Thailand Tax Treaty

Thailand’s International Tax Compliance Rules

Quick Summary.  Located in Southeast Asia in the center of the Indochinese Peninsula, the Kingdom Thailand is bordered to the north by Myanmar, and to its eastern borders by Lao PDR and Cambodia, as well as Malaysia to the south, and the Andaman Sea along its southwest border.  Thailand–meaning Land of the Free–boasts Southeast Asia’s second largest economy.  Thailand is a constitutional monarchy and parliamentary democracy comprised of 76 provinces.  

The primary source of tax law in Thailand is the Revenue Code, along with the Customs Act, Excise Act, and Petroleum Income Tax Act.

Corporations incorporated in Thailand are taxed upon worldwide income.  Foreign corporations are taxed on certain Thai-sourced income.

Residents are taxed on assessable income from Thailand sources, and income from abroad if remitted to Thailand in the same year that it is received.

Income Tax Treaty between the United States and Thailand

Thailand Tax Treaty.

• Convention Between the Government of the United States of America and the Government of the Kingdom of Thailand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed at Bangkok on November 26, 1996
• Technical Explanation of the Convention between the United States and Thailand which was signed on November 26, 1996

Currency.  Thai Baht (THB)

Common Legal Entities.  Public and private limited company, partnership, sole proprietorship, joint venture, mutual fund, and branches.  

Tax Authorities. Thai Revenue Department

Tax Treaties.  Thailand has 61 income tax treaties in place.  

Corporate Income Tax Rate.  20%

Individual Tax Rate.  35%

Corporate Capital Gains Tax Rate.  20%

Individual Capital Gains Tax Rate. Ordinary income tax rates apply.  

Residence.  Based upon presence for 180 days or more in a calendar year.  

Withholding Tax.

            Dividends.  10%

            Interest.  1% (resident company) / 15% (resident individual) / 15% (nonresident)

            Royalties.  3% (resident company) / 15% (resident individual) / 15% (nonresident)

Transfer Pricing.  Based upon market authorities; tax authorities have ability to make adjustments to reflect a market price.  

CFC Rules.  No.  

Hybrid Treatment.  No.  

Inheritance/estate tax.  10%

Tax Treaty Network – International Tax Attorneys

Our international tax expertise allows us to guide clients through tax planning and compliance so that they can focus on what matters most. At Freeman Law, our clients are engaged in an interconnected business environment that spans across the globe.  From supply chains to markets, cross-country taxation impacts every global business.

Do you have questions about Thailand’s Tax Treaties? Schedule a free consultation with one of Freeman Laws International Tax Experts Today!