Distributorships
A distributorship is an agreement in which one party agrees to sell its
product to another on a regular (sometimes exclusive) basis, in a
defined geographical area. There is no specific law that censures this
type of relationship. The relationship between suppliers and
distributors is governed by the contract provisions of the CCC. There
is no requirement or process to register such an agreement, except in
the case where certain intellectual property rights are licensed to the
distributor under such agreement (please refer to section 5.8 below)The distributor, acting solely as a buyer and re-seller, is not
considered to be the agent, representative, or go-between of the
supplying company. Thus, an offshore company using a distributor for
the sale of its goods in Thailand is not subject to any Thai tax on the
income from its sales to the distributor.