Company in Thailand have a Representative Office (Rep Office) in Malaysia to assist to find the information of companies in such country which Rep Office does not allowed to do another operation and profitable operation. Company transferred money to them for their expenses payment purpose such as salary, office rent, utilities cost etc., do company need to file withholding tax and VAT ( refer to Revenue Code section 83/6(2)) from this transferring in Thailand? Can their expenses will be used for income tax calculation of company in Thailand?
Panwa: No, company do not need to file withholding in Thailand due to company is not a payer according the Thai law (withholding tax) and do not need to file VAT due to this case is not the service payment to provider in overseas and using such service in Thailand.
The incurred expenses from Rep Office can be used for income tax calculation of company in Thailand, if such expenses are specifically paid for operating of Rep Office and company in Thailand with there have the clearly evidence for record and auditing.