Taxation
A number of international legal and accounting firms offer detailed guides for establishing a business in Thailand, including information about taxation.
Most forms of business organisations existing under Thai law, including foreign organisations conducting business in Thailand or deriving income from Thailand, whether they do business in Thailand or not, are subject to corporate income tax on their book profits adjusted for tax purposes. Capital gains are treated as ordinary income and are therefore subject to corporate income tax.
A Value Added Tax (VAT) of seven per cent is applied to all stages of production of goods.
There are two exceptions to the obligation to pay customs duties on importation of machinery, equipment and materials. These are oil and gas concessionaries and their contractors, and certain companies promoted by Board of Investment of Thailand.
As of 2013, standard tax rate on corporate profit is 20 per cent. However, the tax rate for SMEs can be lower depending on their net profit. Details of Thailand’s corporate tax rates are available from the Thailand Revenue Department.
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.
APEC Business Travel Card Scheme
Managed by the Department of Immigration, the APEC Business Travel Card Scheme was developed to make travelling within the 21 APEC member countries much simpler and more efficient.
IP Passport fact sheets
These fact sheets outline foreign Intellectual Property (IP) regimes and some of the issues and challenges which may be faced by Australian exporters.
The current fact sheets are available on the IP Australia website.