Vat & Wht Questions

[Bredbury Blue]

Hi,

Not sure if this is the correct forum for my post, maybe the administrators would like to move it?

I am a MD of my own consultancy business. I have a few questions maybe the forum could answer:

1. If I work in Thailand for a foreign company (say HKG) without a Thai office, would I add 7% VAT to my invoice and they deduct 3% WHT?

2. If I work in overseas (say in HKG) for a foreign company (say HKG), would I add 7% VAT to my invoice and they deduct 3% WHT?

3. If I work in overseas (say in HKG) for a period of time would it affect my work permit as MD of the company? And if so, after approx how long?

Cheers.

[~G~]

For 1 and 2, when providing services to a foreign body, which will be used abroad, you do not need to charge 7% VAT. The HK company does not have a tax ID in Thailand and should not deduct any witholding tax.

Regarding 3, I am not sure, but if during this time abroad you maintain valid entry permits and keep renewing the WP accordingly, I don't see why your location should affect it.

Edited May 30, 2006 by ~G~

[Bredbury Blue]

G,

Thanks for your reply.

Anybody have anyhting to add?

[rishi]

G,

Thanks for your reply.

Anybody have anyhting to add?

Not really, except that you can trust ~G~ when he's talking about VAT and tax with respect to import/export ... he knows the rules by experience.

One thing to add, though: make sure that - within each tax-year - you make a Thai-taxable income corresponding to the income you stated when you applied for the workpermit.