"Online business" covers two very different situations in Thailand, and the right approach depends entirely on which applies to you. Getting the distinction wrong leads to compliance mistakes on either structure, tax, or visa.
The Two Scenarios: Which One Are You?
Scenario 1: Thai-facing business
Your customers are primarily in Thailand. You sell to Thai consumers, employ Thai staff, invoice in THB, or hold stock in Thailand. You are operating a Thai business that happens to use online channels.
Scenario 2: Foreign-income, Thai base
You work for a foreign employer, run a foreign-incorporated company, or provide services to clients entirely outside Thailand. Your income comes from outside Thailand and your operations are not directed at the Thai market.
Scenario 1: Thai-Registered Online Business
Company structure
If you serve Thai customers, you need a Thai company structure, Thai tax compliance, and the correct visa and work permit. The standard structure is a Thai Private Limited Company with Thai nationals holding 51% and the foreign entrepreneur 49%. Note: retail trading below certain capital thresholds is on FBA List 3, meaning a foreign-majority company technically needs an FBL for Thai retail. The Thai majority structure avoids this.
VAT obligations
If your Thai-registered e-commerce business generates more than 1.8 million THB in annual revenue, VAT registration is mandatory. Once VAT-registered, collect 7% VAT on sales to Thai customers, issue tax invoices, and file monthly VAT returns (PP.30). Exports of services are zero-rated, meaning no VAT on the sale but input VAT on purchases can be recovered.
Payment gateways for Thai customers
Major gateways working with Thai companies: Omise (now Opn), 2C2P, PaySolution, and bank-integrated QR systems (PromptPay). Stripe is available for some business types. For international payments from overseas customers, Wise Business multi-currency accounts, Stripe (international), and Airwallex are widely used from Thailand.
Scenario 2: Operating a Foreign Business from Thailand
You may not need a Thai company
If income is entirely from outside Thailand, registering a Thai company may add compliance costs and administrative complexity without meaningful benefit. Many people in this position operate without a Thai entity, provided their visa allows them to be in Thailand.
The LTR Work from Thailand Visa
The LTR Work from Thailand Professional visa was designed specifically for remote workers and self-employed professionals whose income comes from foreign sources. Requirements: minimum income of USD 80,000/year (or USD 40,000 with a Master's degree or equivalent), and evidence of at least two years of employment with the current employer. LTR Work from Thailand holders are explicitly permitted to work for their foreign employer from Thailand, have a 0% overseas income tax exemption, and receive a 10-year visa with annual reporting instead of 90-day.
Below the LTR income threshold?
The DTV visa (introduced 2024) provides a 5-year multi-entry visa specifically for remote workers and digital nomads. It requires approximately 500,000 THB in savings and explicitly permits remote work for overseas employers. There is no specific overseas income tax exemption, so those spending 180+ days in Thailand should understand the tax implications.
Tax Position for Each Scenario
Scenario 1: Thai company
Corporate income tax on net profit (20% standard, reduced for SMEs), monthly VAT returns if VAT-registered, withholding tax on applicable payments, and personal income tax on your director salary. See the full tax guide.
Scenario 2: Foreign income, Thailand base
Since 2024, Thai tax residents (180+ days in Thailand per year) who bring foreign-source income earned from 2024 onwards into Thailand in the same year are required to declare and pay Thai PIT on that income. LTR Work from Thailand holders have a specific exemption for income from foreign employment. For others without LTR status, specialist tax advice is strongly recommended before making significant remittances to Thailand. See the Tax for Digital Nomads guide.