If you are going to start a business in Thailand then there are a number of registrations that need to be done. Speak to a lawyer in Thailand about what would be needed for the type of business that you wish to engage in. Note that there are certain prohibited professions in Thailand that foreigners are not allowed to engage in. You will also require a work permit to work in your business while in Thailand.

Registering for business taxes in Thailand is important as well as getting your VAT certificate and other registrations which are needed. You will need to find a Thai bookkeeper (ผู้ทำบัญชีไทย) to assist you with this at the start as well as help you with the annual audit (ตรวจสอบประจำปี) for your business.

VAT Registration:

If you are going to start a restaurant then you will need to ensure that you have completed your VAT registration (Form VAT 01) which will register your business for VAT in Thailand. Note that this has to be done within 15 days of starting business. The VAT application needs to be registered in the area where you are located. If you have a store in the Mall Bangkapi then the tax office will be the Tax Office in Bangkapi (Huamark). If this is only one store then you only need to register for VAT where your head office is located. VAT in Thailand has to be paid monthly. This is normally within 15 days of the new month. Take tax advice from an accounting firm (บริษัท บัญชี) in Thailand. When you apply for a work permit (อนุญาตทำงาน) you will need to have this VAT certificate.

Income Tax:

Like other Western countries the business tax year is 12 months long. As stated above VAT needs to be paid before the 15th of the next month. There are certain deductions that can be made from the taxes such as a 200% tax reduction for R&D. These are mainly for large companies. You can also write off your net losses for the 5 accounting periods before the present. As stated you need to tax advice from an accountant in Thailand. If your net profits are less than 1,000,000 Baht then the taxes would be 15%. Most businesses in Thailand fall into this category.

Withholding Taxes:

If you have not lived or worked in Thailand then this would be new to you. When you pay a supplier of services then a certain percentage of the bill has to be handed over to the government. As an example if you are going to pay for adverts then 2% of this will be paid over to the government. The supplier will later apply for this during their tax returns.

Withholding Tax Examples:

If you are paying rent for your business of 125,000THB as an example then the withholding taxes are 5% for rent. That means that 6,250THB gets paid to the government, 8,750 THB gets paid as VAT and the supplier or landlord only gets 127,500THB as rent.

If you are starting a business then also see the articles on business licenses in Thailand as well as registering a business in Thailand for more information.

 

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