Guest Posted March 23, 2002 Report Share Posted March 23, 2002 Hi all, Looking for opportunities to work or even setup a business (be it small restaurant, or takeway, or 7Eleven etc). Now I am wondering how are the taxes like? And is there monetary restrictions (ie. you can't take out more than e.g. 500 000B after you earned it for 1 year) for money flow? I remember seeing the airport having a sign that states maximum amount of THB cash carried is x amount (think it's 100 000B). Link to comment Share on other sites More sharing options...
Guest Posted March 23, 2002 Report Share Posted March 23, 2002 Corporate Income Tax Incorporated businesses operating in Thailand pay income tax at a rate 30 percent of net profits, while foundations and associations pay income taxes at a rate of between two to 10 percent of gross business income, depending on the activity. International transport companies pay a rate of three percent of gross ticket receipts and three percent of gross freight charges. All companies registered in Thailand are subject to income tax on income earned within and outside of Thailand. Foreign companies not registered or residing in Thailand are subject to tax only on income derived from sources within Thailand. A corporate taxpayer is obliged to file a six-month return and pay 50 percent of the annual income tax by the end of the eighth month of the accounting period. Failure to pay the estimated tax, to file a timely tax return, or the filing of a return which contains false or inadequate information will result in various penalties or fines against the company due within 30 days. Value Added Tax The value added tax (VAT) system came into effect on 1 January 1992 and replaced a largely inefficient tax system that was redundant and easily evaded. It was initially levied at 7 percent, increased to 10 percent in 1997 but returned to 7 percent in 1999. Value added at every stage of the production process is subject to a seven percent tax with the general calculation for remittance being: Output tax - Input tax = Tax Paid VAT is payable monthly with the output tax being the VAT collected on sales by the operator of the business and the input tax being the VAT paid by a company for goods or services used in the operator?s business. If the result of the calculation is a positive figure, the operator must submit the remaining tax to the revenue department within 15 days of the end of the month, while negative balances find the operators entitled to a refund in the form of cash or tax credit paid to them the following month. Exports are zero-rated, (VAT exempt) but they are eligible for remittances from input taxes paid in the production of the products. Also zero-rated are operators earning less than $US 16000 annually. Operators of businesses earning between $US 16000-32000 can choose between paying the normal VAT or a gross turnover tax of 1.5 percent. A specific business tax of between two or three percent is imposed, in lieu of VAT, on the following businesses. The SBT is computed on the monthly gross receipts at the following rates: Type of Business Tax Rate Banking, Finance, or Securities 3% Insurance -Life 2.5% -Against Loss 3% Pawnshop 2.5% Sale of Immovable Property for Profit 3% Personal Income Tax Every person, resident or non-resident, who receives assessable income from employment or business Thailand, or has assets located in Thailand, is subject to personal income tax, whether such income is paid in or outside Thailand. Exemptions are granted to certain persons, including United Nations officers, diplomats, and certain visiting experts, under the terms of international and bilateral agreements. Personal income tax is applied on a graduated scale as follows: Net Annual Income (Baht) Tax Rate 0 - 100,000 5% 100,001 - 500,000 10% 500,001 - 1,000,000 20% 1,000,001- 4,000,000 30% > 4,000,001 37% Individuals residing for 180 days or more in Thailand for any calendar year are also subject to income tax on foreign sources if that income is brought into Thailand during the same taxable year that they are a resident. Link to comment Share on other sites More sharing options...
gummigut Posted March 23, 2002 Report Share Posted March 23, 2002 If you are in Thailand or are going to be in Thailand in the next week, please send me a private message. *** rest of the message edited out as Showtime beat me to it and has much more extensive information than my post. I'm jealous!!!! *** <<burp>> Link to comment Share on other sites More sharing options...
rickfarang Posted March 24, 2002 Report Share Posted March 24, 2002 Showtime, Where did you get this information? I am anxious to find out whether visiting on three or more 60 day tourist visas would be interpreted as "residing for 180 days or more" for tax purposes. Link to comment Share on other sites More sharing options...
Guest Posted March 24, 2002 Report Share Posted March 24, 2002 I had saved the info before. The tourist visas would not count IMHO. Its only if you stay more than 90 days in one period. Link to comment Share on other sites More sharing options...
Guest Posted March 24, 2002 Report Share Posted March 24, 2002 From the Thai perspective I think that you only pay taxes if you're more as 180 days in the country in one calendar year and making money. Making money will require a work-permit and thus a class-B visa. So if you're doing 'something' on a tourist visa that will probably not lead to taxation but maybe you're violating the rules of the work permit requirement if the money is made in Thailand. The nice thing is that some governments abroad with a tax-treaty with Thailand just have the "more as 180 days abroad' rule, without any requirement that you should have a visa and work permit for that country. Hence, staying 181 days in Thailand and not being taxed in Thailand also makes you in-taxable in your home country. It's called tax-treaty against double-taxing; turns out to be tax-treaty to prevent paying taxes Link to comment Share on other sites More sharing options...
Guest Posted March 28, 2002 Report Share Posted March 28, 2002 I have a restaurant and a local accounting company sorts out our taxes. Luckily the owner's husband works for the local government tax office. We do not have to show her any books, receipts, bank accounts, etc. We just pay a flat rate each month, no matter how much we actually make. At the end of the financial year, we pay her a little more to sort out the end-of-year accounts. No paperwork for us to sign at all. The whole process is mind boggling simple. My GF, who runs the restaurant, pays no personal tax. When I am in the country and working at the restaurant, I pay a small fee each month that I'm working. Does anyone else use this kind of "package deal" approach? ShokDee Link to comment Share on other sites More sharing options...
Guest Posted March 28, 2002 Report Share Posted March 28, 2002 Hi all.. thanks for the replies and discussion. Sure it will be useful to others who have similar plans. Gummigut - i will probably come around only in May. Meanwhile, how do i send a Private Message with the new board system? Can't find the ubiquitous button that use to show beside the name. Cheers!! Link to comment Share on other sites More sharing options...
ThaiHome Posted March 28, 2002 Report Share Posted March 28, 2002 DB didn?t explain how he figured out what your restaurant is, he looked at your e-mail address in your profile. You need to take that out now. I think everyone needs to realize that when the new board software was implemented, your previously private e-mail address was moved to the publicly displayed e-mail address. Link to comment Share on other sites More sharing options...
gummigut Posted March 28, 2002 Report Share Posted March 28, 2002 To send a private email, click on the posters name. This will bring up their profile. On the bottom left side is a link to send a private message <<burp>> Link to comment Share on other sites More sharing options...
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