One of our accounting and tax clients consulted with us regarding a Thai company making payments to its vendors overseas.
In response, we explain that when a company in Thailand wants to make payments to overseas, one needs to consider 3 things:
- If it is for services, in most cases, the company will need to withhold some taxes from the payment and submit it to the Thai Revenue Department.
- For paying an overseas vendor, the Thai company will have to submit 7% Value Added Tax (VAT) to the Revenue Department on behalf of the overseas vendor. To give an example, when a Thai company makes payment to a company in Singapore, VAT must be submitted with Form PP.36 by the 7th of the following month.
Moreover, one must also take note of VAT and withholding tax when getting services from overseas.
- When a company in Thailand wants to make a money transfer to overseas, it is required to fill out some bank forms and provide them some kind of documents supporting the purpose of the transfer, e.g. a copy of the invoice from the overseas vendor, a copy of the loan agreement etc.
MSNA’s team of English speaking accountants can help you with your company’s Thai accounts, tax planning, audit and other matters regarding doing business in Thailand. Contact us now for initial consultation.