Thailand opening up to for chartering foreign flagged superyachts

Superyachts in a marina © METSTRADE

We reported recently that superyachts chartering in Thailand no longer had to pay VAT on the value of the vessel. Here are some additional, and important, details.

Under current arrangements, charters beginning in Thailand are obliged to terminate in another country, with many heading from Thailand to Langkawi, Malaysia. The proposed new legislation would allow superyachts to stay and enjoy the immaculate cruising grounds of Thailand, encouraging more owners to station their yachts in the country.

These two amendments to regulations could have the effect of opening the way for big charter yachts to transfer to Asia at the end of the Med charter season, and maybe even staying on in Asia, voyaging south to other points east. Malaysia, Singapore, Indonesia, Australia and beyond. It should be noted, however, that VAT will not be lifted on charters themselves, with VAT and government applicable taxes payable based on the value of the charter.

Co-owners of Asia Pacific Superyachts Phuket, Gordon Fernandes and Tanyuta ‘Jojo’ Singhmanee, report that “Thailand’s Customs and Revenue Department are working hard to get the charter license finalised. Positive meetings were held last week in Bangkok and we hope that legislation will be formalized and passed so that foreign-flagged yachts over 30m can charter legally within Thailand.”

So it’s not a done deal… yet. Details are still being worked on, and a statement from the Thai Yachting Business Association (TYBA) notes some of the considerations. “The permission to stay in Thailand for six months (renewable every six months for up to two years) is valid for ‘Pleasure Craft’, defined as a boat used for personal or sports recreation, not for commercial purpose unless there is an exemption in accordance with the Thai Vessel Act,” reads the TYBA statement. “It remains to be clarified whether it includes and refers to the Charter Licence, as well as the actual implementation on the charter VAT, foreign crew work permits and Visa.”

At present, yachts may apply to quarantine aboard in Thailand as the Centre for Covid-19 Situation Administration (CCSA) has granted permission for overseas yachts to check into Thailand. Gordon Fernandes has reported that superyachts have now successfully completed quarantine check ins, while Tanyuta ‘Jojo’ Singhmanee confirms that the government will extend the STV (Long Stay Visa Program) for yachts and is working with officials on further reducing restrictions.

The opening of Thailand to foreign-flagged superyacht charter would be a significant boost to the industry in the country. As seen in other countries like Australia, relaxing charter legislation is swiftly followed by an increase in both numbers of visiting superyachts and length of stay. And it could have much bigger region-wide implications, encouraging yachts to ‘keep going’ eastwards. The Asia Pacific is the biggest potential cruising ground in the world for charter yachts. This change in legislation strengthens the Asia Pacific region generally as a superyacht destination, ideal for adventurous charterers and owners looking to make the most of long-range explorer yachts in particular.