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.

Specific Business Tax Reduction

Clarification of the specific business tax reduction for financial institutions. In 2008, Royal Decree No.469 announced a specific business tax (‘SBT’) reduction from 3.00% to 0.01% for certain financial institutions.

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Specific Business Tax Payable on Loans to Directors

The Supreme Court has ruled that where a company lends money to its director on a regular basis without interest charge the transactions will be considered similar to that of a commercial bank. Thus, the company is liable to pay Specific Business Tax (‘SBT’) and the Revenue Department Officer has the authority to set an appropriate rate of interest.

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Thai WHT for Foreigners Abroad

Generally, withholding tax is imposed under the Thai Revenue Code when a person has assessable income in accordance with Section 40.

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CIT Reductions and Exemptions for IPC

Following on from last month, Revenue Department Notification No.198 has been issued in order to specify the criteria for corporate income tax reductions and exemptions for an
International Procurement Center (‘IPC’) in accordance with Royal Decree No.518.

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International Procurement Centre Tax Measures

International Procurement Centre tax measures launched in Thailand.
The Thai Revenue Department has enacted Royal Decree No.518, which aims to provide tax benefits for an International Procurement Center (‘IPC’), which is broadly defined as a Thai company whose business is the purchase of goods, raw materials and parts for resale to an associated enterprise.

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