Ask Thailand about customs duties and other business taxes.

The basic tax law in Thailand is Renenue Code, which mainly regulates personal income tax, corporate income tax, value-added tax, special business tax and stamp duty. In addition, the Fuel Income Tax Act governs the franchising of oil and gas, while the Customs Act governs customs duties and import and export activities. Consumption tax and property tax are governed by other laws.

Thailand's tax revenue can be divided into two categories: direct tax including personal income tax, corporate income tax and oil income tax, and indirect tax including value-added tax, special trade tax, customs duty, consumption tax, stamp duty and property tax. From the ownership of tax, it can also be divided into two parts, namely, central tax and local tax. Central taxes are dominant, mainly divided into six categories, and local taxes are divided into two categories.

central taxes include income tax levied on income and profits, payroll tax for the purpose of social security distribution, real estate transfer tax levied on property, value-added tax, consumption tax, special business tax, poker tax, import duty levied on international trade and transactions, export tax, etc.

local taxes include property tax and motor vehicle tax. Among them, property tax includes real estate rental tax, land development tax and real estate transfer tax levied on real estate, value-added tax surcharges levied on goods and services, special business tax surcharges, consumption tax surcharges on some goods, and taxes on the use of certain goods and property or permission to engage in certain behaviors.

II. Tax Administration

The Ministry of Finance of Thailand is the competent department in charge of finance and tax administration in Thailand. It has eight departments, including the Financial Policy Office, the Comptroller General's Office, the Finance Department, the Customs Department, the Domestic Goods Tax Office, the Tax Department and the National Debt Management Office, and 16 state-owned enterprises, including the Government Lottery Office, the Tobacco Monopoly Bureau, the Housing Bank, the Import and Export Bank of Thailand, the poker factory and the asset management company. Among them, the tax department, the domestic product tax department and the customs department are mainly responsible for tax collection and management. The tax department is mainly responsible for collecting income tax, value-added tax, special trade tax and stamp duty, the domestic goods tax department collects consumption tax on specific commodities, and the customs department is responsible for collecting import and export tariffs. Local governments are responsible for the collection of property taxes and local taxes.

established in 1915, Thailand's taxation department is the highest administrative organ in charge of tax collection and management of Thailand's Ministry of Finance, which mainly collects and manages the following taxes: personal income tax, corporate income tax, value-added tax, special business tax, stamp duty and petroleum income tax. The tax department implements the director responsibility system and has four deputy directors. The organizational structure of the tax department is divided into two parts in China, namely, the central tax administration and the tax administrations of various governments.

In recent years, Thai tax authorities have continuously put forward more effective tax collection methods by developing information technology platforms, established a fairer and more effective tax collection mechanism, and ensured that tax collection and management work is coordinated with government policies.

the tax administration of each government includes the government tax office and the district tax offices outside Bangkok. Tax administrations below the prefecture level report directly to the prefect or the district chief executive.

Table of Taxes Taxes Collected by Thailand Tax Department

(fiscal year 1998-23)

(million baht)

Taxes \ year 1998 1999 2 21 22 23

1. Personal income tax 122,946 16,7 91. 39

2. Enterprise income tax 99,478,18,82,145,558,149,663,17,415,28,859

3. Value-added tax 232,388,21,976,192,512,215,318,228,196. 16 12,852 13,715 12,757

5. Business tax 342 185 126 84 99 N/A *

6. Stamp duty 2,991 2,824 3,35 3,41 4,122 5,348

7. Fuel income tax. 773

8. Others 263 258 236 241 236 33

The total amount is 498,964 452,317 461,325 499,868 544,281 627,682

(official website of Thailand's tax office)

The responsibility system of the director is implemented in the domestic goods tax office. Consumption tax is mainly levied on certain goods or services according to the consumption tax law. Taxable goods or services mainly include: gasoline and gasoline products, non-alcoholic beverages, air conditioners and other electrical appliances, lead crystal products, automobiles, motorcycles, yachts, perfumes, wool carpets, batteries, racetracks and golf courses. Most commodities are subject to ad valorem tax, while gasoline and non-alcoholic beverages are calculated by price or by quantity and weight.

under the following special circumstances, some goods or services may be exempted from consumption tax: goods exempted from customs duties according to the customs law; Export goods and damaged or deteriorated goods; Goods donated to charity; Articles owned by diplomats; Fuel or fuel products are used in international aircraft or ships of more than 5 tons; Donate the proceeds to the services provided by public charities.

The Customs Department is a government agency directly under the Ministry of Finance, which is mainly responsible for the collection of customs duties, and collects value-added tax and consumption tax in import and export. Responsible for customs supervision, cracking down on smuggling, tax evasion and other illegal acts and facilitating international trade.

introduction of three or four major taxes

(1) personal income tax (PIT)

the tax year of personal income tax in Thailand is the Gregorian calendar year. Personal income tax shall be paid for legitimate income or assets obtained by Thai residents or non-residents in Thailand. The tax base is the balance of all taxable income after deducting relevant expenses, and it is levied at five levels of excessive progressive tax rate from 5% to 37%.

according to international practice and bilateral agreements, United nations officials, diplomats and some visiting experts are exempt from personal income tax.

According to the relevant provisions of Article 4 of the Income Act, some personal income can be deducted according to relevant standards before tax. For example, rental income can be deducted by 1-3% according to the type of property leased; Medical income from professional fees can be deducted by 6%, other 3%, copyright income, employment or service income can be deducted by 4%, contractor income can be deducted by 7%, and income from other commercial activities stipulated in Article 4 can be deducted by 65% to 85% according to the nature of commercial activities. < P > (2) Corporate income tax (CIT): < P > Corporate income tax is a tax for enterprises established in accordance with domestic or foreign laws. According to the principle of accrual basis, it is calculated on the basis of net profit, that is, the balance after deducting the allowable expenses stipulated in the tax code from all operating income in this fiscal year. For dividend income, half of the dividends received by a Thai company from another Thai company can be deducted from taxable income. If it is a company listed on the stock exchange, all the dividends received can be deducted from taxable income.

companies with legal personality in Thailand are required to pay taxes according to law, and the tax payment ratio is 3% of the net profit, which is paid once every six months. Funds, federations, associations, etc. pay 2-1% of the net income. The tax of international transportation companies and aviation industry is 3% of the net income.

Unregistered foreign companies or companies not registered in Thailand only need to pay taxes according to their income in Thailand. Normal business expenses and depreciation subsidies are deducted from net profit at a rate ranging from 5% to 1%. Interest payments on foreign loans are not subject to corporate income tax.

company? From the cooperation of the Ministry? Profit is exempt from 5% tax. For companies that own shares of other companies and are listed on the Thai stock exchange, all the dividends are tax-free, but the shareholders are required to hold shares for at least 3 months before or after accepting the dividends.

among the allowable deductions, the R&D cost can be deducted twice and the vocational training cost can be deducted 1.5 times.

in Thailand, there are various forms of business organization. Choosing different forms of registration will affect the different tax rates and tax preferences. The most common ones are divided into two categories: Thai companies and foreign companies. Thai companies refer to companies registered according to Thai laws, and the proportion of foreign capital is not higher than 49% of the total capital. Foreign companies refer to companies that operate in Thailand but are registered according to foreign laws, or companies that do not operate in Thailand but have income from Thailand.

The normal corporate income tax rate of Thai companies is 3%, but preferential treatment at low tax rate can be obtained in the following situations:

For small companies with registered capital less than 5 million baht and net profit less than 1 million baht, income tax will be paid at 2%; If the net profit is 1-3 million baht, it will be paid at 25%.

if the net profit of a company registered in the stock exchange (SET) is less than 3 million baht, it will be paid at 25%.

companies newly registered in the stock exchange or the new stock investment market (MAI) shall pay corporate income tax at 25% and 2% of their net profits respectively.

international financial institutions and regional business headquarters located in Bangkok shall pay 1% of their legitimate income and profits.

Associations and foundations pay 2% and 1% of their total income.

foreign companies engaged in business in Thailand, whether branches, offices, individuals or agents, should pay income tax on 3% of the profits from business in Thailand. International transportation companies pay according to 3% of the total income.

foreign companies that are not engaged in business in Thailand pay withholding income tax on some items derived from Thai income, and the tax rates of different incomes can be reduced or exempted according to the provisions of the double taxation avoidance agreement.

foreign companies investing in Thailand can enjoy various tax benefits if they are registered as Thai companies. For example, companies that have obtained BOI investment promotion preferential treatment can get income tax relief for 3-8 years; Companies located in export processing zones and free trade zones, or companies with preferential treatment for investment promotion, reduce or exempt import tariffs on raw materials, machinery and equipment; For companies that have obtained preferential treatment for investment promotion, the cost of transportation, water and water supply can be deducted twice in tax calculation; The cost of hiring senior researchers to carry out project research and development can be deducted twice in tax calculation; Staff training expenses for improving the level of human resources can be deducted by 1.5 times; Small and medium-sized enterprises can include the depreciation of 4%, 25% and 4% of the cost when they acquire computers, factories and machinery and equipment.

companies operating in Thailand must submit tax returns twice a year and pay taxes. The semi-annual tax return shall be submitted to the tax authorities within two months after the end of the last half fiscal year, and the taxable income shall be 5% of the company's estimated annual net profit; The annual tax return shall be submitted to the tax authorities within 15 days after the end of the fiscal year.

(3) Value-added tax (VAT)

The VAT system has been implemented since January 1, 1992, replacing the original commercial tax system. In 1999, the general tax rate of value-added tax in Thailand was reduced from 1% to 7%.

Value-added tax is an indirect tax levied on the value-added part in every link of production and sales. Any individual or unit with an annual turnover of over 1.2 million baht who sells taxable goods or provides taxable services in Thailand should pay VAT in Thailand. Importers, whether registered in Thailand or not, should pay value-added tax, which is levied by the Customs Department at the time of goods import.

VAT taxpayers include manufacturers, service industries, wholesalers, retailers and import and export companies. Value-added tax is paid monthly, and the tax payable = output tax-input tax.

VAT exemption includes small enterprises with annual turnover less than 1.2 million baht; Selling or importing unprocessed agricultural products, livestock and agricultural raw materials, such as fertilizers, seeds and chemicals; Selling or importing newspapers, magazines and textbooks; Audit, legal services, health services and other professional services; Cultural and religious services;

goods or taxable services subject to zero tax rate include export goods, services provided by Thailand but used abroad, international transport aircraft or ships, goods or services provided to government agencies or state-owned enterprises under foreign aid projects, goods or services provided to United nations agencies or diplomatic agencies, and goods or services provided between bonded warehouses or export processing zones (EPZ).

The Tax Law stipulates in detail the occurrence time of tax obligation according to the different sales settlement methods. For goods, when goods are generally sold, they are transferred, or the ownership of goods is transferred, or the day when the payment is received and the invoice is issued; If the goods are sold by installment, it shall be the date of payment as agreed in the contract, or the date of receipt of payment and invoice; When importing goods, when paying customs duties, or providing a guarantee, or setting up a guarantor, or issuing a bill of lading; Exporting goods, in addition to imported goods, also includes when the goods are transferred to the export processing zone or exported from the bonded warehouse; For taxable services, when payment is made, when invoices are issued, or when services are used. If the above conditions are met at the same time, the earlier one shall prevail.

when the monthly input tax is greater than the output tax, the taxpayer can apply for tax refund, and can return cash or tax credit next month. For goods with zero tax rate, taxpayers always enjoy tax refund treatment.

the input tax related to entertainment expenses cannot be deducted, but it can be used as a deductible expense when calculating enterprise income tax.

(4) Special business tax (SBT):

Special business tax is an indirect tax that was implemented in 1992 to replace the original business tax. Some businesses that do not collect value-added tax are classified as special business tax.

businesses subject to special business tax mainly include banking, finance and related businesses, life insurance, pawnbroking and brokerage, real estate and other businesses stipulated in the Royal Act. Among them, banking, finance and related businesses account for 3% of interest, discount, service fee and foreign exchange profit income, life insurance accounts for 2.5% of interest, service fee and other expenses income, and pawnbroking and brokerage accounts for 2.5% of interest, expenses and sales of overdue property income. The real estate industry accounts for 3% of the total income, the repurchase agreement accounts for 3% of the difference between the selling price and the repurchase price, and the agency business accounts for 3% of the income from interest, discounts and service fees. A local tax of 1% is added on the basis of the special business tax.

the businesses exempted from special business tax mainly include the businesses of the Bank of Thailand, the government savings bank, the government housing bank and the agricultural and agricultural cooperative bank, the businesses of the Export-Import Bank of Thailand, the industrial finance company of Thailand, the asset management company, the small industrial finance company and the secondary mortgage company, the businesses of the National Housing Bureau, the government pawn and pension fund institutions, and the securities sales business listed on the Thai Stock Exchange.

units and individuals engaged in special business tax business must register with the tax authorities as special business tax payers within 3 days after opening the business, and fill in the taxpayer registration application form.

regardless of whether there is any business, the special business tax return must be filled in monthly and submitted and paid to the local tax authorities before 15th of the following month. If there are more than one business place, they should fill in and pay separately, unless approved by the director of taxation.