What Are The Tax Implications Of Setting Up An Offshore Company In Thailand?
Most foreign businesses in Thailand would like to set up their offshore company in Thailand. In order to set up an offshore office in Thailand, you need to first get the permission from the Thai ministry of economic affairs for an offshore company registration license in Thailand.
This arrangement typically helps non-Thai businesses to facilitate the export and import of goods for foreign companies. This offshore office does not receive any kind of a revenue for offering them these services. There are no purchase orders that can help in making sales deals and business profits with third parties. The entire costs and expenses are paid by the head office outside of Thailand.
As far as corporate income taxes are concerned, the offshore office does not pay any to the Thai authorities, except on the money and funds it receives from the main office externally. This is a tax that is secured on the income generated in a Thai bank account.
This offshore office of a global business house also does not engage in trading and international monetary transactions.
The following activities are also restricted for the offshore office in Thailand:
- Working on any business activities in Thailand
- Provide advice on products that are sold to Thai distributors and customers
- Sourcing goods and services in Thailand
- Going on inspections and control audits on the kind of goods purchased or even manufactured in Thailand
- Circulate any new information on new products and services
- Plan and coordinate with other businesses on behalf of the main head office or with the affiliated companies
- Act as an agent of main company or the subsidiary for any business transactions
- Publish business reports competitors and other companies.