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+66 (2) 264-9090
Mail address: +66 (2) 661-9190
G.P.O. Box 1047
Fax: +66 (2) 264-0790, Bangkok 10501 +66 (2) 661-9192 Thailand
Street address: 33rd Floor
Lake Rajada Office Complex 193/136-137 New Rajadapisek Road (Opposite Queen Sirikit National Convention Centre) Klongtoey, Bangkok 10110 Thailand
Principal Tax Contacts
Yupa Wichitkraisorn
Kasem Kiatsayrikul
+66 (2) 264-9090, Ext. 77002
Mobile: +66 (84) 439-2673
Email: yupa.wichitkraisorn@th.ey.com
+66 (2) 264-9090, Ext. 77033
Mobile: +66 (84) 439-2703
Email: kasem.kiatsayrikul@th.ey.com
International Tax and Transaction Services – International Corporate Tax Advisory
Pathira Lam-ubol
Sarunya Sutiklang-viharn
Kasem Kiatsayrikul
+66 (2) 264-9090, Ext. 77052
Mobile: +66 (92) 250-7363
Email: pathira.lam-ubol@th.ey.com
+66 (2) 264-9090, Ext. 77119
Mobile: +66 (65) 350-6368
Email: sarunya.sutiklang-viharn@th.ey.com
+66 (2) 264-9090, Ext. 77033
Mobile: +66 (84) 439-2703
Email: kasem.kiatsayrikul@th.ey.com
International Tax and Transaction Services – Transaction Tax Advisory Rudeewan Mikhanorn
+66 (2) 264-9090, Ext. 77063
Mobile: +66 (92) 283-5551
Email: rudeewan.mikhanorn@th.ey.com
Chinumar Huk-han
Kasem Kiatsayrikul
+66 (2) 264-9090, Ext. 77118
Mobile: +66 (87) 716-6616
Email: chinumar.huk-han@th.ey.com
+66 (2) 264-9090, Ext. 77033
Mobile: +66 (84) 439-2703
Email: kasem.kiatsayrikul@th.ey.com
International Tax and Transaction Services – Tax Desk Abroad
Puttaporn Vanitsumpan
+1 (212) 773-3344 (resident in New York)
Mobile: +66 (83) 138-8402
Email: puttaporn.vanitsumpan1@ey.com
International Tax and Transaction Services – International Capital Markets
Chinumar Huk-han
+66 (2) 264-9090, Ext. 77118
Mobile: +66 (87) 716-6616
Email: chinumar.huk-han@th.ey.com
Kasem Kiatsayrikul
+66 (2) 264-9090, Ext. 77033
Mobile: +66 (84) 439-2703
Email: kasem.kiatsayrikul@th.ey.com
International Tax and Transaction Services – Operating Model Effectiveness
Su San Leong
William Chea
+66 (2) 264-9090, Ext. 77036
Mobile: +66 (92) 283-3113
Email: su-san.leong@th.ey.com
+66 (2) 264-9090, Ext. 77056
Mobile: +66 (81) 341-9350
Email: william.chea@th.ey.com
International Tax and Transaction Services – Transfer Pricing
Papatchaya Akkararut
Sorraya Boonsongprasert
Su San Leong
Kasem Kiatsayrikul
Business Tax Services
Kamolrat Nuchitprasitchai
Business Tax Advisory
Kamolrat Nuchitprasitchai
Tax and Finance Operate
Wiwattana Akkarawong
Jarassri Esapong
Phasist Thanapitwiwat
Chinumar Huk-han
Chutipong Srisakorn
Thanyaporn Surachartchairit
+66 (2) 264-9090, Ext. 77064
Mobile: +66 (83) 979-6111
Email: papatchaya.akkararut@th.ey.com
+66 (2) 264-9090, Ext. 77109
Mobile: +66 (96) 915-6995
Email: sorraya.boonsongprasert@th.ey.com
+66 (2) 264-9090, Ext. 77036
Mobile: +66 (92) 283-3113
Email: su-san.leong@th.ey.com
+66 (2) 264-9090, Ext. 77033
Mobile: +66 (84) 439-2703
Email: kasem.kiatsayrikul@th.ey.com
+66 (2) 264-9090, Ext. 77062
Mobile: +66 (92) 283-2112
Email: kamolrat.nuchitprasitchai@th.ey.com
+66 (2) 264-9090, Ext. 77062
Mobile: +66 (92) 283-2112
Email: kamolrat.nuchitprasitchai@th.ey.com
+66 (2) 264-9090, Ext. 77053
Mobile: +66 (96) 391-6642
Email: wiwattana.akkarawong@th.ey.com
+66 (2) 264-9090, Ext. 77089
Mobile: +66 (95) 501-6556
Email: jarassri.esapong@th.ey.com
+66 (2) 264-9090, Ext. 77105
Mobile: +66 (85) 136-4456
Email: phasist.thanapitwiwat@th.ey.com
+66 (2) 264-9090, Ext. 77118
Mobile: +66 (87) 716-6616
Email: chinumar.huk-han@th.ey.com
+66 (2) 264-9090, Ext. 77122
Mobile: +66 (81) 623-1315
Email: chutipong.srisakorn@ey.com
+66 (2) 264-9090, Ext. 77121
Mobile: +66 (98) 992-4662
Email: thanyaporn.surachartchairit@ey.com
Tax Technology and Transformation
Kamolrat Nuchitprasitchai
Global Compliance and Reporting
Wiwattana Akkarawong
+66 (2) 264-9090, Ext. 77062
Mobile: +66 (92) 283-2112
Email: kamolrat.nuchitprasitchai@th.ey.com
+66 (2) 264-9090, Ext. 77053
Mobile: +66 (96) 391-6642
Email: wiwattana.akkarawong@th.ey.com
minimum local spending of at least THB15 million per accounting year.
Capital gains. Capital gains are treated as ordinary business income subject to income tax.
Administration. Corporate income tax returns, together with the audited financial statements, must be filed with the Revenue Department within 150 days (extended 8 days in case of e-filing) after the accounting year-end. Corporate income tax payments are due on the filing date.
Mid-year (interim) tax returns must be filed with interim tax payments within two months (extended eight days in case of e-filing) after the end of the first half of the accounting year. Listed companies, financial institutions and companies approved by the Director-General of the Revenue Department compute their interim tax based on actual operating results for the first halfyear. Other companies compute their interim tax based on onehalf of the estimated annual profit. These companies do not have to submit audited or reviewed financial statements. The interim tax is creditable against the annual tax payable at the end of the year.
Dividends
Received from resident companies. In general, one-half of dividends received by resident companies from other resident companies may be excluded from taxable income. However, the full amount of the dividends may be excluded if either of the following applies:
• The recipient is a company listed on the Stock Exchange of Thailand.
• The recipient owns at least a 25% equity interest in the distributing company, provided that the distributing company does not own a direct or indirect equity interest in the recipient company.
These rules apply if the related shares are acquired not less than three months before receiving the dividends and are not disposed of within three months after receiving the dividends.
Received from foreign companies. A Thai company that owns an equity interest of at least 25% in a foreign company can exclude dividends received from such foreign company from its taxable profit if, on the date of receipt of the dividend, it has held the investment for at least six months and if the profit out of which the dividends are distributed is subject to income tax in the hands of the foreign company at a rate of at least 15%.
Foreign tax relief. Thailand has entered into double tax treaties with 61 jurisdictions. In general, under the treaties, foreign tax relief is limited to the lower of the foreign tax and the amount of Thai tax calculated on such income.
Foreign tax payable in non-treaty jurisdictions may be credited against Thai tax, limited to the Thai tax computed on the foreign income, provided the foreign tax meets the conditions set forth in the relevant measure. If the foreign tax is not used as a credit, it may be claimed as a deduction for income tax purposes.
C. Determination of trading income
General. Corporate income tax is based on audited financial statements, subject to certain adjustments.
In general, expenses are tax-deductible if they are incurred wholly and exclusively for the purpose of generating income. However, expenses created by means of provisions or allowances, such as those for bad debts or stock obsolescence, are not tax-deductible until they are actually used.
Inventories. Inventories must be valued at the lower of cost or market value. Cost may be determined using any generally accepted accounting method. After a method is adopted, a change to another method may be made only with approval of the Director-General of the Revenue Department.
Depreciation and amortization allowance. A company may depreciate its fixed assets under any generally accepted accounting method, provided the number of years of depreciation under the selected method is not less than the minimum prescribed period. However, after a method is adopted, it may not be changed unless prior consent has been obtained from the Director-General of the Revenue Department. The following are the minimum prescribed periods applicable to some major fixed assets.
Asset Time period
Buildings 20 years
Furniture, fixtures, machinery, equipment and motor vehicles 5 years
Trademarks, goodwill, licenses, patents and copyrights (including software) Over period of use (or 10 years if no period of use)
Computer hardware and operating software 3 years
Relief for losses. Operating losses may be carried forward for a period of five years. Loss carrybacks are not allowed.
Groups of companies. The Thai tax law does not include any provisions for consolidated treatment under which companies within a group may be treated as one tax entity. Each individual company must file its income tax return and pay its tax.
D. Other significant taxes
The following table summarizes other significant taxes.
Nature of tax Rate (%)
Value-added tax, on goods sold, services rendered and imports 7 Specific Business Tax, on financial service and real estate businesses Various
E. Miscellaneous matters
Foreign-exchange controls. On presentation of supporting documents, virtually all foreign-exchange transactions may be processed by a commercial bank.
(a) The following types of interest are exempt from tax:
• Interest paid to a financial institution wholly owned by another state
• Interest paid by the government or a financial institution established by a specific law of Thailand for the purpose of lending money to promote agriculture, commerce and industry
• Interest paid by the central bank or state enterprises on loans approved by the Ministry of Finance
(b) The rate is reduced to 10% if the interest is paid to banks, financial institutions or insurance companies of the treaty countries.
(c) Interest paid to the government, subdivisions of contracting states or a central bank is exempt from tax.
(d) The withholding rate is 3% for interest on loans or credits granted for at least four years with the participation of a public financing institution to a statutory body or enterprise of the other contracting state, in relation to sales of equipment, or in relation to the survey, installation or supply of industrial, commercial or scientific premises, or public works.
(e) Interest paid to a financial institution wholly owned by the other contracting state is exempt.
(f) The withholding rate is 5% (10% for Pakistan) for royalties for copyrights of literary, artistic or scientific works.
(g) The withholding rate is 10% for royalties paid for patents, trademarks, designs, models, plans, or secret formulas or processes.
(h) Royalties and similar payments paid to the other contracting state or a stateowned company for films or tapes are exempt.
(i) Interest paid to residents of Switzerland with respect to loans guaranteed or insured under the Swiss provisions regulating the Export or Investment Risk Guarantee is exempt.
(j) The rate is reduced to 10% for interest paid on indebtedness resulting from sales on credit of equipment, merchandise or services. Interest on debt obligations guaranteed or insured by the government is exempt.
(k) The withholding rate is 5% (10% for Slovenia) for royalties for the use of, or the right to use, copyrights of literary, artistic or scientific works, including software and motion pictures and works on films, tape or other means of reproduction for use in connection with radio or television broadcasting. The withholding rate is 8% (10% for Slovenia) for royalties for the use of, or the right to use, industrial, commercial or scientific equipment.
(l) The withholding rate is 5% for royalties paid for the use of, or the right to use, copyrights of literary, dramatic or scientific works, excluding cinematographic films or films or tapes used for radio or television broadcasting. The withholding rate is 8% for amounts paid under financial leases for the use of, or the right to use, industrial, commercial or scientific equipment.
(m) The rate is reduced to 10% for interest paid on indebtedness resulting from sales on credit of equipment, merchandise or services, except for sales between persons not dealing with each other at arm’s length. Under the New Zealand treaty, interest derived by the government of New Zealand or its central bank from the investment of official reserves is exempt from tax.
(n) The withholding tax rate is 10% for royalties paid for the following:
• The use of or right to use, copyrights, industrial, scientific or commercial equipment, motion picture films, films or videotapes or other recordings for use in connection with television, and tapes or other recordings used in connection with radio broadcasting
• For the reception of, or the right to receive, visual images or sounds transmitted to the public by satellite, cable, optic fiber or similar technology
• For the use of, or right to use, in connection with television or radio broadcasting, visual images or sounds transmitted by cable, optic fiber or similar technology
(o) Interest on loans made, guaranteed or insured by the government, central bank, agency or body wholly owned or controlled by the government is exempt from tax.
(p) Interest is exempt from tax if it is paid on loans made, guaranteed or insured by the contracting state or by an authorized body of the state on behalf of the state or if it is paid on other debt claims or credits guaranteed or insured on behalf of the contracting state by an authorized body of the state.
(q) The rate is reduced to 10% for interest paid on indebtedness resulting from sales on credit of industrial, commercial, or scientific equipment or from sales on credit of merchandise between enterprises.
(r) A withholding tax rate of 5% applies to royalties for the use of, or the right to use, copyrights of literary, dramatic, musical, artistic or scientific works, including software, cinematographic films and films or tapes used for radio or television broadcasting. A withholding tax rate of 10% applies to royalties for the use of, or the right to use, industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience.
(s) The withholding tax rate is 10% for royalties paid for the use of, or the right to use, industrial, commercial or scientific equipment.
(t) The rate is reduced to 10% if the loan or debt claim generating the interest is guaranteed by the government, central bank, state general reserve fund, local authorities, or a body wholly owned by the government.
(u) The withholding tax rate is 10% for royalties paid for copyrights of literary, artistic or scientific works and the right to use industrial, commercial and scientific equipment.
(v) The withholding tax rate is 10% for royalties paid for managerial or consultancy services or for information concerning commercial, industrial, or scientific experience.
(w) The withholding tax rate is reduced to 5% if the beneficial owner holds directly at least 25% of the dividend-paying company.
(x) The withholding tax rate is 8% for royalties paid for the use of, or the right to use, industrial, commercial or scientific equipment. The rate is 10% for royalties in other cases.
(y) The rate is 10% for interest paid on indebtedness resulting from sales on credit of equipment, merchandise or services, except for sales between persons not dealing with each other at arm’s length.
(z) The withholding tax rate is 5% for royalties for the use of, or the right to use, copyrights of literary, artistic or scientific works, including software and motion pictures and works on films or other means of reproduction for use in connection with radio or television broadcasting. The rate is 10% for royalties for the use of, or the right to use, industrial, commercial or scientific equipment or patents.
(aa) Interest is exempt from tax if any of the following circumstances exists:
• The interest is paid in connection with the sale on credit of merchandise or equipment.
• This interest is paid on a loan or credit granted by a bank.
• The interest is paid to the government including a political subdivision or local authority thereof, the central bank or a financial institution controlled by the government.
• The interest is paid to a resident of the other contracting state in connection with a loan or credit guaranteed by the government including a political subdivision or local authority thereof, the central bank or a financial institution controlled by the government.
(bb) The withholding rate is 5% for royalties for the use of, or the right to use, copyrights of literary, artistic or scientific works, including software and cinema films, or films or tape for radio or television broadcasting. The withholding rate is 8% for royalties for the use of, or the right to use, patents, trademarks, designs, models, plans, secret formulas or processes, or industrial, commercial, or scientific equipment. The withholding tax rate is 10% for other types of royalties.