If you are setting
up a Thai Company or Limited partnership or accounting help it is
vitally important to have a good accountant who you have confidence in
and can provide the valued services you require. Over the years many
foreigners have had to use Thai accountants who cannot speak English.
Main services :
1. Accounting system setup, implement
application.2.Tax consultant and compliance.3. Provides monthly accounting (Bookkeeping and
issue monthly reports in English)4. VAT refund.5. Internal Audit Services.6.Tax and social insurance certificates.7. Financial projects to Banks.8. We Distribute and sell accounting programs.
For foreigners it is important to retain services of an accountant that knows about shipping and exports. If not then do not use as you will need to file Customs returns with the revenue dept. Ask the accountant what he specilizes in if he knows about shipping and exports
9. Email consultations & help line
and Tax change
The Revenue Department provides guidelines on
and examples of the treatment of withholding tax and VAT on payments of fees,
(1) Fees related to customs clearance
substantiated by in the name of the owner of the goods;
(2) Service fees of the shipping agents; and
(3) Expenses without receipts incurred in the name of the owner of the goods
and traditional expenses which the owner accepts have actually been incurred.
The Revenue Department provides that fees in
items (2) and (3) are subject to withholding tax and VAT, while fees under item
(1) are not subject to withholding tax and VAT.
The Instruction indicates that the owner of the goods should be allowed to treat
the fees under items (2) and (3) charged by shipping agent as tax deductible
expenses, while the fees should be treated as taxable income of the shipping
However, it is observed that the Instruction does not indicate whether
receipt-less traditional expenses which the own accepts were actually incurred
will be tax deductible. Therefore, the manner in which shipping agents should
treat such expenses for tax purposes is uncertain.
insurance The assessable maximum salary of Bht. 15,000
per month remains unchanged and therefore the maximum monthly employer's
contribution will increase from Bht. 450 to Bht. 600. Employee's maximum
contributions will also increase to Bht. 600 per month.
New royal decrees were issued to provide an extension of time to the period
for tax exemption on the debt restructuring process and on partial business
transfer, as well as another year's extension to the period for the reduction of
the SBT rate from 3.3% to 0.11%.The
Revenue Department has expanded the tax base for the exemption from personal
income tax from Baht 50,000 to Baht 80,000, commencing in the tax year 2003. Tax
exemption is also provided for the sale of a main residence to purchase a new
one. Two Departmental Instructions on the surcharge and penalty counting period
and withholding tax sale promotions were issued as guidelines for Revenue
BOI amended its Notification on the "Regional Headquarters" business
category. The Board of Investment (BOI) notified an amendment to business
category 7.9 by substituting the previous reference to "Regional
headquarters" with "Regional Operating Headquarters". Together
with the substitution of the business category, the BOI has also changed the
entire set of conditions for qualifying for the business promotion in order to
be congruent with those of the Revenue Department.
on selling goods to a supplier in an export processing zone
A Company situated in an export processing zone purchased parts and stored them
in its warehouse which was situated in the same export processing zone. The
Company had not yet made payment for the parts. The seller cleared customs duty
and delivered the parts to the export processing zone. The VAT rate is 0%. When
the Company wished to use any of the parts, it only paid the price of the
quantity required. The Revenue Department considered that this was an export of
goods which qualifies for the 0% rate of VAT and that the liability to VAT
arises on the date the domestic goods are brought into the export processing
zone. When the Company took some parts from the warehouse for the manufacture of
goods, this was regarded as bringing the goods for use in its own business and
not regarded as being a sale of goods. The invoice issued by the seller is for
payment purposes. The seller is not required to collect VAT again.
on the compensation of goods
A company has set a warranty standard on claiming goods. When it receives
complaints from customers, it then sends an officer to investigate and check the
goods. If it appears that the Company is liable as a manufacturer even though
the sale is made by distributors to the customers, new goods of the same quality
and quantity will be sent to substitute for the damaged goods. The Company
understood that since this is regarded as bringing goods to use in its own
business, no VAT liability would arise. However, the Revenue Department takes a
different view, that this transaction is regarded as a sale of goods, and that
the Company is liable to collect VAT from the customer.
goods under warranty contract
A company has a policy on the warranty of goods such that if the goods sold by
the Company are damaged within the period of the warranty, a customer can make a
claim for new goods. The Revenue Department ruled that the sale of goods under a
warranty contract whereby the Company will replace the goods damaged in the
warranty period is regarded as bringing the goods for use in the manufacture of
goods, provision of service, management of business or as the benefit of the
property the Company has for carrying on its business, which is not regarded as
the sale of goods. Therefore, it is not subject to VAT under section 77/2 of the
utilities expenses for the real estate business are not capital expenditure
A company is a real estate developer in the
business of land appropriation and sale of houses. The Company had constructed
public utilities on its land by which the land and the public utilities had not
yet been transferred to anyone or for public benefit. The Revenue Department
took the view that the construction expense was a disallowable expense in the
CIT calculation according to Section 65 ter (5). The public utility expenses of
the Company's permitted project i.e. road, side-walk, electricity system, water
system, bridge, waste-water treatment and lake were expenses which the Company
paid for the direct benefit of the land and houses in the permitted project.
These expenses would increase the value of the land and houses in the Company's
permitted project and benefit the Company's business directly; they are the
Company's assets and treated as the Company's capital. The expenses, therefore,
are a non-deductible expenses under Section 65 ter (5) of the Revenue Code.
Instead, the Company is required t
o deduct wear and tear and depreciation of such properties in accordance with
Royal Decree No.145 B.E.2527 (1984).