Taxation Details
Taxpayers depend on each category which is quite different, There're several category depends on who you are and what you going to do. Here some taxation details that we provide for our client.
- Foreign individual
- Undivided inheritance
- Party
- Ordinary partnership
- Thai juristic person (company or juristic partnership established under Thai law)
- Foreign juristic person (Companies or juristic partnership established under foreign laws operating in Thailand)
- Payer (The payer is a taxpayer who is not responsible for paying personal and corporate income tax)
Who is responsible for paying personal income tax?
Individuals who are liable to pay personal income tax are those whose income has occurred during the previous year, including:
1) Individual
2) Ordinary partnership or a group of people who are not a juristic person
3) Deaths during the tax year
4) Undivided estate
When income is generated, what do taxpayers have to do?
1. Request to have a taxpayer identification number and card within 60 days from the date of income Taxpayers who are domiciled in Bangkok May apply at all 16 Bangkok Revenue Offices or all branches of the District Revenue Office. For upcountry, please submit an application at all Area Revenue Offices (provinces) and all Area Revenue Branch Offices (districts), as the case may be.
2. Submit a regular listing once a year. Income of any year must be submitted by 31 March of the following year, except for certain types of income such as property rental. Income from independent professions Income from contracting Income from commerce, etc., must be submitted to the middle of the year for income generated in the first 6 months by September of that year before the annual tax return as usual
What income is taxable?
According to the law, personal income taxable income is called "assessable income", meaning the income of any person Or any of the above tax units that occur between January 1 and December 31 of any year or the income that occurs in the tax year is :
1. Money
2. Properties which may be calculated in money Actually received
3. Benefits which may be calculated in money
4. Money, duties and taxes issued by the payer or others
5. Tax credit as specified by law
Note : The income above Based on actual money received (Cash basis)
What kind of income is there?
People with different occupations There is difficulty or cost is different in order to be fair in the law, therefore dividing income characteristics (should be assessed) into groups As appropriate to determine The method to calculate the tax to be fair is as follows:
1. Income type 1 is income due to employment of labor, whether
- Salary, wages, allowances, bonuses, pension
- Rental payments received from employers
- Money calculated from the value of stay at home Which the employer provides without paying rent
- Money paid by the employer to pay any debt which the employee is obligated to pay
- Money, property, or any benefits received from employment such as the value of food
2. Income type 2 is income due to duty or job position. Or from getting a job whether
- Commission fees, discounts
- Subsidies for work that made meeting allowances, bonuses
- Rental payments received due to duties or positions performed Or from accepting work for
- Money calculated from the value of stay at home That the payer provides without paying rent
- Money paid by the payer to pay any debt which the taxpayer has a duty to pay
- money, property, or any benefits received from duties or positions that are made or From that work Regardless of duty or position Or the job that is accepted makes it permanent or temporary
3. Income type 3 is the value of Good Ville. Royalties or other rights, annuity or income which has Is an annuity derived from wills Other legal acts Or the judgment of the court
4. Income type 4, such as interest, dividends, profit sharing, capital reduction, capital increase, benefits from shares transfers etc
(A) interest on bonds Deposit interest Interest Interest Interest on loans, whether with collateral or not Interest on loans subject to withholding tax under the law on petroleum income tax, only the remainder of the withholding tax under the said law. Or the difference between the redemption price And the price of the bills or the debt instrument that the company Or a juristic partnership Or other juristic person Was first issued and sold at a price lower than the redemption price Including income which has similar characteristics with interest Other benefits or compensation received from loans or claims for all types of debt, whether or not secured
(B) Dividends, money, share of profits Or other benefits obtained from companies or juristic partnerships, mutual funds, or financial institutions established by Thai law for loans, etc.
(C) Bonus paid to shareholders Or partners in a company or juristic partnership
(D) The reduction of the capital of the company or juristic partnership, only for the portion paid not exceeding the profit and the total amount to be combined.
(E) Capital increase of companies or juristic partnerships which are based on the total profits derived or received together
(F) Benefits derived from the merger of a corporation or partnership, or succession or dissolution of which the valuation exceeds funds
(G) benefits derived from the transfer of partnership or the transfer of shares, bonds, bonds or bills or debt instruments The company or juristic partnership Or other juristic persons are issuers However, only the revaluation Is more than the money invested
Income type 4 in many cases, the law gives the right to choose to pay withholding tax instead of combining it with other income in accordance with general principles. Which will make taxpayers with tax-based accounts At a rate that is higher than the withholding tax rate, can save taxes
5. Income type 5: Income from property rentals Money or other benefits That is due
- Property rental
- Breach of property lease agreements
- Breach of installment purchase agreements in which the seller receives the returned property without having to refund or the benefits already received
6. Income type 6 is income from independent professions. Namely law The practice of disease, engineering art, architecture, accounting, fine arts Or other professions in which a Royal Decree has been prescribed.
7. Income type 7 is the income from the contract that the contractor has to invest by procuring luggage. In important parts, in addition to tools
8. Income type 8 is income from commerce, agriculture, industry, transportation, real estate sales. Or other than those specified in category 1 to type 7
Person with duty to pay corporate income tax
The person responsible for paying corporate income tax is a company or juristic partnership. Registered under the Civil and Commercial Code and includes other juristic persons That are not registered under the Civil and Commercial Code as follows
Companies or juristic partnerships that are responsible for paying corporate income tax are as follows:
(1) Companies or juristic partnerships established under Thai law, namely
A. Company Limited
B. Public Company Limited
C. Limited Partnership
D. Registered ordinary partnership
(2) Companies or juristic partnerships established under foreign laws Which is responsible for paying corporate income tax in Thailand Only when one of the following conditions is met
A. The company or foreign juristic partnership To do business in Thailand (Section 66, first paragraph of the Revenue Code)
B. The foreign company or juristic partnership Conduct business in other places Including in Thailand (Section 66 paragraph two of the Revenue Code)
C. The foreign company or juristic partnership Carry out other activities, including in Thailand, and those activities are international transportation (Section 67 of the Revenue Code)
D. That foreign corporation or partnership Not operating in Thailand But receiving the assessable income under Section 40 (2) (3) (4) (5) or (6) paid from or in Thailand (Section 70)
E. Foreign corporation or partnership that pays corporate income tax in Thailand under Section 76 paragraph two and Section 76 bis of the Revenue Code Disposals of profits or other types of funds that are barred from profits Or can be regarded as the profits out of Thailand (Section 70 bis of the Revenue Code)
F. That foreign corporation or juristic partnership Not going to do business directly in Thailand But there are employees or representatives or contacts In operating in Thailand Which causes income or profits in Thailand (Article 76 bis)
(3) Businesses which operate as a commercial or profit by
A. Foreign Government
B. Organization of foreign governments
C. Other juristic persons established under the laws of foreign countries
(4) Joint Venture is a joint venture that is a joint venture or for a profit. Among the following are
A. Company and Company
B. Company and juristic partnership
C. Corporate partnership with a juristic partnership
D. Companies and / or Juristic Partnerships with Individuals
E. Companies and / or juristic partnership with a group of non-juristic persons
F. Companies and / or juristic partnership with ordinary partnerships
G. Companies and / or juristic partnership with other juristic persons
(5) Foundations or associations that operate in an organization with income but not including foundations or associations as announced by the Minister as public charities or organizations
(6) Juristic person as specified by the Director-General with the Minister's approval and announced in the Government Gazette to be a company or juristic partnership under the Revenue Code
Juristic persons not subject to income tax
Other juristic persons Other than as described above And specifically established under Thai law such as ministries, bureaus, departments, government organizations or cooperatives There is no duty to pay corporate income tax in any way.
However, there are some other types of juristic persons that qualify for income tax according to the Revenue Code. But is exempt from the provisions of various laws, including
(1) Company or juristic partnership in accordance with Thailand's obligations under the Agreement on Economic Cooperation Or technical between the Thai government and foreign governments
(2) Limited companies that are exempt from income tax under the law on investment promotion
(3) Limited companies and juristic persons having the same conditions as limited companies established under Thai law or other laws The country is exempt from corporate income tax under the Petroleum Income Tax Act.
(4) Companies or juristic partnerships in countries with a double taxation treaty with Thailand In accordance with the conditions stipulated in the Convention
Tax base of corporate income tax
Corporate income tax Calculated from income that is used as evidence in calculating tax multiplied by the specified tax rate. Therefore, the income that is subject to corporate income tax or corporate income tax Generally, it is the net profit calculated as Conditions But to be fair and fill the gap in the collection of income tax, the corporate income tax has been established from income or tax base. Different as follows
(1) Net profit
(2) Income amount before expenses
(3) Income paid from or in Thailand
(4) Disposal of profits from Thailand
Person liable to pay income tax from net profit
(1) Company or juristic partnership established under Thai law
A. Company Limited
B. Public Company Limited
C. Limited Partnership
D. Registered ordinary partnership
In the event that a corporation, partnership, or juristic person established under Thai law has branches, whether located in or outside of Thailand, the net profit of the branch must be included in the net profit of the head office to pay corporate income tax in Thailand.
(2) Companies or juristic partnerships established under foreign laws
Companies or juristic partnerships established under foreign laws And is responsible for paying corporate income tax in Thailand, namely
(A) a company or juristic partnership established under a foreign law and undertaking business elsewhere Including in Thailand, namely companies or juristic partnerships established under the laws of such foreign countries Must bring specific net profits From corporate activities in Thailand to pay corporate income tax
(B) Company or juristic partnership Established under the laws of a foreign country, have employees or representatives Or a contact person operating business in Thailand Which causes income or profits in Thailand It is considered that the employer is an employee. Or representative Or the person making the contact as such, whether an individual or a juristic person be a representative of a company or juristic partnership Which is established under the laws of a foreign country and provides that person with duties and Responsibility for filing and paying income tax specifically related to the said income or profits
(3) Businesses which are operated as a trade or for profit by foreign governments, foreign government organizations Or other juristic persons established under the laws of foreign countries
(4) Joint venture
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