Best Business in Thailand in 2023 for Chinese Investors

 

Observing China’s contribution and investment in the Belt and Road Initiative (BRI), business prospects are further calling for Chinese Investors. Around 1.49 billion dollars worth of foreign direct investments were sent from China to Thailand in 2021. China is a constant contributor to the FDI and GDP of Thailand, creating new opportunities for other nations as well. This article intends to explain the ongoing and upcoming business opportunities in Thailand for Chinese Investors. Read to identify the best business in Thailand in 2023!

Why Thailand is the Hub for Chinese Investors?

For a long, China is consistently investing in Thailand. Due to this reason, Thailand has become a hub for many Chinese investors. However, a major reason is the strategic location of Thailand. The kingdom lies at the center of the ASEAN free trade area with access to both China and India.

In the push for digital economies, Thailand is growing as a significant hub for connectivity and new technology in Asia. Chinese investments are already in numerous Thai ventures. Investments in cryptocurrencies, fintech, blockchain, and AI are raising and making a lot of money. Additionally, ventures in healthcare, particularly medical tourism, assure great profit in Thailand.

The country is now playing a highly competitive global role in foreign investment into the South Asian region. All was possible due to the substantial infrastructure connectivity plans connecting Thailand to ASEAN. Additionally, Thailand connects well with other export markets and the construction of multiple free trade zones on outlying islands.

Thailand is a member of both ASEAN and RCEP. Therefore, this illustrates that its development with free trade as a manufacturing hub will allow it to become a China investment alternative. Additionally, this will be beneficial for foreign investors wishing to reduce their China reliance. China is investing in both light manufacturing zones and a nationwide digitization program. All this is in conjunction with the China-ASEAN Free Trade Agreement and the recent RCEP agreement.

Foreign Direct Investment (FDI) Background from China

The COVID-19 pandemic, according to the Bank of Thailand, caused a sharp fall in foreign investment (FDI) in Thailand. FDI declined from US$13.2 to US$4.8 billion between 2018 and 2019. It decreased to -$4.8 billion in 2020. China’s investments in Thailand, Southeast Asia’s second-largest economy, continuously expanded throughout the epidemic period, while others were withdrawing.

Notably, China’s investment requests in 2019 far outpaced Japan’s for the first time, with an investment value of US$8.7 billion under 203 approved projects, far outpacing Japan’s $2.4 billion (277 projects) and third-ranked Hong Kong’s $1.2 billion (64 projects).

FDI in the Thai Trade Industry from China

For nine years running, China has been Thailand’s top trading partner. Data from China’s General Administration of Customs show that bilateral trade volume increased 33% annually to US$131.18 billion in 2021. However, import-export or trading has always been a great industry and hence can be a cradle for the best business in Thailand in 2023 for Chinese investors.

FDI in Infrastructure Industry from China

High-speed rail between Don Mueang, Suvarnabhumi, and U-Tapao is a contract for the construction of a US$7.4 billion high-speed railway linking three airports. The contract came to force in October 2019 after approval from the State Railway of Thailand and a consortium that included China Railway Construction Corporation (CRCC).

There is a second high-speed rail line project in Thailand. This is to connect the Don Mueang International Airport, Suvarnabhumi Airport, and U-Tapao International Airport. It is scheduled to open in 2026 and is officially called the High-Speed Rail Linking Three Airports Project.

Project to Create a Railway Between China, Thailand, and Laos

In December 2021, the government established a working panel, as suggested by the Transport Ministry, to better coordinate with Laos’s transport authorities on plans to build a railway connecting the two nations. This is a piece of a high-speed rail project connecting Thailand’s rail network with the Kunming-Vientiane-Kunming Railway (Laos). The project in Thailand comes in three phases:

• 253 km Bangkok-Nakhon Ratchasima segment,
• 356 km Nakhon Ratchasima-Nong Khai part, and,
• 16 km section from Nong Khai to Vientiane.

Eastern Economic Corridor

The Eastern Economic Corridor, or China/EEC, is a hub for new investment that focuses on technology, innovation, SMART manufacturing, and tourism. It is around 90 km southeast of Bangkok. In the specifically designated Thai SEZs, such as EEC and the four SEZs near the Thai borders, Chinese businesses have so far developed manufacturing facilities, research hubs, or operational hubs.

The Thai-Chinese Rayong Industrial Park, in Thailand’s EEC, was the creation of the Chinese Holley Group and the Thai industrial estate developer Amata. Over 100 Chinese manufacturers have invested over US$2.5 billion in this SEZ (alone), which presently employs over 20,000 Thai employees and over 3,000 Chinese expatriates.

FDI in E-commerce Industry from China

For a combined investment of up to US$500 million, Provident Capital and Thailand’s largest retail conglomerate Central Group joined up with JD.com (JD Finance) in September 2017 to launch two Thailand-based joint ventures (JVs) in e-commerce and fintech. A financial services app, Dolfin became active in September 2019 in support of JD.com and Central Group, a Thai company with interests in shopping, real estate, and merchandise. The new service will offer digital loans, insurance, and wealth management options in addition to an e-wallet feature.

Best Business in Thailand in 2023: Opportunities for Chinese Investors in Thailand

Thailand is growing to be a Digital Hub. This transformation will never be possible without the intervention of technical upliftment. China, being one of the leaders in the field of Digital Transformation, automatically makes its investors eligible for this shift. Therefore, venture in the Digital Economy is going to be the best business in Thailand in 2023 for Chinese Investors.

Next comes the Bio-Circular-Green (BCG) Economy. The Board of Investment (BOI) of Thailand is prioritizing investments in the field. Additionally, it is granting privileges for investors in starting ventures pertaining to innovation and creativity in the segment. Furthermore, BOI Thailand is also providing reductions and privileges for relocation and development of already undergoing business in Thailand.

The following two projects are iconic examples to establish the fact that the Thai Market has always been a great avenue of business for Chinese Investors:

First 5G Smart Hospital in ASEAN

The “first and largest” 5G smart hospital project in Southeast Asia. According to Siriraj Hospital and Huawei, the project started in December 2021. The Siriraj 5G Smart Hospital is a pilot program that will eventually expand to other ASEAN hospitals.

The Siriraj World Class 5G Smart Hospital project consists of nine sub-projects. This includes intelligent emergency rooms and emergency medical services, a pathological diagnosis system with 5G and AI. Notably, the AI platform is for noncommunicable diseases and intelligent inventory management. Additionally, it has a permission-based blockchain for personal health records. Furthermore, intelligent logistics with 5G self-driving cars, multi-access edge computing, and hybrid cloud system are part of its digital infrastructure.

ASCEND –  First Fintech Unicorn of Thailand

A valuation of US$1.5 billion after a new investment round in September 2021 marks the incorporation of Ascend Money. This business is sponsored by Ant Group and Charoen Pokphand Group and became Thailand’s first fintech unicorn. Please note that Ant first contributed to the 2016 round. The business plans to utilize the additional funding to enhance TrueMoney Wallet, a mobile payments app. Additionally, it aims to broaden digital financial services in South-East Asia. The firm also operates in Indonesia, the Philippines, Vietnam, Myanmar, and Cambodia. In Thailand, TrueMoney now has a 53% market share, making it the most popular app.

These two examples prove that the healthcare and fintech industries can also generate options for the best business in Thailand in 2023 for Chinese investors.

The Bottomline

The Thai government has slightly altered its estimate of the country’s economic growth in 2022 from a range of 2.5 to 3.5% growth to 2.7% to 3.2% growth, citing increasing consumption and exports as well as a recovery in the key tourist industry. Early in August 2022, Thai Prime Minister Prayuth Chan-Ocha informed his cabinet that the economy would increase by 4.2% in 2023, the fastest rate in the previous five years.

Thailand is classified as an upper middle-income country by the World Bank, with a gross national product per capita of US$7,159.

So, 2023 is going to be the best time for Chinese Investors to start ventures in different industries. Specifically, when the country is spearheading the fields of Digitalization and Industry 4.0, technical advancements will be given priority. If you are from China and want to start your venture in Thailand, feel free to write to us at officer@konradlegal.com.

Open Bank Account in Thailand: Foreigners’ Guide

 

Foreigners must open a bank account in Thailand if they plan to stay here for a long period of time. Note that, this becomes necessary in order to avoid paying exorbitant bank and ATM fees. Managing your finances, including sending and receiving money from overseas, might be made easier if you have a Thai bank account. It can also make life much simpler for you in Thailand because locals frequently utilize wire transfers as a method of payment.

For foreigners who want to open a bank account in Thailand, there are certain stringent requirements. In this article, we’ll go through the requirements for opening a bank account, the most foreigner-friendly banks, and more.

• Document Requirements to Open Bank Account in Thailand
• Is it Possible to Open a Bank Account in Thailand with Tourist Visa?
• Which Bank in Thailand should you Choose to Open an Account with?
  • Bangkok Bank
  • Kasikorn Bank or KBank
  • Siam Commercial Bank or SCB
• What Types of Bank Accounts can you Open in Thailand?
  • Savings Accounts
  • Current Accounts
  • Fixed Term Account
• Considerations Before Opening a Thai Bank Account
• Our Suggestions for Opening Bank Account in Thailand

Documents You Need to Open Bank Account in Thailand

Depending on the bank, you might need to prepare different documentation. Even the same bank’s branches can have varied documentation requirements. The country’s employers and bank managers vary in how strictly they apply the laws; some may be more rigid than others.

In general, if you want to open a Thai bank account, you might have to get ready the following paperwork:

• A passport
• Any one of the following:
  • Work Permit 
  • Non-Immigrant B Visa for business or work
  • O-A long-stay visa, or,
  • 3 Year Non-immigrant Visa for business.

Additionally, some banks could demand more paperwork. Eventually, they may request the following documents from you:

• For proof of Thai Citizenship, a rental or lease agreement is the simplest. It is possible that your energy bill, Thai Residence Permit, Thai driver’s license, or Thai house registration will also be acceptable.
• As a document attesting to your nationality, you can produce a utility bill, driver’s license, or bank statement.
• Proof of Thai property ownership.
• A letter of recommendation from your home bank, embassy, or Thai academic institution.
• A letter from your employer confirming that you are applying for a work permit.

You may bring any documentation that demonstrates your intention to stay in Thailand for a long period, such as a photo ID or documents proving your pension or pay.

Can You Open a Bank Account in Thailand with Tourist Visa?

With simply a tourist visa, it is feasible to create a Thai bank account. Note that, the majority of banks that permit account opening with merely a tourist visa are often found in tourist destinations.

You might want to visit the banks in the Siam, Silom, and Sukhumvit districts of Bangkok. Also, try to visit Promenada, Central Festival, Nimmanhaemin, and the old town area in Chiang Mai.

It is always advised to compare different banks before choosing one. Compare the costs, interest rates, customer satisfaction scores, and account opening procedures at your leisure.

In Which Bank in Thailand should You Open an Account?

There is a reputation for ease of dealing with Bangkok Bank and Kasikorn Bank. They are also renowned for being friendlier to foreign customers than the majority of other Thai banks. These two are not the only choices you can think about, though. Here is a selection of well-known banks you might want to consider using:

Bangkok Bank

Thailand’s largest and most welcoming bank for foreigners is Bangkok Bank. Bangkok Bank offers the largest branch network globally in addition to having more than 1,200 local branches. Additionally, this bank has a reputation for offering the best exchange rate for international wire transactions.

Kasikorn Bank or KBank

The fourth-largest commercial bank in Thailand is Kasikorn Bank. It is recognized for being the first bank in the world to provide a secure mobile payment system.

Siam Commercial Bank or SCB

Another popular bank in Thailand among residents and foreigners alike is Siam Commercial Bank. With an initial opening sometime around 1907, it is the country’s oldest domestic bank. Because non-residents can open an account with just a passport and money to deposit, foreigners in particular favor the bank.

What Types of Bank Accounts can you Open in Thailand?

Expats can choose from a variety of account categories. They are as follows:

Savings Accounts

For foreigners, opening a savings account is the simplest process. You can even create an account as a visitor with some banks, such as Bangkok Bank. The longer time you have left on your visa—which is unlimited—the better.

Current Accounts

For foreigners with work visas, a current account is available. A current account functions virtually in the same way as a savings account in Thailand. You won’t get a passbook if you have a current account; you’ll just get a chequebook.

Fixed Term Account

For foreigners, opening a fixed-term account in Thailand can be more difficult. It is because different rates are offered by many Thai banks to “non-residents.” However, there are several methods to go about it. Furthermore, the thirteen-digit social security number on a foreign national’s work visa may be used as an ‘ID’.

You ought to be able to get the “local” rate if you hold a residency permit.

Considerations Before Opening a Thai Bank Account

Please note that, when selecting a Thai Bank account, there are a few considerations to make.

Learn about the Branch Policies of the Bank: In Thailand, a lot of policies tend to be branch-specific. Because of this, just because something doesn’t work out in one branch, it doesn’t necessarily follow that it won’t function in any other bank branches.

Know the ATM & Conversion Fees: The ATM withdrawal fee and conversion rate fees are normally exempt if you use the ATM at your bank. Note that different banks have specific policies in this regard.

Process of Sending Money Abroad: Each bank has a different set of costs for sending money outside of Thailand. However, no matter how you make the transfer, the majority of institutions in the nation charge a minimum of 150 Thai Baht. Some banks, including Kasikorn Bank, don’t impose a fee if the transaction is completed online.

Our Suggestions for Opening Bank Account in Thailand

The following three points cover a major portion of our suggestions as these evolved from a decade of our experience in facilitating foreigners to open Bank Accounts in Thailand:

• It might only be possible to open an account at the bank’s main branch in person if you’re a non-resident.
• Thai ATMs are far more useful and may be used to pay bills, transfer money between banks, and withdraw cash.
• Foreign nationals who want to open a bank account in Thailand must adhere to some stringent rules.

Many a time, the process of opening a bank account in Thailand becomes cumbersome for foreigners. The reason behind this is the secure banking policies and stringent revenue code of the kingdom. In case, you are facing any such issues, feel free to consult us. Simply email us at officer@konradlegal.com for expert and professional guidance.

How to Obtain a Tax Clearance Certificate in Thailand?

 

You must be knowing about the sets of regulations governing the process of immigration of foreigners to Thailand. Similarly, there are some mandates that foreigners must follow while leaving Thailand. Obtaining a Tax Clearance Certificate in Thailand is one of those obligations. 

This article will guide you through the process of obtaining a Tax Certificate in Thailand. Additionally, this will also help you understand the importance of the document.

• What is a Tax Clearance Certificate?
• Who Requires Tax Clearance Certificate in Thailand?
• Who doesn’t needs Tax Clearance Certificate in Thailand?
• How Many Types of Tax Clearance Certificates in Thailand are there?
  • P.3 Tax Clearance Certificate
  • P.3.1 Tax Clearance Certificate
• How to Apply for a Tax Clearance Certificate in Thailand?
  • Documents required for P.3 Tax Clearance Certificate
  • Documents required for P.3.1 Tax Clearance Certificate
• What to do for Outstanding Tax Liabilities?
• Loss of Tax Clearance Certificate
• Presentation of Tax Clearance Certificate
• Penalty

What is a Tax Clearance Certificate?

A Tax Clearance Certificate is a document given to a foreigner leaving Thailand. The Director-General of the Thai Revenue Department, the Provincial Governor, or the delegated authority gives this Certificate. This document shows that taxes are not due and is a guarantee or collateral to prove tax liabilities and payable.

Who Requires Tax Clearance Certificate in Thailand?

According to Revenue Code Section 4 Quarter, irrespective of tax liability, a foreigner must apply for a Tax Clearance Certificate. He or she must do so before departing from Thailand. The foreigner must do so in the form declaration of the Director-General within 15 days before leaving the country. If any of the following applies, a foreign national leaving Thailand must submit Form P.1 (Application for Tax Clearance Certificate) and any supporting documentation:

• Is liable to payment of tax or tax arrears before departing Thailand
• Has the duty to file a tax return and pay tax on behalf of a company or juristic partnership incorporated under foreign laws and has been carrying on business in Thailand
• Has taxable income, whether or not in Thailand, from being a public performer in Thailand.

The term “public performer” refers to an actor or actress in a play or motion picture. He or she can also be a performer on radio/television, a musician/singer, a professional athlete, or any other entertainer.

Who doesn’t needs Tax Clearance Certificate in Thailand?

Foreigners need not apply for Tax Clearance Certificate in Thailand under the following conditions:

• A foreigner transiting Thailand, entering or residing in Thailand for a period
• Foreigners transiting Thailand for periods totaling no more than 90 days in a tax year
• Foreigners living in Thailand without earning assessable income, or
• A foreigner as specified by the Director-General with the Minister’s approval.

Additionally, the Notification of the Director-General of the Revenue Department on May 7, 1991, states that with the exception of the above circumstance, foreigners leaving Thailand do not need to file for a Tax Clearance Certificate.

How Many Types of Tax Clearance Certificates in Thailand are there?

P.3 and P. 3.1 are the two different forms of tax clearance certificates.

P.3 Tax Clearance Certificate

This certificate is issued to a visitor leaving Thailand temporarily. It is only good for one leave and needs to be used within 15 days of the date of issuing. The Tax Clearance Certificate will no longer be valid if he does not leave Thailand by the deadline. However, exceptions are there in case of re-issuance before it runs out.

P.3.1 Tax Clearance Certificate

This certificate is for a foreigner who often visits and exits Thailand as a result of his work or occupation. It is valid for recurring leaves of absence during the tenure in the Tax Clearance Certificate. However, this won’t be applicable for more than 180 days after the date of issuance. Form P. 3.1 renewal is not permissible from the Revenue Department of Thailand.

How to Apply for a Tax Clearance Certificate in Thailand?

A foreign national who must have a tax clearance certificate must submit Form P.1, together with the following supporting documentation:

Documents required for P.3 Tax Clearance Certificate

1. Passport
2. Alien Certificate (if any)
3. Residence Certificate (if any)
4. Work permit or an application thereof (if any)
5. Tax Identification Card
6. Letter of guarantee (if having tax liabilities or payable) issued by any of the following authorities:
   • A person whose securities are greater than his tax liabilities or payable and whose reputation is acceptable to the Director-General of the Revenue Department 
   • The Provincial Governor 
   • The Assignee
   • A government officer of level 6 or equivalent or higher. 
   • A bank with a guaranteed amount exceeding tax liabilities or payable or $50,000. 
7. Tax payment records for the past three years of the company or juristic partnership which is represented by the applicant for a Tax Clearance Certificate including withholding tax receipts or tax receipts.
8. Other evidence as required by the Director-General of the Revenue Department

Documents required for P.3.1 Tax Clearance Certificate

1. The above documents 1-7
2. Evidence indicating the reasons for departing Thailand on a regular basis in connection with the business or profession of the foreigner
3. Evidence indicating that his assets in Thailand are greater than his tax liabilities or tax payable A foreigner applying for a Tax Clearance Certificate is required to file an application to the following persons within 15 days before departing Thailand:

What to do for Outstanding Tax Liabilities?

The Director-General of the Revenue Department, the provincial governor, or the authorized authority must receive a guarantee from the applicant for a Tax Clearance Certificate if they are unable to pay their tax obligations in full or in part or if they become due after the departure date.

Loss of Tax Clearance Certificate

The foreigner must get in touch with the office where they submit their application. This is enough to get a replacement Tax Clearance Certificate in case of misplacement. However, only until the prior Tax Clearance Certificate’s expiration date is reached is the new Tax Clearance Certificate valid.

Presentation of Tax Clearance Certificate

A foreign national leaving Thailand must show the Immigration Office the Tax Clearance Certificate on the day of departure. 

Penalty

Without a Tax Clearance Certificate, a foreign national who leaves Thailand or attempts to leave the country would be charged a surcharge equal to 20% of the tax amount. In addition, he faces a fine of no more than 1,000 Baht, a term of imprisonment of no longer than one month, or both.
For any type of assistance and professional guidance in the process of obtaining a tax clearance certificate in Thailand, feel free to write to us at officer@konradlegal.com.

How to File Personal Income Tax in Thailand in 2022-23?

Tax residents in Thailand are obligated by law to pay and file personal income tax returns each year. Therefore, it’s very important that you understand and accept your tax liabilities as a taxpayer. This article intends to guide you through the process of tax payment in Thailand this coming season.

Let’s find out more about Thailand’s taxation on income.

• Are you a Tax Resident of Thailand?

• What are the Types of Taxable Income in Thailand?

• Personal Income Tax Rates in Thailand 2022-23

• Tax Credits

• Deduction and Allowances on Personal Income Tax in Thailand

• Tax Administration for Personal Income Tax in Thailand

• Penalties and Surcharges for Late Filing of Personal Income Tax in Thailand

• Do You Need a Tax Clearance Certificate in Thailand?

Are you a Tax Resident of Thailand?

An individual’s income may be subject to personal income tax if it falls into the following categories:

• Benefits obtained in Thailand, whether monetary or non-monetary (paid in or outside Thailand)

• The income brought into Thailand within a year from a foreign source

Non-residents are only required to pay personal income tax on their income if they receive their benefits in Thailand.

Each year, both residents and non-residents must apply for a personal income tax ID and file a personal tax return in Thailand. If you are a foreigner staying for more than 180 days in Thailand in a single tax year and made income, you are a tax resident of Thailand.

What are the Types of Taxable Income in Thailand?

In Thailand, there are eight categories for assessing income:

• Earnings from employment, including wages, salaries, bonuses, gratuities, pensions, housing allowances, the monetary value of a home that an employer provides for free, the payment of an employee’s debt obligations by an employer, or any other money, asset, or benefit obtained from employment

• Income from jobs, employment offices, or services

• Goodwill, copyright, franchise, patent, and other rights income

• Income from interest, dividends, investor bonuses, gains from mergers, acquisitions, or dissolutions of businesses or partnerships, as well as gains from the sale of stock

• Property lease, violation of a hire-purchase contract, and installment sale deal

• Income from the liberal arts, engineering, architecture, accounting, and other professions

• income from a work agreement where the contractor is responsible for supplying all necessary materials other than tools

• Earnings from commerce, business, agriculture, transportation, or any other activity not already listed

Capital gains, as stated in the fourth point, are taxed as regular income. Moreover, capital losses cannot be used to offset capital gains, as is the situation in many other nations.

However, capital gains are not always taxable, and there are three exceptions:

• Income from earnings and salaries, including any perks offered by the company (such as stock option income, employer-paid personal income taxes, living expenses, the value of rent-free housing, etc.), but excludes costs for business travel and medical care.

• Gains on the selling of debt instruments or government bonds that don’t pay interest (although there are exceptions)

• Revenue from the sale of government bonds

Personal Income Tax Rates in Thailand 2022-23

Thailand uses a progressive tax system for personal income tax, with the following rates:

Tax Credits in Thailand

Taxpayers are eligible for credits for tax withholding at source against their annual tax liability. The income tax withheld at source from dividends received from Thai-incorporated companies may be applied as a credit against a person’s tax liability if they are domiciled and resident in Thailand. 

Dividend income is combined with other types of income after the credit is added to account for the underlying corporate income tax paid on the profit being distributed. The value of the tax credit is subtracted from the tax that has been determined by applying the personal income tax rates to the entire taxable income. If a double taxation agreement does not allow it, taxpayers cannot use foreign taxes as a credit against Thai taxes.

Deduction and Allowances on Personal Income Tax in Thailand

According to the chart below, resident taxpayers may deduct personal and special allowances:

Apart from the above-mentioned allowances, the assessable income is also subject to some special allowances like the following:

Tax Administration for Personal Income Tax in Thailand

Thailand applies a self-assessment system in collecting taxes. Taxpayers must declare their tax liabilities in their tax returns and pay the tax due at the time of filing. The following individuals must file income tax returns for income earned in the preceding tax year:

• A person who has no spouse and earns an income of more than Baht 60,000

• A person who has no spouse and earns income under the category of salaries and wages of more than Baht 120,000

• An individual who has a spouse and earns an income of more than Baht 120,000

• A person who has a spouse and earns income under the category of salaries and wages of more than Baht 220,000. 

• Each husband or wife earning income can choose to file his/her income tax return either separately or jointly with their spouse, whichever they prefer. 

The tax year is the calendar year. All tax-liable persons must file a tax return no later than 31 March of the following year for hardcopy filing. However, 8 April is the date for online filing. Additionally, those taxpayers deriving income from the lease of property, liberal professions, contractual work, and other businesses, commerce, or industries must file a mid-year tax return by 30 September. Note that, this tax calculation is on the income during the first half of the tax year to 30 June. Tax paid at the time of the mid-year filing is creditable against the annual tax liability.

Penalties and Surcharges for Late Filing of Personal Income Tax in Thailand

A penalty rate of 100% will is payable for incorrect tax returns. Furthermore, a penalty rate of 200% will apply in cases of failure to file a tax return. The penalty decreases by 50% if the taxpayer submits a request in writing. On this, the assessment officer determines the intention of the taxpayer in regard to tax payment during the tax audit.

A surcharge of 1.5% per month, or a portion of the tax due or remittable, less the amount of the tax imposed, will be applied to anyone who doesn’t pay the tax within the allotted time.

The surcharge decreases to 0.75% per month or a fraction thereof if the Director-General extends the deadline for payment or remittance of tax and the payable tax or remittance within the time.

Anyone who knowingly or intentionally reports false information makes false statements, answers inquiries with false information, presents false proof to escape taxes, or attempts to evade taxes is subject to a fine of THB 200,000 and a sentence of three months to seven years in prison.

Do You Need a Tax Clearance Certificate in Thailand?

The following people must request a tax clearance certificate:

• Obligated to settle tax debts before leaving Thailand

• Owes a tax return and must pay taxes on behalf of a foreign-incorporated firm or legal partnership that conducts business in Thailand.

• Earn money in Thailand by performing in public

Before departing Thailand, a foreigner must submit an application for a tax clearance certificate within 15 days. On the day of departure, it is compulsory to show the tax clearance certificate to the immigration office.

A surcharge of 20% of the tax due will be due without the tax clearance certificate. The foreigner may also undergo imprisonment with a fine of no more than 1,000 THB, a month in jail, or both.

To avoid penalties or imprisonment, taxpayers in Thailand should continue to comply with their personal income tax requirements.

We advise getting in touch with Konrad Legal if you need expert tax assistance in Thailand. Simply email us your requirement at officer@konradlegal.com.