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Browse our 1 legal question about Tax in Thailand and the lawyer answers, or ask your own questions for free.
Tax law in Bangkok, Thailand is guided by the Revenue Code which outlines tax liability for personal and corporate income, as well as Value-Added Tax (VAT), Specific Business Tax (SBT), and stamp duty. Domestic and international companies operating in Bangkok are subject to the general principle of the worldwide income taxation system, under which income derived from sources within or outside Thailand are subject to taxation for Thai tax residents. However, taxation laws are complex and multifaceted, making professional legal advice beneficial in most situations.
Despite the concept of taxation being universal, Thailand's tax rules and regulations can be complex and may differ significantly from what one might be familiar with. You may need a lawyer to guide you through the intricate process, whether it's business tax filing, disputes with the Revenue Department, inheritance tax planning, or dealing with audits. Furthermore, tax evasion in Thailand is a serious offence and unintentional mistakes could result in heavy penalties. Hence, seeking legal advice can offer protection and assurance both for businesses and individuals.
Tax residents in Thailand are subject to taxation on their worldwide income, regardless of the source. Those not residing in Thailand are only subjected to pay taxes on income earned within the country. Corporate tax rate typically stands at 20%, however, smaller companies may be subject to different rates. Additionally, a 7% Value-Added Tax (VAT) is applied to most goods and services. Specific laws also apply for Special Business Tax, Property and Land Tax, and Stamp Duty. Recent amendments to the Revenue Code have also introduced the inheritance and gift tax.
1. Who is considered a tax resident in Thailand?
A person who resides in Thailand for a period or periods aggregating more than 180 days in any tax year is considered a tax resident.
2. Do foreigners working in Bangkok need to pay tax?
Yes, foreigners deriving income from working in Thailand, whether paid in or outside of Thailand, are subject to personal income tax, which varies from 5% to 35%.
3. Is there a double tax agreement (DTA) in Thailand?
Yes, Bangkok, being a part of Thailand has double tax agreements (DTAs) with various countries to avoid or mitigate double taxation.
4. How often do we need to file tax returns?
Companies are required to file returns twice a year, while individuals must file once a year using their personal tax ID.
5. Is Value Added Tax (VAT) applicable to all goods and services in Bangkok?
A standard rate of 7% VAT applies to most goods and services sold in Bangkok, with certain goods and services being exempt.
The Revenue Department of Bangkok, Thailand provides vast resources and guidelines related to tax laws and regulations. The Thai Government's public relations department also offers several resources on tax laws. The Legal Aid Center in Bangkok and Thai Legal Clinic are two organizations offering advice on taxation and other legal matters.
If you seek legal assistance on tax matters in Bangkok, your best step towards resolution is to consult a reputable tax lawyer who thoroughly understands the local tax laws. This could involve researching to find a suitable legal representative, scheduling an appointment, and preparing relevant financial documents for discussion and review. Your lawyer will guide you through the entire process, ensuring you meet all compliance obligations and minimise any risk of penalties.
