For example, payments to a business in the UNITED Kingdom that is not domiciled or taxable in the United Kingdom are not eligible. Similarly, payments made to the bank account of a Hong Kong company are not eligible for the benefits of the Thai tax treaty in Singapore simply because the money is sent to Singapore because that factor alone would not be taxed on the Hong Kong company in Singapore. The Double Taxation Agreement with other countries applies only to income taxes, namely income tax, corporate tax and mineral oil tax. VAT, the specific business tax and others are excluded. Double taxation occurs when the same reported income is taxed by two or more different legal regimes. This can occur when an individual or business is established or operates in more than one country and is mitigated by double taxation agreements between countries. As a result, income is taxed only once. Inheritance Tax As mentioned in Chapter 15 Other taxes, Thailand came into force for the first time on February 1, 2016, inheritance tax. Thailand`s double taxation agreements do not deal with or mention inheritance tax. Therefore, the question arises as to whether inheritance tax is paid under Thai tax law and whether the deceased`s estate is charged in another country subject to inheritance and estate tax, or vice versa, whether the payment of inheritance tax in the first country is charged on the IHT bill in the second country. Thailand first introduced a double taxation convention in 1963 (with Sweden) and has since significantly increased the list. There are currently 55 countries that have a mutual double taxation agreement with Thailand: examples of benefits under certain tax treaties The following examples relate to benefits available under the various tax treaties when income is generated in a country but is fully or partially tax-exempt in the country where it occurs. The Double Taxation Convention applies to both individuals and corporations residing in the contracting states.
To be entitled to contractual benefits, the person must be: Similarly, a person from a non-taxed country would be taxed on all income generated by his work in Thailand, even if the income was paid abroad and held abroad. Athletes and artists who are supported by a public body These individuals are generally exempt from taxation in the country where they perform if their income comes from a public institution in their home country. In other cases, the rules for athletes and artists are the opposite of the rule applicable to other temporary workers. Athletes and artists are taxed in the country where they work, even temporarily, regardless of where they are paid, provided they are paid by private sources.
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