Thailand Tax Planning: Everything that You Need to Know

A foreign company doing business in Thailand shall pay 30% tax on the profit derived from business, whether or not it has a branch, an office and an employee in the country. On the other hand, an International Transportation Company is liable to pay tax at 3% rate on the gross receipts. But, a foreign company that doesn’t do any business transaction in Thailand is accountable for paying withholding tax on a few categories of income gained from Thailand. Having said this, the withholding tax rates can be reduced or even exempted under Double Taxation Agreement based on the income obtained. Regardless of whatever the tax percentage is, almost everyone wants to save on their taxes. And here is where Thailand tax planning comes to play.

Tax Planning

Tax planning should include all of these;

• Investing in some international trusts and foundations is ideal for a few entrepreneurs
• Having an account with a reputable Thai or international bank as this can provide many tax advantages to the foreigners.
• Keeping yourself updated with the regulatory changes in the international tax legislation. This way you can save your business from any negative impact.
• You must be aware of the tax relief tools available.
• Opt for mergers and acquisitions plant as this way you will be guided on drawing up a proper roadmap while developing effective tax-effective structure
• Prior to the above mentioned a foreign company in Thailand must apply for its Tax ID card. The application must be made to the Revenue Department. Lor Por 10.3 (the form) and relevant documents, including i.e. a copy of a company’s registration license copy and house registration, etc. must be submitted to the Area Revenue Office. And the submission should be done within sixty days from the date of operation.

We offer Thailand corporate and individual tax advice to help clients prepare corporation tax computations and tax returns and submit them to relevant tax authorities.