What is a Thai Foundation?
Thai Foundations are established with the aim of helping charity, religion, science, arts, literature, education, or any public interest and supporting to improve them.
They are established by using the resources donated by individuals, families or businesses, and this money is invested by the foundation. The income made out of these donations is then utilized to make grants and organize programs.
Foundations are obliged to pay tax on any profits made, but only at 1%.
The trustees, directors and or member are restricted by law to take any benefits directly from the profits earned by a foundation in doing its charitable duties.
The law also states that it is also necessary for a foundation to get registered with the registrar of the district that has jurisdiction over the place where the principal office of the foundation will be located.
How is a Foundation set up?
The Thailand Ministry of the Interior has prescribed the rules and regulations for setting up of foundations through the legislation of The Ministerial Regulations of Regulations, Operation and Registration of the Foundation B.E. 2545 (2002).
The application must have the following documents submitted:
- A list of the owners assets
- A list of all allocated assets for the Foundation and registered document indicating the promise to donate these assets
- A copy of testament if an asset was given to the Foundation by virtue thereof
- Details such as name, address and profession of all the members of the board of directors of the Foundation
- Rues and regulations of the Foundation
- A copy of any ID card or other types of Identification cards issued by the government and a copy of the house registration of the owners and members of the board of directors
- Location map of the principal office and its branch offices (if any) and the written consent of the landlord or owner of these properties
- Details of the minutes of the meeting with respect to the establishment of the Foundation
Assets of a Foundation must have a value of 500,000 baht, with at least 250,000 baht in cash. Certain charitable objectives allow a Foundation to have assets of only 250,000 baht in value, with only 100,000 baht in cash.
Upon receipt of the aforementioned papers, the District Office will evaluate the application. The District Office will then have the application transferred to the Ministry of Interior. If the Thai Foundation has any objectives that are relevant to any other government department, the Ministry of Interior will send the application to that department for their consideration.
The entire application process may take up to one year after which the applicant will be informed of the Ministry of Interior’s decision.