Taxes for the provision of import / export services

Taxation of transactions for the provision of services to a foreign company and when receiving services from a foreign company has its own characteristics. If you work with the import / export of services, carefully approach the issues of calculating VAT and paying withholding tax. If you do not take these features into account when concluding a deal and setting prices for services, you will have to pay taxes at your own expense.

VAT

We remind you that when the company's turnover for the year reaches 1.8 million baht, the company must register as a VAT payer and pay 7% of all received amounts for goods and services.

If the company provides services that are fully or partially used abroad, the VAT rate on the cost of such services (their part used abroad) will be 0%.

Services used in Thailand are subject to 7% VAT.

When sending money for services abroad, the amount is deducted -7% VAT. The Thai company counts this amount as a VAT credit and reduces the monthly tax base.

Withholding tax

Withholding tax (tax on income earned by a foreign company in Thailand) when sending money for services abroad is withheld by the payer company, which in this case acts as a tax agent. The tax must be transferred to the tax office no later than the 7th day of the month following the month in which the transaction was carried out.

The withholding tax rate is 15%. However, other conditions may be stipulated by the double taxation between Thailand and the country to which you are sending funds. When paying withholding tax, you must obtain a certificate from the tax office. Your counterparty will be able to use this document in his country as proof of payment of part of his income tax in Thailand.

For all tax matters in Thailand, please call: +6687 348-57-03

Author: Aleksandra Agapitova

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