Tax Rates For High Incomes

[pmentx]

Hi,

We are thinking about moving our business to Thailand, but we are quiet worried about what seems to be some pretty high tax rates.

According to The Revenue Department in Thailand, the tax rate is 30% for income above 1 million baht/year and 37% for anything above 4 million baht/year (can post links, but search for "tax rates thailand" in Google and select the first result).

Our business have a profit around 8-10 million baht/year, but do we really have to pay 37% tax of most of our income? Is there a way to avoid paying such a high tax rate? (I can't imagine Taksin paying such taxes)

Thanks a lot,

pmentx

[CWMcMurray]

Check out the below website to see if you can apply for BOI privledges. If you are a BOI corporate income taxes can be waived for 8 years, 50% reduction for 5 years as well as higher deduction allowances for many expenses.

Check ou the below website...

Board of Investment

[thaihome]

The numbers you quote are for personal income tax, you should be looking at corporate income tax.

TH

[Soutpeel]

Our business have a profit around 8-10 million baht/year, but do we really have to pay 37% tax of most of our income? Is there a way to avoid paying such a high tax rate? (I can't imagine Taksin paying such taxes)

As GH has pointed out, you are looking at personal taxes not corporate taxes, but the very best way to minimise tax is to "reduce" your profit to a minimal level and pay tax on this..

[Carmine6]

On this topic, is there something like a local tax that may apply? In the US there are state taxes, so I pay income taxes to California also. Nevada, right next door has no state income taxes. Both states have sales taxes.

Are there similar taxes in Thailand such that having a business in Bangkok versus say Chiang Mai would incur different income taxes?

[Soutpeel]

On this topic, is there something like a local tax that may apply? In the US there are state taxes, so I pay income taxes to California also. Nevada, right next door has no state income taxes. Both states have sales taxes.

Are there similar taxes in Thailand such that having a business in Bangkok versus say Chiang Mai would incur different income taxes?

No...