Tax planning and compliance is essential to business success
Taxation in Thailand is a challenging and changing landscape. It is imperative to operate effective Tax planning and be on top of new or impending Tax legislative change. Tax deadlines are in the main fixed and penalties can quickly accrue if any are missed.
Corporate Tax – Once a year when your accounts are audited, filing your Corporate Income Tax to the Revenue Department is an obligation. This tax depends on the net profit you have done during the past fiscal year. A certain number of rules have to be respected to deduct all your expenses and therefore lower your Corporate Income Tax liability.
Personal – Income Tax – As anywhere else, paying taxes on your revenues is an obligation in Thailand. In this country, employers have the obligation to deduct this tax at source when paying taxable salaries. These deductions are based on an estimate of the annual taxes that we divide by 12 months. Last but not least, an annual filing is mandatory every year.
Withholding Tax – This tax, very uncommon for Europeans or westerns applies when paying your service provider. For instance, when paying your telephone bill, your company is required to deduct 3% from the amount excluding VAT. To justify this deduction to the Revenue Department of Thailand, a withholding tax certificate must be sent to the service provider.
Value Added Tax (VAT) – This tax applies to companies having turnover more than 1.8 million baht per year. It however directly applies when an immigration visa is delivered to foreign workers in Thailand. A certain number of particularities must be known and well understood to avoid avoidable losses. Failing to declare your VAT may induce high penalties. Make sure it’s done on time!
"...Administration Outsourcing have been overseeing Koll's Company accounts and audits for the last 3 years. Peter Upperton has often gone to great lengths personally to ensure that we are fully compliant with Thai requirements and that I, as MD, am made aware of any issues that could be expose the Company to risk financially. I am extremely grateful to Peter and his team, as they go way beyond the normal levels of service to look after my firm's best interests!..."
Administration Outsourcing Co. Ltd
518/5 Maneeya Center Building, 16th Floor,
Ploenchit Road, Lumpini, Pathumwan,
Bangkok 10330 Thailand
Tel : +66 (0)2 684 1699
or call +66 (0)86 006 2216 (English)
Fax : +66 (0)2 652 0766