Thailand Tax Compliance Map

Email: bkk4ww@evershinecpa.com
Manager Paul, Speaks Thai and English
WeChat: Paul0864580532

GLA – Thailand Corporate Income Tax

GLA-TH-01 GLA Tax Entity

Question from client:
Is Thailand corporate income tax a national income tax? A local income tax? Or is there a national and local income tax?
What if the national income tax and the local income tax are levied separately or levied together?
What is the standard tax rate? What is the special tax rate?

Answer from Evershine RD:
Corporate taxes are levied only at the national level.
There are no income taxes at the subnational level in Thailand and localities.
Generally, all corporations are subject to the same rate at 20%.
Qualifying small and medium-sized enterprises (SMEs) may be exempt from corporate income tax or subject to a 10% corporate income tax rate.
SME has annual gross revenue no more than 30million baht and may only have a maximum paid-up capital of 5million baht.

GLA-TH-02 Registration

Question from client:
Which government unit is responsible for the collection of Thailand corporate income tax?
The registration of the country’s corporate income tax status, that is, the tax certificate number application procedure, paper certificate number application?
Or online account application? URL?
What is the advance certificate number for applying for this certificate number?
Do I need to use the industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:
Thai Revenue Department administered Thailand corporate income tax.
The company registration number will be used as a tax ID number.
Once a company has been registered and within 60 days of incorporation or the commencement of operations, you will need to apply for and obtain a company corporate tax ID card from the Revenue Department.

GLA-TH-03 GLA Order (OD)

Question from client:
What is the order of Thailand corporate income tax return (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Deposit first (DF). Pay by installment first and declare later.

GLA-TH-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for Thailand’s corporate income tax return (information flow determines the tax base)?
Filing cycle: monthly? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: website URL?

Answer from Evershine RD:
A company is obliged to estimate its annual net profit as well as its tax liability and pay half of the estimated tax amount within two months after the end of the first six months of its accounting period (i.e., the last day of the eighth month of the fiscal year).
The prepaid tax is creditable against its annual tax liability.
The semi-annual tax return (Form P.N.D. 51) is required to file a half-year return.
The annual tax return (Form P.N.D. 50) must be submitted within 150 days after the last day of the accounting period.
Electronic filing is mandatory at https://efiling.rd.go.th/rd-efiling-web/login.

GLA-TH-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Thailand corporate income tax payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize the deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:

Companies subject to the corporate income tax must make an estimated tax payment at the time they file the semi-annual return (at the end of the eighth month of the fiscal year).
Final payment, subject to credits for withholding and the semi-annual payment are due at the time the annual return is filed.
Electronic payment is mandatory.

Payment method:
1.Payment is connected directly to the bank’s payment system.
Detailed information about tax payments will be sent directly from the Revenue Department to the bank.
Once the taxpayer has confirmed the transaction of the bank’s payment system, the bank will notify the result of the transaction, such as the result of money transfer, transaction cancellation, etc., to the Revenue Department immediately (Real Time).
Login to https://efiling.rd.go.th/rd-efiling-web/login to pay tax.

2.Pay with Pay in Slip or with QR Code & Barcode.

VAT – Thailand VAT

VAT-TH-01 VAT Tax Entity

Question from client:
Is Thailand VAT National VAT? Local VAT? Or is there a national plus Local VAT?
What if the National VAT and Local VAT are levied separately or levied together?
What is the standard VAT rate? What is the special VAT rate?

Answer from Evershine RD:

Thailand levied VAT at national and local level.
However, under Thai VAT law, the additional local tax is collected as part of the national VAT system and no additional requirements for filing returns or submitting payment rules apply.
In Thailand, the following VAT rates apply:
Standard rate: 7% (6.3% VAT and a 0.7% local tax)
Other: Zero rate and exemptions

VAT-TH-02 Registration

Question from client:
Which government unit is responsible for the levying of VAT in Thailand?
The registration of Thailand’s VAT levy status, that is, the application procedure for VAT certificate number, paper certificate number application?
Or online account application? URL?
What is the advance certificate number for applying for a VAT certificate number?
Do I need to use an industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:

Administrative oversight of VAT in Thailand is carried out by the Revenue Department.
An entrepreneur that has an annual taxable turnover exceeding 1.8 million baht is required to register for VAT within 30 days of reaching the income threshold.
The application form (“Phor. Por. 01”) can be submitted manually or electronically.
Applications can be made through the Revenue Department’s website at http://vsreg.rd.go.th/jsp/MainFVATFSBT.jsp.
However, there is no assignment of VAT number in Thailand.

VAT-registered entrepreneurs use the existing tax identification number as a reference in relevant VAT documentation.
A tax identification number is a 13-digit number, for example, 1-2345-67890-12-3.
Upon registration, an entrepreneur receives a VAT certificate that must be displayed at its place of business.
It can take several days to receive approval of registration and several weeks to receive a VAT certificate.

VAT-TH-03 WWT Order (OD)

Question from client:
What is the order of Thailand’s VAT declaration (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? First declare and then pay?
At the same time as the declaration and payment?

Answer from Evershine RD:
Same period (SP): Filing of VAT return and pay the taxes due by the same time.

VAT-TH-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for Thailand VAT declaration (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Website URL?

Answer from Evershine RD:
Under Thai VAT law, a VAT-registered entrepreneur is required to file monthly VAT returns (“Phor. Phor. 30”) by the 15th day of each month.
Electronic filing of VAT returns and electronic payment of VAT is available via the website of the Thai Revenue Department.
The Revenue Department has announced that companies registered for e-filing have an extra eight days (23rd day of each month) to file all tax returns.
This incentive will run until 31 January 2024.
Submit online via https://efiling.rd.go.th/rd-efiling-web/login.

VAT-TH-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Thailand VAT payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
OCT payment at the bank counter?
Or the above methods coexist?

Answer from Evershine RD:
Payment of tax for any tax period is due by the filing deadline for the corresponding tax return.
VAT may be paid in cash, electronically by debit or credit card, check, banker’s draft, or money order.
Where a return is filed electronically, VAT can be paid by bank transfer from a bank account, opened with certain participating Thai banks, to the Revenue Department and the VAT receipt is available in the online system for printing.

Please be aware of below Warning:
The above contents are digested by Evershine R&D and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Bangkok Evershine BPO Service Limited Corp.
Email: bkk4ww@evershinecpa.com
Manager Paul, Speaks Thai and English
WeChat: Paul0864580532

or
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LinkedIn address:Dale Chen

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