Thailand Tax Treaties with other countries

Thailand has signed Double Taxation Agreements (DTA) with over 60 countries.
Thailand’s DTA generally follows the OECD model treaty and provides relief from double taxation on income.
Taxes that are covered by the DTA are income taxes, such as personal income tax, corporate income tax, and petroleum income tax.
In many cases, the tax rates within the DTA are lower in comparison to the domestic tax rates to reduce tax impediments to cross-border trade and investment.

Thailand Tax Treaties with Taiwan
Thailand Tax Treaties with China
Other countries on request

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Manager Paul , Speak in Thailandese English
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We set up below judgment criteria on Treaty application:
Scenario:
If you are not a Thailand legal resident, and if your resident country has DTA with Thailand, and if you are without PE (Permanent Establishment), please go to Section Ａ.
If you are not a Thailand legal resident, and if your resident country has DTA with Thailand, and if you are with PE (Permanent Establishment) please go to Section Ｂ.
If you are not a Thailand legal resident, and if your resident country has no DTA with Thailand, please go to SectionＣ.

Section Ａ:
Scenario:
If you are not a Thailand legal resident, and if your resident country has DTA with Thailand, and if you are without PE (Permanent Establishment), it will be redeemed as “non-Thailand Domestic Sourced Income”.
That means Thailand will levy zero-tax.
However, you still need to send zero-tax application to Thailand Tax Bureau for being approved.
Below, we will let you understand through Q&A.

DTA-Q-10:
泰國的哪些外國法律居民公司可以依DTA申請沒有常設機構(PE)下零稅率?
In Thailand, which foreign legal resident company can apply for zero tax rate without PE under DTA?

DTA-A-10:
Thailand has signed DTAs with the following 60 countries:

DTA-Q-20:
為什麼在DTA下該國外資沒有常設機構 (PE)之外資所得，可以享受零稅率?
Why does the Country’s foreign capital without a permanent establishment (PE) in Thailand, under the DTA enjoy zero tax rate?

DTA-A-20:
It follows Article 5 and Articles 7 in the DTA Treaty.
The article defines if a foreign entity having PE in Thailand. Article 7 regulates if no PE, non-Thailand domestic sourced income will not be levied tax in Thailand.

DTA-Q-30:
哪些情況被視為沒有PE，外資在該國設立子公司會被視為外資的在該國的子公司嗎?
Under what circumstances are deemed to have no PE, and will the establishment of a foreign-funded subsidiary in Thailand be regarded as a foreign-funded subsidiary in Thailand?

DTA-A-30:
According to DTA Article 5 item 7, A Wholly Foreign Owned subsidiary in Thailand will not be treated as PE because it is a separate legal entity.
That means if a Thailand Subsidiary pay service fee to non-Thailand Parent Company through service contract signed between subsidiary and non -Thailand Parent company, as an investor, a non-Thailand Parent Company can apply zero tax.
As for if the paid amount is reasonable, it will get involved TP (Transfer Pricing) judgment by Thailand Tax Bureau.
Please see the Thailand Transfer Pricing web-page.

DTA-Q-40:
外資在泰國設立分公司或辦事處，可否適用沒有PE下的零稅率?
If a foreign company establishes a branch or office in Thailand, can the zero-tax rate without PE be applied?

DTA-A-40:
According to DTA Article 5 item 2, If a foreign company sets up a branch or Office in Thailand, then will be considered as Thailand’s domestic Income.
But According to DTA Article 5 item 4, if an Office is only doing a preparatory or auxiliary activity, will apply a zero-tax rate.

DTA-Q-50:
泰國依DTA沒有PE下零稅率申請的程序為何?
What is the procedure for Thailand to apply for zero tax rate under DTA without PE?

DTA-A-50:
Below are the relevant documents necessary required to be sent to Revenue Department.
*PND 54 form and receipt.
*The evidence of payment.
*A No PE declaration letter
*Certificate of residence granted by a tax agency of the country of residence.
*Relevant invoice and receipt and contracts signed with Thailand organizations that are certified by the taxpayer.
*Describe the details about the usage and service with Thailand organizations.

Section Ｂ:
Scenario:
If you are not a Thailand legal resident, and if your resident country has DTA with Thailand, and if you are with PE (Permanent Establishment), your income will be considered as Thailand domestic sourced income.
As for levying Tax Rate, please be aware:
 if Thailand Tax rate > DTA Rate, adopt DTA Rate; if Thailand Tax rate < DTA Rate, adopt Thailand Rate.
Below, we will let you understand through Q&A

DTA-Q-60:
被視為泰國來源所得的判定要素?
What are the factors that are deemed to be the country’s domestic source income?

DTA-A-60:
Income is considered as Thai-sourced income if it is derived from:
*Work performed in Thailand
*Business in Thailand
*Business of an employer in Thailand
*Property located in Thailand

DTA-Q-70:
DTA第五條及第七條優先於泰國來源所得的判定要素?
Do Article 5 and Article 7 in the DTA take precedence over the Thailand determination factors on Thailand domestic sourced income?

DTA-A-70:
When DTA is applied, in the event of a different PE definition between Thailand domestic tax laws and Article 5 in the DTA, the definition under the DTA shall prevail over the domestic regulations.
When DTA is applied, if the foreign companies being defined as without PE (Permanent Establishment) in Thailand, then will be considered non-Thailand domestic sourced income, in the event business profit is relevant to this issue, the clause in Article 7 in the DTA zero-rate tax can be applied accordingly.
In this scenario, please see section A.

DTA-Q-80:
當非泰國稅務居民有泰國來源所得，不考慮DTA 情況下，泰國稅法扣繳稅率多少?
When non-tax residents of Thailand having Thailand domestic sourced income, what is the withholding tax rate according to Thailand tax regulations excluding DTA?

DTA-A-80:
Section 70 of the Revenue Code states when Thailand payer pays a particular income type to a foreign corporate entity and does not carry any business in Thailand, the Thailand payer should deduct withholding tax from the payment made and remit to Revenue Department.
Tax exemption or reduction is applicable according to Double Taxation Avoidance Agreement with each country.
Tax withheld will be paid to the Thailand Revenue Department using CIT 54 form within the 7^th day of the following month.
The withholding tax rates under domestic law are:
Business Profits – 10%
Dividend – 10%
Interest (loan) – 15%
Royalties fee – 15%
Technical services – 15%
Professional services – 15%

DTA-Q-90:
If DTA Tax Rate is higher than the Thailand tax rate, apply which tax rate?

DTA-A-90
As for levying Tax Rate, please be aware:
if Thailand Tax rate > DTA Rate, adopt DTA Rate; if Thailand Tax rate < DTA Rate, adopt Thailand Rate.

DTA-Q-A0:
當非泰國稅務居民有泰國來源所得，依DTA優惠稅率申請的程序為何?
When non-tax residents of Thailand having Thailand domestic sourced income, what is Thailand’s application procedure based on the DTA preferential tax rate?

DTA-A-A0:
Below are the relevant documents necessary required to be sent to Revenue Department.
*PND 54 form and receipt.
*The evidence of payment.
*Certificate of residence granted by a tax agency of the country of residence.
*Relevant invoice and receipt and contracts signed with Thailand organizations that are certified by the taxpayer.
*Describe the details about the usage and service with Thailand organizations.

Section Ｃ:

DTA-Q-B0:
As an investor, if your country has not signed DTA with Thailand, what kinds of tax rates when you have Thailand relevant income?

DTA-A-Q0:
If you are not a Thailand legal resident, and if your resident country has no DTA with Thailand,
Whether you are with PE or without PE, all kinds of income will be levied according to Thailand’s domestic sourced income.
Besides, it will be levied by Thailand Tax Rates.
The withholding tax rates under domestic law are:
Business Profits – 10%
Dividend – 10%
Interest (loan) – 15%
Royalties fee – 15%
Technical services – 15%
Professional services – 15%

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, Speak in Thai, English
WeChat: Paul0864580532

or
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Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable to your case.
LinkedIn address:Dale Chen

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