Business in Thailand:What you should know b4 setting up a business

:: The following annual personal allowances are permitted:

Taxpayer	30,000
Taxpayer's spouse	30,000
Each child's education	15,000
For taxpayer contributions to an approved provident fund	10,000
For taxpayer and spouse for interest payments on loans for purchasing, hire-purchasing or construction of residential buildings	10,000
For taxpayer and spouse with respect to contributions to Social Securities Fund	Actual contribution not more than 10% of adjusted income

Only three children per taxpayer family qualify for the child allowance, but this limitation applies only to children born on or after 1 January 1979.

Therefore, in counting the number of children, a child born prior to 1979 can also be counted. For example, a taxpayer with four children born before 1979 continues to qualify for an aggregate allowance of 60,000 baht. A fifth child, born in 1979, would not qualify.

Additional taxes can be assessed, within a period of two years from the date of filing a return, and up to five years for tax evasion or tax refund. If an individual fails to file a return, the assessment officer may issue summons within a period of 10 years from the filing due date.

A. Treaties to Avoid Double Taxation
Thailand has treaty agreements to eliminate double taxation with the following countries:

Austria	Australia	Bangladesh	Belgium	Canada
China	Czech Rep.	Denmark	Finland	France
Germany	Hungary	Indonesia	Israel	Italy
India	Japan	Laos	Luxembourg	Malaysia
Mauritius	Nepal	Netherlands	New Zealand	Norway
Pakistan	Philippines	Poland	Romania	Singapore
S.Korea	S.Africa	Spain	Sri Lanka	Sweden

Switzerland	United Kingdom and Northern Ireland
United States	Vietnam

The treaties generally place taxpayers in a more favorable position for Thai income than they would be under the Revenue Code, as profits will only be taxable if the taxpayer has a permanent establishment in Thailand.

B. Other Taxes

Petroleum Income Tax
The Petroleum Income Tax Act replaces the Revenue Code in imposing a tax on income from firms which own an interest in a petroleum concession granted by the Thai government or which purchase oil from a concession holder for export. Net income from petroleum operations includes revenue from production, transport or sale of oil and gas, the value of gas delivered to the government as a royalty and the proceeds of a transfer of interest in a concession. The tax rate for most operators is not less than 50 percent and not more than 60 percent of net profits.

Stamp Tax
The Revenue Code contains a Stamp Duty Schedule listing transactions subject to stamp tax. Rates depend on the nature of the transaction, and fines for failure to stamp documents are very high.

Excise Tax
Excise tax is levied on the sale of a number of goods, including petroleum products, tobacco, liquor, soft drinks, cement, electrical appliances, and automobiles.

Property Tax
Owners of land and/or buildings in designated areas may be subject to annual taxes levied by the local government. Under the Local Development Tax Act of 1965, rates per unit vary according to the appraised value of the land. However, land for the personal residence of the owner, animal husbandry, or land cultivation is exempted from this Act. For land taxable under the House and Land Tax Act of 1932, which is based on the value of the land and buildings or any other improvements, annual tax is levied at the rate of 12.5 percent of the assessed assumed rental value of the property, and only owner-occupied residences are exempt.