Tax Single Sign On (Tax SSO) system is developed to integrate the use of electronic services via the Internet of the three tax departments: the Revenue Department, the Excise Department and the Customs Department by using a single user and password to access the services of all three tax departments, in a one-stop service manner. This is not the same as SSO or Social Security Office.
Tax SSO service system’s main objective is to improve the tax service level of the Ministry of Finance, reduce the steps and facilitate the public in using the tax services of the three tax departments. It also helps entrepreneurs of both corporate entities and individuals to be convenient, flexible, fast and confident with security according to international standards.
Tax SSO service system provides:-
e-Filing system service of the Revenue Department which includes tax filing service such as monthly withholding tax forms (PND 1, PND 2, PND 3, PND 53 and PND 54), monthly VAT forms (PP 30, PP 36), Specific Business Tax (PT 40), corporate income tax (PND 50, PND 51, PND 52, PND 55), annual withholding tax (PND 1Gor, PND 2Gor) and personal income tax (PND 90, PND 91, PND 93, PND 94, PND 95)
e-Excise system service of the Excise Department includes online tax payment service for all types of products such as alcohol, tobacco, oil, cars, motorcycles and others as well as tax form status tracking service and electronic receipt printing service
e-Tracking service of the Customs Department includes service to check the account information, report in and out vehicles at any time, check the status of the goods transport note at any time and check the status of the goods transport invoice as well s verifying data registered with the Customs Department’s visitor registration system, checking outstanding customs fee payments, viewing customs fee payment history, displaying tax benefit information and checking refund transfer information, etc.
Make sure you submit your taxes in time. Contact MSNA for Tax SSO service system registration, tax filing and tax consulting services.
The Thai BOI grants the promoted activities with tax and non-tax incentives. In order to obtain investment promotion, the BOI applicant must follow the conditions prescribed by the Board of Investment as specified in the BOI promotion certificate in which the following incentives will be granted in accordance with the Investment Promotion Act:
Exemption or reduction of import duties on machinery (under Section 28/29)
Reduction of import duties for raw or essential materials (Section 30)
Exemption of import duties on materials imported for R&D purposes (Section 30/1)
Exemption of corporate income tax on the net profit and dividends derived from the promoted activity (Section 31, 31/1 and 34)
A 50% reduction of the corporate income tax (Section 35(1))
Double deduction from the costs of transportation, electricity and water supply (Section 35 (2))
Additional 25% deduction of the cost of installation or construction of facilities (Section 35 (3))
Exemption of import duty on raw or essential materials imported for use in production for export (Section 36)
However, not all promoted activities can be granted with the same tax incentives but if your company is one of those that can be eligible, we highly recommend to seek a BOI expert like us when you apply to open the BOI operation.
In Thailand, individual and corporate investors have different tax rates on interest based on profits from investment in debt instruments.
For domestic investors, withholding tax rate for individuals is 15% and they can choose not to include it in their annual filing of personal income tax. For companies or juristic partnerships, withholding tax rate is 1%.
For foreign investors, withholding tax rate is 15% for both individual and company or juristic partnership with exception to countries having Double Taxation Agreement (DTA) with Thailand, which may be subjected to a lower tax rate.
Contact MSNA for your accounting and Thailand tax questions.
Our monthly accounting and tax services include preparation of the compulsory input VAT and output VAT reports for the clients. We deliver everything as promised within the agreed upon deadline and make sure that the client’s accounts are prepared accurately. Thus, whenever we send the report to the clients, we ask them to check the report that we prepared because there have been cases where:
1. The clients go back and change the amount in some tax invoices and fail to inform us and send us the updated version
2. The clients did not send us all the tax invoices they issued during the month and assumed that they sent everything to us already then, the issue arises when some tax invoices where not included in the Sale VAT report which resulted to huge amount of Value Added Tax to pay to the Revenue Department
We therefore learned that we must get the clients to confirm that the monthly VAT report has the correct details of all the tax invoices issued during the month and the amounts are the same as the original invoices.
With our extensive knowledge and expertise in the Thai accounting and tax laws, we ensure that we provide valuable source of advice and solutions to our clients. If you are looking for an international standard professional services providers at reasonable prices, MSNA is your right partner.
One of the questions our clients ask us the most is how much tax rate to use when calculating Corporate Income Tax in Thailand.
The corporate income tax rates depends on the amount of capital and its net income during the year. To explain it further:
1. If the company has less than THB 5 million capital and has less than THB 30 million income, the tax rates to be used are as follows:-
Tax Rate
First THB 300,000 = 0%
300,001 – 3,000,000 = 15%
Over 3,000,000 = 20%
2. If the company has more than THB 5 million capital and even if they decrease it later, it is fixed to 20% every year as long as the company is existing.
3. If the company has more than THB 30 million income and if the income decreases next year, it is also fixed to 20% as long as the company is existing.
Make sure your accounting and taxes are done properly and be mindful of the deadline for submission of corporate income tax and audited financial statements. Contact MSNA for consultation on Thai taxes and filing of requirements for your company in Thailand.
One of our accounting and tax clients wants some clarification regarding how withholding taxes in Thailand work particularly the withholding taxes on software license transactions.
Question:
Could you kindly confirm whether the 3% withholding tax rate applies universally to all software license orders? And in the event that we are required to pay the withholding tax at 3% rate for any type of software, are there any provisions or exceptions that would allow us to reduce the withholding tax rate to 1%?
Answer:
The 3% withholding tax rate is standard across all software licenses bought or paid for usage in Thailand. When you buy a software from overseas, you will need to submit the withholding tax (rates depending on the country) and 7% VAT on behalf of the overseas vendor(s) too.
Additionally, the Thai tax laws require buyers or users of software to withhold 3% tax. In your case, you should withhold it from the payment when you pay your vendors. You should not pay the withholding tax from your pocket. Anyway, you can check with us before making any payment to your new vendors to make sure you withhold the right amount accordingly.
MSNA can provide consultation on Thai taxes and accounting. And if you use our monthly services, our fees include consultation with our directors on tax and accounting issues. For instance, some vendors do not want you to withhold tax, we can discuss with you on what to do for withholding taxes from vendors in Thailand.
In Thailand, businesses are required to submit its audited financial statements annually with the Department of Business Development and the Revenue Department.
For the Revenue Department, the audited financial statements must be submitted with the Corporate Income Tax Return (PND. 50) within 150 days since the end date of accounting period.
For the Department of Business Development, the audited financial statements must be submitted within 1 month since the date of the company’s Annual General Meeting (AGM) or within 5 months since the end of accounting period. Aside from the audited financial statements, updated Shareholders List (BOJ. 5) and Form for submitting Financial Statements (Sor Bor Chor 3) must be submitted altogether.
Failure to submit on time, the company will have to pay penalty to the Department of Business Development and Revenue Department.
Contact MSNA for your business needs particularly on accounting, tax and audit to ensure that you file your taxes and audited financial statements on time.
Thai and foreign companies doing business in Thailand are required to file their Corporate Income Tax returns (Form PND 50) within 150 days from the closing date of their accounting period. Tax payment must be submitted together with the tax returns. The deadline for payment is extended for a few more days if the company is registered with the Revenue Department’s online tax filing system.
In addition to the annual tax filing, any company subject to corporate income tax on net profits is also required to file its Interim Corporate Income Tax Return or Half-Year Income Tax (PND 51). A company is obliged to estimate its annual net profit as well as its tax liability and pay half of the estimated tax amount within 2 months after the end of the first 6 months of its accounting period. The prepaid tax is creditable against its annual tax liability. For example, if the accounting period of the company is on December 31, PND 51 has to be submitted within August of the following year.
MSNA has a team of experienced and knowledgeable accountants who can prepare your accounts and file your taxes efficiently. If you need accounting and tax services, you come to the right place. Contact us now for an initial consultation.
A company must close its accounting period every year. An accounting period shall be 12 months except in the following cases where it may be less than 12 months:
A newly setup company or juristic partnership may choose to use the period from its registration date to any date as its first accounting period.
A company or juristic partnership may file a request with the Director-General to change the last day of an accounting period. In such case, the Director-General shall have the authority to approve as he deems appropriate. Such an order shall be notified to the company or juristic partnership who files the request within a reasonable period of time and in the case where the Director-General grants the permission, the company or juristic partnership shall comply with the accounting period as prescribed by the Director-General.
In the case of a merger between a company or a juristic partnership, the company or juristic partnership must terminate the merger contract and use the date of official termination of the contract provided by government officials as the last day of its accounting period.
In the case whereas a company or juristic partnership’s files for dissolution, the company or juristic partnership shall use the date of official termination of incorporation provided by the government officials as the last day of its accounting period.
On the other hand, an accounting period of more than 12 months may be possible in the case of a company or juristic partnership closing down and being unable to pay the tax within 150 days; counting from the last day of the accounting period, the company or juristic partnership can send a petition within 30 days from the date of official termination of the contract provided by the government officials. The Director-General of the Revenue Department may grant an extended accounting periods which can be more than 12 months.
MSNA group of companies provide accounting, audit and related services for closing your accounting period. We can also help if you want to change your accounting period.
For Thai personal income tax computation, taxpayers may exclude interest and dividends before filing it with the Thai Revenue Department.
The following forms of interest income may be excluded from the computation of Thai personal income tax provided that a 15% tax is withheld at source:
Interest on bonds or debentures issued by a government organization;
Interest on saving deposits in commercial banks if the aggregate amount of interest received is not more than THB 20,000 during the taxable year;
Interest on loans paid by a finance company;
Interest received from any financial institution organized by a specific law of Thailand for the purpose of lending money to promote agriculture, commerce or industry.
Moreover, taxpayers who reside in Thailand and receive dividends or shares of profits from a registered company or a mutual fund which tax has been withheld at source at the rate of 10% may choose to exclude such dividend from the assessable income when calculating Thai personal income tax. However, with this option, the taxpayer will not be able to claim any tax refund or credit.
The tax filing period for Thai personal income tax returns of 2024 is from January until March 2025. We highly recommend you to consult with tax experts like MSNA to compute and submit your taxes accordingly.
