Tax Advisory for Thailand

Law Firm in Bangkok, Thailand

Dej-Udom & Associates advises on all matters pertaining to taxation in Thailand and offers tax advisory and tax compliance guidance on corporate and personal tax, customs and excise tax, value added tax, and other specific tax issues. The firm successfully helps clients to modify their operations and implement tax saving measures, comply with new tax laws, and utilize offshore tax planning facilities, and has also served as a tax advisor to a number of overseas banking institutions with respect to inter-banking transactions.

Expert Tax Advisory and Compliance

Dej-Udom & Associates delivers comprehensive tax services, covering corporate and personal tax, customs, excise tax, and value-added tax (VAT). We guide clients in adapting to new tax laws, implementing tax-saving strategies, and utilizing offshore tax planning options. Our expertise extends to serving as tax advisors for international banking institutions in inter-banking transactions.

Overview of Thai Tax Landscape

Thailand’s taxation system operates under the Revenue Code, which encompasses various forms of taxes like VAT, Personal Income Tax, and Corporate Income Tax, among others. Specialized acts also cover Customs and Tariffs, Excise Tax, Leased Land Tax, Municipal and Locality Tax, and Sign Board Tax. Thailand has Double Tax Treaties with 61 countries, including eight ASEAN members. Moreover, new tax treaties with nine additional countries are in the approval pipeline, pending diplomatic formalities.

Personal Income Tax

Tax rates differ for residents and non-residents in Thailand. Tax residents, defined as individuals living in Thailand for 180 days or more annually, are taxed on domestic and foreign income remitted into Thailand. Non-residents are only taxed on their income earned within Thailand. The progressive tax rates for personal income range from 5% to 35%.

Corporate Income Tax

Entities legally created or registered are subject to Corporate Income Tax, calculated at 20% on net profits. This rate applies to local and foreign companies operating in Thailand; foreign companies are taxed 20% on profits from their Thai operations.

With a nuanced understanding of Thailand’s complex tax landscape, Dej-Udom & Associates offers tailored solutions for individuals and corporations, aiding them in tax planning, compliance, and optimization.

FAQs

Q. What are the major taxes in Thailand

A. Value Added Tax (VAT), Personal Income Tax, Corporate Income Tax, and Stamp Duty  and there are also separate acts on Customs and Tariffs, Excise Tax, Leased Land Tax, Municipal and Locality Tax, and Sign Board Tax.

Q. What are the Income Tax rates?

A. Personal income will be taxed at a progressive rate of 5% up to 35% and the Corporate Income Tax rate is 20%

Q. Does Thailand apply any VAT or other forms of Sales Tax?

A. Yes, VAT is the largest tax collected by the Revenue Department besides the specific business tax, excise tax, and customs duties.

Q. Does Thailand provide any tax incentives or tax holidays?

A. Thailand has provided both tax and non-tax incentives for foreign and local direct investment over the past 50 year. The Board of Investment is the government authority in granting these privileges.

Q. What is the tax-year for the tax payer in Thailand?

A. The tax-year of individual tax payers is a calendar year. For the juristic person, they can choose their tax-year, but it cannot be less than 12 calendar months except for the year of incorporation or dissolution. Most business entities choose the calendar year.

Q. Any more questions?

A. Please contact

Worawut Krairit | Email: worawut@dejudom.com | Telephone: (66) 2233 0055 or (66) 95 789-2515

Benjawan Rasdusade | Email: benjawan_corporate@dejudom.com | Telephone: (66) 2233 0055 or (66) 81 823 5128