CORPORATE INCOME TAX IN THAILAND FOR THAI AND FOREIGN COMPANIES

Corporate Income Tax in Thailand For Thai and Foreign Companies
By: Wolfgang Jaegel

In Thailand, all of the laws in connection with taxation are governed by the Thai Revenue Code. The Ministry of Finance administers the procedures in connection with tax collections. The government's Revenue Department collects taxes under four main categories such as corporate income tax, value added taxes (VAT), stamp duty, and personal income tax.
The country's tax collecting authorities also include the Customs Department, which collects import as well as export duties; the Excise Department, which is responsible for the collection of excise tax; and other local authorities which collects municipal and property taxes. Above mentioned is just a brief info on the taxation system in Thailand. In this article, discussed further in detail is regarding corporate income tax as well as its features and rates.
Corporate Income Tax (CIT) is in the form of direct tax, and is imposed on juristic companies as well as registered partnership firms that are formed under the laws of the country, such as limited partnerships, private limited companies, public limited companies, and ordinary registered partnerships.
Corporate income tax is imposed on both local and foreign companies. It is calculated on the net profit and has to be paid at the end of every accounting period. But, a Thai company is entailed to pay tax on the basis of its worldwide net profit. On the other hand, a foreign company operating in the country is required to pay corporate tax only on the net profit that it has derived from carrying out of the business in Thailand. But, a foreign company would be levied corporate tax on its overall receipts, provided it is engaged in businesses such as international transport business.
Likewise, a foreign company, although it does not have any business in the country, may be imposed corporate tax on its receipts, in case, it derives any kind of income from Thailand, such as, interests, service fees, professional remuneration, and dividend.
Mostly, corporate income tax (CIT) is calculated on the net profit of the company and that too on the accrual basis. While calculation, a company takes into account all revenues derived during an accounting period, and deducts them all of the expenses that have been incurred during an accounting period as per the Revenue Code.
On calculation of corporate income tax, deductible expenses include ordinary and necessary expenses; interest with exception of company's funds and interest on capital reserves; taxes, with exception of VAT and CIT paid to Thai government; net losses that have been carried forward from the previous five years; bad debts; wear and tear and depreciation; contributions in connection with provident fund; donations up to 2% of net profit; and entertainment expenses which can be up to 0.3% of the overall receipt however, it should not exceed ten million baths. Further, special rates have been fixed for deductible expenses. For instance, deduction is about 200% in the case of Research and Development expense. Likewise, in the case of job training, it is 150% deduction in connection with its expenses.
Now we will discuss at what rate corporate income tax is deductible. Usually, corporate income tax rate in the country is 30% of net profit. However, rates differ depending upon the nature of tax payers.
For example, in the case of small companies with a paid up capital less than five million baths, corporate income tax rate would be on the basis of below mentioned
- If net profit does not exceed one million baths, then the rate at which corporate income tax would be charged is 15%- If net profit is more than one million baths and up to three million baths, then CIT rate would be 25% - In case, the net profit is more than three million baht, CIT rate would be 30%
In the case of companies listed in SET (Stock Exchange of Thailand), the corporate income tax rate would be as follows
- For net profit up to 300 million Baht, the rate would be 25%- For the balance net profit, the rate is 30%
For companies newly listed in the SET, the rate would be 25% of the net profit. Likewise, in the case of banks that derive profits from IBF (International Banking Facilities), the rate would be 10% of net profit. Corporate income tax rates also vary in the case of foreign companies. For example, For instance, the CIT rate would be 3% of net profit in the case of foreign companies engaged in the business of international transportation. Similarly, the rate is 10% in the case of foreign companies that receive any kind of remuneration or dividend from the country.
Both Thai and foreign companies that carry out businesses in the country are entailed to submit their tax submission form within 150 days from the closing date of their accounting period. During tax submission, tax payment should also be done.
Article Source: http://www.1articleworld.com

YOU USING THESE TECHNIQUES TO MARKET ON THE INTERNET

You Using These Techniques to Market On The Internet?
By: Jinger Jarrett

There are many ways to market your business on the internet. For those who are new to the internet, or are just getting started in internet marketing, some techniques will be easier for you to master than others.
Your first step in marketing online is to build your website. This is actually only the first step in building a complete online presence. By having your own website, you will find it much easier to promote your business, and others will see you as more professional.
It's not enough to have a website though. You should consider at least buying a domain name, and if you can afford it, paid web hosting. The reason is that paid hosting is more reliable. Also, if your're not interested in investing in your business, why should I buy from you?
When creating content for your websites, make sure that the content is keyword rich with the keywords that are relevant to your site.
Regardless of what topic you choose, don't make the mistake of optimizing your site for two word keyword phrases on your topic. Choose keyword combinations that have at least three or four keyword phrases as these are more targeted.
Once you've built your website, then it's time to add to your presence so others can find you.
Start by finding forums on your topic. There seem to be forums on everything these days. You can do this by doing a search in your favorite search engine and searching for your topic plus the word forums.
Another variation of this is social networking. Social networks have many of the same elements of forums because they allow you to market on forums. However, not only can you join forums on your favorite topics, you can do it all in one place.
With a site like MySpace or Yahoo, you can also join groups on your topic, as well as build a blog. Facebook also allows you to join groups that are similar to forums, and they offer thousands.
When posting on these various groups and forums, make sure you include a link back to your site. Not only will this allow you to build valuable backlinks to your site, but you can also use it as a way to refer others back to your site.
Try out several social networking sites until you find the ones that work the best for you, then focus your efforts on those sites.
Another way to market your business is to ask your customers and readers for feedback. Although this may not seem like a way to market your business, it really is.
By getting feedback from your customers and readers, in the form of polls, questionnaires, blog posts, forums, and other ways, you can find out more what your readers and customers want and then you can tailor your offerings accordingly. This will definitely increase your sales.
Again, there are many ways to market your business. When you're first getting started, try these. It will help you draw targeted traffic to your site from those who are interested in what you have to offer.
Article Source: http://www.1articleworld.com