Taxation

[TRIPxCORE]

From what I have read about Thai taxes I have come to understand this and please correct me if i'm wrong.  If you own a business in Thailand, all the profit the business makes is taxed at a corporate profit rate of about 30%.  After business expenses, employee salaries, and taxes-whatever is left over is your earnings on which you must pay tax on again?  After all the tax, you'll be left with a pittance.  Thats unacceptable but maybe something i'll have to live with if I decide to operate a bricks & mortar business in LOS.  

    On the other hand, if I was to operate on online business where all the money that was made was sent directly to an offshore account that didnt notify any goverments, I could avoid paying Thai and USA tax.  Thai tax law states that they can only tax money, even if it's from a business based elsewhere, that is remitted back into Thailand.  Since none of my profits would be remitted back into Thailand, I pay no tax and I am not breaking the law.  Just use my ATM card if I need cash.  I like the sound of that.

[Thetyim]

Thats the way I understand it.

[Jade]

Regarding your tax query, businesses pay corporate tax on profit of 30%. As Director/Shareholder, you must also pay tax on your personal income.

In response to your comments regarding operating a business where all monies are sent to an offshore account which does not notify any governments, you could indeed avoid paying Thai and USA tax, however this is only legal if you are registered as non-resident for taxation purposes in Thailand and your home country, such as the US. Presuming that you are non resident in Thailand, but resident in the US, you could avoid paying tax by using an offshore account, however because of your resident status for tax purposes in the US, this setup in practice is illegal and constitutes tax evasion under US law.

It would legally work only if you were able to be non resident for tax purposes in Thailand and the US, or for any other country for that matter, which is of course not possible as you must be tax resident somewhere.

Many of these offshore banking solutions work as they claim, allowing you to send/receive funds electronically with withdrawal using an ATM or Visa card, but I suggest you take appropriate legal advice from a competent tax practictioner before assuming the system you propose is legal. I have been through this process and it is well worth spending a few $300/hour consultations with the right people for the right advice.

In my opinion it is prudent to sit down with a good Thai tax accountant or lawyer to advise you on the Thailand side of things, as well as a qualified expert in your home country who is familiar with international tax law.

Depending on the funds deposit and transactional volume you intend to utilise offshore banking for, a Swiss numbered account may be an option for you, however these are generally only available for initial high investment customers, but offer the best security and protection that offshore banking can offer.

There are several jurisdictions which are worth considering for offshore banking, including the Bahamas, Caymans and others. Hong Kong is also worth considering as they offer no income tax for international companies registered in Hong Kong, who trade internationally with customers outside of Hong Kong. This of course can be a significant advantage, combined with excellent banking technologies.

A good advisor can assist you with making the right choice, there is no "one fits all" solution in the offshore arena.

[TRIPxCORE]

In response to your comments regarding operating a business where all monies are sent to an offshore account which does not notify any governments, you could indeed avoid paying Thai and USA tax, however this is only legal if you are registered as non-resident for taxation purposes in Thailand and your home country, such as the US. Presuming that you are non resident in Thailand, but resident in the US, you could avoid paying tax by using an offshore account, however because of your resident status for tax purposes in the US, this setup in practice is illegal and constitutes tax evasion under US law.

It would legally work only if you were able to be non resident for tax purposes in Thailand and the US, or for any other country for that matter, which is of course not possible as you must be tax resident somewhere.

Well, I would definetly be a non-resident in Thailand so I know that it would be perfectly legal there so that is not an issue anymore.  I read up on Thai tax law on the "PriceWaterhouseCooper's Thailand" website all about that.

    I am indeed a resident and citizen of the USA and I have tax liabilities there and that is all the more reason to move the money offshore.  American people and corporations are doing this more and more every year and with good reason.  Even though it is technically illegal, what the government doesnt know wont hurt them.