We understood that for the materiality increasing of directors’ fee and tax allowance in 2019, the officer has authority to assess tax from the expenses (when they random check our company or their checking for tax refundable) if our company’s clarification could not make them believe. However, apart from the paying to director and related persons, our company can dispose profit out of Thailand as “dividend payment” to company’s shareholders (withholding tax rate at 15 %) which it does not make the net loss in income statement or more expenses. Thus, for this matter, can we once declare the dividend but physically, we do not take the money out yet? If we declare dividend and don’t take the money out, do we still need to pay the 15% withholding tax? The withholding tax must be pay in cash or just a note for accounting purposes?
Panwa: Please note that if the company declare the dividend and shareholder received money from dividend, the company must deduct withholding tax rate at 10% (Not yet 15%) and for the withholding tax must pay in cash and for accounting purposes too.
For more information, please feel free to contact us:
Phone: +66 2 933 9000
Fax: +66 2 933 6120
Email: bkk@panwa.co.th