Question 1

When must a business register for Thai VAT?

Accepted Answer

Section 85/1 read with section 81/3 of the Revenue Code requires registration once turnover from VATable sales or services exceeds THB 1.8 million in a year. The application, form PP.01, must be filed within 30 days of crossing the threshold. Voluntary registration below the threshold is available and is often necessary when corporate customers or exports are involved. Certain activities are exempt under section 81, including specified agricultural produce, education and healthcare services. Ask our Thai accounting team to review your position by phone, LINE or email before you file.

Question 2

What is the Thai VAT rate and when is PP.30 due?

Accepted Answer

The statutory rate in section 80 is 10 percent, but a royal decree has reduced it to 7 percent inclusive of local tax, renewed period by period. The monthly return PP.30 is due by the 15th of the following month under section 83, with an additional grace period for internet filing granted by successive Ministry of Finance notifications. A nil return is still required for months with no activity. Late payment attracts a surcharge of 1.5 percent per month. Ask our Thai accounting team to review your position by phone, LINE or email before you file.

Question 3

What must a full-form Thai tax invoice contain?

Accepted Answer

Section 86/4 lists the mandatory particulars: the words tax invoice, the issuer's name, address and taxpayer identification number, the buyer's name and address, a sequential invoice number, the description, type, quantity and value of the goods or services, the VAT amount shown separately, and the date of issue. If any particular is missing the buyer cannot claim the input VAT under section 82/5, which is the single most common finding in a Revenue Department review. Ask our Thai accounting team to review your position by phone, LINE or email before you file.

Question 4

What is the corporate income tax rate in Thailand?

Accepted Answer

The standard rate is 20 percent of net profit. Companies qualifying as SMEs under the relevant royal decree, meaning paid-up capital of no more than THB 5 million on the last day of the accounting period and revenue of no more than THB 30 million for that period, use a banded scale: the first THB 300,000 of net profit is exempt, the band above THB 300,000 up to THB 3 million is taxed at 15 percent, and the excess at 20 percent. BOI-promoted activities may be exempt on the terms of the promotion certificate. Ask our Thai accounting team to review your position by phone, LINE or email before you file.

Question 5

When are PND.50 and PND.51 due?

Accepted Answer

PND.50, the annual corporate return, is due within 150 days of the last day of the accounting period under section 68, filed with audited financial statements. PND.51, the half-year return, is due within two months of the end of the first six months under section 67 bis. Internet filing generally carries an extension under the Ministry of Finance notification in force at the time. Ask our Thai accounting team to review your position by phone, LINE or email before you file.

Question 6

What happens if the half-year profit estimate is too low?

Accepted Answer

Section 67 ter imposes a surcharge of 20 percent of the shortfall where the estimated net profit used for PND.51 is understated by more than 25 percent of actual net profit without reasonable cause. Reasonable cause must be evidenced, for example an unforeseeable event in the second half. Reusing last year's figure without reviewing actual first-half results is the usual reason companies fall into this charge. Ask our Thai accounting team to review your position by phone, LINE or email before you file.

Question 7

How long can Thai tax losses be carried forward?

Accepted Answer

Section 65 ter (12) allows net losses from the previous five accounting periods to be deducted in computing net profit. Losses older than five years lapse. To use the relief, the loss-year financial statements and PND.50 filings must be complete and on record. BOI companies follow specific rules for losses incurred during the exemption period, set out in the promotion certificate. Ask our Thai accounting team to review your position by phone, LINE or email before you file.

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Withholding Tax, PND.3 & PND.53

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