Tax Structure - Preperty , Real Estate Business - Thailand , Bangkok and Phuket

By Panwa Accounting and Auditing

Tax Structure for Property and Real Estate Business in Thailand

For both direct and indirect taxes of Property and Real Estate Business in Thailand, we have summarized the information and detailed explanations related to your property business:

 1.   Tax Structure Summary:

Detailed explanations consisted of:

Direct Tax

Yearly Corporate Income Tax (PND.50)
This tax must be submitted to the Revenue Department within 150 days after the fiscal year has ended along with the audited financial statements. Case of ending period is December, the deadline for CIT in Thailand is around end of May.

Corporate income tax (CIT), imposed base on “net profit” below is tax rate for year 2012, 2013 and onwards (until any notice):

Net Profie	Incentive for SME Capital not exceeding Baht 5 million for year 2012	Incentive for SME Capital not exceeding Baht 5 million for year 2013 and onwards	Ordinary company Capital exceeding Baht 5 million for year 2012	Ordinary company Capital exceeding Baht 5 million for year 2013 to 2014
0 - 150,000	0%	0%	23%	23%
150,001 - 1,000,000	15%	15%	23%	23%
Over 1,000,000	23%	20%	23%	23%

Remark: For year 2008 - 2011 (for reference), Corporate Income Tax (CIT) was imposed by tax rate as below table:

Net profit	Incentive for SME Capital not exceeding Baht 5 million For year 2008 to 2011	Ordinary company Capital exceeding Baht 5 million For year 2008 to 2011
0 – 150,000	0%	30%
150,001 - 1,000,000	15%	30%
1,000,001 – 3,000,000	25%	30%
Over 3,000,000	30%	30%

Half Year Corporate Income Tax (PND.51)
This is the company’s corporate tax for 6 months (half year) of the fiscal year which must be filed to the Revenue Department within 2 months after the half year. (e.g. if the fiscal year of the company is ended on December, half year is June that means PND.51 must be submitted within August)

Personal Income Tax
Income tax is calculated as Progressive Tax Rates of
TAXABLE INCOME = Assessable Income - deductions – allowances
The income tax rate applicable to taxable income are as follows.

PND.91 Form, Taxpayer receiving income from employment during the period January to December, must pay personal income tax before the last day of March every year.
PND. 90 Form, Taxpayer receiving income from employment and the professions of law, medicine during the period January to December, must file and pay personal income tax before the last day of March every year.
PND.94 Form, is a half – year tax form of PND. 90, during the period January to June, must file a half-year return and pay personal income tax by September each year.

Indirect Tax

Withholding Tax
PND.1 Tax Form if the company had withheld the tax for salary of the staff.
PND.1 Kor. Tax Form if the company had withheld the tax for acquisition of salary of the staff.
PND.2 Tax Form if the company had withheld the tax for dividend, etc.
PND.3 and 53 Tax Form if the company had withheld the tax for services, rental, hiring, transportation, insurance, management fee, consulting, and etc (should to study withholding tax in Thailand).
PND.54 Tax Form if the company had withheld the tax from the company or juristic partnership incorporated under foreign laws and not carrying on business in Thailand but receiving assessable income from commission, fee of goodwill, dividend, share of profits or any other gain derived which is paid from or in Thailand.

Where the total of the payments due under a contract is less than Baht 1,000, the payments are not subject to withholding tax.

The following are the withholding tax rates on some important types of income:

• This W/H Tax must be submitted within 7 days of the following month otherwise, the company will have to pay for penalty and surcharge upon delayed submission.
• The person liable (Company’s financial officer) to withhold tax shall issue to the taxpayer, from whom tax is withheld, a withholding tax certificate in duplicate, each copy having the same contents, as follows:

- In the case of withheld tax from advertising fees and professional fees etc., the certificate shall be issued immediately every time tax is withheld.
- In the case of withheld tax from employment etc., the certificate shall be issued within the 15th day of February in the year following the tax year, or within one month from the date of the termination of employment during the tax year of the taxpayer from whom tax is withheld.

Value Added Tax
This tax (PP.30), based on 7% of sales or purchase detailed in tax invoice must be submitted within 15 days of the following month otherwise, the company will have to pay for penalty and surcharge. In case that there is no VAT incurred for the month, the company must still submit the blank VAT form with the zero amount of tax to comply with the Thai taxation law.

Value added tax remittance returns (PP.36)
Based on 7% for supplier providing services overseas and such services are used in Thailand and must be submitted within 7 days of the following month.

Special Business Tax (PT.40)
SBT is calculated as a percentage of gross receipts. The businesses subject to SBT and the applicable rates include:

SBT return must be submitted within 15 days of the following month.

2. Submission of the financial statement to Ministry of Commerce (MOC)

Must submit the financial statement to MOC within 1 months from Annual General Meeting (AGM) and AGM must be held within 4 months from the end of fiscal year so if the ending period is on December, must submit around May.

3. Social Security Fund (SSF)
The company with one or more employees is required to make contributions to the Social Security Fund (SSF). Contributions to the Social Security Fund are made by employees, employers and the Government in equal proportion. The present rate of contributions to be made by each party is five percent of the employees’ salaries, up to a maximum amount of Baht 750 per month(during June – December 2009 that rate reduce to be three percent and maximum amount is Baht 450). The company must be submitted to the Social Security Office within 29th day of the following month or earlier in case that the said date happened to be Saturday or Sunday.

4. Property Taxes
A House and Land Tax is levied at the rate of 12.5 percent of the assessed rental value of the property. It is levied on the owner of the building, but does not apply to owner-occupied residences.

For more information, please feel free to contact us:
Phone Nos.: +66 2 933 6121, +66 2 933 6122, +66 2 933 5601
(for call inside Thailand use 0 instead of +66)
Fax: +66 2 933 6120
Email: mgr@panwa.co.th
Please CC: to our alternate email: panwagroup@gmail.com