Please
note: Decisions of the tax courts may be appealed to
the Supreme Court within one month after the date of
the judgment.
Tax
Clearance Certificates
As of May 1991, requirements for tax clearance certificates
have been significantly reduced. Provided that an individual
demonstrates compliance with tax laws, he is not required
to secure a tax clearance certificate within 15 days
before leaving the country. Employees of businesses
incorporated under foreign law, but which carry out
business in Thailand, must acquire a certificate from
the Revenue Department before departure. The requirement
is not enforced if the individual has been in Thailand
less than 90 days in any tax year and has not received
any income.
Other
Tax Reforms
Thailand is actively pursuing reform of its tax system
and taxes on industrial imports have already been sharply
reduced. Over the past five years, the government has
consistently moved to reduce import tariffs on machinery
and raw materials. In August 1999, the government introduced
a number of measures to encourage investment, including
tariff cuts. One - hundred and forty-six tariff lines
- 85 percent of the total number - had their rates cut
to 0 - five percent, notably on raw materials and capital
goods.
Customs
Duties
Tariff duties on goods are levied on an ad valorem or
a specific rate basis. The majority of goods imported
by businesses are subject to rates ranging from 5 to
60 percent.
The
majority of imported articles are subject to two different
taxes: Tariff duty and VAT. Tariff duty is computed
by multiplying the CIF value of the goods by the duty
rate. The duty thus determined is added to the value
of the goods determined with reference to the CIF price.
VAT is then levied on the total sum of the CIF value,
duty, and excise tax, if any. Goods imported for re-export
are generally exempted from import duty and VAT.
As
a part of the BIO'S Investment Promotion Program, BOI-promoted
companies are eligible to receive exemptions or reductions
from import duties on raw and essential materials as
well as machinery.
Further,
companies that belong to the BIO'S Investor Club Association
(IC) are eligible to use the IC's Raw Materials Tracking
System. For companies that take advantage of this service,
release of raw materials can be done in three hours
or less.
Export
duties are imposed on only a few items, including rice,
hides, skins and leather, scrap iron or steel, rubber,
teak and other kinds of wood.
Two
exceptions to the obligation to pay customs duties apply
to the importation of machinery, equipment, and materials
for the use by:
