Thailand Double Taxation Agreements

For example, payments to a UK business that is not established in the UK or is not taxable are not qualified. Similarly, payments to a Hong Kong company`s Singapore bank account are not eligible for the benefits of the Thai and Singapore tax treaty simply because the money is sent to Singapore, as this factor alone would not tax the Hong Kong company in Singapore. Similarly, a person from a country without a tax treaty would be taxed on all income they received as a result of working in Thailand, even if the income from abroad was paid and kept abroad. The DBA provides for an exemption from double taxation where income is taxed in both Contracting States. In the case of Thailand, singapore tax, which must be paid for Singapore`s income, is allowed as a consideration of Thai tax payable on Singapore`s income. Thai tax payable on income from Thailand is taken into account as a consideration of Singapore tax payable on such income. The credit thus granted must not exceed the tax calculated before the credit of the country concerned. In the case of dividends paid by a Singapore company to a Thai company holding at least 25% of the voting rights of the paying company, such income may be exempt from Thai tax; However, Thailand applies a tax rate that would have been applicable to the remaining taxable income of the beneficiary had such an exemption not been granted. As a result, in the case of a beneficiary from Singapore, a thai tax credit that the company pays on the dividends received is taken into account. Avoiding double taxation Treaties generally provide that individuals and businesses do not have to pay taxes on the same income in more than one country or, in the case of double taxation, a credit is granted in the second country for the tax paid in the first country. Exempt income Under the tax treaty, income from services and movable rents is generally exempt from taxation in the country from which it is paid.

However, under the Thai-Japanese tax treaty, all rents, including income from the rental of movable property, are subject to taxation. In this special contract, there is no exemption for this type of income. Board fees As a rule, board fees are taxed in the country where they are created. However, if a singapore manager did provide day-to-day services in Singapore to a Thai company, his remuneration would be treated as compensation for personal services in Singapore and would be exempt in Thailand. Withholding tax exemption requirements In order for payments to benefit from the withholding tax exemption, the payment must generally be made to a company that is taxed in the beneficiary country. Tax treaties deal with the prevention of double taxation and the prevention of tax evasion. They generally provide a means of exempting a person who has income normally taxed in more than one country from the double payment of tax on the same income or tax paid in one country on the taxation of a taxpayer in another country. Double taxation treaties not only provide benefits for taxpayers, but also provide for cooperation between governments to prevent tax evasion. . . .