Business Taxes In Thailand: What You Need To Know

If you are planning to set up a business in Thailand, you will have to pay taxes to the government. Of course, each country has its own complex rules and regulations regarding taxation and Thailand is no exception. Prior to setting up your business in Thailand, you should consult with a local law firm, who can advise you what type of business to register.

Business Registration

As you would expect, there are certain business sectors that foreigners are not permitted to enter, which is done to protect the local workforce. Providing your business is not in a prohibited field, you can choose from several forms of business registration. You could own the company 100% or have a Thai partner, whichever you prefer. Talk to a leading Thai law firm that specialises in helping foreigners to set up business in Thailand, and you will receive the advice you need.

Corporate Tax

Every company or corporation is liable to pay corporate tax on the profits made from international and domestic business and the standard rate of corporate tax is 20%. This levied on your net profits after all deductibles have been removed and your accountant makes sure that all tax-deductible items are included, minimising that amount of tax you pay. Indeed, a good accountant can actually save you money!

Withholding Tax

When making payments to Thai businesses or individuals, you need to withhold tax that must be paid to the Thai Revenue Department within a specific period. Your accountant would advise you regarding withholding tax and make sure that you are always compliant.

Value Added Tax

VAT is paid on imported goods and the supply of goods and services, which is currently set at 7%, businesses with an income of 1.8 million Baht or less are exempt from VAT. Certain sectors such as agriculture, media, healthcare, education, are all VAT-exempt and a good English-speaking business lawyer will be able to help you navigate your way through the complex taxation structure.

Specific Business Tax

SBT is usually paid by a company that is exempt from VAT and the current levy is 3%. Not all business sectors are liable to pay SBT. It is important for every business to seek out the services of an experienced business lawyer; you might, for example, require litigation dispute resolution lawyers in Thailand, if there was a conflict with another company. It is not uncommon for one party of a contract to be dissatisfied and that can trigger legal action, which means you need legal counsel in order to respond.

Top Business Accountant & Law Firm

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In order to ensure that your business is always compliant regarding taxation, you should join forces with a Bangkok-based law firm, who will always have your best interests at heart. Tax returns must be filed on time and there are financial penalties for those that are late with their tax returns.