You will find here a series of summaries providing an overview of useful tax regulations, processes and tax issues for Doing Business in Thailand.
Navigating key tax challenges for expatriates under EOR employment
Understanding and managing tax obligations for expatriates working in Thailand is a crucial step towards financial control. While an Employer of Record (“EOR”) arrangement offers advantages in regard to compliance with local labour law and efficiency in tax administration, it is important to note that it may not always fully mitigate personal income tax risks for expatriates. This article outlines the primary tax challenges commonly faced by expatriates working in Thailand under an EOR arrangement and provides recommendations to ensure compliance and to optimize tax outcomes.
Exploring the Employer of Record (EOR) arrangement: benefits, drawbacks, and tax implications
In today’s globalised business environment, organisations often seek flexible and efficient ways to manage their workforce across different jurisdictions. The Employer of Record (EOR) arrangement has emerged as a popular solution, enabling companies to hire employees in regions where they do not have a legal entity. While this model offers several advantages, it also presents unique challenges and potential tax implications, particularly concerning the concept of a taxable presence under Thai domestic law and a permanent establishment (PE) as outlined in the international tax rules.
Stamp duty is payable on most instruments or documents filed by companies with Government agencies or entities and on official company documents. The dutiable instruments include hire of work agreements, transfers of land, leases of immovable property, share transfers, debentures, mortgages, life assurance policies, annuities, powers of attorney, promissory notes, letters of credit, and cheques.
To boost domestic consumption at the start of the new year and to encourage business operators to join the tax system and e-tax system, the Thai government has provided a special personal income tax deduction of up to THB 50,000 for the domestic purchase of goods and services from qualified business operators from 1 January 2024 to 15 February 2024.
Further guidance from the Revenue Department on Foreign Sourced Income
On 20 November 2023, the Revenue Department issued Departmental Instruction No. Paw.162 ("DI Paw. 162"), which provides further guidance that the interpretation under the Departmental Instruction Paw.161/2566 ("DI Paw.161") shall not apply to any foreign-sourced income earned by Thai tax residents before 1 January 2024.
