Forming A 100% Thai Owned Company And Tax Issues

[Firfox]

Hi there

I am relocating to Thailand with my Thai wife and daughter.

My wife is going toi set up a 100% owned Thai company. The company will then open a private English Instistute. We know all the rules and how to apply from the MOE for an operating license. The company will employ me aa a teacher. ( I have a Masters Degree and the relevant International teaching qualification).

I understand that my wife will have to register the company and then the business of the company will be the running the English Instistute/school. My question is obviously the company will have to pay tax. Does the tax system in Thailand run similiar to England. For example can we claim certain running exspenses/equipment purchased/fuel for travel connected to the company?

Any assistance will be appreciated

KInd regards

Andy

[Sunbelt Asia]

Expenses related to the business are deductible but must comply with the rates set in the Revenue Code; depreciation rates must not exceed the rate set by the Revenue Department.

What are the rates? See http://www.rd.go.th/publish/6044.0.html for more detail info.

As a sole proprietor she can deduct 100% of the equipment expenses for the first year. Reserves set aside for insurance premiums are deductible but other reserves are not. Actual entertainment expenses may be deducted from gross income but it cannot exceed .3% of total gross revenue or gross sales in an accounting period or of the paid up capital, whichever is greater. Donations to public charities of up to 2% of net profits and donations for education or sports of up to 2% of net profits may be deducted, and operating losses may be carried forward for five accounting periods to offset against future profits.

[sunbelt][/sunbelt]