In view of the increase in the minimum daily wage which took effect on January 1, 2013 nationwide, the Thai government has recently approved tax relief measures for the affected small-and-medium enterprises (SMEs). These measures are expected to help SMEs with annual income not exceeding Baht 50 million a year.

Under these measures, the income tax exemption limit for SMEs will be raised from Baht 150,000 to Baht 300,000 a year. SMEs declaring income between Baht 300,000 and Baht 1 million will be taxed at 15% and those with over Baht 1 million profit will pay tax at 20% on the difference.

The withholding tax rates for SMEs will also be cut from 3% to 2% and they will be allowed to claim 100% depreciation on machinery for the first year of purchase until the end of 2013, an extension of one year from the year end of 2012.

Contact MSNA for your accounting, tax and other business needs.

One of our payroll clients has asked us about the Social Security Fund reimbursement for dental treatment.

“As a member of the Social Security Fund, can I claim back the amount that I have paid to a dentist in a private clinic when I have my tooth extracted? I’ll appreciate your advice. Thanks.”

Answer:

Yes, as one of the insured person, you are entitled to receive medical treatment service at any hospital or clinic in the case of tooth extraction, filling and removing dental plaque. You can advance the expense and can later apply for the reimbursement at the rate of not exceeding Baht 300 per each dental service or not more than Baht 600 per year.

Additionally, you shall further be entitled to be fitted with any acrylic-based over denture from 1 to 5 teeth at the cost of not exceeding 1,200 Baht and an over denture for more than 5 teeth, at the cost of not more than Baht 1,400 within a period of 5 years effective from the date of fitting the acrylic-based over denture.

When applying for dental service cost reimbursement, you are required to submit these evidences to the Social Security Office:

– Application Form for Compensation Payment in Case of Dental Service (2-16).

– A medical certificate and a receipt from the dentist.

– A copy of Thai ID card or passport and a copy of the Certified Entitlement Card.

– In case you would like to receive the payment through the Bank, you should prepare a copy of the first page of the Bank Savings Account book showing the Name of Account and Account Number or either Bank of Ayudhya PLC or Krung Thai Bank PLC.

Contact MSNA for your questions about Thailand Social Security and its benefits.

Not all diseases and medical services can be entitled to claim Thailand social security fund benefits. Insured persons cannot claim the medical compensation for such diseases and medical services follows:

1. Psychosis except in case of acute psychosis which requires immediate treatment and for a period of not more than 15 days.

2. Disorders or injury due to the use of narcotic substance under the law governing narcotic drugs.

3. The same disease which requires hospitalization period of more than 180 days in one year.

4. Hemodialysis except:

a. In the case of acute kidney failure which requires hospitalization period of not more than 60 days shall be entitled to medical service benefits.

b. In the case of chronic kidney failure of final stage for which medical service benefits shall be granted by means of hemodialysis with the use of dialyzer; by means of the Chronic Peritoneal Dialysis (CPD) and by kidney transplant according to the criteria, the terms and conditions and rates prescribed in the Notification of the Zone Office of Social Security.

5. Any action taken for beautifying purpose with absence of medical indications.

6. Treatment in the course of doing researches and experiments.

7. Infertility

8. Examination of mucus membrane for organ transplant except bone stem cell transplant.

9. Any examination that is exceeding the needs for curing such disease.

10. Organ transplant operation except the bone stem cell transplant according to the established criteria.

11. The sex change.

12. Artificial insemination.

13. Service provided in the course of recuperation.

14. Dental service except in the case of tooth extraction, filing and removal of dental plaque.

15. Spectacles.

Learn more about Thailand social security. Consult with MSNA for registration and contribution to receive social security fund benefits.

For the convenience of applicants for Re-Entry Permit in Bangkok, the Immigration Division 1 of the Immigration Bureau is now open for queue online booking service on their website. However, this service is exclusively available for Immigration Division 1, the Government Complex branch at Chaengwattana Road only.

In this queue online, the officer will check the information of the re-entry permit applicant in advance. Then the applicant could take the passport for Re-Entry Permit stamp and pay the fee on the booking time and date.

The form TM.8 will be printed out and the applicant’s photo will be taken by the system. This “One Stop Service” will be finished within 5 minutes under the conditions of correct and complete documents.

Consult with MSNA Legal Team for further details on how to queue online and obtaining a re-entry permit before departing Thailand.

If you are a visitor to Thailand, you shall be qualified to a VAT refund on goods that you purchased from retailers participating in the VAT refund scheme provided that you meet all the eligibility criteria and conditions as stated below.

Before departing Thailand, travelers will be eligible for a VAT refund if the following conditions are met:

• You are a non-Thai resident and not staying in Thailand up to 180 days in a current tax year;
• You are not a pilot or a cabin crew of any airline departing Thailand on duty;
• You purchased goods from stores displaying “VAT Refund for Tourists” sign;
• VAT refund only applies to goods taken out of Thailand with the eligible traveler within 60 days from the date of purchase; and
• You leave Thailand via an international airport.

If you wish to claim a refund of the tax paid on eligible goods, a proof of export is required. To claim for a VAT refund, contact Customs officials at the airport before checking in. The following documents must be available for inspection by Customs officials:

1. A valid passport;
2. VAT Refund Application Form (VAT Form 10);
3. An original receipt/tax invoice;
4. Goods that go with the original receipts.

If the declarations for VAT refund are correct, Customs officials will sign and stamp the VAT Refund Application Form, affix a sticker to the luggage containing the eligible goods, and return everything to you. After clearing Immigration for a VAT refund, the VAT Application Form approved by the Customs must be presented to the Revenue Department officials. If a claim is for small and expensive items such as jewelry, gold, watches, pens, glasses, etc, these items must be available for inspection at the VAT Refund Office again.

Thai Customs also remind travelers to allow extra time at the airport to have application stamped and eligible goods verified, keeping in mind that other passengers are also requesting these services. You should arrive at the airport even earlier than the time recommended by your airline to be at your boarding gate on time.

Contact MSNA, Tax Advisors for consultation on Thai taxation and further information about Tourist VAT Refund.

The Thai government has recently approved a new personal income tax structure which reduces the existing maximum rate of 37% to 35%. The new rates will take effect in the 2013 tax year.

The recently approved starting tax rate is 5%-10%. For more information, the new tax rates are summarized as follows:

Yearly net income (Baht) Personal Income Tax rate

Existing rate NEW rate

• 0-150,000 Exempt Exempt
• 150,001-300,000 10% 5%
• 300,001-500,000 10% 10%
• 500,001-750,000 20% 15%
• 750,001-1,000,000 20% 20%
• 1,000,001-2,000,000 30% 25%
• 2,000,001-4,000,000 30% 30%
• 4,000,001 upward 37% 35%

Please note that implementation of the above new tax rates are yet to be announced by the Thai Revenue Department. Old existing tax rates will still be applied until further notice. Contact MSNA Tax Advisors for Personal Income Tax computation and submission.

In the event of sickness or injury, if it is necessary that the insured person (patient) may be taken to other hospital for continuing diagnosis or treatment, reimbursement for transportation costs and further expenses of medical treatment may be allowed by the Social Security Office.

When the insured patient is in the same provincial area, if a motor car or an ambulance is used, additional reimbursement for actual expenses may be reimbursed but not exceeding Baht 500 per reimbursement. However, if a hired vehicle, a private transport or other vehicle is used, a lump sum reimbursement at the rate of Baht 300 per reimbursement may be paid. And if it is in other province, the Zone Office of Social Security may pay an extra reimbursement at Baht 6 per kilometer.

Know more about Thailand Social Security Fund and its benefits. Contact MSNA for social security registration and monthly contribution submission.

Question: We are renting a car under the company’s name for business purposes. Can we put the rental costs under the company’s expenses?

Answer:

Yes, you can use the rental cost of a passenger car or a bus with seats for no more 10 passengers as a deductible expense for tax purposes in the amount not exceeding Baht 36,000 including VAT per month per car for monthly or yearly rental or not exceeding Baht 1,200 including VAT per day per car for daily rental.

Know more about the allowed deductible expenses for tax computation. Consult with MSNA’s accountants and tax advisors for your accounting and taxation needs.

The recently approved Ministerial Regulation No. 292 amended the personal income tax exemptions on income such as money or any benefits received from the Provident Fund.

Before the amendment, the exemption was available only upon the death of the income recipient. Now it applies where an employee retires at the age of 55 or older, or where an employee retires before reaching 55 years old, but the money is retained in the fund when he/she reaches age 55.

As assessable income is exempted from inclusion for computation of income tax payment, this amendment will ensure support of an employee after retirement.

Contact MSNA’s tax advisors for personal income tax preparation and submission.

Deductible expenses are personal expenses that may be deducted to calculate the Thai personal income tax depending on the category of assessable income of a taxpayer as follows:

• For the income under the categories of assessable income (1), (2) and for copyright under (3), a deduction of 40% is allowed subject to a maximum of Baht 60,000.
• For the income under the category of assessable income (3), other than for copyright and under (4), no deductions are allowed.
• For the income under the category of assessable income (5), the rates of deduction vary from 10% to 30% depending on the type of rented property.
• For the income under the categories of assessable income (6), (7) and (8), the rates of deduction vary from 30% to 85% depending on the type of income or type of business.

Moreover, the deduction of expenses in relation to assessable income under categories (5) – (8) may be made on an actual basis only if satisfactory evidence of the expenditure can be provided to the tax authorities.

Consult MSNA for Thai personal income tax computation.