The Thai government is introducing the new digital system Thailand Digital Arrival Card (TDAC) which aims to provide convenience for all foreigners entering Thailand by air, land or sea. TDAC, which is developed to replace the traditional paper-based TM6 arrival card will be implemented starting 1 May 2025. The TDAC system offers the following convenience:-

• Faster immigration processing upon arrival
• Reduced paperwork and administrative burden
• Ability to update information before travel
• Enhanced data accuracy and security
• Improved tracking capabilities for public health purposes
• More sustainable and environmentally friendly approach
• Integration with other systems for a smoother travel experience

Foreigners must submit TDAC information within 3 days before arriving in Thailand, including the date of arrival. This applies to all foreigners entering Thailand except for the following:

• Foreigners transiting or transferring in Thailand without going through Immigration control
• Foreigners entering Thailand using a Border Pass

To submit the TDAC, foreigners can access the Immigration Bureau website http://tdac.immigration.go.th or use the Thailand Pass mobile application. The process involves providing personal information, travel details and accommodation information. Once completed, travelers receive a QR code that must be presented to the Immigration officials upon arrival in Thailand, making the entry process more efficient and reducing physical contact at the border checkpoints.

The TDAC system offers two submission options:

1. Individual submission – for solo travelers
2. Group submission – for families or groups traveling together

The system allows the traveler to update most of the submitted information any time before his/her arrival in Thailand by revisiting the TDAC website and log in using the reference number and other identifying information. However, some key personal identifiers cannot be changed, if needed, the traveler may need to submit a new TDAC application.

Moreover, as part of the TDAC, foreigners must also complete a health declaration, as authorized by the Ministry of Public Health of Thailand.

Contact MSNA for more updates and information about doing business in Thailand, company registration process, visa &work permits, and accounting & payroll services.

In the event that a taxpayer was not able to submit and make the tax payment on time, there are penalty and surcharge to be paid upon submission of tax returns. This also applies if a taxpayer who filed the tax returns within the due date but does not pay the full amount of tax, or file the form late, neglected or avoided filing the tax return, he/she must pay additional fees and fines as prescribed by law. If he/she fails to pay, there might be criminal penalties as follows:

1. In case of failure to pay tax within the due date, additional surcharge of 1.5% of tax amount per month of the tax due and it must be paid within the specified time.
2. In case of filing the tax return on time but the tax amount was not paid correctly, there is a fine of 1 or twice the amount of the tax due, as the case may be. Such fine maybe reduced or exempted in accordance with the regulations prescribed by the Director-General with the approval of the Minister.
3. In the case of intentionally reporting false information or presenting false or fraudulent evidence to evade or attempt to avoid paying taxes, the penalty is imprisonment from 3 months to 7 years and a fine from THB 2,000 to THB 200,000.
4. In the case of intentional negligence in submitting a tax return in order to avoid paying taxes, there is a fine of not exceeding THB 200,000 or imprisonment not exceeding 1 year, or both.

Know more about your duties as a taxpayer in Thailand and make sure you submit your taxes correctly and on time to avoid the above consequences. Contact MSNA for getting tax ID, preparing and filing tax returns and tax consultation.

When a taxpayer has submitted his/her tax return within the specified deadline but there is a problem or error in the computer program or the e-filing system or payment method which resulted to the tax filing and payment to be unsuccessful, the form can be filed and the tax can be paid within 7 business days from the last day of filing via the internet and a request for an extension can be submitted.

The taxpayer must submit a petition along with the form and pay the tax at the Revenue Department’s area office along with the supporting documents as follows:-

• Request for extension and a letter of consider for disclosure of information
• Explanation letter of the cause of problem or error
• A copy of the list submitted through the House of Representatives
• Copy of Form B.Ch.35, if required

MSNA can assist individual taxpayers in filing their Thai personal income tax returns and corporate taxpayers in filing their corporate income tax returns and monthly taxes. We have vast knowledge and expertise in accounting and Thai tax laws. Make sure you submit your taxes on time. Contact us now for more information.

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:-

1. 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)
2. 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
3. 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.

When an employee of a Thai company incurred expenses for an overseas business trip which can be refunded from the organizers abroad, the Thai company can payback its employee for the expenses incurred and reimbursed it from such overseas based company through the following:

1. All official receipts must be issued to the Thai company. Those receipts will be treated as expenses of the company so that when it issues an invoice to the overseas based company, such amount will be treated as income of the Thai company, which 7% VAT has to be added in the invoice; OR
2. All receipts (amount of expenses and VAT) will be recorded as Account Receivable from overseas based company so that when it issued an invoice to the overseas based company, it should use the wording “reimbursement at cost”. In this way, all the receipts that the company cannot claim back the 7% VAT will also be reimbursed. There is no need to add 7% VAT in the invoice because the company is reimbursing the whole amount plus VAT that appears on the receipts.

If you are looking for English speaking accountants that can handle your accounting and tax filing in Thailand, contact MSNA now.

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 our tax clients asked us on how to revalue the land and houses in Thailand. Normally, land ownership is not possible to foreigners but there are certain ways on how foreigners can own land in Thailand. Our client has set up a Thai majority owned company.

If the company is engage in the business of real estate (buy and sell of land and houses), the land and houses are treated as inventory so the appreciated amount will be income to the company. Thus, when the company revalues the land and houses, it has to book the gain/loss into the company’s profit and loss statement, whereas there are taxes to be paid in case of profits.

However, if the company is not selling real estate, the land is just a normal fixed asset. In summary, if you get the revaluation report and it shows that the land’s value has appreciated and you want to book the appreciated amount in the company’s accounting, it will be booked in the shareholders’ equity section of the Balance Sheet, not as an income in the Profit and Loss Statement. That means no tax to pay yet.

To explain it further, according to the Thai Revenue Department’s Revenue Code Section 65 Bis, value of assets other than value of stock on the last day of an accounting period shall be calculated in accordance with the cost or market price, whichever is lower, and such value shall be deemed to be the value of stock carried forward into the new accounting period, shall use the normal purchase price of such asset and in the case of appreciation in the value of the asset, such appreciation shall not be included in the calculation of net profit or net loss. If any item of assets is entitled to depreciation or depletion, depreciation and depletion shall be deductible in the calculation of net profit or net loss in accordance with the rules, procedures, conditions and previous rates applicable before the appreciation in the value of assets by deducting and only the remaining period and remaining cost of capital of the assets shall be deducted.

MSNA provides accounting, tax, due diligence, payroll and related business services. Contact us now for initial consultation.

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:

1. 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.
2. 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 7^th 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.