A friend of mine has set up a company in Thailand and have engaged the services of a Thai company who provides registered office to them.
They also have another company in another country. There are currently no business activities for this Thailand company other than the legal and corporate services cost (no sales).
The company in Thailand and the foreign company have common directors.
The case is this:
The manager of the company told the service provider to invoice the service fee of the Thailand company to the foreign company based out of Thailand.
So the Thailand service provider invoices to the foreign company for the service provided to the Thai company.
1) The foreign company does not want to invoice to the Thai company. They reported the payment as a repayment to directors.
2) How can the Thai company record this as their expense since there is no invoice issued to them?
3) Can the Thai company record it as their expense with the original invoice that the service provider billed to the foreign company?
4) If the Thai company record it as their expense with the invoice billed to the foreign company, is this a disallowed (non-deductible) expense?
5) Or should they ask the service provider to re-issue all the invoices to the Thai company and pay penalty on late payment of WHT?
Any advice from accounting, tax or legal consultants?
.png.3b3332cc2256ad0edbc2fe9404feeef0.png)
Thailand tax and accounting advice
in Jobs, Economy, Banking, Business, Investments
Posted
Hi all,
A friend of mine has set up a company in Thailand and have engaged the services of a Thai company who provides registered office to them.
They also have another company in another country. There are currently no business activities for this Thailand company other than the legal and corporate services cost (no sales).
The company in Thailand and the foreign company have common directors.
The case is this:
The manager of the company told the service provider to invoice the service fee of the Thailand company to the foreign company based out of Thailand.
So the Thailand service provider invoices to the foreign company for the service provided to the Thai company.
1) The foreign company does not want to invoice to the Thai company. They reported the payment as a repayment to directors.
2) How can the Thai company record this as their expense since there is no invoice issued to them?
3) Can the Thai company record it as their expense with the original invoice that the service provider billed to the foreign company?
4) If the Thai company record it as their expense with the invoice billed to the foreign company, is this a disallowed (non-deductible) expense?
5) Or should they ask the service provider to re-issue all the invoices to the Thai company and pay penalty on late payment of WHT?
Any advice from accounting, tax or legal consultants?
Thank you.