Disclosure obligations – No Thai fiscal year – the Thai fiscal year is 12 months (a shorter year is allowed in the year of its creation if the accounting period is changed or the year of dissolution). Consolidated Tax Returns – Consolidated tax returns are not authorized for corporate tax purposes. Each company must submit its own refund. Taxpayers are required to assess the first 6 months of the tax year themselves and pay a down payment on personal income tax. The semi-annual return must be deposited within 2 months of the first 6 months of the fiscal year. The annual income tax return must be filed within 150 days of the end of the year. Extensions are not available. Penalties – If a company underestimates its profit by more than 25% for an entire year, a 20% fine is imposed in the first half of the year. In other circumstances, a surcharge of 1.5% per month is applied to unpaid taxes. A penalty of up to 100% of the tax due is imposed if the income tax debt is officially the book value of the tax authorities. Judgments – Taxpayers can apply for non-binding private judgments, and APAs are available under the transfer pricing regime. Double tax debt may also affect U.S. citizens and residents working for foreign subsidiaries of U.S.
companies. This is likely to be the case when a U.S. company has followed the common practice of entering into an agreement with the Treasury, pursuant to Section 3121 (l) of the Internal Income Code, to provide social security to U.S. citizens and residents employed by the subsidiary. In addition, U.S. citizens and residents who are independent outside the United States are often subject to double social security taxation, as they are covered by the U.S. program, even if they do not have a U.S. business. Workers who have shared their careers between the United States and a foreign country may not be entitled to pensions, survivor benefits or disability insurance (pensions) from one or both countries because they have not worked long or recently enough to meet minimum conditions. Under an agreement, these workers may benefit from partially U.S.
or foreign benefits on the basis of combined or “totalized” coverage credits from both countries. Thailand`s tax code allows the tax authorities to assess income considered income when services are provided without consideration. A succession of transfer pricing could occur if the employee was paid by a company in Thailand but provided services for the benefit of another company. It will also depend on the nature and complexity of the services provided. Applications should include the name and address of the employer in the United States and the other country, the full name, place and date of birth of the worker, nationality, U.S. and foreign Social Security numbers, location and date of employment, and the start and end date of the assignment abroad.