Tax knowledge
- - Foreign individual
- - Undivided estate
- - Group of people
- - Ordinary partnership
- - Thai juristic person (Company or juristic partnership established under Thai law )
Joint venture
The taxpayer to be registered in this category is: Thai juristic person joint venture All participants in the joint venture must be identified and a memorandum of association is required as an important document.
International Banking Affairs The taxpayer to be registered in this category is: A financial institution established to operate international banking business, which must specify the information of the principal entity (bank).
International sea transportation business. (The subsequent) The taxpayer to be registered in this category is a Thai juristic person conducting a subsequent international maritime transport business, who must first specify the information of the international maritime transport business.
General juristic person registered with the Department of Business Development The taxpayer to be registered in this category is: Thai juristic person registered with the Department of Business Development and is not classified as any other Thai juristic person above.
Foundation or Association
The taxpayer to be registered in this category is: Foundations or associations established in Thailand but excluding trade associations, chambers of commerce registered with the Department of Business Development.
- - Foreign entities (A juristic company or partnership established under foreign laws conducts business in Thailand )
International Banking Firm
The taxpayer to be registered in this category is: Foreign financial institution established to operate international banking business, which must specify the information of the main business entity (bank). Foreign juristic person not required to operate a business in Thailand
The taxpayer to be registered in this category is: Juristic person established under foreign law and does not need to apply for a business license in Thailand
Business or profit by government or foreign government organization
The taxpayer to be registered in this category is: A foreign entity established by a government or a foreign government organization. And do not have to be registered with the Department of Business Development
Foreign juristic persons who need a business license with the Department of Business Development
The taxpayer to be registered in this category is: Juristic person established under foreign law and must apply for business license in Thailand
- - Who pays money (The payer is a taxpayer who has no duty to pay personal and corporate income tax)
Cooperative
The taxpayer registered in this category is: Payers operating a cooperative business Which must have a certificate or a certificate of registration for cooperatives as important documents National School
Taxpayers registered in this category are: Rat school established by the law that the Rat School And are exempt from paying income tax Which must have a permit to establish a civil school
Foreign government representative or international organization The taxpayer registered in this category is: An agent or agency or organization established by a government or international organization. And do not have to be registered with the Department of Business Development
Other payers
Taxpayers registered in this category are: A taxpayer who is not classified as a payer of any of the above types
Who is liable to pay personal income tax?
Persons liable to personal income tax are those whose income arising during the past year with One of the following
1) natural person
2) Ordinary partnership or non-juristic body of persons
3) the person who died during the tax year
4) Undivided estate
Once the income has arisen, what must the taxpayer do?
1.Ask for a number and a tax ID card within 60 days from the date the income is generated. Income taxpayer with domicile in Bangkok Submissions may be submitted at all 16 Bangkok Area Revenue Offices or Branch Area Revenue Offices (Amphur) For other provinces, submit requests at Area Revenue Offices (provinces) and Branch Area Revenue Offices (Amphur).
2. Submit a normal return once a year. Income of any year can be filed within March 31 of the following year, except for certain types of income such as property leasing. Income from independent professions Income from contractors Income from commercial businesses, for example, must be filed mid-year for income accrued in the first six months by September of that year prior to the normal annual tax submission.
What do I have to pay taxes?
According to the law, income subject to personal income tax is called "assessable income" means income of any person. Or any of the above tax entities arising between 1 January and 31 December of any year or income arising in the tax year is:
1. money
2. assets which may be calculated as money Actually received
3. Benefits which can be calculated in money
4. Taxes and duties that the payer or others issued on their behalf.
5. Tax credit as required by law.
Note the above income. Based on the actual money received (Cash basis)
What types of income are there?
Because people with money have different occupations There are different difficulties or costs for fairness in the law therefore dividing the income characteristics (assessable) into groups. As appropriate to determine How to calculate the tax to be fair as possible as follows
1. Income category 1 is income due to employment, whether
- Salary, wages, allowances, bonus, annuity, pension
- House rental income received from the employer
- Money calculated from the value of living at home Which the employer gave to live without paying rent
- money paid by the employer to pay any debts which the employee is obliged to pay
- Money, property or any benefits obtained as a result of the employment of labor, such as the value of eating, etc.
2. Income category 2 is income due to duties or work positions. Or from getting work for whether
- Commission fees, discount fees
- Subsidies for work made for meeting allowances, gratuity, bonus
- House rent money received due to duties or work positions Or from getting work for
- Money calculated from the value of living at home Where the payer can live without paying rent
- Money that the payer has paid off any debt which the taxpayer is liable to pay.
- Money, property or any benefits obtained from the duties or positions performed or From getting to work for it Regardless of duty or position Or the work that receives it will be regular or temporary
3. The third type of income is the value of Goodwill. Royalties or other rights, annuity or income Is an annuity derived from the will Other acts Or the judgment of the court
4. Income Category 4: Interest, Dividend, Share of Profit, Capital Reduction, Capital Increase, Benefit from Share Transfer, etc.
(A) bond interest Deposit interest Debenture Interest Interest bills Interest on the loan, whether it is secured or not. The interest on the loan is subject to withholding tax in accordance with the petroleum income tax law, the remainder of which is withheld under that law.Or the difference between the redemption price With the selling price of the bills or instruments showing rights in debt at the company Or a juristic partnership Or another juristic person Be the first issuer and distributor at a price less than the redemption price. Including income that has similar characteristics with interest Other benefits or compensation obtained from lending or from debt claims of any kind, with or without collateral.
(B) dividends, share of profits Or any other benefits obtained from companies or juristic partnerships, mutual funds or financial institutions established by Thai law, especially for lending, etc.
(C) bonus money paid to shareholders Or partners in a company or juristic partnership
(D) Capital reduction of a juristic company or partnership only the portion paid not more than profits and money combined together.
(E) Capital increase of a juristic company or partnership generated from profits acquired or inherited together.
(F) benefits derived from merging or merging or taking over or breaking up with a company or juristic partnership that has been valued in excess of funds.
(G) benefits obtained from the transfer of partnership or transfer of shares, debentures, bonds or bills or debt instruments. At a company or juristic partnership Or another juristic person is the issuer Which only appraised the price Is more money than invested
Category 4 income In many cases, the law gives the right to choose to pay the tax by withholding tax instead of combining it with other income on a general basis. This will make the taxpayer income taxable according to the tax rate account. At a rate higher than the withholding tax rate, tax savings can be achieved.
5. Income Category 5 Income from leasing of property Money or other benefit Due
- renting property
- Breach of the lease of the property
- breach of the installment purchase agreement in which the seller receives the return of the purchased property without refund or benefit already received
6. Income category 6 is income from independent professions. Is law Assembly, art, engineering, architecture, accounting, exquisite arts Or other professions which will have a royal decree prescribing the type
7. Income Category 7 is income from a contractor that the contractor has to invest by providing luggage. In addition to tools
8. Income Category 8 is income from business, commerce, agriculture, industry, transport, sale of real estate. Or anything other than those specified in Category 1 to Category 7.
Person liable to corporate income tax
Persons liable to corporate income tax are companies or juristic partnerships. Registered under the Civil and Commercial Code and includes other juristic persons That are not registered under the Civil and Commercial Code as well as follows
Companies or juristic partnerships liable to pay corporate income tax are as follows:
(1) A juristic company or partnership established under Thai law, which is:
A. Company Limited
B. Public Company Limited
C. Partnership Limited
D. Registered Ordinary Partnership
(2) a juristic company or partnership established under foreign law Which is responsible for paying corporate income tax in Thailand Only when one of the following conditions is met
A. Foreign juristic company or partnership To do business in Thailand (Section 66, first paragraph of the Revenue Code)
B. Foreign juristic company or partnership Do business in other places Including in Thailand (Article 66, paragraph two of the Revenue Code)
C. A foreign company or partnership Carry out other activities including in Thailand and the undertaking is an international transport business (Section 67 of the Revenue Code)
D. Foreign company or juristic partnership Does not operate a business in Thailand But received assessable income under Section 40 (2) (3) (4) (5) or (6) paid from or in Thailand (Section 70)
E. A foreign juristic company or partnership that loses corporate income tax in Thailand under Section 76 paragraph two and Section 76 bis of the Revenue Code. Has sold profit or other money that is kept from profit Or can be considered as profit from Thailand (Section 70 bis of the Revenue Code)
F. The foreign juristic company or partnership Did not enter into business directly in Thailand If but there are employees or representatives or contact person In conducting business in Thailand Which is the reason for receiving income or profits in Thailand (Section 76 bis)
(3) Business which is operated as a trade or for making profit by
A. Foreign government
B. Foreign government organizations
C. Other juristic persons established under foreign law
(4) Joint Venture is a joint venture that is a trade or for profit. Between the following persons is
A. Company and Company
B. Company and juristic partnership
C. A juristic partnership with a juristic partnership
D. Companies and or juristic partnerships with natural persons
E. Companies and or juristic partnerships with non-juristic personals
F. Companies and or juristic partnerships with ordinary partnerships
G. Companies and or juristic partnerships with other juristic persons
(5) foundations or associations operating businesses with income, but not including foundations or associations prescribed by the Minister as an organization or a public charity place
(6) A juristic person prescribed by the Director-General with the Minister's approval and published in the Government Gazette as a company or juristic partnership under the Revenue Code.
Entities not subject to income tax
Other legal entities In addition to those mentioned above And only those established under Thai law such as ministries, bureaus, departments, government organizations or cooperatives Not liable to pay corporate income tax at all.
However, there are some other types of juristic persons that are subject to corporate income tax under the Revenue Code But are exempted by the provisions of various laws including
(1) A company or juristic partnership in accordance with the obligations that Thailand has under the contract on economic cooperation. Or technical between the Thai government and foreign governments
(2) A limited company which is exempt from income tax under the law on investment promotion.
(3) Limited companies and juristic persons having the same condition as limited companies established under Thai laws or different laws. The country is exempt from corporate income tax under the Petroleum Income Tax Act.
(4) A juristic company or partnership located in a country which has the Convention on Exemption from Double Taxation with Thailand. According to the conditions specified in the Convention
Tax base of corporate income tax
Corporate income tax Calculated from income used as evidence in tax calculation multiplied by the prescribed tax rate, therefore income subject to corporate income tax or corporate income tax base Generally, this is net profit calculated according to Specified conditions But for fairness and filling gaps in income tax collection, a 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
People liable to income tax on their net profits
(1) a juristic company or partnership established under Thai law
A. Company Limited
B. Public Company Limited
Partnership Limited
D. Registered Ordinary Partnership
In the event that a company, juristic partnership established under Thai law, has a branch, whether in or outside Thailand, the net profit of the branch must be included in the net profit of the head office for corporate income tax in Thailand.
(2) a juristic company or partnership established under foreign law
Company or juristic partnership established under foreign law And is responsible for paying corporate income tax in Thailand, namely
(A) a juristic company or partnership established under foreign law and doing business in other places Including in Thailand is a juristic company or partnership established under such foreign law. Only net profit must be taken. Obtained from doing business in Thailand for corporate income tax
(B) a juristic company or partnership Which was established under foreign law with employees or representatives Or contact person for conducting business in Thailand Which is the reason for receiving income or profits in Thailand Shall be regarded as an employee or representative Or contact person such as that, whether it is a natural person or a corporation Representing the company or juristic partnership Which was established in accordance with the laws of a foreign country and gave that person a duty and Responsibility for filing and paying specific income tax on said income or profits.
(3) Business undertaken as a trade or for profit by foreign governments, foreign government organizations. Or other legal entities established under foreign law
(4) Joint venture