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Legistative acts of the Thailand

Taxation in Thailand
1. Personal income tax
2. Corporate income tax
3. Withholding Tax
4. Value Added Tax
5. Other taxes
6. Double Tax Treaties
Thailand Tax effect on state and local levels. Key taxes include direct (personal and corporate income taxes, the tax on profits from the sale of petroleum products) and indirect (VAT, customs duties and taxes on certain types of business, excise and stamp duties, property tax).
Tax collection is managed by the Ministry of Finance through three divisions: The Customs Department is responsible for the import and export duties; Tax Office - for income tax, VAT, tax on certain types of businesses and stamp duty; Excise - for excise duty chargeable on certain goods. Local governing bodies and collect municipal property taxes.
Thai tax management is based on a system of self-determination. The taxpayer must declare the income and pay the appropriate tax. Declarations and payments are correct. The competent authorities are entitled to an additional taxation in case of false statements. Possible appeal against the additional tax.
Tax Code - this is the main tax law of Thailand. The Code defines the personal income tax, corporate income tax, VAT, tax on certain types of businesses and stamp duty. The law "On taxes on profits from oil sales," specifies the taxation of oil and gas concessionaires and the Customs Act sets tariffs on imports and exports. Other laws establish excise tax and property tax.
Personal income tax in Thailand
The tax year for individuals - is the calendar year ending 31 December.
The individual taxpayer, Thai or foreigner who resides in Thailand more than 180 days in the calendar year for tax purposes is considered to be a resident of Thailand. Resident is subject to Thai personal income tax on all income derived from sources within Thailand, regardless of whether the payment was made in Thailand or elsewhere. Profits derived from foreign sources, subject to Thai tax, if it came to Thailand in the same year that was received.
Non-residents are taxed only on income derived from sources within Thailand.
The tax base is determined by subtracting the costs and discounts of all taxable income. The tax is calculated on a progressive rate - from 10% to 37%.
Income and tax deductions in Thailand
Different types of income subject to tax personal income tax, divided into 8 categories:
1. Income from wages.
2. Income from employment provided by the Bureau for employment or services.
3. Income from intangible assets, copyrights, franchises, patents and other rights, annuity or income in the form of annual payments received by the will, to another document or court order.
4. Interest (including interest on bank deposits in Thailand), mutual funds bonuses, income from mergers or dismemberment of the company, the income from the transfer of shares.
5. Income from property rental, breach of contract hire purchase.
6. Gains from the free employment, such as law, engineering, architecture and accounting.
7. Income from piece-work, in which the contractor provides essential materials besides tools.
8. Income from business, commerce, agriculture, industry, transport and other income not referred to in paragraphs 1-7.
Certain types of income are not subject to personal income tax. Among them:
Costs associated with the move paid by the employer to the employee. This implies that the latter is moved from one place to work and returned to terminate the employment contract.
Travel and transportation reimbursement of employee expenses.
• The proportion of income derived from a partnership which is not a legal entity or individual, subject to personal income tax.
Proceeds from the sale of securities on the Stock Exchange of Thailand, not including income from the sale of bonds and mortgages.
Reimbursement of medical expenses in Thailand worker and his family members.
• Revenues from the sale of investment shares in the mutual fund based in accordance with the Law "On securities and stock exchange" by 1992.
• Up to 290,000 baht employee contributions to a registered Provident Fund.
Personal and other discounts to income tax in Thailand
In addition to the listed standard tax deduction, the taxpayer is also entitled to discounts from personal income tax:
30,000 Baht for the taxpayer
30,000 baht for the husband / wife
15,000 Baht per child (maximum of three children, with the exception of those born before 1979).
• 2.000 Baht for each child's attendance at school in Thailand
Other discounts available:
-premiums for life insurance, not more than 90,000 baht
-life insurance / her spouse, not more than 90,000 baht
-interest on mortgages with a guarantee of housing, not more than 100,000 baht
-contributions to a registered Provident Fund, no more than 10,000 baht
-contributions to the social insurance fund, the entire amount
-the inheritance of the deceased person, no more than 30,000 baht
-unregistered partnership, a maximum of 60,000 baht
• charitable contributions do not exceed 10% of income after standard deductions and personal discounts
Tax rates in Thailand
After all deductions from total income net final profit is taxed at the rates listed in the table below:
Net income (in Baht) The tax rate
0-150.000 0%
150.001-500.000 10%
500.001-1.000.000 20%
1.000.001-4.000.000 30%
> 37% 4,000,000
The tax rate on the total income of the spouses is the same as the two persons filing independent tax returns. Income of both spouses are considered to be received by one husband. However, if both spouses have income from employment, each of them may submit the declaration. In this case, every working spouse has the right to separate deductions and personal income tax rebate of each will be 30,000 baht plus 7,500 baht for each child (8,500 baht if he learns in school in Thailand).
If an individual has a total income of over 60,000 baht, with the exception of income defined by section 40 (1) of the Tax Code (income from employment) paid income tax should be at least 0.5% of total revenue.
Corporate income tax in Thailand
A legal person or partnership incorporated in Thailand, subject to corporate income tax on all income derived from local and foreign sources.
Taxed net income of legal persons and partnerships. Rate - 30%. The tax is levied at the reduced rate of the company listed in the list of the Stock Exchange of Thailand (SET) and Exchange Alternative Investment (MAI), the trade exchange, the newly founded SET:
Companies listed in the SET list prior to September 6, 2001.
Net profit: 0 - 300 million baht 25%
Net income:> 300 million baht 30%
Companies listed in the SET list after September 6, 2001.
Net income: 25%
Companies listed in the list of MAI after September 6, 2001.
Net income: 20%
The size of the corporate tax is reduced for small businesses (SME, companies with paid-up capital of less than 5 million baht at the end of each accounting period).
Net income of no more than rate
0 to 150,000 baht 0%
150.000 - 1 million baht 15%
1 million - 3 million baht 25%
More than 3 million baht 30%
Calculation of net profit in Thailand
Net profit should be calculated on an accrual basis with certain exceptions.
Allowed to write off business expenses for all fees and expenses incurred for the purpose of profit or during business operations, unless otherwise specified in the Tax Code.
Thai company may require write-off royalties, management fees and interest charges provided that they were made for profit or for the purpose of business in Thailand, and do not exceed reasonable limits.
Write-off of net losses may be transferred within 5 of accounting periods for payment of future income from all sources. No provision to transfer losses back. The losses of each company are considered individually. No tax relief for groups of companies to consolidate or discount. Changes in the distribution of shares of the company do not affect its tax losses.
Deductions for depreciation and amortization allowed as a percentage of the cost. If the company, according to its method of accounting provides rate below the rate of interest established by law, the deduction will be allowed only at the rate of the selected company.
The tax authorities and payment of tax in Thailand
The tax year for the company equal to its accounting period of 12 months.
Nevertheless, it may be less than 12 months if it is the first since the company ACCOUNT institution or after receiving approval from the Internal Revenue Service to replace the accounting period.
The system is based on self-assessment. The Company shall prepare and transmit tax returns on time, at the same time pays taxes to calculate the volume.
Corporate income tax is paid every six months. The semi-annual declaration must be submitted within two months from the end of the first 6 months of the accounting period. Payable tax is calculated at half the rate of the target profit for the full ACCOUNT period, except for those included in the list of stock exchanges; banks, certain financial institutions and other companies that fall under the prescribed conditions under which the tax is calculated on the basis of the actual net profit for the first 6 months.
Annual tax returns must be filed within 150 days before the end of the accounting period; discount on the amount of tax paid in six months.
Withholding tax in Thailand
All persons making payments, are the proceeds of another person and subject to taxation are required to withhold income tax. The rate depends on the type of taxable income.
If income falls under a category 1 or 2, the payer must withhold the tax, in the following way:
(A) multiplying the amount of the payment on the amount of payments to get the total amount of payments for the year;
(B) Subtracting the costs and benefits, if any, and calculating tax on the remaining amount in accordance with the rates of personal income tax;
(C) dividing the amount of tax on the amount of payments.
If income falls under category 3 and 4, the payer must withhold tax in accordance with the highest bid. There are exceptions to this rule: term deposits and dividends are subject to withholding tax at the rate of 15% and 10%, respectively.
Companies registered partnership or other legal persons making payments are taxable income and other Thai listed companies and associations, other legal entities and foreign companies operating in Thailand, must withhold income tax. Rates depend on the nature of payments.
(A) 5% of the payments category 5 - leasing of real estate;
(B) 3% of the payments category 6 - Income from the employment of the free;
(C) 3% of payments categories 7 and 8 - the employment;
(D) 2% of the payments category 8 - Payment of advertising;
(An e) 3% of the payments category 8 - discounts and benefits from sales, except for the goods / services for personal consumption (not for sale) by the buyer;
(F) 3% of the payments category 8 - remuneration for services in addition to payments for paid employment, tolls, hotel and restaurant, the insurance premium;
(G) 5% of the payments category 8 - prizes received at competitions, contests, sweepstakes, etc .;
(H) 15% of payments for services and lease income under categories 2, 3, 4, income from employment of non-resident free.
If the income under categories 5, 6, 7 and 8 above 10,000 baht is paid by the central or local governments, the payer is required to withhold income tax at the rate of 1% at the time of each payment.
A taxpayer whose income tax was withheld, may pay or request a refund, depending on the case. The request to the tax authorities must be made within three years from the last day of the year in which the excess tax was withheld.
Taxes withheld by the payer should be transmitted to the Inland Revenue Department within 7 days after the end of the month in which the payment was made. Payee will be given a certificate of withholding tax. It can be used to reduce the annual or semi-annual income tax for the relevant tax year.
Value added tax in Thailand
Value Added Tax (VAT) - an indirect tax levied on the provision of goods or services. It is calculated based on the total purchase price of goods or services provided. Provision of services is considered to be produced in Thailand if the service was made in Thailand, regardless of where or when the service has been performed abroad but used in Thailand.
VAT is calculated as follows: output tax - a tax paid = added tax.
Output tax - VAT is that the seller collects from buyers during the sale, and the added tax - VAT is that the seller pays the buyer. If the output tax exceeds the addition, the seller must pay the difference between the IRS.
VAT payers are required to prepare an invoice indicating the amount of goods or services with VAT collected. The law prescribes the entry in the accounts of all the relevant details.
In general, every person engaged in business in Thailand, is subject to VAT, but there is a list of entities and activities that are exempt from it:
(A) Small business owners (<1.8 million. Baht)
(B) Educational services
(C) Cultural services
(D) Audit and Forensic Services praktikibr /> (e) Medical care
(F) Research Services and Maintenance
(G) Rental of real property
The current rate - 7%. The zero rate is applied in the following cases:
Exports of goods in Thailand
Services provided in Thailand but fully transferred for use in another country
Sale of goods or services to government agencies or institutions engaged in foreign economic assistance programs
Sale of goods and services between bonded warehouses or enterprises located in duty-free zone
• The provision of goods and services of the United Nations and its specialized agencies, as well as embassies and consulates
VAT payers are required to file monthly tax returns within the 15th of the following month.
These invoices and copies of invoices drawn up should be stored together with the relevant documents and records. For example, the accounting records and source data to be stored on-site activities for VAT.
Tax on certain types of business in Thailand
Because of the complexity of determining the value added (and hence VAT) alternate tax used in some types of businesses. They are subject to services, especially financial. Tax on certain types of business functions together with the VAT regime and going to the gross revenue at fixed rates from the following types of businesses:

Banking, finance and similar business 3%
Life insurance 2.5%
Mortgage brokerage 2.5%
Real Estate 3% (from 01.01.2004)
The agreement on repurchase 3%
• Factoring 3%
Other taxes in Thailand
Excise duty
Excise duty levied selling a limited range of locally produced goods and imported. The rate is calculated by the "ad valorem" or in a special way.
Tax liabilities arise when the local production of goods exported from the factory, and the imported goods come into the country.
1. Fuel and oil products
2. drinks (except water, milk, alcohol)
3. Electrical
4. Crystal glassware
5. Motor vehicles, incl. motorcycles
6. Boats
7. Perfumes and cosmetics
8. Social services
9. Cigarettes containing tobacco
10. Batteries
Manufacturer of products must submit a declaration and pay the tax due to the export of goods from the factory or bonded warehouse. If the obligation to pay VAT to the goods leave the specified place, the manufacturer must submit a declaration to the Excise and pay the tax within 15 days from the end of the month.
The tax on profits from the sale of petroleum products in Thailand
The tax on profits from the sale of petroleum products are subject to company-oil dealers in accordance with the Law "On taxes on profits from the sale of petroleum products» (PITA). Companies taxed under this law shall be exempt from taxes and duties envisaged by the Tax Code and other laws. Exemption is valid until the company pays taxes and duties on income governed by a PITA, or dividends from income, regulated PITA. Taxed net profit of oil companies from oil operations, including income from the transfer of concession rights and other activities not related to the oil operations at the rate of 50%.
Property taxes in Thailand
In Thailand, there are two types of property tax, namely the tax on land and buildings and on local development tax.
Taxes on land and buildings are subject to the owners of houses, buildings and land leased or are in commercial use. The tax rate - 12.5% on the annual value of the property, the actual or estimated.
The tax is levied on local development, any person who is the owner or the owner of the land. The rate varies depending on the appraised value of the property set by local authorities. There are benefits provided under the condition that the land is used for housing, for growing a crop or livestock owner. The size of the benefits depends on the location of the site.
Stamp duty in Thailand
Stamp duty is subject to clearance of 28 types of documents listed in the Internal Revenue Code (eg., The contract of purchase and lease of land, invoice, transfer of shares, loan, agreement on the establishment of the company, the letter of credit).
Rates depend on the nature of the document. Stamp duty must be paid according to the rate table.
Customs duties in Thailand
Customs duties are set "On customs duties" Law and the Decree "On Customs Tariff". They taxed imported and exported some goods. The value of imports is calculated on the basis of CIF (CIF; cost, insurance and freight), export - based on the fob (F.O.B .; free on board).
import classification is based on the "Harmonized Commodity Description and Coding System of the goods" (Harmonised System, HS). Most imported goods are subject to two taxes: customs duties and VAT. Customs duty is calculated by multiplying the rate of duty on the CIF. The calculated fee is added to the cost of goods with an indication of the value of cif. VAT is calculated from the total cif, duty and excise tax, if applicable. Bids for the majority of imported goods - "ad valorem" or specific - range from 0% to 80%. Goods imported for export are generally not subject to import duty and VAT.
Export duties levied a small number of products, including kozhsyrё, certain types of timber, lumber and wood products.
Double Tax Treaties in Thailand
Thailand has concluded contractual agreements with more than 40 countries, including the United States, Australia, South Africa and most countries in Europe and Asia.
Double Taxation Agreement shall apply to all persons, both individuals and legal, who are citizens of one or both of the countries which have concluded an agreement. They define the conditions under which the individual or legal person is considered a resident of the State, to conclude an agreement. With regard to the tax agreements provide for taxes on income and capital of private and legal persons. VAT, a tax on certain types of business and municipal tax is usually provided by the agreement. In general, according to the agreements on double taxation, income tax is not withheld from the profits earned by residents in Thailand country which has concluded an agreement, if they do not have a permanent establishment in Thailand.
In addition, according to tax treaties, withholding tax on the payment of income of foreign legal entities that do not have business in Thailand, may be reduced or not used at all.
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