Sole Proprietor Question ?

[Holysteel]

1) A sole proprietor do not have to pay taxes if the profits does not reach a total of 1,800,000 baht per year. True or false ?

2) A sole proprietor does not need to apply for a tax payer number for the first year, because his sales are limited. True or false ?

3) A sole proprietor MUST required by law apply & pay social security " Pra Kan Sakom" for all his employees? True or false ?

4) A sole proprietor can choose either to his liking include VAT in his invoice or choose not to. True or false ? What is the benefit for adding VAT to the invoice? I see no benefit to it.

5) A sole proprietor registration company name can be the same as an already taken name. A sole proprietor registered company name can be taken by others, you will have no protection against it? True or false?

6) A Sole P does not need an accountant? You can negotiable directly with the revenue office if sales are low ?

Can someone with experiences. Please enlighten me. Thank you.

[robblok]

I always thought a foreigner could not even be sole proprietor.

[Holysteel]

An American can... Im not American anyway

Im asking this question in terms for a Thai national. Nothing to do with me registrating the company.

Good day

[robblok]

No problems i just assumed after your post about importing a printing machine ect. Too bad im not American, sounds like a sweet deal to have a bit more freedom here about starting a company.

[Holysteel]

Yeah i agree. Americans do have an advantage here in Thailand.

[h90]

It won't help you much, but take it as something that is confirmed from many people with experience.

Make an honest business plan. As you are honest think for the worst case and pessimistic on the costs.

When this plan is complete and finished. Just multiply the costs with 2 and you are surprisingly close to reality...confirmed many times.

[phl]

1) A sole proprietor do not have to pay taxes if the profits does not reach a total of 1,800,000 baht per year. True or false ? TRUE

2) A sole proprietor does not need to apply for a tax payer number for the first year, because his sales are limited. True or false ?TRUE

3) A sole proprietor MUST required by law apply & pay social security " Pra Kan Sakom" for all his employees? True or false ?TRUE

4) A sole proprietor can choose either to his liking include VAT in his invoice or choose not to. True or false ? What is the benefit for adding VAT to the invoice? I see no benefit to it.TRUE, the only benefit is that you can claim VAT paid, but not really worth the headache because will take months to get any money out of government

5) A sole proprietor registration company name can be the same as an already taken name. A sole proprietor registered company name can be taken by others, you will have no protection against it? True or false?FALSE

6) A Sole P does not need an accountant? You can negotiable directly with the revenue office if sales are low ? LOL, SEMI TRUE AND SEMI FALSE

[robblok]

Phl,

The no taxes sound interesting. Does that mean no income tax too ? sounds like a sweet deal to me then. Are you talking company tax ?

Just curious here.

[phl]

Phl,

The no taxes sound interesting. Does that mean no income tax too ? sounds like a sweet deal to me then. Are you talking company tax ?

Just curious here.

Yep Thai's do not pay any tax, even the rich ones hardly pay any.

Employees definitely do not pay any, the company , registered is suppose to, but small business do not even register a company.

I actually get regular visits from Revenue department wanting to "check" business status, ie to see company rego, once they see it, they leave.

I do not mean the same people come to check, but they send out scouts to visit every business on regular basis.

[robblok]

Employees certainly pay tax, i know because i paid taxes on salaries of employees. I even have a program to calculate that. True the people who don't make much are usually exempt

[phl]

Employees certainly pay tax, i know because i paid taxes on salaries of employees. I even have a program to calculate that. True the people who don't make much are usually exempt

may be you have employees on high salary's, mine definitely do not pay any.

My staff are on 10K-12K per month

[jamescollister]

Very misleading information here. but too many variables, everyone pays tax in one way or another and if you are making 1 .8 mill baht a year in a business, you need an accountant. JIm

[soi41]

@OP. You are asking on behalf of a Thai friend, does that person not speak Thai? So instead of asking a farang for advice, wouldn't it be more natural for that person to get the answers from the Revenue Department? Instead of you asking the "experts" here, who already have given you a couple of wrong answers.

As for the 1.800.000. That is the limit for if you pay VAT or not, not on the profit but on the revenue, has got nothing to do with tax. Ofcourse you pay tax on a profit of 1.800.000.

Personal taxes are paid on a income over 150.000.

Had a business here for 10 years, never had a visit from the taxpeople, so the small amount I pay my accountant is wellinvested money.

As I am not interested a pissingcontest with Dr Phl, I am out

[DP25]

Phl,

The no taxes sound interesting. Does that mean no income tax too ? sounds like a sweet deal to me then. Are you talking company tax ?

Just curious here.

Yep Thai's do not pay any tax, even the rich ones hardly pay any.

Employees definitely do not pay any, the company , registered is suppose to, but small business do not even register a company.

I actually get regular visits from Revenue department wanting to "check" business status, ie to see company rego, once they see it, they leave.

I do not mean the same people come to check, but they send out scouts to visit every business on regular basis.

Yup. Only about 5% of Thai adults pay income tax. Last year only 2.3 million people payed in Thailand. Out of a work force of almost 40 million people. 3/4th of people aren't even registered to pay income tax, and most that are registered don't make enough (officially that is, they often have unofficial income streams)

[Holysteel]

@OP. You are asking on behalf of a Thai friend, does that person not speak Thai? So instead of asking a farang for advice, wouldn't it be more natural for that person to get the answers from the Revenue Department? Instead of you asking the "experts" here, who already have given you a couple of wrong answers.

As for the 1.800.000. That is the limit for if you pay VAT or not, not on the profit but on the revenue, has got nothing to do with tax. Ofcourse you pay tax on a profit of 1.800.000.

Personal taxes are paid on a income over 150.000.

Had a business here for 10 years, never had a visit from the taxpeople, so the small amount I pay my accountant is wellinvested money.

As I am not interested a pissingcontest with Dr Phl, I am out

Soi 14. Yeah the Thai person speaks Thai. Problem is that person has 5 different answers from the Thai agency itself. I am not sure which is correct. There is not even a government website in thai or english to point things out clearly to make things easier for all of us. I just want to do things legally and by law.

What is wrong with this country? Every dam application or registering procedure here is a 'word of mouth' or ask the local 'experts' thingy. Or a trial & error style of doing things. If the authority doest know then all is fine kind of mentality. Why cant there be a clear cut instruction/procedures that can be view easily online. It will make life easier both to the Thai people & foreign expats here in this country..

sighz...i rest my case