International tax planning

Tax Services for International and Domestic

International tax planning

Tax Services for International and Domestic Companies in Thailand

Kreston Thailand offers a variety of tax services to both international and domestic companies. We break down the services we offer.

 

In the globalized economy, understanding international tax laws, treaties, transfer pricing, and compliance is essential. International tax planning holds significant importance for businesses operating across borders. Failure to comply can result in penalties and legal repercussions. By navigating this complex landscape, businesses can optimize tax efficiency, prevent disputes, and foster sustainable growth.

Outbound tax planning

  • Structuring foreign operations: This involves advising on the most tax-efficient way to set up subsidiaries, branches, and other entities in foreign countries. This may include considering factors such as the tax treaties between countries, the types of activities being conducted, and the tax rates in different jurisdictions.
  • Tax compliance: This includes preparing and filing tax returns for foreign subsidiaries, branches, and permanent establishments, as well as withholding tax returns for payments to foreign residents.
  • Transfer pricing strategies: As mentioned before, transfer pricing is setting prices for transactions between related companies. International tax planning helps ensure these prices are set in a way that complies with regulations and minimizes overall tax exposure.
  • Tax treaty utilization: Tax treaties are agreements between countries that aim to avoid double taxation and ensure fair tax treatment for businesses operating in both countries. International tax planners can help businesses understand and utilize the benefits of relevant tax treaties.
  • Tax incentives and credits: Many countries offer tax incentives and credits to attract foreign investment. International tax advisors can help businesses identify and qualify for these benefits.
  • Repatriation planning: This involves structuring the repatriation of profits from foreign subsidiaries to the parent company in a tax-efficient manner.

Inbound tax planning

  • Entity Selection and Incorporation: Advising on the most appropriate legal entity structure for your business operations in Thailand, considering factors like tax implications, ownership requirements, and operational flexibility.
  • Subsidiary vs. Branch Office: Guiding clients on the tax advantages and disadvantages of establishing a subsidiary company compared to a branch office in Thailand.
  • Holding Company Structures: Exploring the potential benefits of using a holding company structure to optimize tax efficiency for international businesses with operations in Thailand and other countries.
  • Tax Treaties and Incentives: Helping clients leverage Thailand's DTAs and tax incentive programs (like those offered in SEZs) to minimize their overall tax burden.
  • Permanent Establishment (PE) Analysis: Determining whether a foreign company's activities in Thailand constitute a PE, which could trigger tax filing obligations.
  • Corporate Income Tax (CIT): This remains the main tax on profits earned by companies registered in Thailand (20%).
  • Branch Profit Tax (BPT): This tax applies to net profits of a foreign company's branch office in Thailand (also 20%).
  • Special Economic Zones (SEZs): These offer tax incentives like reduced CIT rates, import duty exemptions, and simplified procedures for businesses operating within them.