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.
Change in tax base
Currently, under Section 49 bis of the Thai Revenue Code, where ownership or the right of possession to immovable property is transferred, the appraised value used for collecting registration fees under the land law on the date of the transfer shall be assessable for personal income tax purposes, regardless of the actual selling price or the market price which the property should fetch in a normal purchase or sale. This appraised value is usually much lower than the actual selling price or the market price of the property.
Extension of Reduced VAT Rate
The Thai government recently issued Notification of the National Council for Peace and Order No. 65/2559, which became effective on 1 October 2016.
Promoting investment in southern border provinces
In the Cabinet meeting on 27 September 2016, the Cabinet agreed on and approved draft Royal Decrees to promote investment in the southern border provinces Yala, Pattani, and Narathiwai, (collectively called “the Area”).
PIT incentives under the IHQ programme
Under the Revenue Department’s IHQ incentives programme, a flat PIT rate of 15% (reduced from the normal maximum progressive rate of 35%) will apply to the employment income of an expatriate employee of the IHQ, subject to certain conditions.
Depreciation of a car used for R&D
A car defined in excise tax law as having 10 seats or less can only be depreciated, for corporate income tax purposes, for no more than 1 million baht.