Thailand Representative Office (Rep Office) Tax Structures
A Thailand Representative Office is the same as a branch office - i.e. the same legal entity as its foreign corporation - but its tax treatment is very different to that of a branch office.
A representative office conducts non-revenue-generating activities for its foreign company head office only - i.e. no revenue-generating activities are conducted for any consumer in Thailand - and provided a representative office conducts only the activities permitted of it under the rules and regulations of the Thailand Ministry of Commerce, it is afforded non-taxable treatment under the rules and regulations of the Thailand Revenue Department.
Provided a representative office in Thailand conducts only the above activities for its foreign head office company without conducting any activities of sales of goods and services to any consumer in Thailand, the taxes payable in Thailand are as follows:
If a representative office does not maintain compliance with the rules and regulations for the permitted activities in Thailand, the Revenue Department audit officers will subject the rep office to all the usual taxes for corporate entities in Thailand plus penalty and surcharge.
This is a general information Tax Insight Article only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.