Thailand Directors Fees VAT
Tax Insight | January 2015
On 9 January 2015, Thailand's Director-General of Revenue issued Notification on VAT No. 205, prescribing that services provided by directors are not a provision of services that are subject to VAT.
Thailand's VAT law prescribes:
Accordingly, the services under a hire of labor agreement, which services are exempt from VAT under Section 81(1)(m) of the Revenue Code, are the services of one's own labor.
But whilst it would be normal for people to think that services provided by directors to their companies are the services of their own labor (which services are exempt from VAT under Section 81(1)(m) of the Revenue Code), Thailand's Revenue Department tax audit officers don't think this, and they have been imposing VAT on the services provided by company directors on the basis that company directors are suppliers of services subject to VAT.
On 9 January 2015, the Revenue Department's Director-General (as directed to do so by the Military-appointed Finance Minister) issued Notification on VAT No. 205, prescribing in one clearly-written and very short paragraph that services provided by directors are not a provision of services that are subject to VAT.
This is a general information Tax Insight Article only. It should not be used to determine any matter without consulting with an experienced Thailand tax advisor.