Wealth tax – No social security contributions – Employees must contribute 5% of their monthly remuneration (up to 15,000 THB) (i.e. the monthly contribution ceiling is THB 15,000 times 5% or THB 750). Thailand tax year The Thai tax year is the calendar year tax return and the payment of taxes on labor income is withheld by the employer and transferred to the tax authorities, usually on a monthly basis. The person is responsible for filing an annual tax return no later than March 31 of the following year and must pay the additional tax due at that time. Penalties – A monthly surcharge of 1.5% is levied for insufficient tax payments up to the additional amount of tax due, and a penalty of up to 100% of the tax due is applied when income tax is officially assessed by the tax authorities. Double taxation treaties have a dual legal character. For settlement periods beginning on or after January 1, 2017, companies and partnerships whose paid-up capital does not exceed 5 million Thai baht (THB) at the end of a billing period and income from the sale of goods and/or the provision of services not exceeding 30 million baht are subject to tax at the following rates: business profits attributable to permanent residence in a source country; are profits resulting from the sale of goods or merchandise or other commercial activities. As with other provisions of the Convention, there is a general exception that such activities must not have been carried out for the purpose of tax evasion. (22) The USA and Thailand concluded a tax treaty in 1996 which is still in force. One of the goals of this agreement is to correct double taxation, which should lighten some of your expat taxes. The tax treaty provisions relating to the points on your tax return must be properly applied. You may need to contact a tax advisor to make sure this happens. Both articles 9 and 25 aim to reduce international double taxation resulting from the actions of one or both States parties.

Article 9 allows a Contracting State to increase the taxable tax of one of its companies in respect of that company dealing with a related company of the other Contracting State, thereby obliging the other State Party to make a normal downward adjustment to its established tax. For example, Article 9 pursues the dual objective of reducing double taxation and properly distributing fiscal sovereignty among States. Article 27 provides for a mutual agreement procedure under which a natural person who considers that the tax is not determined in accordance with the Treaty may submit his case to the competent authority of the State in which he resides. (52) If individuals consider that the tax is levied in breach of the principle of non-discrimination, they may bring an action before the State of which they are nationals. There is a three-year limitation period for grievances. In addition, a person shall not waive any other remedy available to him under domestic law by exercising the rights conferred on him by the Convention. The competent authorities shall endeavour to resolve any difficulties by mutual agreement. However, paragraph 2 provides that the taxpayer`s objection must be “justified” in order for the competent authorities to seek a solution to the case. (53) The requirement to file an application in the United States Tax returns (unless a person is otherwise exempt or excluded) are a requirement that comes with being a U.S. citizen and/or lawful permanent resident. Under U.S.

tax law, the U.S. taxes U.S. taxpayers on their global income. Due to the rapid increase in international trade and economic interdependence between nations in the post-World War II period, the number of bilateral income tax treaties is associated with it. Currently, Thailand has bilateral tax treaties with 27 countries. The United States has more than forty such treaties in force. The signing of the treaty between the United States and Thailand marked a historic event, and the treaty is expected to usher in a new era of trade and investment between the two countries. Dividends – Dividends paid to another Thai company are subject to a 10% withholding tax or are exempt if certain conditions are met. .