Thailand tax planning in 2023
Tax planning in Thailand is generally acknowledged to be more complex than many other jurisdictions. Taking advantage of Thailand’s tax regulations is central to a successful Thailand tax planning strategy. Healy Consultants offers tailored planning services to meet your needs.
- Thailand’s Board of Investment (BoI) offers both tax and non-tax incentives. The Board also offers incentives depending on the location of business set-up by Investment Promotion Zones;
- When drawing up a Thailand tax strategy, an exemption period of between 3 to 8 years may be granted to promoted businesses under the Investment Promotion Act;
- Dividends, fees for goodwill, copyright, or other rights received from the promoted businesses may also be exempt from income tax in the hands of the recipient;
- When considering taxes in Thailand, Clients should also look into tax incentives include exemption or reduction of import duties on machinery and raw materials and corporate income tax relief and exemptions;
- Non-tax incentives include no foreign equity restrictions in the manufacturing sector, no local content requirements, permission to own land, and ability to repatriate foreign currency from Thailand;
- When undertaking any tax planning in Thailand, it is important to note that resident companies are taxed on worldwide income and capital gains.
Healy Consultants offers a range of services which are tailored to meet the precise needs of our Clients. Unlike many corporate services providers, we take a global approach to our tax services, thinking ‘outside the box’ to provide a creative solution which fits your tax planning in Thailand needs. Our international tax professionals provide the best Thailand tax planning strategy to organisations of all sizes. Our Thailand tax planning services include but are not limited to:
- Thailand company formation is one of Healy Consultants’ core services. A properly structured company is a legitimate corporate vehicle through which regional and international business can be conducted;
- Trusts and foundations – another effective Thailand tax planning strategy, international trusts and foundations are ideal for some entrepreneurs and high net worth investors;
- Thailand corporate bank accounts – offering a reputable, reliable Thai or international corporate bank account is a fundamental part of Healy Consultants’ tax planning services portfolio. We can assist you to open a Thai or international corporate bank account with leading international banks in the jurisdiction of your choice, with tax advantages in mind. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered, and Citibank to provide corporate bank account services;
- International tax legislation – at the heart of any successful tax minimisation strategy is the need to keep abreast of international tax legislation. A key aspect of Healy Consultants’ services lies in keeping our Clients informed of regulatory changes before they can have any negative impact;
- Double taxation treaties – Thailand has signed double taxation agreements with 56 countries. Making our Clients aware of the availability of tax relief tools such as this is part of our services;
- Mergers and acquisitions (M&A) – some Clients approach us for assistance with their merger and acquisition plans. Our services include providing invaluable advice on drawing up an M&A roadmap and developing a tax-efficient structure going forward;
- Thailand corporate and personal income tax advice – Healy Consultants can advise on the latest corporate and personal income tax rates in Thailand as part our services, as well as assist our Client to prepare and submit Thai corporation tax computations and Thai tax returns to the relevant tax authorities, including the Thailand Revenue Department (RD);
- Tax registration – Healy Consultants offers this service to Clients conducting business in Thailand.
Frequently asked questions
Are there any tax benefits in Thailand?SMEs are subject to a corporate tax rate of only 15% if i) their share capital is less than US$157,000 and ii) their income is below US$928,000. Healy Consultants will be pleased to provide our Clients more tailored information on Thai tax benefits based on their company’s activities.