Question about Thai setting up a business tax wase.

[kingstonkid]

The GF has set up a good business.

 

She owns our house and I am wondering if there are any advantages to her setting up as a personal business tax-wise.

 

I know in most countries you can deduct room space and heat and hydro.

 

Can anyone direct me to where I can get information on what she could do?

 

To me, this is the best way for a Thai to save money.

[TravelerEastWest]

As a company she can deduct rent.

 

As a sole proprietor (depending on the business type) she does not need to track expenses and gets a set percentage of sales as expenses - this is very easy to do do and probably better for her have her ask her CPA.

 

Note CPAs are not expense here and will be very helpful and in teh long run save her money.

[scorecard]

3 hours ago, TravelerEastWest said:

As a company she can deduct rent.

 

As a sole proprietor (depending on the business type) she does not need to track expenses and gets a set percentage of sales as expenses - this is very easy to do do and probably better for her have her ask her CPA.

 

Note CPAs are not expense here and will be very helpful and in teh long run save her money.

But be sure she sets up an arrangement with the acountant where they meet for half a day (?) every 30 or 60 days (in a place where there's no continuous distraction) and the accountant explains every transaction and hands over copy or original of every critical document.

 

In some cases Thai business operators also have to have a signed audit every 6 / 12 months. This relates to both Tax and the reports which must be provided to other gov't agencies (e.g. could be Thai companies office, is it's a registered company.).

 

In some cases the accountant can also be the auditor and in some cases there must be proven separation between the accountant and the auditor.

 

This is also worthwhile if there's any future decision / oportunity to sell the business.

 

Thai accountants can also help with other matters: various registrations, licenses and years back I used an accountnat who was well experienced in getting/renewing work permits, as needed. (She's since passed away.)

 

As a sideline she also helped people to prepare Thai wills. But always explained she wasn't a qualified lawyer.

Edited December 8, 2022 by scorecard

[khunPer]

6 hours ago, kingstonkid said:

She owns our house and I am wondering if there are any advantages to her setting up as a personal business tax-wise.

No, if it's business property, she'll pay higher property tax.

 

If her business is in a company limited, she can pay rent for room in the house to herself, but she need to declare that fas personal income tax. If that solution change the house-status from private home to business, the property tax will increase.

[TravelerEastWest]

3 hours ago, scorecard said:

But be sure she sets up an arrangement with the acountant where they meet for half a day (?) every 30 or 60 days (in a place where there's no continuous distraction) and the accountant explains every transaction and hands over copy or original of every critical document.

 

In some cases Thai business operators also have to have a signed audit every 6 / 12 months. This relates to both Tax and the reports which must be provided to other gov't agencies (e.g. could be Thai companies office, is it's a registered company.).

 

In some cases the accountant can also be the auditor and in some cases there must be proven separation between the accountant and the auditor.

 

This is also worthwhile if there's any future decision / oportunity to sell the business.

 

Thai accountants can also help with other matters: various registrations, licenses and years back I used an accountnat who was well experienced in getting/renewing work permits, as needed. (She's since passed away.)

 

As a sideline she also helped people to prepare Thai wills. But always explained she wasn't a qualified lawyer.

Much of the above does not match my experience with Thai CPAs.

 

We meet with our Thai CPA once a year for less than an hour for tax planning and exchange a few emails now and then regarding our annual audit. We do our own Social Security and wage withholding filings. But even if your CPA does the work normally you just supply them with the basic information not much interaction.

 

Audits are normal for corporations once a year - have never heard of one every six months - maybe for very large public corporations?

 

I am not certain if the accountant can also be the auditor normally there is separation.

 

Yes, they can help with other matters but my experience has been that unless they do it every day they are not a good choice for help with work permits..

[blackcab]

Moved to the Business Forum.