Taxes are collected by the Ministry of Finance through the Customs Office, which is responsible for import and export duties; the Revenue Office, which is responsible for collecting income tax, value-added tax (VAT), special industry tax, and stamp duty; and the Excise Office, which is responsible for collecting excise tax on specific goods. Local governments are responsible for collecting property taxes and local taxes. The main taxes include:
I. Corporate Income Tax. Companies with legal personality in Thailand are required to pay tax at the rate of 30% of net profit. Funds and federations, associations, etc. pay 2-10% of net income. International transportation companies and the airline industry are taxed at 3% of net income. Unincorporated foreign companies or companies not registered in Thailand are taxed only on income earned in Thailand. Normal business expenses and depreciation allowances are deducted from net profits at rates ranging from 5 - 100%. Interest payments on foreign loans are not subject to corporate income tax.
II. Value-added tax (VAT) and special industry tax (SIT). The value-added tax (VAT) system has been in effect since January 1, 1992, and the VAT rate is 7% at each stage of product production and processing. This tax is payable by manufacturers, service industries, wholesalers, retailers, and import and export companies. VAT must be paid on a monthly basis.
Three: Income Remittance Tax. A branch office in Thailand that repatriates profits to its head office abroad is subject to an additional income tax of 10% of the remittance amount, which must be paid by the remitting company within 7 days of the remittance. However, repatriation for the purchase of goods, business expenses, loan principal, return of invested capital, etc. is not subject to tax. In addition, the Thai cooperative company to the foreign exchange dividends or interest payments are not subject to an additional 10% tax.
Four, personal income tax. Residents or non-residents of Thailand are subject to personal income tax on their legal income or assets in Thailand. In accordance with international practice and bilateral agreements, persons such as United Nations officials, diplomats and some visiting experts are exempt from personal income tax.
V. Petroleum Income Tax. The Petroleum Income Tax Act provides that companies operating in the petroleum industry under government license and companies purchasing petroleum from these companies for export are required to pay petroleum income tax to the government. The net income of oil companies includes income from production, sale of oil or automobiles, etc.
VI. Stamp Duty. The rate of stamp duty is determined by the nature of the transaction, with fines of up to 600% for unstamped documents.
VII.Excise Duty. It is levied on the sale of a number of categories of goods, including petroleum products, tobacco, alcohol, beverages, cement, electrical appliances and automobiles.
VIII.Property tax. Owners of land or buildings in defined areas are required to pay an annual tax to the local government. Under the Local Development Tax Act of 1965, the tax rate per unit is based on the value of the land. However, it is used for personal residence, except for animal breeding and land cultivation. 1932 house and land tax law stipulates that the annual tax rate is 12.5% of the amount assumed to be rented out according to the other conditions of the land and buildings, except for the part used for personal use.
Thailand is the world's largest rubber producer and rice exporter, all kinds of tropical fruits and a wide range of handicrafts with national characteristics, loved by tourists. The price level of Bangkok, Phuket, Samui and other tourist attractions is basically the same as that of Beijing, while the price level of other areas is lower.
Thailand's financial services are more developed, the Bank of China has a branch in Bangkok, the Industrial and Commercial Bank of China has a subsidiary in Thailand. Most hotels, restaurants, shopping malls, etc. can use credit cards, China UnionPay card can now also be used in Bangkok, Chiang Mai, Phuket and other major cities, the airport duty-free stores, ATMs and some restaurants can use the UnionPay card consumption. It is recommended that you show your UnionPay card to the cashier and ask if it can be used before you use it. Currently, there are more than 3,000 POS machines and 29,000 ATMs in Thailand with the "UnionPay" logo that can accept UnionPay cards for cash withdrawals. The UnionPay card settlement rate is based on the foreign exchange selling price listed by domestic banks on the day of consumption or withdrawal, which is converted into RMB for the cardholder.