The Thai Revenue Service is drafting new laws to end all the legal loopholes that person have been using to dodge taxes in Thailand. If you are one of them, then read on as it will affect you rather soon!
In October 2009 the Thailand Revenue Service ha proposed removing non-juristic persons from the list of taxable entities in Thailand. The reason they argue is that many wealthy people have been abusing the system by bypassing or paying less tax. The Revenue Service views a juristic person as a group of people who form an association or grouping which is not a legal entity. If you are looking at forming an association in Thailand speak to any of solicitors in Phuket with regards to procedures and the next tax proposals which are now being implemented.
The Thai Revenue Services states that there are a number of reasons for this move. It brings the Revenue Code much closer to the Civil and Commercial Code which does not recognize a juristic person. The concept of juristic person do not exist in Thai law but only in their Revenue Code at the moment. This is now going to change. Also, many people have been placing their income into juristic persons so that they would lower their income tax and also use the juristic person to write off many of their expenses. Juristic persons will now have to register as a limited company or as a registered partnership.
You can of course still register a juristic person in terms of the Thai Tax Code however the Revenue Service is going to be tough on accepting it as they are working towards making away with it. Much like any other country there will always be new loopholes for people to crawl through. If you want to register an association or a company in Thailand. Speak to one of our solicitors in Phuket. With office in all the major cities in Thailand, we at Siam Legal are better able to assist you with solicitors not only in Phuket but also in Bangkok, Pattaya, Hua Hin, Samui and Chiang Mai.
Speak to us now!