Thailand’s Political and Legal External Macroenvironmental Forces

To reach the highest level of success, a firm must be able to adapt to the external macroenvironmental forces and combine it with the internal forces most efficiently.Due to the fact that the organization is not able to control the external forces, it is very vital to be informed of all the necessary information available on the topic.One of the very important factors would have to be the Political and Legal Forces.Within the Political and Legal Forces of the macroenvironmental forces are four categories:
1. Monetary and fiscal policies. (level of government spending, the money supply, and tax legislation)
2. Social legislation and regulations. (environmental laws)
3. Governmental relationships with industries.
4. Legislation related specifically to marketing.(laws regulating competition and to protect consumers)
Thailand is a mixed economy where government has some but little involvement with the market.However, it regulates it through business laws and policies.
Due to the past few years of Thailand’s financial crisis, the government was in debt to the IMF (International Monetary Fund) and is now paying the loan.This therefore led to lower level of government spending, privatization of over 60 state-owned enterprises, and a strive to increase revenues.
The taxation of doing business in Thailand includes corporate income tax, value added tax (VAT), and personal income tax.For corporate income tax, incorporate firms operating in Thailand are taxed thirty percent from the net profit.Foundations and associations pay income tax at two to ten percent of gross business income, depending upon the nature of their business activity.All companies that registered under Thai law will have to follow the taxation described above.However, for foreign companies that have not registered will only have to pay income tax for the revenue deriving from the sources in Thailand.Normal business expenses…

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