+66 2 933 9000 bkk@panwa.co.th

Register Company & Doing business Thailand – QA

144 Comments

  1. nicky

    We need help to either buy an old company or register a fresh start-up company. we also need a medium-size office to operate.

    Reply
    • panwa group

      Yes, we have both option since we have more than 30 companies for sale from a few month to 8 years old, almost were registered for sale so there is no liability since we handle in tax, accounting and auditing for these companies or in case you prefer to register a new company we also can complete within 3 working days too, below is our guideline for new company setting up.

      Reply
  2. nicky

    Can my condominium’s address be used for registering company?

    Reply
    • panwa group

      The condominium can be used for registering company, but can’t be used for VAT registration. Therefore, you have to take into consideration if your company may need to register VAT or not. Basically, the company have to register for VAT when it falls into one of the condition as below;

      Earning annual income of 8 million Baht
      Company is partner with government
      Customer, partner or supplier or service provider required you to register for VAT
      When request work permit for foreign staff
      Please note that even without VAT registration, you can operate business officially because you can issue the completed receipt under Section 105 bis.

      Reply
  3. rasa lilin

    If 1 of the foreign director(s) and or one of the foreign shareholders of a current Thai company plans to open another Thai company (without the consent or knowledge of the other director(s) and shareholders), will there be any issues? e.g. tax, track records, bank issues?

    Reply
    • panwa group

      No, there will be no issues with regards to the government, however, maybe there will be an internal problem (among the shareholders and or directors of the current Thai company), especially on the case if the new company that you would like to open has same business objectives with their company or if they don’t want you to open another company with other shareholders (without them).

      Reply
  4. rasa lilin

    Is that possible for 1 of the 2 foreign shareholders change to someone else later on?

    Reply
    • panwa group

      Yes, can change to someone else later if you need, but the company need to have the director’s resolution for change of the shareholders’ list and also the director must approve and sign on the forms as well before can change the shareholders’ list.

      Reply
  5. rasa lilin

    Currently we are a company registered in Thailand and we have one customer in Thailand, A which we need to provide them rebate. Could you please advise us about this?

    Reply
    • panwa group

      1) Rebate is not considered to be tax base for sales or service in accordance with section no.79 of the Revenue code. Thus, the rebate receiver does not need to collect 7% of VAT and no need to issue tax invoice when received the money (just issue the receipt).
      2) Rebate is considered to be award/discount or any benefits in accordance with sales-promotion. Thus, a payer must deduct withholding tax at the rate of 3% when make the payment to a payee.

      Rebate คือ ส่วนลดพิเศษทางการค้า ซึ่งอ้างอิงข้อมูลจากข้อหารือและคำสั่งกรมสรรพากรดังนี้ครับ เลขที่หนังสือ กค 0811 (กม.06)/พ.1095

      Reply
  6. rasa lilin

    Can we have online VAT user id and password for our VAT, so that we can file VAT online every month?

    Reply
    • panwa group

      yes, you need to apply for user and password for tax e-filing, if you would like us to assist for this matter, we will charge Baht 3,210 (VAT included). Then, you can file VAT online every month (please note that the e-tax form is in Thai language only, however, you can compare with the English tax form which can be downloaded from RD website; http://www.rd.go.th/publish/29043.0.html.

      Reply
  7. rasa lilin

    Nature of Suspense input VAT (100650), A/R A/P Revenue Dept (100660), Tax deducted at source (100670) and Suspense output VAT (201460). Please clarify just to have a clear understanding on the nature of the listed accounts?

    Reply
    • panwa group

      Suspense Input VAT /Output VAT
      The VAT that is not filing yet because it is not due and recorded as suspense, and once we filing the VAT amount, it will be recorded as Input /Output VAT and cleared that Suspense Input /Output VAT.

      A/R A/P Revenue Dept
      It is VAT PP.30 of Dec’2018 and you have to be received as it is A/R and, but we will not request cash back, it will be offsets with Output VAT once you have it.

      Tax deducted at source
      It is the withholding tax amount that Client deducted us for the service that we provide and this tax amount can be used to deduct when the company has profit, but since it is first year and the company has loss, we can’t use that tax amount.

      Reply
  8. rasa

    For closing company, during the step of VAT cancellation, we understood that the tax officer takes time to check back our company’s documents before he/she can finally approve and issue the VAT cancellation letter and send it directly to our company’s address. Moreover, while waiting for the said cancellation letter to be issued, our company is still responsible to continue the monthly VAT filing (which we can do online at RD system). Thus, for this mentioned, since our company has already terminated/cancelled the rental agreement with the address owner, the VAT cancellation letter (that the tax officer will send later) might just be thrown away by the said address owner and we would not be notified about it. Therefore, for this case, will this be a problem? Or is there any other way for us to know if the Vat has been already cancelled even without receiving the letter from the tax officer?

    Reply
    • panwa group

      we have noted of your details and it will have no problem if the letter will be sent to your company’s address or if you did not personally receive it. Kindly note that there is another way to know if your company’s Vat has been already cancelled, which in case your side do the monthly VAT filing online and you cannot log in for the VAT on the system anymore, the VAT cancellation process has already been approved and is complete.

      Reply
  9. rasa

    I have information that savings interest more than 20,000baht will be subjected to 15% withholding tax deduction.

    Reply
    • panwa group

      Yes, the interest income received from all saving account for whole year is more than 20,000 baht will be subjected to15% withholding tax deduction.

      Reply
  10. rasa

    I checked with bank and was told that only Thai national have condition of 20,000baht and all foreigners are subjected for deduction 15% regardless of interest amount.
    Could you advise if above is correct as I could not find any information regarding withholding tax on savings for foreigners.

    Reply
    • panwa group

      The interest income is the assessable income under section 40 (4) (a) in accordance with the Revenue Code of Thailand and under the Section 50 (2) (a) (http://www.rd.go.th/publish/37749.0.html#section50), it has been specified that the payer who paid this assessable income to a non-resident, (it does not mentioned as a foreigner) withholding tax shall be made at the rate of 15.0 per cent of the income.

      However, refer to the Revenue Code Section 41 has specified that: Any person staying in Thailand for a period or periods aggregating 180 days or more in any tax year shall be deemed a resident of Thailand. Thus, due to you are the foreigner who residing in Thailand in accordance with the Revenue Code as mentioned and you are also the taxpayer and has paid the personal tax in Thailand. Thus, you should be considered as a resident in Thailand.

      The tax officer has recommended that you may inform this information to the bank officer.

      Reply
  11. rasa

    Can you please help to advice if our company will pay the accommodation to the hotel. Do we need to withhold any tax and at how many percent do we require to withhold?

    Reply
    • panwa group

      The payment for the accommodation expenses to the hotel, resort or similar business is not subject to deduct for the withholding tax refer to the Revenue Departmental Order No. Tor Por 4/2528 Clause 12/1.

      Reply
  12. rasa

    Our company registered for VAT , so for our every local invoice, it is required to include VAT 7 % for local projects. If international payment remittances transfer to us for the services provided for
    the movie production of commercial to the Non Resident of Thailand, the 7 % of VAT still applicable on the invoice ? or its is exempted from VAT ?

    Reply
    • panwa group

      Please note that if the service of movie production will be used in overseas only, the VAT will be added on invoice at rate 0%(refer to Revenue Code Section 80/1).
      Moreover, in case such movie is produced in overseas and send direct to your customer in overseas, it will not be subjected to VAT (refer to Revenue Departmental Order No. Por 89/2542).

      Reply
  13. rasa

    Under the law, could Thai companies issue tax invoices in English and under USD currency only?

    Reply
    • panwa group

      Under the Revenue Department (RD) law, Sections 86/4, and 86/6, it states that:

      Particulars in tax invoice shall be in Thai language, Thai currency and Thai or Arabic numeral. However, in some category of business which tax invoice is required to be in foreign language or currency, the VAT registrant shall be issue such tax invoice upon approval from the Director-General. 19
      19N.DG.VAT.No.92, R.CT.No.25/2537

      This means that tax invoices in other foreign languages and under foreign currencies is allowed, if only it could be prepared and issued together on 1 tax invoice with Thai Baht and foreign currency. For example, if client request for tax invoice in English and under USD currency only, it cannot be issued, which your company must issue 1 tax invoice with both the Thai Baht and USD currency together in one invoice.

      Reply
  14. rasa

    Our Singapore company (head office) sold a software to our Thailand customer for their equipment updating. Thailand customer have deducted 8% from our selling price and remitted the balance to us. According to them, this is a form of Royalty under the DTA and they will provide us the Tax Certificate once received from the Revenue Department.
    Please advise and confirm if such transaction is considered royalty under Thai Tax Law. I understand that we can claim from our Singapore Tax authorities but we did not enter any tax agreement with this customer.

    Reply
  15. rasa

    Do you provide company registration service under Treaty of Amity? If so, please let me know the cost and timetable.

    Reply
    • panwa group

      Please see below for the sample time frame for your guidance.
      Step 1 – Register the company +
      VAT registration (if needed)
      (at the Department of Business Development +Revenue Department)
      time 3 working days
      Remark – For this kind of service, all directors and shareholders must come to sign the registration forms in Thailand only

      Step 2 – Request for Certification Under the Treaty of Amity (at the US Embassy), time 1 week.
      Remark – The required document for this step is Notarized copy of American Shareholders and director’s passport.
      (Can notarize at US Embassy)

      Step 3 – Request for Certification Under the Treaty of Amity (at Ministry of Commerce), time 15 working days
      Remark – The required document for this step is copy of all incorporate documents and copy of director’s passport

      Reply
  16. rasa

    Is there any restrictions on American companies from importing sporting goods from China to sell in Thailand? That is my business, and I want to make sure it’s not a restricted activity.

    Reply
    • panwa group

      There are restrictions on American companies, which there is no right to be protected under a treaty to operate a business following reserved activities:
      (1) Communications
      (2) transportation
      (3) Fiduciary functions to take care of property for the benefit of others.
      (4) Banking involving to deposit functions;
      (5) Land ownership, exploitation of land or other natural resources;
      (6) Domestic trade in native agricultural produces.

      Reply
  17. rasa

    We would like to order a company search for a Thailand Company in English, which we need at least the name of directors, name of shareholder, kindly please advise if you could provide such service. If you can, please advise the price and the time required.

    Reply
    • panwa group

      Yes, we can assist to search for the name of directors and the name of shareholders, but only Thai information is available so we will translate into English for you. Please visit our website at: https://www.panwagroup.com/companysearch.htm

      Reply
  18. rasa

    With regards to the withholding tax, we have asked from our vendor which they insisted that the bill does not require withholding tax. In this case, can we just release the remaining outstanding to them? If there is any withholding tax required, can they handle themselves?

    Reply
    • panwa group

      We recommend to check if the bill does requires to withhold the tax or not, due to if it is required to withhold the tax , the one who pays (the payer) is required by the law to deduct and file the withholding tax, so, the payer must be also liable along with the vendor (taxpayer) to pay the accrued withholding tax according to the Revenue Code Section 54.

      Reply
  19. rasa

    We want to give a raise of 20.000 THB/month to our staff for his room rent. Please advise if it is subject for his personal income tax calculation or not?

    Reply
    • panwa group

      Yes, the amount of Baht 20,000/month for his room rent is subjected for his PIT calculation. Please note that the assessable income that shall be considered as the benefit from employment and it will be subjected for personal income tax (PIT) calculation for example salary, wage, per diem, bonus, bounty, gratuity, pension, house rent allowance, monetary value of rent-free residence provided by an employer, payment of debt liability of an employee made by an employer, or any money, property or benefit derived from employment that pay to the employees as a fixed rate.

      Reply
  20. rasa

    Please advise what is the expense that we will pay to our employees and it will not be subjected for PIT calculation. For example if we want to pay them for travelling or food when they travel for work.

    Reply
    • panwa group

      The assessable income that shall be exempt for the purpose of income tax calculation are as: the per diem or transport expenses that an employee or a person performing work spends honestly, necessarily, exclusively and wholly in carrying out his duties (normally, it should have receipt or bill that the employees spent).

      Reply
  21. rasa

    If our company has staff in Thailand, how long do we need to register it at social security and what is the SSO deduction for each staff. Moreover, when does SSO need to be filed?

    Reply
    • panwa group

      Normally, if the company has the staff in Thailand, the company has to register Social Security Fund (within 30 days after employment) and for the calculation, the company deduct from the employee’s salary, 5% per month and another 5% from company (employer), totaling, 10% and submit it to SSO within 15 days of the next month.

      Reply
  22. rasa

    Our company have account receivable – ABC, in amount of 16,000,000 Baht since year 2013 and it was recorded as allowance for doubtful account in full amount already from year 2016 to 2017, however, currently, the company cannot collect the payment from ABC, so how do you suggest to do for this case?

    Reply
    • panwa group

      we propose you to write off this account receivable in year 2018 which it can be recorded to bad debt in full amount as following record:
      Dr. Bad debt 16,000,000.00
      Cr. Accounts Receivable 16,000,000.00
      (To record the write of “account receivable” to “bad debt”)

      2) Dr. Allowance for doubtful account 16,000,000.00
      Cr. Bad debt 16,000,000.00
      (To record reversing of “Allowance for doubtful account ” that was recorded in previous year)

      Reply
  23. rasa

    Is my personal income in overseas (such as pension) be filed as personal income tax in Thailand?

    Reply
    • panwa group

      No, if you did not bring it in Thailand in the same year, so, such income is not tax based in Thailand.
      If it will be the tax based in Thailand, it will have the condition as below:
      -It should be brought to Thailand in the same year, and
      -You stay in Thailand totaling 180 days or more

      Reply
  24. rasa

    In setting-up a private company, how much capital do we need to submit in the registration process?

    Reply
    • panwa group

      Please note that there is no minimum required capital, but they require for minimum of 3 shareholders, (Baht 5 per shares), that means, you can start with Baht 15 capital, but we recommend you to start at least Baht 1 million due to the government fee of Baht 1 million or less than is the same.

      Reply
  25. rasa

    What is the difference between Shareholder & Director?

    Reply
    • panwa group

      Shareholder is the one who invest and hold the shares, but cannot sign any documents, but for the director, he or she can also be the shareholder or other different person, which all of the shareholders will appoint who can have the authorization on behalf of the company.

      Reply
  26. rasa

    Our company has the expired goods and would like to destroy it. Please advise if we need to pay the sale vat for destroy product or not?

    Reply
    • panwa group

      If the product has been destroyed in accordance with the procedures as mentioned in the Revenue Department Command Por.79/2541, these products shall not be subjected as selling goods according to the Revenue Code section 77/1(8) which shall not be subjected to submit the sales vat.

      Reply
  27. rasa

    Our company will get the compensation income from supplier due to the problem from transportation. Please advise, if such compensation is subject to pay the sale vat or not?

    Reply
    • panwa group

      Compensation income shall not be subjected as selling goods/services income according to the Revenue Code section 77/1(8), 77/1(10) and 77/2 which shall not be subjected to submit the sales vat.

      Reply
  28. rasa

    The company has registered the VAT in Chonburi Province since January 2018 , however, the company has the plan to change the address to Bangkok on August 1, 2019. Moreover, the company has informed to The Revenue Department (Submit P.P.09 form for move-in ) on August 2, 2019, and put the date for move-in on August 20, 2019. Thus, when is the date that your company can issue the tax invoice under the new address?.

    Reply
    • panwa group

      The company need to follow the date that they put in P.P. 09 form for move-in. In case, on the P.P. 09 put the date last August 20, 2019, so you can issue the tax invoice under the new address starting date August 20, 2019.

      Reply
  29. rasa

    If the related company in oversea charge the management, coordination and bookkeeping to your company in Thailand, your company need to pay the tax?.

    Reply
    • panwa group

      The company need to withhold the tax from overseas company if such service is used in Thailand at rate 15% (normal service) and file to Revenue Department and the Thai company need to file and pay VAT (7%) of such service to the Revenue Dept (instead of overseas company), however, Thai company can use such VAT as the company’s VAT credit.

      Reply
  30. rasa

    If I have estimate net profit which will be paid the half year income tax exceeding from the actual income tax and my company have net loss in previous year, then how about the penalty?

    Reply
    • panwa group

      The penalty is 1.5% per month of additional half year income tax, payable if the income tax from estimation of net profit exceeds 25% of the real income tax.

      Reply
  31. rasa

    The company planned to pay the dividend on August 31, 2019, thus, does the company need to pay the tax for such matter?

    Reply
    • panwa group

      When the company paid the dividend, your company need to:
      1.Deduct WHT 10% from the amount of dividend payment
      2.Submit the WHT form (P.N.D. 2) to The Revenue Department within 15 days of the following month (only online submission).

      Reply
  32. rasa

    The Company is under BOI and paid the dividend to the shareholder on July 31, 2019. Does the company need to deduct the WHT?

    Reply
    • panwa group

      When the Company is under BOI and paid the dividend to the shareholder, your company no need to deduct the WHT and submit the WHT form (P.N.D.2). Moreover, your company need to submit the summarized Dividend form (P.N.D. 2 Kor) to The Revenue Department within the end of January of the following year.

      Reply
  33. rasa

    How much is the penalty charge that we need to pay if we delayed submit for the monthly VAT? Please advise.

    Reply
    • panwa group

      In case delayed submission the monthly VAT. The company needs to pay as the following.
      1) The fine for delay submission VAT return form = 300 baht within 7 days and 500 baht after 7 days.
      2) Penalty is up to the amount of sale vat and there is also a surcharge of 1.5% per month of the tax payable.

      Reply
  34. rasa

    What is the salary slip?

    Reply
    • panwa group

      It is a detailed description of the employee’s benefit, deduction tax, social security, provident fund etc. and the net amount of salary payment for each employee.

      Reply
  35. rasa

    For 1 Thai company, how many corporate bank accounts are allowed to be opened by the bank officer? Are there any restrictions imposed by the bank?

    Reply
    • panwa group

      Normally, the bank do not have any restrictions as to how many corporate accounts you could open for 1 Thai company, however, the director or the company’s authorized person at the bank must discuss directly with the bank officer for this matter (such as the reasons and purposes why the company would like to open many accounts, etc.). The number of bank accounts that the company would be allowed to open would depend case by case on the approval of the bank officer.

      Reply
  36. rasa

    In case the director of the Thai company is a foreigner, and he/she comes does not come to Thailand often, could he/she appoint the Thai shareholder of the company to be the authorized signatory on his/her behalf?

    Reply
    • panwa group

      Yes, the foreign director can appoint the Thai shareholder of the company to be the authorized signatory for any related matters with the company’s bank account(s). For the process of appointing the authorized person, both the foreign director (who will appoint) and the Thai shareholder (who will be appointed) must be present together at the bank to sign the necessary bank forms.

      Reply
  37. rasa

    Our Thailand company’s business is trading (local sale of raw peanut and chillies). For this matter, when we issue or do the local invoicing, do we need to add VAT and what are the possibilities of claiming too?

    Reply
    • panwa group

      Please note that for raw peanuts and chillies (no further chemicals added or no other procedures done to the products), these are non-VAT or VAT exempted , as stated under Thai law, section 81 as :
      Section 81 Value added tax shall be exempt on the following businesses-
      (1) sale of goods but not for export purpose or provision of services as follows-
      (a) sale of agricultural products whether they are trunks, branch, leaf, bark, offshoot, root, bud, bulb, pod, seed or other parts of plants and their by-products in fresh or preserved condition in order to temporarily prevent from spoiling during transportation by chilling, frozen means or by other means or preservation to prevent from spoiling for retail sale or whole sale by chilling, frozen, drying , grinding, segmentation method or by other method, white rice or by-product from rice milling but not including wood, firewood or products from wood sawing or food products in can container or package processed on manufacturing basis in accordance with terms and conditions prescribed by the Director-General.7
      7N.DG.VAT.No.3, R.CT.No.23/2536

      Reply
  38. rasa

    What is the income tax rate applicable for filing of PND. 51?

    Reply
    • panwa group

      It is the progressive rate for the SME company which the paid up capital not exceeding Baht 5 million and the sale/service income not exceeding Baht 30 million, as below:
      Tax exception for the net taxable profit not exceeding Baht 0.3 million
      15% of the net taxable profit exceeding Baht 0.3 million but not over Baht 3 million
      20% of the net taxable profit exceeding Baht 3 million

      Reply
  39. rasa

    How do we determine if our company need to register for VAT? Do we have to report annually?

    Reply
    • panwa group

      Your company may need VAT registration follow the below factors:
      Your company generate income up to Baht 1.8 million per year.
      Your customer or supplier request you for VAT registration.
      To apply work permit for foreign staff.
      To work with government sector or government university.
      If your company does not fall under the above factors, you do no need to apply for VAT registration.
      Remark; If you already register VAT, you must filing the VAT form (PP.30) every month, even though you don’t have any income. If you do not filing, it will have penalty charge every month.

      Reply
  40. rasa

    Would it possible to increase the capital 10 million Baht and what are the documents needed to submit to the Government if increase capital for 10 million Baht?

    Reply
    • panwa group

      Yes, it is possible to increase capital Baht 10 million, but please note that in case you increase the capital over Baht 5 million, the company must present the evidence of source of funds that shows the amount paid for shares which have 2 options as the below;
      In case of investment by cash, the company must provide or present Bank certificate from the bank under company bank account showing the money as the same increase capital.
      In case of invest by Asset, the company must provide the evidence as proof that they already transferred the asset to the company before registration for increase capital, such as if invest by the land, the evidence is title deed, must show the finished transferring of the owner already to the company, before we register for increase paid up capital at the (DBD)

      Reply
  41. rasa

    Our business provides advertisement services to customers in overseas which such service will be used in overseas only, so, how about the VAT applicable to our service transaction and its supporting documents?

    Reply
    • panwa group

      The VAT applicable is 0% of this service transaction and its supporting documents are Company’s invoice, customer’s PO/agreement, evidence of transferring service and evidence of using service in overseas only.

      Reply
  42. rasa

    If we would like to open a private company in Thailand, and our mainly business is buying the wood from outside Thailand and sell to other country directly without passing in Thailand, would it possible to hold majority or 100% by foreigner?

    Reply
    • panwa group

      Yes, you can register a private company by 100% foreigner and you can do the business immediately after open the company and no need to apply the FBL license (Foreign Business Act.)

      Reply
  43. rasa

    Can you please advise if it is possible to convert our Thai company to a 100% Subsidiary of foreign company? Our main business activities are designing or creating and managing the conferment room, included to provide consulting services.

    Reply
    • panwa group

      In case you need to hold by majority foreign owned or 100% by foreigner, your company need to apply the FBL license first (Foreign Business Act.), but please be informed that the government will allow to hold share only some business under annex 2 and 3 of Foreign Business Act (annex 2 allow to hold share maximum 75% and for annex 3 can hold 100%); for your case can apply under annex 3, due to your business scope is providing services, but it depends case by case and on the consideration of each officer.

      Reply
  44. rasa

    our company just setting this year, so, when the income tax of company should be filed to Government?

    Reply
    • panwa group

      Normally, the income tax of company will be filed 2 times per year; half year income tax which will be filed within 2 months after ending of 6 months of accounting period and annual income tax which will be filed within 5 months after ending of accounting period. Moreover, the first year of new company (just setting up) don’t need to file the half year income tax due to the accounting period is not complete 12 months.

      Reply
  45. rasa

    What is Accrued withholding tax of PND.3, 53 account?

    Reply
    • panwa group

      Accrued W/H P.N.D. 3 is when company pay service fee to a person,
      Accrued W/H P.N.D. 53 is when company pay service fee to another company (juristic person)

      Both PND. 3 and 53 must be filed within 7th of the following month. Moreover, when the company pay service every time, need to deduct the rate (depend on service paid).

      Reply
  46. rasa

    Our company do consulting service business and have many tax sales invoices, but do not have tax purchase. Thus, for this matter, how will the company reduce sales tax to pay less revenue?

    Reply
    • panwa group

      Please be informed that in case company do not have tax purchase, need to pay full amount of sales tax to RD, however if have tax purchase, can deduct with tax invoice sales in order to pay less tax.

      Reply
  47. rasa

    Our company do business related to market (which opens only on weekends and holidays), and have income from subdividing rental space in our market; each rental space is not prepared as room and without partition. Thus, this kind of income is exempted from VAT?

    Reply
    • panwa group

      This income is not exempted from VAT; if rental subdivide space did not have the proportion partition and did not have the door and it is also no delivery of possession to the tenant due to they can sell only on the date and time of opening and closing market.

      Reply
  48. rasa

    For company setting-up, in case one of the shareholders is a family member and holds 1% , is his or her signature required? And any document other than passport required from him or her?

    Reply
    • panwa group

      Yes, even though he or she holds only 1% still need to come to sign the documents in Thailand. Moreover, for the required document and/or information, aside from the passport, we need his/her address in overseas and contact number as well.

      Reply
  49. rasa

    I have heard many bad stories of farang going back to home country for holidays and when they return to Bangkok, the corporate bank account is empty because Thai shareholder has removed all funds. What protection or guarantee document do I have to produce to make sure the Thai majority Shareholder cannot take money out of the corporate bank account?

    Reply
    • panwa group

      Normally the majority shareholder cannot take any money out, only the director (who normally is the authorized of the company’s bank account and who had opened the account) can withdraw out the money, because the shareholder cannot sign any documents including the documents related with the bank. Maybe the bad story from others is that they have Thai director and not the shareholders or the foreign director gave power of attorney to some Thai to handle of all business on their behalf, but if you are only one director, so, they cannot take out your money.

      Reply
  50. rasa

    The company provides annual company trip for employees, which the company purchases a tour package. Moreover, the tour company will issue a full tax invoice to be used to claim back VAT?

    Reply
    • panwa group

      Yes, the VAT purchase can be used to claim back VAT, which the company must present the tour package under welfare of employees.

      Reply
  51. rasa

    The company needs to sell the company car, but don’t know the potential price for selling. Please advise.

    Reply
    • panwa group

      The company must sell cars follow market prices and also must include VAT 7%.

      Reply
  52. rasa

    Our Thai staff have loaned amount of Baht 100,000 from our Thailand company. For this matter, does the company need to charge interest rate? Yes or No?

    Reply
    • panwa group

      Normally, the company can decide to charge interest or not, which if charge, company could also decide on how many percent will they charge for the interest rate. However, if the tax officer random checks the company, they have the right to evaluate and inform the interest rate directly to the company, depend on their decision.

      Reply
  53. rasa

    For the tax forms in Thailand, is it compulsory to be submitted in Thai version or the company can submit in English version?

    Reply
    • panwa group

      Under the Thai law, your company need to submit the tax forms and related documents in Thai version only.

      Reply
  54. rasa

    Can I buy the ready-made company and leave it inactive until I am ready to start to do the business ?

    Reply
    • panwa group

      Yes, you could buy, then can keep the company inactive first like dormant company until you are ready to do the business. Anyway please be informed that although inactive (dormant status) you still have to submit some kind of tax return such as corporate income tax (PND.50), half-year tax (PND.51) and VAT form (PP.30, if any) and also audited financial statement. Further information of its submission you can call our office at +66 2933 9000.

      Reply
  55. rasa

    The foreign company already got the license from MOC under Foreign Business Act.(FBL) following their current business objective(s), however, the next 3 months, the company decided that they still need to have more business objectives which are different from the current business that already obtained the license, thus, could the company do the new business directly or how the company can do the business?

    Reply
    • panwa group

      If in case the company need to do more business and different with the one that the company obtained the license, the company must apply the license under the new business first before start the new business, and in case already start the business, must also hurry up to apply the license before the officer will random check. If in case the officer check and found out that your company have not yet apply the license, you may have to pay penalty charge or they will do the legal process or worst case maybe the license will be revoked or Ordered for dissolution.

      Reply
  56. rasa

    Regarding the tax invoice preparing, the company can run the number of tax invoice by number of month (such as May; 05/001) and running number by category of client (such as trading; T0001), right?

    Reply
    • panwa group

      Yes, you can, however, the detail of tax invoice should have at least items according to the Thai law and the tax invoice should have running number (not cross or skip).

      Reply
  57. rasa

    I am a Singaporean; I already have a company in Thailand and I want to open a corporate bank account under this company. Anyway, I am not convenient to come to Thailand. Therefore, to resolve this matter, since there is a Bangkok Bank branch in Singapore, is it possible if I sign the bank documents in the presence of an authorized bank officer at the Bangkok bank branch in Singapore?

    Reply
    • panwa group

      For this case, you actually cannot sign in the Singapore branch, but you could discuss directly with both sides (the bank branch in Singapore and the bank office manager in Bangkok bank Thailand) if they would allow for this matter or not, due to some case they allow and some case they do not allow.

      Reply
  58. rasa

    Next year, I plan to decrease the company’s capital (from 10 million Baht to 2 million Baht). Is it possible if you can assist all steps to finish within the next year?

    Reply
    • panwa group

      Yes, we can assist for this matter. Moreover, please be informed that normally for decrease capital, it can be done not more than 6 times within 1 year and can decrease not more than 75% per time (like 2 months can decrease capital 1 time) only.

      Reply
  59. rasa

    The objective of company is maintenance service of audio equipment. How about the tax points of my business?

    Reply
    • panwa group

      The business of maintenance is fall into service type, so tax points of VAT for a service business are when the fist coming between:
      1.we get paid from client or,
      2.issue the Tax invoice to clients

      Reply
  60. rasa

    The objective of company is trading of audio equipment. How about the tax points of my business?

    Reply
    • panwa group

      The tax points of VAT for sale goods is when coming first between:
      1.we deliver goods to customer or,
      2.get paid from your customer before delivery of goods or,
      3.issue the Tax invoice to clients

      Reply
  61. rasa

    After our company has been liquidated completely, we will return the capital and retained earnings to shareholders, does the company need to withhold the tax from it? And how much is the withholding tax rate?

    Reply
    • panwa group

      the company should withhold the tax from the part of returned money that exceed from shares capital (purchase price), if shareholders are personal; withholding tax rate is progressive rate except they are not resident in Thailand; withholding tax rate is 15%, if shareholders are juristic person that are incorporated according to the law in overseas and they did not operate in Thailand ; withholding tax rate is according to Revenue Code section 70.

      Reply
  62. rasa

    My bosses want to know the Thai Law on publishing in the local newspaper for invitation of the annual general meeting. Can you provide us the information on this matter?

    Reply
    • panwa group

      Regarding the process of AGM in accordance with the Thailand law.

      We would like to refer to the Civil and Commercial code: Limited Companies (section 1175).

      Section 1175 Notice of General Meeting
      Notice of the summoning of every general meeting shall be published at least once in a local paper not later than seven days before the date fixed for the meeting, and sent by post with acknowledgement of receipt to every shareholder whose name appears in the register of shareholders not later than seven days or, in case the notice is for a special resolution to be made by the general meeting, fourteen days before the date fixed for the meeting.

      Reply
  63. rasa

    Our company must make the payment to our suppliers and they requested us to deduct the withholding tax and have requested us to prepare the withholding tax certificate to them as well. Could you please explain to us “the amount paid” and the “amount of tax withheld” that we need to fill-out on the said document

    Reply
    • panwa group

      The “amount paid” that you need to fill out in the certificate of withholding tax is the amount of expenses (before VAT).
      The amount of “tax withheld” that you need to fill out in the certificate will calculate from the amount paid at the rate of 1%, 2%, 3% or 5% are depend on a type of income that you must pay to them.

      Reply
  64. rasa

    With regards to the company address, right now, we are on the process to discuss with the landlord to provide the relevant documents. Moreover, we have one more question about the lease agreement, which is: When making the lease agreement, what parts do I need to be careful?

    Reply
    • panwa group

      When you prove the lease agreement from the landlord, kindly double check on the parts as below;
      1. The lease agreement must be issued in Thai language
      2. The lease agreement must be issued under the company name
      3. The lease agreement must also affix duty stamp; each thousand per Baht 1 of the rental fee. In case the rental fee is more than one million Baht, the lease agreement need to be stamped directly at RD, in the same area that your company will be registered and need to do within 15 days after the lease agreement is made or issued.

      Reply
  65. rasa

    How can the lease agreement (with rental fee of more than Baht 1 million) be stamped at RD and who will do for this step and do you provide for this service?

    Reply
    • panwa group

      Yes of course, we can assist for this type of service, however, actually the landlord is the one who need to do for this step, but in case if they don’t like to do, we also can serve, which the required documents are as below;
      1. Copy of Thai ID Card and house registration together with the originals from the landlord
      2. Lease agreement; 2 copies
      3. Form Or.Sor.4
      4. And etc.
      In case if need our service, kindly contact us via phone no. 02-933 9000

      Reply
  66. rasa

    What is the assessable Income in Thailand?

    Reply
    • panwa group

      Income chargeable to the PIT is called “assessable income”. Assessable income is divided into 8 categories as follow:
      1.income from personal services rendered to employers;
      2.income by virtue of jobs, positions or services rendered;
      3.income from goodwill, copyright, franchise, other rights, annuity or income in the nature of yearly payments derived from a will or any other juristic Act or judgment of the Court;
      4.income in the nature of dividends, interest on deposits with banks in Thailand, shares of profits or other benefits from a juristic company, juristic partnership, or mutual fund, payments received as a result of the reduction of capital, a bonus, an increased capital holdings, gains from amalgamation, acquisition or dissolution of juristic companies or partnerships, and gains from transferring of shares or partnership holdings;
      5.income from letting of property and from breaches of contracts, installment sales or hire-purchase contracts;
      6.income from liberal professions;
      7.income from construction and other contracts of work;
      8.income from business, commerce, agriculture, industry, transport or any other activity not specified earlier.

      Reply
  67. rasa

    All of the products of the company were accidentally burned from the fire incident in the company. This kind of evidence proves that the fire is real. Does the company need to file VAT on the remaining products?

    Reply
    • panwa group

      In case of damaged products and if there are clear or supporting evidences (such as pictures and letter from the police) about the fire incident, then there is no need to submit VAT.

      Reply
  68. rasa

    Company have engaged the foreign director for the 3 years period and aside from the salary, company need to pay for other benefits such as car with driver, child study cost, air ticket from his country to Bangkok, health insurance etc. Can this other benefits of director use as taxable expenses ?

    Reply
    • panwa group

      Yes, if other benefits are received follow the condition of employment agreement and the receiver have duty/ is related to company as company managing director, so, these expenses are paid for benefit on earn income or operate business.

      Reply
  69. rasa

    Our company will make the payment to the lessor for rental deposit. Do we need to deduct the withholding tax? Please advise.

    Reply
    • panwa group

      Refer to the Revenue Department Order no. Por 73/2541 which is specific that the rental deposit for assets renting that the tenant must pay to the lessee/lessor following to the rental agreement. The tenant must deduct the withholding tax every time when the payment is made, by calculating from the amount of rental deposit that needs to be paid in the amount of 5%. However, except the payment for rental deposit as the following which are not in force of such order of the Revenue Department.

      1. The rental deposit that must be paid following the tradition of business.
      2. There will be repayment of all rental deposit to the tenant when expired the rental period with no any conditions except the cases of any damages. The lessee has the right to deduct for that.
      3. The rental deposit must not be more than 3-6 times the monthly rental fees and;
      4. The period of rental agreement is no longer than 3 years.

      Reply
  70. rasa

    The VAT from accommodation and room rental for director and staff caused by working outside the office or site off. Can be claimed as the input vat of the company?

    Reply
    • panwa group

      The VAT from accommodation expenses and room rental which relate to the purpose of business operation and not exceed as necessary can be claimed as the input vat of the company.

      Reply
  71. rasa

    If I would like to register the company and own 100% by foreigner and then apply the license under FBL, kindly advise us if there is a minimum capital requirement for obtaining FBL?

    Reply
    • panwa group

      There is a required minimum capital, which is Baht 3,000,000 per one business activity.

      Reply
  72. rasa

    When we already get the license under FBL and we also bring or remit the minimum capital into Thailand already, How long do we need to keep the money in the bank and when can we withdraw out the money?

    Reply
    • panwa group

      The amount cannot withdraw out, which the company need to keep the money throughout the period of business.

      Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Greeting from Author

Prasert Poothong (Mr.PP)
CPA and Director

Email: bkk@panwa.co.th
WhatsApp: +66 81 919 6225
Office Tel: +66 2933 9000

I am travelling in oversea so better to contact via WhatsApp or email.

Services

Corporate Info.