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.
7% VAT Rate Extended for Another Two Years
As expected, Royal Decree No. 549, published in the Royal Gazette on 9 October 2012, extended the reduced VAT rate of 7% (from 10%) for another two years.
Tax Incentives for Goods Exhibitions
Royal Decree No. 545, published in the Royal Gazette on 9 October 2012, allows a double deduction for corporate income tax purposes for expenses (i.e. rental and construction costs, insurance premiums, freight, transportation of goods and equipment used for the exhibition) incurred from participating in a goods exhibition held in Thailand during the first six months of 2012, provided that the company has a certificate certifying its participation in the exhibition issued by the appropriate government agency.
Tax Incentives for Infrastructure Funds
Royal Decree No. 544, published in the Royal Gazette on 9 October 2012, promotes Infrastructure Funds (“IFF”) by granting various tax incentives:
Personal Income Tax Returns - New Guidelines for Spouses
On 19 September 2012, the Revenue Department issued a new guideline for a spouse filing a personal tax return for the fiscal year 2012 onwards.
Apportioning Purchase VAT
In general, purchase VAT that is attributable to non-VAT business (i.e. VAT exempt) is not recoverable. The notification of the Director-General of the Revenue Department on VAT (No. 29) sets out the rules for apportioning purchase VAT (input tax).