The company in Thailand sends employees to work in their overseas branches which such employees do not bring in and do not keep money back in Thailand. For such case, is the Thai company obliged to withhold tax and do such employees need to pay any tax(es)?
Panwa : Employers in Thailand are not obliged to pay taxes under Section 40(1) of the Revenue Code directly to employees working abroad but the foreign branch office shall pay salaries or wages and therefore do not qualify as income because of the employer’s business in Thailand , which it is not subjected to personal income tax under Section 41 paragraph one of the Revenue Code. Companies in Thailand are therefore not obligated to withhold tax at source and employees are obliged to pay personal income tax in Thailand upon entry under Section 41 paragraph two and paragraph three of the Revenue Code.
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