Our company in Thailand will have a sales meeting in Hua Hin, thus we need to engage van transports for our associates. The vendor said that he is not registered as Private Limited or Company Limited; thus the payment will be to the company’s owner even though all transactions, quotation and billing will be under his company name. The invoice will not include tax; The THB 4,000 quotation is NETT.
Our question is can we pay him even though he is not a company?
Answer: It is OK that he is not a company. When you pay hi, you will have to ask for his ID card copy duly signed indicating that he received the amount of money from you. You said his quoted price was not. We assumed that he will not let you withhold 1% tax (transportation is subject to 1% withholding tax), then your company will have to bear it. You have to submit the withholding tax to the Thai Revenue Department even though you did not withhold it.
Contact MSNA for all your accounting and tax questions.