Tax for small business

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Aidennixon
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Tax for small business

Post by Aidennixon » February 4, 2019, 9:35 am

Can anyone tell me what is the tax law for small business,me and the wife have 2 rental properties and I think we are getting overcharged for tax every year.Its basically 1 months rental for tax.Have tried to google it but maybe I’m looking in the wrong place.Surely we should be able to get something back for electricity,water,etc.Any info would be appreciated,thanks.



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Re: Tax for small business

Post by Marcosteffano » February 6, 2019, 9:53 am

Basic under 150,000b exempt.
150-300,000b is 5%
300-500,000b is 10%
500-750,000b is 15%
750-1,000,000b is 20%.... you may be able to claim that your 30% reduction for expenses to declare less earnings.for example 1,000,000b less 300,000b try google property rental tax thailand.anyway if you rent two @ say 12,000b a month each with a total income of 288,000b per annum minus the 30%,96,000b your easily in the 5% bracket.if your being charged 1 month as tax that equates to nearly 17% tax.so someone having you over.

Aidennixon
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Re: Tax for small business

Post by Aidennixon » February 6, 2019, 1:56 pm

I only live in small village so rent per unit is only 3,000 baht per month or 36,000 per annum.Like I said we only have 2 units for rent at the moment so all together it’s 72,000 baht per annum but we are being charged 8,000 baht a year for 2 units which I think is to much.

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Re: Tax for small business

Post by Marcosteffano » February 7, 2019, 6:34 am

Aidennixon wrote:
February 6, 2019, 1:56 pm
I only live in small village so rent per unit is only 3,000 baht per month or 36,000 per annum.Like I said we only have 2 units for rent at the moment so all together it’s 72,000 baht per annum but we are being charged 8,000 baht a year for 2 units which I think is to much.
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vincemunday
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Re: Tax for small business

Post by vincemunday » February 7, 2019, 10:18 am

With apartments, providing you are only renting as residential (to locals) you need to report the empty rooms each month. Then, at the end of the year the tax collectors in the Tessabahn will calculate your income and tax you on the occupancy, if you don't report vacant partments they assume they're rented out 100%. Don't forget they will also charge you for parking, for any signs and you pay more if the sign is in English or backlit, so the idea is only have locals, only have on street parking, don't have a sign in English, don't backlight it and report vacancies every month.
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fatbob
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Re: Tax for small business

Post by fatbob » February 7, 2019, 10:36 am

You can have a sign in English. To avoid the extra tax you must also have it in Thai, so at the bottom of the sign you have it in Thai and you don't pay the extra tax, that law has been around for a long time.

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Re: Tax for small business

Post by vincemunday » February 7, 2019, 10:44 am

That's not what we were told by the tessabahn, we did have our sign made in Thai only on their advice and it seemed a bit superfluous to have it in English as we only rent to Thai but I'm off there later today to pay our tax bill and I shall take the issue up with them and advise them that Fat Bob says I could have had my sign in English as well for free, I shall let you know the response.
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fatbob
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Re: Tax for small business

Post by fatbob » February 7, 2019, 10:48 am

Well the law is what I said and has been for over twenty years. Maybe you should have asked someone else and got a second opinion? A friend has just put up a sign last week with the Thai script at bottom, no issue.
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vincemunday
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Re: Tax for small business

Post by vincemunday » February 7, 2019, 10:49 am

Here you go Fat Bob

Tax rates for signage.

1. Signboards that display only Thai words are taxed at the rate of Baht 3 per 500 square centimeters;

2. Signboards displaying both Thai and foreign words and/or pictures are taxed at Baht 20 per 500 square centimeters;

3. Signboards that display foreign words alone with a picture or logo are taxed at Baht 40 per 500 square centimeters; and

4. Signboards that display foreign words alone or have Thai words below the foreign words are taxed at Baht 40 per 500 square centimeters.

A minimum signboard tax of Baht 200 is payable.
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vincemunday
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Re: Tax for small business

Post by vincemunday » February 7, 2019, 10:52 am

And they tax you on both sides of your sign too
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vincemunday
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Re: Tax for small business

Post by vincemunday » February 7, 2019, 10:57 am

fatbob wrote:
February 7, 2019, 10:48 am
Well the law is what I said and has been for over twenty years. Maybe you should have asked someone else and got a second opinion? A friend has just put up a sign last week with the Thai script at bottom, no issue.
Oh a friend eh Fat Bob?

Here's another bit of reading for you, you're such a ******' know all, I've been through it with the tessabahn ffs lol

https://duensingkippen.com/thailandbusi ... log/?p=114
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vincemunday
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Re: Tax for small business

Post by vincemunday » February 7, 2019, 10:58 am

The forest was shrinking daily but the trees kept voting for the axe as its handle was made of wood and they thought it was one of them.

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vincemunday
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Re: Tax for small business

Post by vincemunday » February 7, 2019, 11:02 am

And just in case you still have any doubts...

https://www.pwc.com/th/en/publications/ ... let-en.pdf
The forest was shrinking daily but the trees kept voting for the axe as its handle was made of wood and they thought it was one of them.

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Re: Tax for small business

Post by Marcosteffano » February 7, 2019, 2:50 pm

Anyway Aiden,forget all the waffling on this post.your max income is under 150,000b so you should be paying nothing.i don't have signs as they are not needed a because I rent through word of mouth.just remember they less they know the better but in your case it won't matter.let us know how you get on and if you got repaid on the over payments 😂😂😂

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Drunk Monkey
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Re: Tax for small business

Post by Drunk Monkey » February 8, 2019, 4:34 pm

Lots of info n advice already offered on this thread some 100% accurate some more or less so... a lot depends on if the company is registered within the DBD business listing if so you are already in the tax system and more so even if under the 150k threshold you still need to be aware that regardless of how much income and profit (if any) a business / company generates by Thai law you must produce a yearly balance sheet even if its ZERO , failure to submit results in a fine which is calculated daily over the set time for it to be handed in to the tax office.

Just as info .
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Re: Tax for small business

Post by rick » February 9, 2019, 3:07 pm

Be aware that 'tax' is a vague statement, used by Thais when it is more of a licence. As Vince says, all signs are taxed, that is why so many village shops do not have a sign. My wife declined to have a sign to save a few baht .....

Also many businesses need licences. My wife gets one from the local tessebahn for having a shop, another for selling tobacco, and a third for selling spirits. There may be a couple more! Could be some sort of licence fee rather than income tax on let property. Of course, like most small Thai businesses, my wife never makes more than 150,000 baht a year ..... and if she did, she still never makes more than 150,000 baht a year!

Aidennixon
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Re: Tax for small business

Post by Aidennixon » February 9, 2019, 3:27 pm

Thanks everyone for reply’s ,I’m back in New Zealand now working but my wife is going to speak to lawyers next week.Will keep you all posted,thanks

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Re: Tax for small business

Post by vincemunday » February 9, 2019, 3:38 pm

You definitely need a license to let Apartments, we have to pay for that annually too and be warned, if you rent to farang you lose residential status and become a hotel.
The forest was shrinking daily but the trees kept voting for the axe as its handle was made of wood and they thought it was one of them.

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Re: Tax for small business

Post by Drunk Monkey » February 9, 2019, 3:46 pm

vincemunday wrote:
February 9, 2019, 3:38 pm
You definitely need a license to let Apartments, we have to pay for that annually too and be warned, if you rent to farang you lose residential status and become a hotel.
I recall there was a recent (early 2018) purge of inspections of licenses on apartments in Pattaya who were renting daily and weekly as opposed to monthly which apparently is illegal as they should have a hotel license to do this not an only an apartment license. The Queen Vic in Soi 6 was the first of many to be pulled and fined ..serious issue big fines and/or imprisonment.
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Re: Tax for small business

Post by Drunk Monkey » February 9, 2019, 3:51 pm

as info only
Some very muddy waters with in the Thai tax system for sure but with reference to tax laws a registered business has to abide by here one should not get this mixed up with the licensing office ...there seems to be a license for just about everything and by far the most dodgy has to be sign tax .. its quite simple to work out how a sign tax is calculated going by size Thai or other languages there in and if it is removable or fixed BUT ... you try to get a receipt for sign tax and its near on impossible and as with most things here the officials eye is only as good as the back hander on offer.
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