Investment promotion by Thailand BOI for Senior/dependent care centers includes many incentives. To receive the promotion, the business must meet the following conditions:

1. The facility must be a senior/dependent care center according to the health business establishments Act.

2. The care center must have no less than 50 beds for services.

3. The care center must provide the senior/dependent persons with care and support by allowing them to stay overnight and offering rehabilitation activities.

4. Thai national shareholders must have at least 51% of registered capital.

5. The care center must receive a license to operate a health business establishment prior to applying for Corporate Income Tax (CIT) exemption.

6. Revenue eligible for CIT exemption must come exclusively from accommodation and senior care services, i.e. activities and food services, etc.

Once promoted by the BOI, Senior/dependent care centers shall be granted with the following incentives:

   – Corporate Income Tax exemption for 3 Years.

   – Exemption of import duties on machinery.

   – Exemption of import duties on raw materials used in R&D.

   – Exemption of import duties on raw materials used in production for export.

   – Permit to own land

   – Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities

   – Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities

   – Permit to take out or remit money abroad in foreign currency

When applying for the BOI promotion, it is important to have an expert’s help, not only in doing the BOI application, but also in coordinating with the BOI officers. Consult with ThaiLawyers to know more about the procedures in getting BOI promotion for your eligible business activity in Thailand.

In one of our previous posts, we talked about personal allowance for parents that is allowed for the computation of Personal Income Tax and filing with the Revenue Department. However, only Thai citizens can use parents allowance for computation of Thai Personal Income Tax.

In this article, we would like to explain that if you and your spouse (who is not working and has no income) support your parents, you may use a parental care allowance of THB 15,000 for each qualified parent given that they meet the following conditions:

1. You/your spouse is a legitimate child (not adopted) of the parent
2. At the end of the year, either of your mother and father is at least 60 years of age and must be under your care and financial support
3. Your qualified parent must not have assessable income exceeding THB 30,000 (including exempted income)

For each qualified parent you are claiming the allowance, you must provide a Parental Care Certificate showing their personal Identification Number and the amount of the allowance. However, if you have a sibling who is also supporting your parents, only one can claim for a parental care allowance.

On the other hand, if you are a non-Thai taxpayer, you can claim for parental care allowance if your qualified parent is a Thai citizen.

Contact MSNA for assistance in filing your personal income tax returns in Thailand.

The Double Taxation Agreement or DTA is a tax treaty between 2 countries. Currently Thailand has double taxation treaties with 61 foreign countries which cover taxes on income and capital of individuals and juristic entities.

In order to be considered a Thai tax resident and be entitled to treaty benefits, a tax payer must be one of the following:

1. An individual who stays in Thailand for a consecutive 180 days or more in a tax year;
2. A juristic person who is registered under the Civil and Commercial Code of Thailand

A Double Taxation Agreement applies to only income taxes such as personal income tax, corporate income tax and petroleum income tax. Other indirect taxes such as the Value Added Tax (VAT) and Specific Business Tax (SBT) are not covered by the DTA. Although the DTA does not specify any specific amount of income and tax rate in general, it prescribes whether the source or resident country is entitled to tax on certain income. If the source country has taxing rights, the income will be taxable according to the domestic laws of that country.

A Double Taxation Agreement  also stipulates a tax rate level on investment income such as dividends, interests and royalties. Therefore, the source country can tax such income at a rate not exceeding the rate prescribed within the treaty. Normally, the tax rates within the DTA are lower compared to the domestic tax rates in order to decrease tax impediments to cross border trade and investment. However, some articles of the DTA clearly do not accept the source country to exercise taxing rights on income such as income from international air transport and business profits provided that the business is not carried through a permanent entity in the source country.

In general, Thai double taxation treaties place a resident of the foreign country in a more favorable position for Thai tax purposes than under the domestic law, for example, the Thai Revenue Code of the Revenue Department. It provides income tax exemption on business profits (industrial and commercial profits) earned in Thailand by a resident of a foreign country if it does not have a permanent establishment in Thailand. In addition, the withholding taxes on payments of income to foreign juristic entities not carrying on business in Thailand may be reduced or exempted under the double taxation treaties.

Thai taxation has a unique tax structure thus, consulting with Thai tax experts is highly recommended. Consult with MSNA Group, for the best Thai tax advice.

According to the Revenue Department, a taxpayer who resides in Thailand and receives dividends from a juristic company or partnership registered in Thailand is entitled to a tax credit of 3/7 of the amount of dividends received. In computing his assessable income, the taxpayer should gross up his dividends by the amount of the tax credit received. The amount of tax credit is creditable against his personal income tax liability of the same year.

Moreover, a taxpayer who resides in Thailand and receives dividends or shares of profits from a Thai registered company or a mutual fund whose tax has been withheld at source at the rate of 10% may choose to exclude such dividends from his assessable income when calculating his Personal Income Tax. However, in doing so, the taxpayer will be unable to claim any refund or credit as explained in the above paragraph.

Thai personal income tax returns must be filed within 31^st March of the year following the year in which the income was received. Contact MSNA for computation and filing of your PIT returns before the due date and further consultation on Thai taxation.

There are certain occupations that are prohibited to non-Thai nationals as prescribed by the Ministry of Labour. If you are a professional lawyer in your home country and would like to practice your profession in Thailand, you should be aware that foreigners are prohibited to work and provide services in legal counselling, litigation and others such as representing as a lawyer in all types of cases, acting on behalf of clients in legal matters, drafting contracts or making legal documents.

However, there are some exceptions depending on the situation. Foreign lawyers can be allowed for the following works:

1. To perform duties of an arbitrator in an arbitration case;
2. To provide assistance or representation in the arbitral proceedings in the event that the law applicable to the dispute being considered by the judge is not Thai law. This includes the following:
3. Liaison for cases, research, compile and provide opinion on facts and legal issues to the arbitral tribunal or the parties;
4. Notetaking during the hearing using shorthand or other techniques in the same manner;
5. Presentation of opinions as an expert
6. Works involving special technology used in recording sound, images and evidence produced in the hearing

Know more about your options when applying for a ThailandWorkPermit. Contact us for expert advice of English-speaking Thai Lawyers.

In accordance to the Revenue Code Amendment Act (No. 53) B.E. 2564 of the Revenue Department, non-residents or foreign online service providers and online platforms who earned more than THB 1.8 million per year from providing online services to non-VAT registered customers in Thailand must register for VAT, submit VAT returns and pay VAT by computing output tax without deducting input tax starting from 1 September 2021. Hence, the online service providers and online platforms are not required to issue a tax invoice or keep an input tax report.

Online services refers to service including incorporeal property which is rendered over the Internet or any other online network services that is impossible to deliver without information technology. Examples of online services includes:

• Digital products such as mobile applications
• Software programs
• Digital images, videos and financial data
• Digital music, films and games
• Distance teaching via pre-recorded medium such as online courses
• Electronic data management such as website supply, web-hosting, automated and digital maintenance of programs
• Providing or supporting a business or personal presence on an electronic network
• Search engine such as customized search-engine services
• Listing services for the right to put goods or services for sale on an online market or auction house
• On-demand streaming services where there is no interaction with the content provider
• Advertising services on intangible media platform
• Support services performed, via electronic means for arranging and facilitating the completion of transactions which may not be digital in nature such as commission fees to intermediaries, service fees to consumers and merchants for sale of products through the online marketplace

Meanwhile, the following are not categorized as an online service:

• Telecommunication services
• Payment channel or money transfer services
• Electronic voucher delivered to the customer by email or SMS to be redeemed for a meal, a hotel stay or a theme park entrance
• Live teaching services whereas the content of the course is delivered by a teacher over the Internet or an electronic network
• Professional services involving human intervention and the nature of which is not essentially automated such as consulting services where advice from the consultant is communicated via email or video call.

On the other hand, online platform refers to market, channel or any other procedures that service providers use to deliver their services to the customers. It serves as an intermediary between the service providers and customers and facilitates the service transactions. It can be in the form of website, mobile applications or other channels.

Such online service providers and online platforms are required to register in the Simplified VAT System for E-Service (SVE). This system allows users to register for VAT, file VAT returns, and pay VAT and request for VAT refund electronically.

Make sure you are filing Thailand taxes correctly. Consult with MSNA’s Thai tax experts now.

The authorized directors of the company can open a business bank account for their company in Thailand right after they have registered the company. At MSNA Group, we are asked about credit card application for the company very often. In this post, we talk about opening a credit card account for business owners who are non-Thai nationals.

The conditions and requirements for the business owner to apply for a credit card depends on the issuing banks where they want to submit their application. In general, a business owner must provide the following:

1. A copy of valid passport with visa and work permit
2. Company registration documents
3. Company Affidavit updated not more than 3 months from the date of application
4. Shareholders list updated not more than 6 months from the date of application
5. Personal Thai bank account statements updated from the last 6 months
6. Company bank statements updated from the last 6 months

Thus, a foreigner can apply for a credit card under the company provided that he has obtained a visa and Thailand Work Permit to work as an authorized director of the company. ThaiLawyers are expert in registering a company, opening a corporate bank account and assisting in business credit card application. Contact us now for your best options.

Previously, our Thai Tax Expert talked about the changes made by the Revenue Department in the Thai tax laws, particularly in the Personal Income Tax rule for married couples. In this post, we want to give more information about the allowed deductible expenses, allowances and filing options for married couples.

Deductible Expenses

The expenses are divided equally among the spouses as the joint income proportion.

Allowances

Each spouse can use these allowances to calculate their income tax as follows:

1. Child allowance – each spouse can use Baht 15,000 (if the child is studying at the qualified level, each spouse can use Baht 17,000)
2. Home Loan Interest Deduction – each spouse is entitled up to Baht 100,000 of interest deduction. However, if they entered into a loan agreement together, each of them is entitled to Baht 50,000 of interest deduction.

Filing Options

A married couple may have 5 options in submitting their tax returns:

1. Each spouse files his/her tax returns separately;
2. They file their returns jointly, combining the wife’s income with the husband’s income and submit the tax returns under the husband’s name;
3. They file their returns jointly, combining the husband’s income with the wife’s income and submit the tax returns under the wife’s name;
4. They file their returns jointly but the husband files his Section 40(1) income separately;
5. They file their returns jointly but the wife files her Section 40(1) income separately.

Need help in filing your Thailand personal income tax returns? Contact MSNA now.

In one of our previous posts, we talked about Tax Clearance Certificate, which is a certificate issued by the Revenue Department to a non-Thai tax resident who is departing Thailand to indicate that he has already paid taxes or that he has provided a guarantor or securities as guarantee for tax liabilities and tax payable. In this post, we want to give more information about the types of tax clearance certificate in Thailand.

There are 2 types of Tax Clearance Certificate:

1. P. 3 Tax Clearance Certificate

This is issued to a foreigner who is temporarily departing Thailand. It is valid for a single departure and must be used within 15 days from the issuance date. If he/she could not depart Thailand within the specified period, P.3 Tax Clearance Certificate becomes invalid unless he/she renewed it before the expiry date.

• P.3.1 Tax Clearance Certificate

This is issued to a foreigner who enters and leaves Thailand on a regular basis due to his/her business or profession. It is valid for multiple departure within the specified period in the Tax Clearance Certificate but not exceeding 180 days from the issuance date. P.3.1 Tax Clearance Certificate cannot be renewed.

Consult with MSNA how to get a Tax Clearance Certificate.

As part of Covid-19 subsidy scheme to small and medium enterprises, the Thai government is giving three-month subsidies to SMEs registered in the Social Security system. Such SMEs are the companies with not more than Baht 5 million capital and their gross income has never reached more than Baht 30 million in any accounting year. The subsidy will be at a rate of THB 3,000 per employee per month for 3 months from November 2021 to January 2022.

In order to qualify for this subsidy, SMEs must register to join the scheme from now until November 20, 2021. However, if the company has not registered with SSO e-Service yet, they have to be registered in the system first before they can register to join the scheme. SSO e-Service is the online system of the Social Security Office whereas the company can also add new Thai employees when they join the company or remove their names once they resigned.

Know more about this subsidy and check out if your company can apply for this scheme.  MSNA Group has vast knowledge and experience in Thai accounting, tax and payroll matters. Contact us now for consultation.