Offshore Companies

Creating and managing an offshore company gives a lot of benefits to the investor. One can freely enjoy its privacy and security of running the business, good vantage point is provided in looking at the global market. There are several offshore companies that are built to lessen tax because of the offshore entity’s advantage in low to no-tax dominions. This has been widely used  in the international business scene and also different investment activities throughout the globe.

Establishing a business or a company in Thailand may be subject to Thailand’s laws in taxation on their net profits. Under international business law and commercial law, it is obligatory for these entities to submit withholding taxes in certain business trades. This also affects foreign companies established in Thailand, or companies under foreign law. They will be subject to Thai taxation if their transactions are being made inside the country or parts of their profit originate in or from the lands of Thailand.

Foreign Companies and Thailand

Corporate income tax is enacted on the portion of net profits for foreign companies that conducted business in Thailand or where their profits gained from conducting business within the country. They are subject to submit withhold taxes for some specified transactions. Some foreign firms who receive particular amount of income from Thailand but do not necessarily conduct their business inside Thailand should submit some definite percentage of their income tax on the gross revenue. These may comprise of several types of income such as rents, specialised fees, service fees and interests.

Corporate income taxes to companies who conduct business in Thailand is typically imposed on the business’ net profits in one tax year on a build-up basis, where the tax year can be any 12-month period selected by the business. Corporate income tax amount to net profits is 30% but it can vary between 2 to 30% for different tax-paying companies where rates are applied on either net profits or gross receipts.[1]

Source: REVENUE DEPARTMENT OF THAILAND. (N.D). CORPORATE TAX INCOME. Retrieved July 15, 2015.

Should you wish to extend the information above, seek for legal advice on how to establish an offshore company, or how to manage your business’ tax declaration or other transactions, you may contact our law firm in Thailand SBC Interlaw or if you are in the capital, our offices in the SBC law firm in Bangkok.

Our Thailand lawyers have the necessary international experience as well as full knowledge of the local Thai law, and this makes them excellent advisors for the offshore companies’ matters.

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[1] BUSINESS INFORMATION CENTRE (N.D.). CORPORATE INCOME TAX. ROYAL THAI EMBASSY. Retrieved July 20, 2015, from the Thai Embassy.

Revenue Department of Thailand