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
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.
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