I am considering forming a closely held Thai Limited Company for various reasons and I am curious if any TV members care to share methods they have used to reduce the Corporate Income Tax (CIT) burden of the company and filter more of the profits to the shareholders and officers of the company.

I am approaching this from a US point of view where the taxing authority (IRS) is very strict and am just trying to figure out what is accepted as the legal norm here in Thailand.

I am assuming that like the US there is double taxation of dividends both at the CIT level and as the Personal Income Tax (PIT) level, although for Thai nationals receiving dividend from thai limited corps there appears to be a 3/7th tax credit at the PIT level. So assuming the maximum CIT rate of 30%, and an PIT rate of 37% there is the potential for a 67% tax if filtered down as dividends from a limited corporation.

I noticed there is a 200% deduction R&D expenses at the CIT level, but is there anything else I am missing? Do most closely held Thai Limited Companies filter excessive profits as salary to employees? Are there any rules governing what's allowable? Thanks!

bump, anyone?

Also, does anyone know how hard it is to use a residential property that a Thai gf owns as a registered business address?