In our tax article for August 2016, we noted that the government had put together a proposal to encourage individuals who conduct business to register a company or legal partnership.
Previously, if a company received investment incentives from the Board of Investment of Thailand, where such incentives included an exemption from corporate income tax on profits made by the business for a certain period, the dividends paid out from such profits were exempt from income tax for the recipient, but only if they were paid during the tax holiday.
In October 2016, the Thai Revenue Department issued a notification allowing a taxpayer that files a tax return electronically to submit the return 8 days after the normal deadline, for another two years (until 31 January 2019). We set below a table that summarizes the deadlines for filing tax returns, both on paper and electronically.
Previously, any transactions in foreign currency had to be converted into Thai baht for Thai corporate income tax purposes. However, in December 2016, the Thai government approved an amendment to the Thai Revenue Code that allows a Thai corporate income taxpayer to recognize transactions in a foreign currency for corporate income tax purposes.
As it is now time to file personal income tax returns for 2016, we would like to recap the basis of Thai personal income tax.