Business Registration /License in Thailand, Tax status.

[ScottGouker]

I have a Thai Business that is fully registered as a "Pomodor" 1 (not sure of the correct spelling)
When it was established, the tax rate was based on a flat rate stated income of 30,000 Baht per month, and a Tax of 1,000 baht per month.
I have read that the base rate has increased now to 50,000 Baht and a tax of 3,000 baht.
Can you tell me when this change occurred?
and when paying taxes to the Revenue Office, can they be filed in English, or should the forms be filled out in Thai?
Also, what is required to change the tax filing to "Pomodor" 50, or 51 (Annual or semi Annual)?
I would prefer to still pay Monthly.

[Sunbelt Asia]

Hi Scott

You are referring to the Por Ngor Dor 1 or PND 1 as it is more usually called, which is the withholding tax on staff salaries that a company needs to file with the Revenue Department.

The taxes initially will not be flat, even if 2 staff are earning the same salary each month, there are deductions that can help them minimize their tax rate and that will vary from person to person. These deductions include

1. married (unemployed spouse),

2. married and having child/children (but the child is not yet at the age to

attend school)

3. married and having child/children (and the child is at the age to attend

school)

4. the income earner supports his retired parent

5. the income earner bought a long term life insurnace

6. the income earner bought a long term savings (e.g. LTF, RMF)

7. the income earner bought a house and is still under mortgage

8. the social funds contribution of the earner could also be used a means to

minimize his income tax

The recent changes was that the government stipulated the range for each tax bracket. After all the deductions mentioned above,tax is determined as follows:

First 150,000 Baht is 0% tax

The next 150,001 Baht to 300,000 Baht will be tax at the rate of 5%

The next 300,001 Baht to 500,000 Baht will be tax at the rate of 10%

The next 500,001 Baht to 750,000 Baht will be tax at the rate of 15%

The next 750,001 Baht to 1,000,000 Baht will be tax at the rate of 20%

The next 1,000,001 Baht to 2,000,000 Baht will be tax at the rate of 25%

The next 2,000,001 Baht to 4,000,000 Baht will be tax at the rate of 30%

The next 4,000,001 Baht and beyond will be tax at the rate of 35%

The PND 1 will need to be filed on a monthly basis and is due on the 7th day of the following month. That means that the taxes withheld on the staff salary for the month of July must be filed by August 7th.

At the end of each year, the company will have to issue a tax summary (known as 50 Tawi or 50 Bis), it provides the accumulative tax figures that were withheld and filed by the company. The employee will need to use this to file his/her annual personal income tax (PND 91). This PND 91 must be filed by March 31st of the following year.

Most Tax filing forms are in the Thai language.

The PND 50 is the Annual Audit, Financial Statement and Corporate Income Tax filing (Annual). This must be filed by May 31st of the following year. While PND 51 is the half yearly report which must be filed by August of the same year.

All filings (whether they are PND 1 [monthlies], PND 50 and 51) are compulsory especially when that company has employees working for them and/or retaining monthly service and incurring monthly services bills.

Sunbelt Asia has an experienced accounting department if you need assistance with your filings.

[sunbeltlegal][/sunbeltlegal]