Eternity Law International Ready-made company in Thailand

Ready-made company in Thailand

Published:
April 16, 2020

This is a new investment opportunity - Company registration in Thailand . Please check out the main details regarding this proposal below.

What is included:

  • Ready-made company in Thailand,
  • Local bank account,
  • Legal address

Cost: on request.

A limited company or partnership is considered local (resident) if they are formed in Thailand and registered by Ministry of Commerce.

Local companies pay taxes on income generated both inside Thailand and overseas. There are no differences in taxation of these income categories for income tax purposes.

Foreign companies pay taxes on income generated only within the country. A permanent establishment of a non-resident company or a foreign partnership is generally taxed according to general rules.

A company has tax burden if it is not legally registered in Thailand but has an actual tax presence there.

The main tax for enterprises is an income tax.

Taxes are subject to net profit of the entity. In the structure of such profit, sources are distinguished on profit from the company’s activities, profit from passive income and profit from capital increase.

The deduction from the taxable profit of funds spent in the course of the company’s activity is legislatively fixed.

The tax rate is 20%. However, Thailand stimulates small and medium-sized businesses.

It is for such size enterprises which meet a progressive tax rate that depends on the volume of the company’s profits. Accordingly, the lower the profit of such companies, the lower the rate.

In Thailand, you can also meet the tax on gross revenue with a rate of 3%. It is paid from the total revenue, but not from the net profit. Nowadays non-resident companies engaged international freight and other transportation services are the only category for such taxation.

Labor and social taxes are presented in the form of payments charged at 5% rate of the employee’s salary. The payer can be both the employer and the employee.

Value added tax is levied on services rendered and goods sold. Certain activities are except. For example: sale unprocessed agrarian products, selling print media, transport services within Thailand, etc.

The VAT is cut down to 7% rate until September 30, 2020. The standard rate is 10%. The 0% rate is applicable for export activities.

In Thailand, a taxpayer company is required to independently assess its profits, after which it is required to pay an advance tax on profits for the first six months of the taxable period.

The payer is given 2 months to submit the corresponding semi-annual declaration and 150 days to prepare and file an annual declaration without the right to extend this period.

The accounting department of the company must compile quarterly, annual financial reports and provide declarations to the tax service. Contact us for more information.

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