Thailand Tax Laws

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Stamp duties are taxed on instruments and not on transactions or persons. The tax placed on legal document for the attaching or impressing of official stamps, usually in the transfer of assets or property (Source: Thailand revenue department).

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Chapter 6

Stamp Duty

Section 103 In this Chapter, unless the context otherwise requires:

Revenue Tax SBT

Specific business tax (SBT) is imposed on certain types of businesses whose value added is difficult to define such as banking, finance, credit foncier, life insurance, pawnshops, and real estate. Such businesses are considered to be outside the VAT system and therefore are not subject to VAT (source: the Thailand Revenue Department).

Chapter 5

Specific Business Tax

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Section 91 Specific business tax is an assessment tax.

Revenue Tax: VAT

Value Added Tax (VAT) has been implemented in Thailand since 1992 replacing Business Tax (BT). The VAT is currently imposed at a rate of 7%, with a few exceptions, such as small entrepreneur whose annual turnover is less than 1.8 million baht. A company must register for Value Added Tax if it is expected that its gross income will exceed 1.8 million baht per annum or within 30 days of the date they reach 1,8 million baht in sales (check for possible changes). Companies registered for VAT must file VAT returns and pay tax (if any) to the local district office monthly, within 15 days from the end of the month which the VAT is to be accounted for (source Thailand revenue department).

Chapter 4

Value Added Tax

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Part 1

General Provisions

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Section 77 Value added tax is an assessment tax.

Thailand Tax (CIT)

Tax benefits for SME's, the general corporate tax rate on the net profit in Thailand is 20%. The government has reduced corporate income tax rates to promote specific business sectors and small and medium enterprises. Enterprises qualify as small and medium-sized enterprises (SMEs) if the paid up share capital does not exceed 5 million baht. The tax rate for companies with a paid up share capital not more than 5 Million Thai Baht at the end of its tax year shall be taxed over the net profit as shown in the table below.

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Thailand Revenue Code

Part III

Corporate Income Tax

Section 65 Taxable income under this Part is net profit which is calculated by deducting income from business or income arising from business carried on in an accounting period with expenses in accordance with conditions prescribed in Section 65 Bis and Section 65 Ter. An accounting period shall be twelve months except in the following cases where it may be less than twelve months:

Thai Personal Income Tax Law

Under section 41 of the Revenue Code an individual Thai citizen or foreigner who lives in Thailand for one or more periods totaling at least 180 days in any tax (calendar) year is, for tax purposes, deemed a resident of Thailand and subject to tax on all assessable income derived from sources within the country, whether paid within or outside Thailand, and on assessable income derived from foreign sources to the extent that it is brought into Thailand in a year in which income is received. A non-resident individual is subject to tax only on assessable income from Thai sources, regardless of payment location.

Thailand approved a new personal income tax structure which slashes the maximum tax rate from 37% to 35%. The new tax rate will take effect in the 2013 tax year (read more).

Chapter 3

Income Tax

Part 1

General Provisions

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Section 38 Income tax is an assessment tax. An assessment official shall make assessment on tax under this Chapter.

Thailand Tax Law

Chapters

• general provisions
• personal income tax
• corporate income tax
• value added tax
• specific business tax
• stamp duty

Revenue Code

Title I

General provisions

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Section 1 This Act shall be called the “Revenue Code”.