Thailand Law Library

by Thailand Lawyer

This Act shall be called the “Revenue Code”.

In this Revenue Code, unless the context otherwise requires:

• “Minister” means the Minister in charge of the enforcement of this Revenue Code;
• “Director-General” means the Director-General of the Revenue Department or his authorized representative;
• “Provincial Governor” shall include the Governor of Bangkok Metropolitan;
• “Amphur” means Chief of Amphur (District), Chief of Area Revenue Branch Office (Sub-district);
• “Chief of Amphur” shall include Chief of Khet (District) and Deputy Chief of Amphur who is also Chief of King-Amphur (Sub-district);
• “Amphur Office” shall include Khet office (District) and King-Amphur office (Sub-district);
• “State enterprise" means enterprise under the law concerning the setting up of state enterprise, enterprise under the specific state enterprise law, or business enterprise owned by the government which is not a juristic person;
• “Thailand or Kingdom” shall include territorial waters which according to the international law and Conventions with other countries are designated to Thailand.

For taxes collectible under this Revenue Code, a Royal Decree may be issued for the following purposes:

1. to reduce or exempt tax as suitable to circumstances, nature of business, or local condition;
2. to exempt tax to persons or international organizations under the commitment between Thailand and United Nations, under international laws, under Conventions, or under reciprocal basis;
3. to exempt tax to government, state enterprise, Tessaban (municipal), Sukapiban (municipal), religious body or public charitable organization;

The reduction or exemption under (1), (2) and (3) may be amended or revoked by issuing a Royal Decree.

If the following official considers that an accused shall not be imprisoned or prosecuted, he shall be empowered to impose fine in the following offenses, except those under Section 13.

1. Offense subject to fine only, or fine or imprisonment not exceeding six months, or both with an imprisonment not exceeding six month, occurred in Bangkok Metropolitan area shall be within the power of the Director-General. If it occurs in other provinces, it shall be within the power of the Provincial Governor.
2. Offense subject to fine or imprisonment exceeding six months but not exceeding one year or both with an imprisonment exceeding six months but not exceeding one year, shall be within the power of a Committee comprising the Director-General, the Director-General of department of Local Administration, and the Commissioner General of the Royal Thai Police or his authorized representative.

If an accused pays the fine in full within the time given, it shall be deemed that he shall not be further prosecuted for that case.

If the empowered person under paragraph 1 considers not to exercise such power, or the accused does not comply with the order to pay fine, or the accused agrees to pay fine but does not do so within the time given, the accused shall be further prosecuted. In this case he shall not be allowed to pay fine in accordance with other laws.

Any person liable to surcharge in accordance with the Revenue Code, agrees and pays such surcharge in accordance with a Ministerial Regulation, it shall be deemed that such person is no longer liable to pay such surcharge.

In the case where the provisions of the Revenue Code prescribes that a person shall pay tax at an Amphur office, the Minister may publish in the Government Gazette provisions to pay tax at another place. In such a case, the tax payment is deemed to be complete upon the receipt of the tax receipt signed by the Head of such office.

In the case where there is to believe that there is tax evasion, the Director-General shall have the power to enter or issue a written order to Revenue officials to enter any places or vehicles in order to search, seizure or attach books of account, documents or other evidences related or believed to be related to tax evasion, throughout Thailand.

In any other province apart from Bangkok, the Provincial Governor or Chief of Regional Revenue Office shall have the power of the Director-General as prescribed under paragraph 1 in that province or region.

In exercising the power under paragraph 1 and 2, it shall be done during the hours between sunrise and sunset, or during business hours of an entrepreneur.

If books of account, documents and other evidences related or presumed to be related to tax payable are in foreign languages, an assessment official or official may order a responsible person to translate them into Thai language within a reasonable period of time.

For the purpose of collecting taxes in accordance with the Revenue Code, the accounts examination and certification shall be done only by person who has obtained a license from the Director-General.

A person who wishes to apply for the license mentioned in paragraph 1 shall possess the qualification and comply with the regulations prescribed by the Director-General with the approval of the Minister.

If a person obtained such license violates the regulations as prescribed by the Director- General, the Director-General may terminate such license.

The provisions of this Section may be in force in any province as the Director-General shall announce with an approval of the Minister.

The announcement shall be published in the Government Gazette.

With regard to deadline for filing tax returns or other items, for appeal or for paying taxes as prescribed in the Revenue Code, if the liable person is not in Thailand or due to a cause of necessity fails to act within the deadline, it may be extended or postponed as necessary where the Director-General deems appropriate.

A deadline prescribed in the Revenue Code may be extended or postponed as necessary, where the Minister deems appropriate.

Any person intentionally does not accommodate or obstruct officials exercising his powers in accordance with Section 3 Quinque shall be liable to fine not exceeding 5,000 Baht or an imprisonment not exceeding 1 month, or both.

Any person not complying with orders of an assessment official or official in accordance with Section 3 Sex shall be liable to fine not exceeding 5,000 Baht.

For the purpose of collecting taxes in accordance with the Revenue Code, the Director-General shall have the power to prescribe that taxpayers and the payer of income shall obtain and use Tax Identification Number in complying with the Revenue Code in accordance with rules and procedures prescribed by the Director-General with the Minister’s approval.

The prescription under paragraph 1 shall be published in the Royal Gazette (see note below).

Re: Stipulating Requirement for Persons Having Duty to Pay Personal Income Tax, Companies or Juristic Partnerships, and Income Payers Having Duty to Withhold Tax at Source to Have and Use Identification Number in the Compliance with the Revenue Code.

A person violating or failing to complying with the Director-General’s announcement issued under Section 3 undecim shall be subject to fine not exceeding 2,000 Baht.

For the purpose of tax collection, a Director-General shall be empowered to order the payer of assessable income under Section 40, who does not have to withhold tax under Title 2, to withhold tax at source in accordance with rules, conditions and procedures prescribed by the Ministerial Regulations. For this purpose, Section 52, Section 53, Section 54, Section 55, Section 58, Section 59, Section 60 and Section 63 shall apply.

In the case where withholding tax is required by the Revenue Code, a person required to withhold tax shall withhold tax at source and remit to the Revenue Department whether or not the payment of assessable income is made by Court order, laws or any other reasons.

The Minister of Finance shall be in charge of the enforcement this Revenue Code and have the power to appoint an assessment official or official by publishing in the Royal Gazette, and shall issue Ministerial Regulations;

1. to use or abolish stamps with the prescription to replace such stamps within reasonable period of time and under the conditions with minimum of 60 days notice
2. to prescribe other activities to comply with the Revenue Code.

Ministerial regulations shall be effective after being published in the Government Gazette.

A foreigner departing Thailand shall pay tax due and/or tax payable even if it is not due, or to arrange for a collateral for payment of tax in accordance with the provisions of the Revenue Code before departure.

A foreigner departing Thailand shall apply for a Tax Clearance Certificate in the form prescribed by the Director-General within fifteen days prior to departure, whether or not there is any tax payable.

An application under paragraph 1, where the foreigner is domiciled or resides in Bangkok or Thonburi province, shall be submitted to the Director-General or his authorized representative. If he is domiciled or resides in other province, it shall be submitted to the Provincial Governor or his authorized representative.

A foreigner who does not apply for Tax Clearance Certificate under paragraph 1 and 2, or does apply but has not received a Tax Clearance Certificate, departs Thailand or attempts to depart Thailand, he will not only be subject to punishment under the provisions of the Revenue Code, but also surcharge of 20 percent of tax payable. Surcharge under this Section is deemed to be tax.

Provisions of Section 4 Bis and Section 4 Ter shall not apply to a foreigner transiting Thailand, or entering and residing in Thailand for a period or periods aggregating not more than ninety days in a tax year without earning assessable income, or to a foreigner as prescribed by the Director-General with the Minister’s approval.

A person receiving an application under Section 4 Ter shall examine whether the applicant has any tax liability under Section 4 Bis or not. If there is no tax liability, a Tax Clearance certificate prescribed by the Director-General shall be issued to the applicant.

If the examination under the provision of paragraph 1 appears that the applicant has tax liability to be paid under Section 4 Bis and the applicant has fully paid tax, or if he does not pay tax in full or pays part of the tax but arranges for a guarantor or a collateral as the Director-General or a Provincial governor or his authorized representative deems appropriate as a collateral for tax payment, he shall be issued a Tax Clearance certificate by the Director-General or a Provincial Governor or his authorized representative.

In the case where a person receiving an application under Section 4 Ter considers that an applicant has sufficient reason to leave Thailand urgently but temporarily, and an applicant has a collateral or assets in Thailand worth more than the amount of tax due or tax payable, the Director-General or Provincial Governor or an authorized representative shall issue a Tax Clearance certificate.

Subject to Section 4 Octo, a Tax Clearance Certificate is valid for fifteen days from the date of issuance. If there is a request for extension before it expires, the Director-General or Provincial Governor or his authorized representative may extend it for another fifteen days.

A foreigner who has to enter Thailand on a regular basis in relation to his occupation or profession may apply to the Director-General or Provincial Governor or his authorized representative as the case may be, to issue a Tax Clearance Certificate which is used regularly. If a person receiving the application considers that the applicant has a necessary cause as requested and has a collateral or assets in Thailand in the amount at least equal to tax due or tax payable, may issue a Tax Clearance Certificate in the form prescribed by the Director-General. Such Tax Clearance Certificate shall be valid during the time specified in such Certificate but shall not exceed one hundred and eighty days from the date of issuance.

A foreigner departs Thailand without Tax Clearance Certificate as required by the Revenue Code shall be subject to a fine not exceeding 1,000 Baht, or an imprisonment not exceeding 1 month, or both.

A foreigner attempts to do as such shall be subject to the same punishment.

The Director-General or an authorized representative shall pay interest to a taxpayer receiving tax refund at the rate of 1 percent per month or part of the month of the amount of tax refundable according to the rules and conditions prescribed by the Ministerial regulations.

Interest paid under paragraph 1 shall not exceed the amount of tax refundable and shall be paid out of tax collected under the Revenue Code.