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What are the Government Taxes and Financial Reporting Requirements for Foreigners?

The Civil and Commercial Code, Revenue Code and Accounts Act specify the reporting requirements and accounting procedures in Thailand. The Institute of Certified Accountants and Auditors of Thailand issue the accounting standards and are typically derived from International Accounting Standards (IAS), or from the generally accepted accounting standards (GAAP) used in the United States.

Businesses in Thailand are primarily affected by two main taxes:

Corporate Income Tax

All business establishments must have a taxpayer identification card within sixty days of incorporation. The corporate income tax rate is 30% of net profit. Corporate taxes are due semi-annually. Financial statements must be prepared annually by a company auditor. The Revenue Department requires that accounts be in the Thai language. The books must be kept at a place of business of ten years.

Value Added Tax

Created in 1992, the VAT is applied to each stage of the production process, and is paid on a monthly basis. The VAT rate is 10%. Exports, domestic transporation and certain other sales are exempted from VAT.

Other Taxes to Consider

  • Specific Business Tax-applies to certain industries such as banks, finance and insurance companies
  • Remittance Tax-affects brand offices
  • Withholding Tax
  • Personal Income Tax- 30-37% for income in excess of $40,000
  • Petroleum Stamp Duty
  • Excise Taxes- on goods such as liquor and tobacco
  • Property Taxes

Impact of Double Taxation Treaty

The U.S. and Thailand signed a tax treaty in 1996. The treaty eliminates double taxation, giving U.S. investors a credit against their U.S. tax obligations for taxes paid in Thailand, as well as other benefits.

Contact Information

Revenue Department

2 Chakrapong Road

Chanasongkram, Pranakorn

Bangkok 10200

Tel: (662) 281-5777, 280-0140/9

Fax: (662) 280-0304

Excise Department

1488 Kakhon Chaisri Road

Bangkok 10300

Tel: (662) 241-5600/19

Fax: (662) 241-1030