Doing Business in Thailand

The VAT system was introduced in Thailand in 1992 that is to say at the same time than the Special Business Tax (SBT). In a nutshell most transactions (exchange of goods or services) that are occurring in Thailand are either subjected to VAT or to the SBT.The principle of VAT is simple, any business which having a turnover of more than 1,800,000 THB per annum, and that is not subject to the Special Business Tax, must register for VAT within 30 days of the date they reach 1,800,000 THB in sales.

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Originally posted 2009-11-15 05:12:28.

For those which companies in Thailand close their accounts at the end of the year we remind you that you will have to close the accounts of your company and prepare and file audited accounts within five months of year end. Also we remind you that the audited account of the company must be submitted for the approval of the Annual Shareholders Meeting of the company within 4 four months of year end.

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In order to improve Thailand competitiveness prior to the enforcement of the Asean Economic Community in January 2015 Thailand has recently moved to lower corporate tax rates that have become far more competitive than before.

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What is the Withholding Tax?

Withholding Tax is a tax collected by a deduction made on a payment when said payment is made. The payer who will remit it to the Revenue Department on behalf of the payee collects the tax. The tax the payer collect and remit to the Revenue Department on behalf of the payee will become a credit that will apply against the income tax (personal or corporate) due by the payee.

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Originally posted 2009-07-25 15:44:49.

Price Waterhouse recently published its 2010 “Paying Taxes 2010 the Global Picture” which consist of a comparative survey of how easy/difficult is it for an average company to pay tax in 183 countries. So how did Thailand do in this comparative survey?

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Originally posted 2009-12-14 07:15:20.

The Revenue Department is the largest source of income for the Thai Government representing up to 80% of its revenues. Now as a result of the 2008 crisis the Revenue Department underperformed in 2009 (180 Billion Baht below target) while on the other hand the Government committed huge amounts of funds to support the economy increasing the public debt.

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Originally posted 2009-12-21 04:53:57.

According to the Bangkok Post Thailand Finance Ministry is working on a new incentive to attract new foreign investors. This new incentive would entitle said new foreign  investors to a 15 years tax break.

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Originally posted 2010-05-24 09:53:07.

In this post I will try to give readers a few tips on how to manage Tax Audits. I guess that readers would prefer tips on “how to avoid a tax audit”. Unfortunately, in Thailand, you cannot avoid tax audit. To the contrary, you may expect regular mandatory visits from the Tax Administration.

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Originally posted 2009-10-08 05:12:15.

This post is the continuation of yesterday post (Managing Tax Audits Part 1). But for the first visit, when tax officials will audit a company they will generally request it to send the documents at their office. Depending of the team auditing your company you will either be requested to send the documents first or to come for an interview first and then later to send the documents. Do not attend the interview yourself but send the accountant who is handling your company account or a tax lawyer if the issues are complexe. But the accountant should be your first choice.

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Originally posted 2009-10-09 04:41:43.

What is personal income tax?

Personal income tax is the tax that is levied on the income of any person that is not subjected to corporate income tax such as:

- Individual, ordinary partnership, a body of person which is not a juristic person, a deceased person and an undivided estate.

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Originally posted 2009-08-01 08:07:03.