Thai Sole Proprietor Tax Rules In English?

[Sam125]

Thai sole proprietor tax rules in English?

My Thai wife has a sole proprietorship (making clothes on a small scale for 100% export) and I found basic tax tables and information in English on the Thai revenue site but not details.

Mainly I am looking to find the standard deduction for her type of business that does not require receipts to be kept. The website gave a range but no clear examples.

Thank you!21

[johnnyk]

She is Thai. Why not go to the tax office in the nearest largish city and get her to ask?

[Sam125]

Hi Johhny K,

Thanks for your suggestion.

However, we are not close to a large city and my wife got a big headache the last time we visited a revenue office. She is a designer and hates accounting and legal matters hence my trying to help her. I am quite comfortable with paperwork but cannot speak much Thai.

There are a couple of bookkeepers in my town but they are not tax CPAs or auditors- actually other than a few large firms in Bangkok I can't seem to find any specialized tax CPAs (I am in Isan).

She is Thai. Why not go to the tax office in the nearest largish city and get her to ask?

[monty]

I was of the impression that a sole trader (proprieter) is allowed a 70% deduction on revenue, regardless of the trade she is in (without the need for receipts).

The remaining 30% will be taxed the same as personal income would be taxed.

If she exports 100% and thus not receives the 7% vat she would normally receive when selling domestically, she does not need to pay any VAT (apart from the VAT paid when acquiring the raw goods).

For local trade the difference of the VAT received when selling and the VAT paid when acquiring raw goods has to be paid in every month, on the total amount you declare to the income tax people (not the amount after the 70% deduction!).

I'm not sure a sole trader can get VAT credit when acquiring machinery etc...

Do consult the revenue department or a certified accountant for confirmation of the above!

[monty]

According to this website it's 80% fixed deduction without the need to prove your expenditure with receipts.

It might be outdated though I'm still pretty sure that it's 70% .

[wolfmanjack]

According to this website it's 80% fixed deduction without the need to prove your expenditure with receipts.

It might be outdated though I'm still pretty sure that it's 70% .

The revenue department gives my wife 70% deduction. She showed them receipts where she was not making 30% profit and they said they don't care. They said that if she wanted to itemize deductions she would have to form a company.

[Sunbelt Asia]

Thai sole proprietor tax rules in English?

My Thai wife has a sole proprietorship (making clothes on a small scale for 100% export) and I found basic tax tables and information in English on the Thai revenue site but not details.

Mainly I am looking to find the standard deduction for her type of business that does not require receipts to be kept. The website gave a range but no clear examples.

Thank you!21

The deduction for making clothes and selling is 70%. See attached English translation of the Revenue Code 2544, tax rates of different types of businesses.

govern_tax_1__Revised__1_.xls

www.sunbeltasiagroup.com

[monty]

Brilliant info as usual from Sunbelt!

So it's not fixed but can be between 40 and 85% depending what business you are into...

It aslo seems that the only way they will accept actual expenses as compared to the fixed deduction is when you are doing something which is not on the list.

Which at first glance can't be much

[Sam125]

Monty and Sunbelt,

Thank you.

Here is the revenue department page that I was looking at

http://www.rd.go.th/publish/6045.0.html

Monty,

It seems that you can go with actual deductions as an individual. I will have to look at the actual code very carefully.

"It also seems that the only way they will accept actual expenses as compared to the fixed deduction is when you are doing something which is not on the list. "

Wolfman,

I would guess that your wife spoke to a new revenue employee. In the US you cannot go 100% by what an IRS employee tells you as they make many mistakes and typically revenue department publications are simplifications of the law slanted towards the revenue department.

I am looking to find a small CPA office with reasonable rates (for a small business..) that has tax experts that speak English.

[Sunbelt Asia]

"It also seems that the only way they will accept actual expenses as compared to the fixed deduction is when you are doing something which is not on the list. "

You are welcome.

If its on the list... actual expense or 65-85% depending on the types of income. Your choice.

If its Not on the list... only actual expenses.

www.sunbeltasiagroup.com

[mcfester]

"It also seems that the only way they will accept actual expenses as compared to the fixed deduction is when you are doing something which is not on the list. "

You are welcome.

If its on the list... actual expense or 65-85% depending on the types of income. Your choice.

If its Not on the list... only actual expenses.

www.sunbeltasiagroup.com

Hi, how does this calculation look or have I got it wrong?

Anual income 480,000

Selling drinks business deductions 70% = 336,000

480,000 - 336,000 = 144,000

Less 30k personal allowance and 30k spouse allowance = 84,000

0 - 100,000 (2004 onwards) = Exempt.

Theres a very interesting thread here where someone paid around 2500B for his wifes 480k anual income.

I'd appreciate if someone can confirm this.

Thanks