Wekhin

I am positive you can borrow by using the first completed house as collateral provided it is debt free.

A loan for construction by using land as collateral is also possible. However, the amount will be much less than land value, probably 50-60%.

I am setting up a small business in Bangkok and need:

1. An accountant to manage basic accounting activities.

2. A company to do the yearly audit.

Can anybody out there can recomend a decent firm?

Thanks

I provide accounting services. Please look in your box for my message.

Most shipping agents can apply the license for you.

Must have been marketing promotion of some sorts. Be calm.

There are only some certain kinds of goods that require exporting license. Information can be obtained from Exporting Promotion Dept. Fee for license depends on type of goods and quantity of export.

There is the other license which is exporter's license. This is required by Custom Dept. for custom procedures. Fee for license is small.

Typical monthly submissions are:

1. PND1 (ภงด.1) - monthly income withholding taxes of employees,

2. PND3 (ภงด.3) - monthly income withholding taxes of outside persons who provide services to your firm,

3. PND53 (ภงด.53) - monthly income withholding taxes of outside juristic persons who provide services to your firm; e.g. telephone company,

4. SPS1-10 (สปส.1-10) - social security,

5. VAT30 (ภพ.30) - value added tax in case that your firm is in the VAT system.

You should find an accountant to do it.

Yes, you can. Here is a list of brokers.

http://www.set.or.th/en/education/brokers/list_p1.html

Time deposit is treated as per transaction. Withdrawal of a transaction does not affect the others. You may get 0% interest or some interest from early withdrawal. Penalties vary from bank to bank. High interest accounts normally are subject to high penalties. The contract that you signed when opening the account must mention about penalties. You have to check with your bank. Normally, you should get some interest from early withdrawal but it will be less than deposits of the same maturity. For example, withdrawal in less than 3 months will get lower rate than Savings account rate; withdrawal between 3-6 months will get lower rate than 3-month time deposit; and so on.

The interest is compounded.

My apology for typo error.

When company pays back,

Dr. Payables - borrowings from shareholder (liabilities)

Cr. Cash (assets) <----

When a shareholder lends money, say cash, to the company,

Dr. Cash (assets)

Cr. Payables - borrowings from shareholder (liabilities).

When company pays back,

Dr. Payables - borrowings from shareholder (liabilities)

Dr. Cash (assets)

ลูกหนี้กรรมการ = Receivables: lending to director

ลูกหนี้ค่าหุ้น = Receivables: share capital

Shareholders cannot directly access company bank account but they have rights to examine all accounting books and financial records.

Try reading the press.

Thanks bub, but as of last reading it seems they have reversed the measure on the stock market segment only. My bank still claims it will withhold 30%. Try posting something of use next time.

So far I did not find any official articles who said U turn for Property withholding tax ....

so still looking for answer as well.

Tks

Just put below post on another thread. Does not answer you, but I think we will have to wait a few days for the air to clear

QUOTE(Dr. Naam @ 2006-12-21 14:11:03)

where are the moderators to stop misinformation?

I do not think there is misinformation. Problem is BOT is not be explicit enough.

http://www.bot.or.th/bothomepage/General/P.../Eng/n5149e.htm

This is the BOT original press release. Does not make it clear if it relates to property buying. (To me that is not short term, but others do not see it my way) No mention of US$ 20,000 limit.

http://www.bot.or.th/bothomepage/General/N.../Relaxation.pdf

is the latest BOT release. Property is not mentioned. So, if it was included in the first place, it still is. Most press comments are speculation, some obviously ill informed..

Confused? Me too. And so is BOT!! Until BOT gets it's act together there will continue to be confusion.

For those still concerned about the tax on property transfers. From the Nation:

"Meanwhile, the Bank of Thailand also issued an announcement on their website on December 21 stating that property including land and condominiums is exempt from the reserve requirement on short-term capital inflows.

Foreign purchasers of condominiums can bring funds into Thailand to purchase condominium property. According to a major local bank, foreign condominium purchasers should clearly state the project name and unit number when remitting funds. "

http://nationmultimedia.com/2006/12/22/bus...ss_30022204.php

I know I am thick so could someone tell me where it is on BOT website. I cannot find it

http://www.bot.or.th/bothomepage/General/P.../Eng/n5249e.htm

2.Cash bill can not use as claimable expenses evident.

Cash bill can be used as expense as long as it has all required informations on it. In other words, it is the same as a receipt. Purpose of cash bill is to record cash sales only. This is the case when a business wants to separate documents of cash sales from receipts of credit sales. A company who does not want to separate them can simply issues receipts for both cash and credit sales. This is the case for a non-VAT-registered company.

A VAT-registered company must issue receipt/tax invoice or invoice/tax invoice depending on type of transaction. If she refuses to issue it and instead issues a cash bill, that will be tax evasion.

I see. But in your example that does not make sense. Example: we are paid 100000 THB by a guest for a stay at hotel X. We have to pay 7% of that to the revenue department but the resort invoices us for the full amount less our 10% commission (or whatever it might be). Surely it is the resort that should collect it from the guest out of the funds we pass on to them and we simply pay a 7% vat on the part which is our "sale".

If 100,000 baht paid by your guest already includes VAT, then 93,457.94 baht will be your sales and 6,542.06 baht will be VAT (some countries call it sales tax) paid by the guest.

If the resort invoices you for 90,000 baht tax included, 84,112.15 baht will be their service and 5,887.85 baht will be VAT (some countries call it purchase tax) paid by you. You must obtain a receipt/tax invoice that show 5,887.85 baht of VAT.

Then, you can use your purchase tax to offset sales tax. Therefore, you will need to file only the difference between sales tax and purchase tax which is only 654.21 baht (6,542.06-5,887.85).

The way you do business and call what you get as commission is not commission in its sense. Your business looks like a travel service that sells travel package to customers and then arrange accommodations, transportation, sightseeing, etc. for customers.

If you are an agent of the resort, guest must pay for room to the resort. The resort must issue receipt/tax invoice to the guest and then pays you commission.

Hi all,

A couple of questions regarding tax liability in Thailand.

1. If the treshold for being liable to vat taxation is 1,8 mill THB per year, does it not make sense to establish two companies, to keep the income below this treshold?

2. In the travel business it is in my cases customary for agents to be required to take 100% payment from guests and then pay the hotel directly less the commission earned. So my companies have a lot of money coming in but also a lot of money going out. I assume the 1,8 million is the income after this has been paid?

3. For some areas, where the resorts are very small and not well managed, it is simply not possible to get a proper tax invoice/receipt. My account tells me that cash bills are just as good. Does anyone have any input regarding this.

1. ฺฺTo have two companies, you will double pay some expenses such as settingup expenses, audit fees, and bookeepings. Besides, concept of VAT is buyer pays it. It is not seller's tax liabilities in a liable sense. A seller is just responsible to collect it from buyers and give it to the Revenue Dept.

2. In you case, 100% payments from quests are your sales. What you pay out to hotels and others are your costs. The 1.8 million treshold means sales, not the difference between sales and costs.

3. Cash bill is as good but it must have name, address, tax ID of the owner and other requirements such as name and address of payer, transaction description, unit price, amount.

I suggest that you should be careful about abandoning the company like a lawyer told you. There are fines for not filing financial statements with the Ministry of Commerce and tax return with the Revenue Dept. It is just a matter of chance to get away with it. After this situation change, it is hard to tell whether the authorities will track down on this or not. Best bet is to sell the company.

Thanks for the replies, wekhin and siriratc.

So, if I understand correctly I need to file my first year-end return by the end of Feb/07.

A friend was quoted 10K baht for his return.

I'm thinking this may be reasonable at this time as both our companies have done no trading so just a lot of zeros so far.

If you are to file by Feb 07, that means your a/c year ends on 30 Sept 06.

Okay, so there is no reporting of foreign sourced income that stays abroad for thai's on a yearly tax return or anything, correct? Thanks for the help!

Not quite. Let me put it this way.

Income from work done and paid abroad needs no tax filing unless it is brought into the country.

Income from work done in the country but paid abroad must be filed.

These rules apply to all income earners, Thais and foreigners, who stay in the country more than 180 days a year.

I formed my company on April 21. It has not done any business yet but I expect to begin active trading in Spring or Summer 2007.

When must I file the tax return? End of calendar year or do I choose a fiscal year-end?

Am I supposed to file monthly statements?

I have heard I can get a return done and filed for 10K baht.

Is this a reasonable figure?

Any help is very much appreciated.

Thanks

Half year filing must be done within 2 months after the end of half accounting year. Annual filing must be done within 150 days after the end of accounting year.

It is hard to tell whether 10K is reasonable or not. It depends on the kind of business you are in, i.e. service, trading, manufacturing. Although the company has not done business yet, there might be some transactions that need to be recorded properly or the company might be in some business process like preparations, arrangements, installations, etc. or even quite a few of movements in bank account.

It has nothing to do with tax matters. It is to comply with manufacturing-related laws. Not all manufacturing types have to register and obtain permission or license to operate. However, lists of those who have to obtain are quite long. You have to check your manufacturing type with Dept. of Industrial Works, Ministry of Industry. BTW, it is seven people, not eight, with or without machine if it is a manufacturing type stated in the required list.

I was wondering if there were any reporting requirements for foreign sourced income on a thai tax return for thai residents. Is there?

If that income is brought into Thailand, Thai resident must report and pay tax on that income. If the source country has double taxation treaty with Thailand and he is already taxed in the source country, he can utilise terms and conditions of the treaty by paying only the difference, if any.

My friend owns 49% shares in a Company in Thailand and her Thai partner owns 51%. Recently she discovered her Thai partner is going to take over the entire company. What can she do now?

Any advice?

Too little information.

To sweepingly take over a company (have control on all decisions), one needs at least 75% of the votes.

Repeat: 75% of the votes, not the shares.

Therefore, if a shareholder does not have 75% vote, he cannot take over the company. This is because the other 25.01% vote can block vote to increase capital. However, if your friend, or appointed agent, does not attend the shareholders meeting on capital increase agenda and vote against it, it is very likely that the other party can take over the company.

Hi

Recently applied for a Credit Manager job in Thailand for a tech company. They welcopme applications from farangs.

I'm after some info please:

1. How do buisiness to business services usually get billed in LOS? Normal invoices? And what are standard payment terms in LOS - 30 days from invoice?

2. How do businesses usually par for services? Bank transfer, cheque etc?

3. In the UK when chasing payment the normal process would be bill, reminder letter, final demand, letter before action from a solicitor and then legal action through the courts. What''s the normal process in LOS for business to business debts.

4. What does the legal proces consist of in LOS when chasing debrs throught the coutts and what enforcements methods are available?

I appreciate I'm probably going to be lucky to get the info I need here but any help is greatly appreciated.

Many thanks

Taz...

1. It can be invoice or billing note(some people call it debit note). Invoice is normally for but not limited to goods. Billing note is more appropriate for service. Still, it depends on accounting method a company use. It is accountant to determine which one to use. I guess you need not worry about it. Credit terms are normally 30, 60, or 90 days depending on company policy.

2. Cheque and bank transfer are normal for b2b.

3. Same here.

Hi All

I am planning to set up the online dating and marriage agency business in Thailand. I've found the Thai website www.dbd.go.th/eng/register/rg_commercial.phtml regarding the commercial registration. I think I would set up as sole trader. I will have to do the commercial registration, I think. I can't find how much fee for sole trader.

Do I need to register for e-commerce as well? After commericial registration and what else I need to do? What is your recommend?

Cheers

Thanks.

Anne.

You must have both commercial registration and e-commerce registration. Fee is only 50 baht each for a sole proprietor.

Good luck.