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Southeast Asia · Thailand

Fractional and interim C-suite leadership in Bangkok

Thailand is an unusually good market for fractional leadership, and the reason is buried in the labour law. Employer social security is capped at THB 875 a month per employee — about THB 10,500 a year, or roughly 0.2% of payroll at executive salaries. Severance is not capped at all. It runs to 400 days of wages at twenty years of service, calculated on the executive’s full wage.

So a senior hire in Bangkok is cheap to carry and very expensive to exit. Buying leadership as a service prices that exit risk to zero.

The second reason is the work permit arithmetic. Every foreign executive on a Thai payroll requires THB 2m of registered capital and four Thai employees. A company-to-company consulting contract sidesteps the quota entirely.

Finance mandates here

Our sister practice SmeCFO has delivered fractional and interim CFO engagements in Thailand since 2015 and handles finance mandates in this market directly. Every other function goes to an independent specialist firm. How we are paid.

The numbers

Fractional, per monthTHB 120,000–350,000/month (USD 3,700–10,700), typically THB 150,000–250,000 at two days a week. Advisory-only mandates — a monthly board pack and a call — run THB 50,000–90,000.
Full-time, all-inBase THB 250,000–450,000/month for a Bangkok CFO or COO. All-in with 13th month, bonus, medical and car allowance: THB 4.5m–8.0m a year, roughly USD 138,000–245,000.
Corporate tax20% headline. SMEs with paid-in capital ≤ THB 5m and revenue ≤ THB 30m pay 0% on the first THB 300,000, 15% to THB 3m, then 20%.
VAT / GSTVAT 7% (statutory 10%, reduced by Royal Decree). Domestic service fees carry 3% withholding; fees to a non-resident without a permanent establishment, 15%.
Employer on-costsSocial Security Fund 5% employer, but the contribution base is capped at THB 15,000/month — a maximum of THB 875/month, or THB 10,500 a year, per employee. Workmen’s Compensation adds 0.2–1.0% on a capped base. At CFO salaries the employer load is effectively nil.
SeveranceLabour Protection Act s.118: 30 days’ wages at 120 days’ service, 90 at one year, 180 at three, 240 at six, 300 at ten, and 400 days — about 13.3 months — at twenty years. No wage cap. Payment in lieu of notice on top, and restructuring terminations can reach 360 days.
Work permitsA foreign executive physically working in Thailand needs a Non-Immigrant B visa and a work permit, backed by THB 2m of registered capital and four Thai employees per foreigner. The practical structures are an offshore company-to-company consultancy delivered from outside Thailand (15% withholding, reducible by treaty), an LTR or SMART visa, or the fifteen-day notification for discrete on-site work.

What actually governs this in Thailand

The regimes that change the answer, rather than the ones that sound like they should.

Foreign Business Act B.E. 2542

A company more than 49% foreign-held is a "foreigner". List 3 item 21 captures consulting, so a foreign-owned advisory entity billing a Thai client from inside Thailand needs a Foreign Business Licence. Nominee shareholding is criminal — up to three years and THB 1m.

BOI promotion

Exempts from FBA licensing and eases work permits, but since 1 October 2025 imposes minimum salaries: THB 150,000/month for executives, THB 75,000 for managers, plus a 70% Thai-staff rule for larger manufacturers.

International Business Centre (IBC)

Corporate tax of 8%, 5% or 3% depending on local spend, THB 10m paid-up capital and ten skilled employees. Expatriate employees get a flat 15% personal income tax instead of the 35% top rate.

Mandatory statutory audit

Every Thai limited company must file audited financial statements regardless of size or dormancy. Directors are personally liable for fines, and three consecutive years of non-filing triggers strike-off. Even five-person firms already buy external finance expertise.

Emergency Decree on Managing the Work of Aliens

"Work" is defined broadly. Only a narrow fifteen-day urgent-work notification sits outside the permit regime — advising a Thai company while in-country on a tourist visa is working without a permit.

Why companies here buy it

  • Severance runs to 400 days of uncapped wages while employer social cost is capped at THB 10,500 a year. A bad executive hire is cheap to carry and ruinous to exit.
  • Each foreign executive on payroll needs THB 2m of registered capital and four Thai employees. A consulting contract avoids the quota.
  • Statutory audit and TFRS compliance are annual and mandatory even for tiny companies, so the recurring need is a few days a month of senior judgment, not a full-time seat.

How business is done

  • Authority in Thailand is documented, not implied. The DBD company affidavit names the authorised directors and the signing condition, so a fractional CFO who is not a registered director cannot sign bank mandates, tax filings or contracts. Every Thai engagement has to resolve the signatory question separately, usually with a limited power of attorney.
  • Because audited accounts are compulsory for all companies, outsourced senior finance is a pre-existing norm rather than a new idea. You are not selling a concept here, only a level.

Market context

  • Thailand has 3,105,096 MSMEs — 99.53% of all businesses — producing THB 5.96 trillion, or 35.3% of GDP, and employing 12.06m people, 69.5% of the workforce.
  • MSMEs supply only 13.4% of exports, a productivity gap the World Bank identifies as the binding constraint on Thai growth.

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Sources

Figures are compiled from the sources below and reviewed quarterly. Tax and employment law change; check the position before you rely on it, and take local advice on anything material.

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