Outgoing wire from Thailand revenue dept por 112/2545

[yankee99]

Can someone explain what this statement means?

"ACCORDING TO REVENUE DEPARTMENT ORDER POR 112/2545

YOU ARE OBLIGED TO DEDUCT 3% INCOME TAX UP FRONT FROM PAYMENT OF FEES AND OTHER SERVICES, AND SUBMIT TO REVENUE DEPARTMENT WITHIN 7TH DAY OF THE FOLLOWING MONTH

*** TOTAL FEE FROM 1,000 BAHT AFTER COUPON DEDUCTION (IF ANY) PER TRANSACTION CAN BE USED FOR REFUNDING TAX 3%"

[fletchsmile]

When a company or similar entity makes a payment to someone who has supplied a service to them the person making a payment is often required to deduct witholding tax (WHT).

The WHT should then be paid over to the Thai Revenue Department 7 days after the end of the month. You also have to complete a WHT tax form summarising all such payments, which is sent together with all WHT collected.

If the total of WHT you have collected over the year exceeds 1000 baht you can deduct it from your tax payable on your profits for the year.

So if a company hires someones services for 10,000 baht they would pay the service provider 9,700 and retain 300 baht WHT. this 300 baht is to be paid to the Revenue within 7 days after the month end. If you do this several times and it exceeds 1,000 baht collected you net it off your tax payable. If this was your only WHT collected, because it's under 1000 baht you don't deduct it from your tax bill

Cheers

Fletch

[yankee99]

^^^^I understand exactly what you are saying and assume this is should not apply to me. What i dont understand is why it is attached to my outgoing international wire transfers to purchase goods. Maybe it is attached to all the banks emails.