Tax Issue If Business Is Not Making Profit

[defaybe]

Hi,

We are providing IT services in Bangkok.

When we collecting payment from Customer, a 3% withholding tax will be deducted.

As the business is not doing well, eventually we are making loses continuos for 18 months.

So, there is no corporate tax inccured.

But for the withholding tax which has been deducted, can we ask for refund ?

we need cash flow to keep the business going.

Anyone can share idea ?

Thanks

[steveromagnino]

Hi,

We are providing IT services in Bangkok.

When we collecting payment from Customer, a 3% withholding tax will be deducted.

As the business is not doing well, eventually we are making loses continuos for 18 months.

So, there is no corporate tax inccured.

But for the withholding tax which has been deducted, can we ask for refund ?

we need cash flow to keep the business going.

Anyone can share idea ?

Thanks

Doubt it; I think you can use that to offset future profits; you must have some sort of business plan but actually revenue department will step in and can stop issuing work permits etc if they perceive that the business has little chance of becoming profitable (similar to amway losses claimed in USA by the amway network sales types).

[defaybe]

Hi,

We are providing IT services in Bangkok.

When we collecting payment from Customer, a 3% withholding tax will be deducted.

As the business is not doing well, eventually we are making loses continuos for 18 months.

So, there is no corporate tax inccured.

But for the withholding tax which has been deducted, can we ask for refund ?

we need cash flow to keep the business going.

Anyone can share idea ?

Thanks

Doubt it; I think you can use that to offset future profits; you must have some sort of business plan but actually revenue department will step in and can stop issuing work permits etc if they perceive that the business has little chance of becoming profitable (similar to amway losses claimed in USA by the amway network sales types).

Hi,

Thanks for reply.

Intial investment is huge. We projected for another 24 months, the profits will go to the re-payment to the investment company, provided every goes well. Else will need up to 36 months.

[andy1308]

Can echo what is said about WPs by steveromagnino. Three years of losses even with huge investments means no further WPs - no exceptions.