Here are some tips and info you should know when it comes to acquiring tax deductions for your Thailand small business company. Tax deductions are important to many small to medium businesses (SMBs) and startups because it allows them to reduce their overhead expenses and invest more of their money to things that contribute to the company's growth.
Local Thailand SMBs
A typical Thai company pays about 20 percent tax on net profit, although this has changed in 2015. Some company types are entitled to tax rate deductions, as enumerated below.
Foreign Company SMBs
The case is slightly different from international companies. Foreign company SMBs are asked to pay 30 percent tax only on the profit derived from Thailand business, which means the profit they are getting elsewhere won't be taxed at all. However, there's a 3 percent tax on gross receipts for international transportation companies.
With regards to foreign firms abroad that don't carry on business based in Thailand, they are subject to withholding tax on certain Thailand-derived income categories. Exemptions and Reductions can be granted depending on the types of income involved in the Double Taxation Agreement provision. Here are the specific taxes:
Tax Benefits and Tax Cuts in Thailand
Companies registered under Thai law availing of Investment Promotion Privileges can enjoy the following tax breaks and cuts.
Go to the Revenue Department website for a complete list of all taxable entities in Thailand, which includes property, VAT, personal, and business taxes. The site also details regulations, time frames, and withholding percentages of each entity.
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