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MSNA Group 65/62 Chamnan Phenjati Business Center, 6/F, Rama 9 Road, Bangkok.
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Archives for October 2013

VAT Implication on a software application

Today, we got a question from one of our accounting clients whom we also assisted in getting BOI promotion for their software business in Thailand.

Question: As you may have already known, our sister company (which is not BOI promoted) has proposed to develop an application that will enable users to download e-books in exchange for payment on a monthly basis. Would this activity be considered as sales of goods which I believe are VAT-exempt or will this be qualified for zero rate VAT in case our customer downloaded and used the e-book abroad.


We verified it with the Thai Revenue Department and according to them, downloading of e-books is not categorized as sales of newspaper, magazine and textbook but it should be treated as a service which is subject to VAT. Hence, the zero rate VAT applies if such service is used overseas.

Contact MSNA, English speaking Thai accountants for your Thai accounting and tax questions.

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Thailand visa – supporting documents for extension of permit of stay

There are certain requirements in order to extend a visa or permit of stay of a foreigner working in Thailand. Today, we talk about the required company papers in order to extend the permit of stay of a non-B visa holder in Thailand.

Aside from application forms set by government authorities and applicant’s personal documents, the employer or applicant have to prepare and provide these documents to the Immigration officials:

  1. Value-added tax (VAT) returns and salary withholding tax returns from the last three months certified by and obtained from the Revenue Department Area Office;
  2. Financial Statements and the Corporate Income Tax Return (PND.50) of the previous year certified by and obtained from the Regional Office of Revenue Department;
  3. Social security submission forms from the last three months certified by and obtained from the Social Security Office in your area;
  4. Company affidavit, list of shareholders and financial statement submission form (Sor Bor Chor 3) certified by and obtained from the Ministry of Commerce;
  5. Latest Personal Income Tax Return of the applicant certified by and obtained from the Main Office of Revenue Department

Because the above documents were filed at different government authorities, you have to plan in advance and make sure that documents are certified before your permit of stay expires. If you rely on your staff but they are not familiar with the process, they may not know where to go and how to contact each authority. Thus, MSNA can help you obtain the certified documents in a timely manner and file the application to extend your permit of stay to one year. Contact us now for your Thai visa and work permit needs.

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VAT on Exports

Today, we got a question from one of our accounting clients.


We registered the company into the VAT system because I need it for my work permit application. However, are we obliged to charge VAT even though we only do export activities in Thailand? If so, what rate? Please advice.


Under the value-added tax (VAT) system of Thailand, you are allowed to export goods and services tax-free, in short; you are entitled to a zero VAT rate. This means that you are not required to charge VAT and therefore, can claim back the input VAT (VAT that you paid). However, it takes time before you can refund your VAT because the Revenue Department usually does VAT audits to ensure that your claim is true and each transaction paper qualifies as an “export” activity per Thai VAT law.

Contact MSNA for your Thai accounting and tax questions.

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Personal Income Tax Exemption – Personal Allowance for Parents

Today, we got an inquiry from one of the avid readers of our articles.


Hi, I’m an Asian and one of the foreigners working in Thailand. I have a valid non-B visa and Thai work permit with my employer company which submits my monthly tax and social security contribution to Thai authorities. My question is about my Personal Income Tax particularly the certain types of allowances that I can use as exemption to compute my taxes. Although I am still single at the moment, I have my aging parents back home whom I support financially every month. Can I use parents allowance for the computation of my Personal Income Tax?


First of all, thank you for your inquiry. To answer your question, parents allowance is one of the types of allowances that are allowed for the calculation of Personal Income Tax. However, it only applies to Thai citizens. Unless your parents have obtained Thai national ID card and become Thai citizens, you cannot use parents allowance as exemption for your Personal Income Tax. Thus, if you got married and have children, you can use spouse allowance and child allowance regardless of their nationality and whether they stay with you in Thailand or in another country.

Know more about types of exemptions that are allowed for the calculation of Personal Income Tax. Contact MSNA for the computation, preparation and submission of your Personal Income Tax Returns in Thailand.

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Manufacturing and Importing of Food Products in Thailand

Today, one of our prospective clients has asked us about registering a company that will deal with either manufacturing or importing of products in Thailand.


We want to register a Thai company with our Thai partners but we are not sure yet if we will just manufacture our own food products or import the food products from our suppliers overseas in order to sell them locally. Do we need to get a license from any government department after we register the company?


In Thailand, the Food Control Division of Food and Drug Administration (FDA) is responsible for regulating food control activities before and after you start the operation. Here, we outline how FDA will control your activities before you start the operation.

Such activities include issuance of Manufacturing License and Importation License to manufacturer and importer respectively; registration of controlled food products before marketing; approval of food additives to be used in foods, labeling and advertising approvals.

In obtaining a Manufacturing License, plant lay-out is to be submitted for approval and plant inspection by food inspector is required before and manufacturing license is issued. This license is to be renewed every three years.

Meanwhile, if you want to import food products, a license is required in order to import food into Thailand. A licensed importer may import various kinds of food providing that they are approved by the Thai FDA. The designated storage or warehouse has to be inspected and approved by the Thai FDA before a license is issued. An importation license is to be renewed every three years, as well.

In the event that a food product, either you manufactured or imported is categorized as Specific Controlled Food, it must be registered. Analysis of the product as well as details of the process and ingredients is required for the registration process and the standard of these food products have to meet the standard specified in the Ministerial Notification.

If you intend to manufacture or import some products such as dietary supplement, that product is required to bear labels containing Thai language and subject to be approved by the Thai FDA before you sell it in the Thai market. Hence, food products in general must be labeled in accordance with the Notifications of the Ministry of Public Health No. 194 (B.E. 2544).

Moreover, if you plan to promote your product to the public, any form of advertisement for food through any media is also subject to Thai FDA’s approval. Whether you manufacture or import your products, please note that false or deceptive advertisement on the quality or benefits of your food products is prohibited.

Interested in setting up a manufacturing or importing company in Thailand? Contact ThaiLawyers for company registration, obtaining business license, BOI promotion and maintaining Thai work permits and visas of foreign expats.

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