Tax Section - Doing Business
You will find here a series of summaries providing an overview of useful tax regulations, processes and tax issues for Doing Business in Thailand.
Tax benefits to register a company
In our tax articles for February and April 2017, we noted that the government issued laws which encourage individuals who conduct business to register a company or legal partnership. Under such laws, subject to certain conditions, there will be an exemption from personal income tax, value-added tax, specific business tax, and stamp duty upon the transfer of an individual’s property to the company or legal partnership registered under Thai law, the execution of an instrument related to such a transfer, and the sale of goods by an individual to such a company or legal partnership.
Tax deduction for the purchase of computer software
In late June 2017, the Thai government approved a draft law which allows a corporate income taxpayer to deduct (in addition to the normal depreciation or deductible amount) the acquisition cost of software.
Personal Income Tax Benefits Announced
In July 2017, the Thai government issued Royal Decree Number 641 giving personal income tax benefits to an employee (“the Employee”) of a company or legal partnership that conducts business in a targeted industry, and has its place of business (defined as a place that is used in the normal course of business or used for manufacturing goods on a regular basis) in Chachoengsao, Chonburi, or Rayong Provinces.
Tax measures to incentivise registrations
In our tax article for April 2017, we noted that the Thai Revenue Department issued Notification of the Director-General of the Revenue Department No. 4 which sets out the rules that exempt taxes from the transfer of an individual’s property to a company or legal partnership, and the sale of goods by that individual to such a company or partnership.
Changes to the method of paying Stamp Duty
In April 2017, the Revenue Department issued Notification of the Director-General of Revenue on Stamp Duty No. 56, which expands the scope of instruments for which duty must be paid in cash instead of by affixing stamps.