Thai Law Changes May Eliminate Cases of Double Taxation to Avoid Tax Evasion
Prominent Thai law firm BSA Law welcomes the announcement by Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong of a possible Thai law change to further avoid tax evasion and prevent double taxation. This simplification of Thai law would be an effective means of achieving the goals of both the government and local business.
- (1888PressRelease) October 13, 2012 - Bangkok - The Thai government's announcement that it will consider Thai law changes to prevent double taxation is a welcome step toward simplification of tax law and a logical step amid booming Thai business investment from abroad, declared prominent Thai law firm BSA Law.
Under the current Thai law regime, investors with businesses abroad pay taxes in the host country of their investments and must pay again when they bring profits to Thailand. The possible Thai law change suggested by Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong would find a way to prevent such double taxation in the future.
"A change to the current Thai law that encourages double taxation would be not only a simplification of existing business law in Thailand and encourage greater investment, but it would also almost certainly reduce tax evasion, as is the intended aim of Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong," said Apisakde Kongkangwanchoke, spokesman of Thai law firm BSA Law. "The processes of starting a business in Thailand and other beneficial activities would also see greater benefit. The move would also dovetail perfectly with the government's aim of increasing cooperation within ASEAN."
The government of Thailand already has a large number of tax treaties with various foreign governments and Thai law regarding double taxation is already dealt with in a number of ways. The effective business advice for Thailand investors and entrepreneurs offered through tax consulting in Thailand is a necessary step to understanding Thai law and the legislation of the various countries that Thailand conducts commerce with.
Existing double tax agreements, or DTA, under Thai law "applies to only income taxes, namely personal income tax, corporate income tax and petroleum income tax. Other indirect taxes such as value added tax and specific business tax are not covered by the DTA," according to the Thai Revenue Department.
"The DTA also prescribes a tax rate level on investment income; namely, dividends, interest and royalties. Then the source country can tax such income at a rate not exceeding the rate prescribed within the agreement. In many cases the tax rates within the DTA are lower in comparison to the domestic tax rates in order to reduce tax impediments to cross border trade and investment."
It is not yet clear if any Thai law change is actually impending and, if so, who it will affect. Therefore, Thai law firm BSA Law, would like to take the opportunity to advise businesses with income from abroad to seek effect tax consulting in Thailand.
Thai law firm BSA Law would also like to commend the Thai government for a job well done in attracting foreign investment from abroad in recent years through a series of measures including Thailand work permit waivers for some foreign flood recovery workers and for the energetic round of international conferences and visits to promote business investment in Thailand.
Foreign direct business investment in Thailand has reached record levels this year despite a slowing global economy. With continued effective management and Thai law agility, BSA Law is convinced that business investment in Thailand will continue to be more and more attractive on the world stage.
BSA Law has been serving as a premier law firm in Thailand for more than 30 years, catering both to foreigners seeking to start a business in Thailand and to Thai business investments from within the country. Specialties include tax consulting in Thailand, counselling in all aspects of Thai business law, business advice to Thailand nationals and foreign companies with branches in Thailand.
About BSA Law:
For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. BSA Law seeks to provide international standards of legal services while retaining the customs of the Thai business culture.
For more information please contact:
Jim Byrne
Business Advisor, BSA Law.
Email: jim ( @ ) bsalaw dot co.th
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