Tax Advice - Overseas Consultancy Work

[chayatom]

Can someone help me understand the Tax issues of undertaking consultancy work in India through a thai registered Company ?

The Thai Company's articles allow for property investment and consultancy and I am planning to invoice my Indian Client for work undertaken in India through the Thai Company. I am a shareholder of the Company (which i effectively control) but don't have a work permit to work in Thailand - is this relevant?

I am going to seek some professional advice(recommendations?) but its always good to get some guidance on the issues beforehand.

Thanks

[InterestedObserver]

In my opinion since you are invoicing in the name of a Thai company, it's income accrued to that company and reported as such for tax purposes. Thai work permit is not required since no work is performed in Thailand. Forex and Indian legal issues are another matter.

[nakachalet]

chayatom

there are so many farangs and/or others who for every practical reason work and stay in thailand....

but they do not care to get a work permit.... for various reasons of their own....

in your case, you actually own a thai company and have a majority interest in the company....

but you do not have a work permit.... and your billing is out of your own thailand company....

that is very interesting....

but what is your real intention....?

[someoneelse]

Not an expert, but if you're doing work in India I don't see how a Thai work permit would be required.

With respect to tax (I'm an Australian international tax consultant), so long as your presence in India doesn't constitute a "permanent establishment" of your Thai company (in particular, this would happen if you were in India more than an aggregate 183 days), the income the company earns is taxable only in Thailand.

A "permanent establishment" is:

1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term “permanent establishment” shall include;

(a) a place of management:

( a branch;

© an office;

(d) a factory;

(e) a workshop;

(f) a mine, a quarry, an oil or gas well or other place of

extraction of natural resources;

(g) a farm, plantation or other place where agricultural,

forestry, plantation or related activities are carried on;

(h) a building site or construction or assembly project or

supervisory activities in connection therewith, where such

site, project or activity continues for the same or a

connected project for a period or periods aggregating more

than 183 days;

(i) a warehouse, in relation to a person providing storage

facilities for other;

(j) the furnishing of services, including consultancy services,by

a resident of one of the Contracting State throguh

employees or other personnel, provided activities of that

nature continue (for the same or a connected project) within

the other Contracting State for a period or periods

aggregating more than 183 days.

The Thai-India DTA (see http://www.rd.go.th/publish/1883.0.html) has more detail (including some exemptions and caveats). Check specifically the Permanent Establishment and the Business Profits articles.

As always, you shouldn't rely on the information on this board and you should get your own professional advice.