How does the tax system here work re small business

[Kenny202]

Missus and me looking at some small business opportunities for her. Im guessing the noodle ladys and little roadside businesses dont pay tax but what about a small shop, mini mart etc. Is there a line where you are supposed to register and pay tax or anything?

[blackcab]

The small companies income tax rate for 2015 is:

Zero if your net profit is under 300,000 baht

15% if your net profit is between 300,000 - 3,000,000 baht.

20% if your net profit exceeds 3,000,000 baht.

Additionally if your turnover exceeds 1,800,000 baht a year you must register for VAT.

[Kenny202]

Nice and simple :-) thanks mate

[bark]

Nice and simple :-) thanks mate

I wish you good luck in business.

[thailanddogerator]

But reality is that nobody pay tax until asked...

[Robert24]

correct. Most small businesses don't pay tax, whether restaurant, hairdresser, extra tuition centres. Basically the key drivers for paying tax is

1) you have a registered company. Then you need to file for tax on a yearly basis

2) you have transactions with big companies (i.e. you are a supplier of goods to a big company) and this company obviously reports who their suppliers are.

But thailanddogerater is right nobody does anything until you have to do it.

So better worry about all other aspects of making your business successful. Good luck.

[elliottm]

More important would be work permit if you have any intention of offering any help/business advice, even unpaid.

[ericthai]

correct. Most small businesses don't pay tax, whether restaurant, hairdresser, extra tuition centres. Basically the key drivers for paying tax is

1) you have a registered company. Then you need to file for tax on a yearly basis

2) you have transactions with big companies (i.e. you are a supplier of goods to a big company) and this company obviously reports who their suppliers are.

But thailanddogerater is right nobody does anything until you have to do it.

So better worry about all other aspects of making your business successful. Good luck.

yes most small business don't pay, but some do. My wife opened a small shop and went and registered her company. I didnt even tell her to do so.

Her shop is near some other shops and they are all registered and paying taxes. However my 1st girlfriend in Thailand owned a beauty shop and never registered or paid taxes. I told her many times she should but she never did, she had the shop for 10 years with no problems.

I I agree there is a good majority that are not registered and paying taxes.

[Kenny202]

I wonder if they catch you if you need to pay back taxes?

[Robert24]

I wonder if they catch you if you need to pay back taxes?

maybe. but really wouldn't worry about it. What kind of business do you open? Franchise like 7/11 or just your own small shop?

[Kenny202]

Not sure yet. Maybe start off market based try out a few ideas I have. Low capital nothing to lose :-)

[Digitalnomade]

one day they will check all business and people will start to freak out. and many business will be shut down because they don't want pay tax they should have paid.

[Robert24]

Not sure yet. Maybe start off market based try out a few ideas I have. Low capital nothing to lose :-)

ok good. Don't worry about tax than. Focus 100% on making the business successful.

[blackcab]

one day they will check all business and people will start to freak out. and many business will be shut down because they don't want pay tax they should have paid.

They will shut down then open up the next day with a new name. If the owner really haa to they will pay tax from the new date of opening.

[h90]

correct. Most small businesses don't pay tax, whether restaurant, hairdresser, extra tuition centres. Basically the key drivers for paying tax is

1) you have a registered company. Then you need to file for tax on a yearly basis

2) you have transactions with big companies (i.e. you are a supplier of goods to a big company) and this company obviously reports who their suppliers are.

But thailanddogerater is right nobody does anything until you have to do it.

So better worry about all other aspects of making your business successful. Good luck.

yes most small business don't pay, but some do. My wife opened a small shop and went and registered her company. I didnt even tell her to do so.

Her shop is near some other shops and they are all registered and paying taxes. However my 1st girlfriend in Thailand owned a beauty shop and never registered or paid taxes. I told her many times she should but she never did, she had the shop for 10 years with no problems.

I I agree there is a good majority that are not registered and paying taxes.

We sell a lot hydraulic seals for small companies and they are all registered. As soon as you sell something to bigger companies you need to be registered else you can't do proper invoices.

Of course if you do only haircut no customer want a VAT invoice from you