.

The company has a dedicated team of well-trained IT professionals with certified and senior engineers offering technical support and the company also has an online lead capturing and sales strategy for selling recurring packages. The company conservatively predicts total net profit over 3 years to reach 100 million baht.

The owner has more than 10 years of experience in IT, Cloud, Hosting and Online Marketing. An extensive knowledge and experience that can be transferred to a partner or new owner.

The owner is interested in two options; a joint venture in which the partner takes shares in the Thai company and the owner stays on as the General Manager or a full takeover with 100 percent ownership by the buyer.

ASKING PRICE: 50 million baht

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