The legal structure of a Representative Office in Thailand is the same as that of a Branch Office, i.e. it's the same legal entity as the foreign company that forms it, but its tax treatment is very different to that of a Branch Office.

Unlike a Branch Office that conducts business and revenue-generating activities, a Representative Office in Thailand conducts only non-revenue-generating activities - no revenue-generating activities are permitted for any consumer or customer in Thailand - and provided a Representative Office conducts only the activities that are permitted of it under the Regulations of the Office of the Prime Minister, it is afforded the status of a non-taxable entity by the Thailand Revenue Department.

Permitted Activities

• Sourcing the purchasing of goods and services in Thailand for the foreign head office company; 
• Checking and controlling the goods purchased or goods manufactured in Thailand for the foreign head office company; 
• Providing information and advice concerning goods or services sold by the foreign head office company; 
• Disseminating information about the goods or services sold by the foreign head office company; and/or
• Reporting on business in Thailand to the foreign head office company.​

Thailand Tax Treatment

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 tax treatment is as follows:

Corporate Income Tax		Exemption from corporate income tax
Profits Remittance Tax		Exemption from profits remittance tax
Specific Business Tax		Exemption from specific business tax
Value Added Tax		Exemption from value added tax

But because a Representative Office is a payer of assessable income and person liable to stamp duty tax, it is required to comply with the obligations under the Revenue Code, as follows:

Domestic Withholding Tax		Withholding tax on payments of income to recipients in Thailand
International Withholding Tax		Withholding tax on payments of income to recipients in foreign countries
Personal Withholding Tax		Personal withholding tax on payments of income to employees of the Rep Office
Stamp Duty Tax		Stamp duty tax on instruments

Caution

If a Rep 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.

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