The FET-form or foreign exchange transaction form (sample) relates to the official statement by an authorized financial institution (Thai bank) of exchanging foreign currencies into Thai baht. The authorized bank in Thailand exchanges a quantity of foreign currency for a quantity of Thai baht and issues a FET-form for the conversion of foreign currency into Thai baht.
The FET-form, formally known as the Thor.Tor.3 (and pronounced as tor tor saam), is among others required when buying and registering foreign ownership of a condominium unit in Thailand as a non resident. The original FET-form must be shown to the Land Department in order to register foreign condominium ownership. The FET form (i.e. to buy a condominium as a non resident foreigner) must be shown to the Land Department and must include the foreign purchaser's name either as the sender or receiver of the money from the overseas bank.
A FET form will only be issued by the handling bank for amounts exceeding 50,000 USD. For lower amounts the financial institution is not required to report the foreign currency exchange and will not issue a Foreign Currency Exchange Form, but will, when requested, issue a letter of proof for the transferred foreign currency and exhanged into Thai baht, with a similar content as the FET form.
Whenever transferring money out of Thailand the tax free amount of transferring money out of Thailand is determined by the initial amount transferred into Thailand as stated in the FET form or credit note.
Bank of Thailand:
Changes in Reporting Requirements of Foreign Exchange Transactions
In order to reduce the paperwork required for foreign exchange transactions (buying, selling, depositing, withdrawing foreign currencies) between financial institutions and their non-interbank customers, the Bank of Thailand has consolidated and simplified all relevant Notices into a new Notice of the Competent Officer effective from April 1, 2004 Changes are summarized as follows:
- Revoke all Notices of the Competent Officer and related circulars by issuing a new Notice for easy reference.
- All types of transactions are to be reported in a single foreign exchange transactions forms replacing Thor.Tor 3, Thor.Tor 4, and Thor.Tor 5.
- Foreign exchange transactions amounting to an equivalent of USD 20,000 or over have to be reported in the Foreign Exchange Transaction Form.
- SWIFT documents that have all the information according to the Foreign Exchange Transaction Form can be used as the Foreign Exchange Transaction Form in order to facilitate nonresident customers.
- Exporters and importers are no longer required to submit Thor.Tor 1 and Thor.Tor. 2 as the information are already reported in the Custom Declaration Form.
- Foreign exchange transactions of exporters and importers arising from trade amounting to an equivalent of USD 20,000 or over have to be reported.
- Financial institutions will submit report on foreign exchange transactions and data to the Bank of Thailand in electronic forms instead of paper form.
- Reduce paperwork on foreign exchange transactions of government and government agencies.
Bank of Thailand 31 March 2004
Related: Foreign currency exchange transaction for and the purchase of a condominium
