When we have a branch office in Thailand, are we liable to pay taxes to the Thai government on overall income?
No, branches of foreign companies in Thailand are liable to pay income tax at the normal Corporate Income Tax rate on locally earned income only. Hence, branch incomes that are remitted to the head office overseas are subject to an additional tax of 10%.
Branches of foreign commercial banks however are exempt from this tax in respect of their profits derived from the “out-out business”.
Contact MSNA for your Thai accounting and tax questions.