Thailand Permanent Establishment (PE) Corporate Tax
Section 76 bis of the Revenue Code is Thailand's PE corporate tax law. It prescribes:
When a foreign company:
The tax return that is to be filed and the tax to be paid by the employee, representative or go-between in Thailand is a corporate income tax return and corporate income tax (at the standard rate of corporate income tax) on the amount of the income or gains after deduction of expenses that is derived by the foreign company in Thailand.
But in the case where the employee, representative or go-between in Thailand doesn't file a tax return and pay the tax, and the Thailand Revenue audit officers discover the existence of the PE, the second paragraph of the Section 76 bis law prescribes that the Revenue audit officers are able to assess tax at the rate of 5% of the aggregate of either gross receipts or gross sales for an accounting period before deduction of expenses, and if such aggregate cannot be ascertained, 5% of a corresponding aggregate in a previous accounting period and if such corresponding aggregate cannot be ascertained, any tax amount that a tax audit officer may deem proper.
In addition to the above Section 76 bis corporate tax law, Thailand's VAT law also requires VAT to be paid for PEs in Thailand, and Section 82/2 of the VAT law prescribes:
In the case of a company being:
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with your experienced Thailand tax advisor.